The European Union Deforestation Regulation (EUDR), officially taking effect on December 30, 2024, aims to ensure that products imported into the EU do not contribute to deforestation. For Vietnam’s rubber industry, this presents new challenges in maintaining transparent and sustainable supply chains.
Dong Nai Rubber Corporation (Donaruco) has successfully developed a comprehensive traceability system that meets EUDR standards — ensuring full visibility from plantation to finished products, and readiness for export orders to Europe.
Strict Requirements under the EUDR
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The EUDR covers seven commodities: cocoa, coffee, soy, palm oil, wood, rubber, and cattle — as well as derivative products like tires, furniture, and household goods.
Importers must prove that their goods are deforestation-free, meaning they come from land not subject to deforestation or degradation since December 31, 2020.
Under Article 9 of the EUDR, companies are required to provide:
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Product descriptions (common and scientific names)
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Quantity (in kilograms, volume, or units)
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Harmonized System (HS) code
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Country of production
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Geographical coordinates of all plots where rubber is tapped
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Harvest dates
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Legally verifiable documentation of production
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Evidence of deforestation-free practices
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Proof of compliance with human rights, community engagement, and environmental protection
To comply, businesses must maintain advanced traceability systems, perform risk assessments, and operate risk management and monitoring mechanisms across their entire supply chain.
Building a Digital Traceability System
According to General Director Do Minh Tuan, Dong Nai Rubber Corporation has built a digital traceability infrastructure connecting plantations, factories, and customers.
The system records every stage — from raw latex collection to processing, transportation, and final distribution — through a cloud-based data management platform. It includes:
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ArcGIS Online: for mapping plantation boundaries with geographic coordinates, visualizing product flow, and analyzing deforestation or forest degradation.
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WebApp: for easy data access and integration, automating updates in real time.
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Mobile App: enabling field data collection via QR codes or barcodes, tracking product origin and logistics.
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Cloud Computing: ensuring secure, scalable, and real-time data sharing with stakeholders and consumers.
This end-to-end traceability system not only fulfills EUDR’s transparency standards but also builds global market trust in Donaruco’s sustainable rubber products.
Proactive Measures Toward EUDR Compliance
Donaruco’s self-managed plantations have key advantages:
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Digital maps and GPS coordinates of all farming areas, regularly updated.
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PEFC certification for four plantations and CoC certification for three factories.
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GIS-trained personnel ensuring technical precision.
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Legal land use with no forest degradation since 2020.
To align with EUDR standards, Donaruco is:
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Revising digital maps according to EU requirements.
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Prioritizing raw materials from certified plantations and factories.
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Expanding certified sourcing as market demand grows.
For smallholder rubber suppliers, Donaruco acknowledges both opportunities and challenges. While small farms are easier to digitize and reorganize, many lack digital maps and traceable sourcing, especially through intermediaries. Compliance costs are also a barrier.
To address these issues, Donaruco will:
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Assist smallholders in digitizing land plots and verifying legal ownership.
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Provide non-deforestation assessments and technical support.
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Classify raw materials by legality, traceability, and compliance status.
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Share profit margins with smallholders who meet EUDR requirements.
This collaborative, transparent approach aims to integrate smallholders into Donaruco’s sustainable value chain and promote shared responsibility.
Continuous Adaptation and Monitoring
“While the EU has not yet issued final technical specifications for EUDR compliance,” said Mr. Do Minh Tuan,
“We are closely monitoring developments to continuously update our traceability and evaluation systems to stay fully aligned with EU requirements.”
With this proactive strategy, Dong Nai Rubber Corporation positions itself as a leader in sustainable, transparent, and legally compliant rubber production, paving the way for Vietnam’s rubber industry to strengthen its presence in the European market.