EU-backed project to boost Vietnam’s sustainable coffee exports

November 06, 2026 | 16:17

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More than 400 coffee enterprises and cooperatives in Vietnam will receive support to improve sustainability practices, strengthen supply chain transparency, and meet international market requirements under the EU-funded SustainCoffee project, launched on November 6.

Photo: CARE Vietnam

Funded by the European Union under its Global Gateway initiative and implemented by CARE International in Vietnam with local partners, the project will run from December 2025 to May 2029 in Dak Lak and Son La provinces. It aims to directly support more than 400 micro, small, and medium-sized enterprises and cooperatives, with an anticipated indirect reach of approximately 1.4 million coffee farmers and supply chain workers.

The initiative comes as Vietnam’s coffee industry faces increasing pressure to meet environmental, social, and governance (ESG) standards, particularly in the European Union, which accounted for 38 per cent of the country’s coffee exports in the 2025-2026 crop year.

A baseline review conducted by MCG Management Consulting Group for SustainCoffee highlights significant gaps in the sector’s readiness to meet evolving market requirements. While 84 per cent of surveyed coffee cooperatives and micro, small, and medium-sized enterprises had adopted environmental and social sustainability measures, only 44 per cent engaged in formal governance practices. None had published sustainability reports, while just 1 per cent had accessed green credit.

Traceability also remains a challenge. The review estimates that only around 30 per cent of Vietnam’s coffee production in 2025 was covered by certified or traceable supply chains with geolocation data, while the remaining 70 per cent continued to move through conventional channels, often relying on paper-based documentation.

The EU Deforestation Regulation is adding to the pressure on exporters to provide reliable traceability systems, geolocation data, and evidence of legal production.

SustainCoffee aims to help businesses translate ESG requirements into practical improvements through tailored assessment tools, technical training, mentoring, and financial support. It will also work with industry associations and local authorities to strengthen ESG advisory services, boost access to green finance, and support public-private policy dialogue.

Gonzalo Serrano de la Rosa, deputy head of cooperation at the EU Delegation to Vietnam, speaks at the SustainCoffee project launch. Photo: CARE Vietnam

Gonzalo Serrano de la Rosa, deputy head of cooperation at the EU Delegation to Vietnam. Photo: CARE Vietnam

Gonzalo Serrano de la Rosa, deputy head of cooperation at the Delegation of the European Union to Vietnam, said the project would help Vietnamese coffee businesses strengthen their competitiveness and participate more effectively in responsible global value chains.

“Through SustainCoffee, the European Union is supporting Vietnamese coffee enterprises and producers to strengthen their competitiveness, improve transparency, and participate more effectively in responsible global value chains,” he said.

Le Kim Dung, country director of CARE International in Vietnam, said the transition towards sustainable coffee production must be commercially viable and socially inclusive.

“Many small enterprises and cooperatives are already making efforts to improve their practices, but they often lack the tools, resources, and support needed to demonstrate their progress. SustainCoffee is designed to bridge that gap, translating ESG requirements into practical solutions while ensuring that smallholder farmers, women, and workers are not left behind,” she said.

By strengthening business capacity and improving access to sustainable market opportunities, SustainCoffee aims to support a more competitive, resilient, and inclusive coffee industry in Vietnam.