EUDR shifts from 'paperwork control' to data-based control
European Union (EU) has just announced the latest update to the Anti-Deforestation Regulation (EUDR) effective May 4, 2026, with a series of notable changes related to product scope, accountability mechanisms and information technology systems.
Notably, while EU continues to emphasize goal of reducing administrative burden on businesses, core requirements for traceability, supply chain transparency and control of deforestation risks are becoming increasingly stringent. This means that Vietnamese businesses will no longer be able to access the EU market using the traditional "bulk purchasing" model as before.
According to the latest update, EUDR simplifies accountability declaration process for micro and small businesses in initial production stage. EU has also expanded scope of applicable products, adding instant coffee and palm oil derivatives – products assessed as posing a risk of deforestation in some regions of the world.
In addition, businesses are allowed to voluntarily form groups in form of cooperatives or industry associations to fulfill their compliance obligations. EUDR information technology system is also being upgraded towards automation, increasing data connectivity and reducing manual data entry.
At EU Regulations Update Conference on Non-Deforestation Products (EUDR), following official announcement of updated regulations on May 4th, Mr. Cyril Loisel, First Secretary of EU Delegation to Vietnam, stated that new changes could help businesses reduce their administrative burden by approximately 75%. In particular, Vietnam's assessment as a country with a low rate of deforestation will create favorable conditions for businesses to implement a simpler accountability mechanism.
However, it is noteworthy that "simplification" does not mean loosening standards. In fact, recently issued third version of the EUDR guidelines continues to tighten requirements for traceability and data transparency. This is the most difficult part for many Vietnamese agricultural export businesses today.
According to regulations, all products exported to the EU must prove that they were not produced on areas where deforestation occurred after December 31, 2020, and are not related to forest degradation. EU requires traceability down to each geographical coordinate (geolocation), meaning each shipment must have its exact source location identified using GPS data, digitized maps and satellite imagery.
This is a landmark change. Previously, businesses primarily relied on paper documents or certifications of growing areas for verification; now, control mechanism has shifted to verification using digital data and satellite technology. In other words, EUDR is transforming traceability from a "recommended" requirement into a mandatory condition for accessing the EU market.
“Low risk” does not mean exemption from liability.
According to Dr. Dao Van Cuong, from Vietnam SPS Office, EUDR regulation will have a profound impact on many key export sectors such as coffee, wood, and rubber. It is considered one of the strictest “green barriers” currently in place for global agricultural trade. Pressure is particularly high on small and medium-sized enterprises, cooperatives, and small-scale farmers – which account for a large proportion of Vietnam's agricultural supply chain.
For many years, Vietnam's agricultural supply chain has operated on a decentralized model, sourcing through multiple intermediaries. However, with the EUDR, this model is revealing clear limitations as the EU requires transparency throughout the entire product journey, from production plot to the processing plant and export.
This significantly increases compliance costs. Businesses are required to invest in traceability systems, GPS data, electronic records, ESG governance and supply chain control. Meanwhile, risk of smallholder farmers being excluded from EU supply chain is real if they do not meet standardized data requirements.
Another noteworthy new point is that EUDR is no longer just about combating deforestation. According to experts, it is becoming the foundation for a new generation of "green barriers" related to carbon, biodiversity, and sustainable development. This shows that international trade standards are changing very rapidly. EU market not only buys products but also evaluates production methods, environmental impacts, and the transparency of the supply chain.
From another perspective, EUDR is also opening up opportunities for restructuring agricultural sector in a more systematic way. Standardizing raw material areas, establishing traceability and digitizing data can help reduce fragmented production, improve product quality, and enhance the reputation of Vietnamese agricultural products in the international market.
In particular, Vietnam's classification as a "low risk" country regarding deforestation is considered a significant competitive advantage, especially given that many other exporting countries face higher levels of regulation. However, Mr. Nguyen Do Anh Tuan, Director of International Cooperation Department (Ministry of Agriculture and Environment), noted that "low risk" does not mean exemption from assessment obligations or transparency standards. Businesses must still fully demonstrate the legal origin of their products and meet all EUDR requirements if they want to maintain access to the EU market.
Given this reality, urgent need is for Vietnam to quickly complete a national database on growing areas, digitize forest maps, and establish a synchronized traceability system. Supporting farmers in digitizing production data, adopting electronic logbooks and connecting to GPS data will become key factors. For businesses, current challenge is no longer simply meeting a single regulation, but restructuring the entire supply chain management model.
In context of green standards increasingly becoming the "passport" to global trade, businesses that proactively digitize, control raw material sources and build transparent supply chains will retain their market share. Conversely, those that are slow to adapt risk being pushed out of high-standard markets. Therefore, EUDR is not just a new technical regulation from the EU. It is a major test of Vietnam's capacity for green transformation, transparency and supply chain management in this new phase.

Source: Vitic/ congthuong.vn