The European Union Deforestation Regulation And Implications For Vietnam

What is the EUDR?

The EU's Deforestation Regulation (EUDR),¹ entered into force on 29 June 2023, addresses the deforestation and forest degradation linked to the expansion of agricultural land that is driven by livestock rearing and the production of commodities including cocoa, coffee, oil palm, rubber, soya and wood ('EUDR commodities') and of their derived products, such as leather, chocolate, tyres, or furniture ('EUDR products').²³ The EUDR requires companies trading in these products and their derived products to conduct extensive diligence on the value chain to ensure the goods do not result from deforestation, forest degradation or breaches of local environmental and social laws after 31 December 2020. Following the entry into force of the EUDR, EU operators and traders will have 18 months ('transitional period') to implement the new rules, i.e., until 30 December 2024 (or 30 June 2025 for micro and small enterprises).