Vietnam coffee firms to get EU-funded support for sustainability

More than 400 Vietnamese coffee businesses and cooperatives are to receive assistance through SustainCoffee, an EU-funded project launched on November 6 to help them meet sustainability standards and make supply chains more transparent.

CARE International in Vietnam and local partners are implementing the programme, financed through the EU’s Global Gateway initiative. Scheduled to run between December 2025 and May 2029 in Dak Lak and Son La provinces, it anticipates indirectly reaching approximately 1.4 million people working in coffee farming and supply chains.

An assessment prepared for SustainCoffee by MCG Management Consulting Group found uneven adoption of sustainability practices. Environmental and social measures were used by 84 per cent of surveyed cooperatives and smaller businesses, but only 44 per cent followed formal governance practices. None had produced a sustainability report; just 1 per cent had accessed green credit.

The review estimated that around 30 per cent of Vietnam’s 2025 coffee output moved through certified or traceable supply chains that included geolocation information. Conventional channels handled the remaining 70 per cent, often with paper documentation.

The EU accounted for 38 per cent of Vietnamese coffee exports in the 2025-2026 crop year. Exporters face requirements under the EU Deforestation Regulation to demonstrate traceability, supply geolocation information and show that production is legal.

SustainCoffee plans to offer tailored assessments, technical instruction, mentoring and financial assistance. It also intends to work with associations and local authorities on sustainability advisory services, green finance access and policy discussions between public and private participants.