More than 400 Vietnamese coffee enterprises and cooperatives will receive support to improve sustainable business practices, strengthen supply chain transparency, and meet international market requirements through the EU-funded SustainCoffee project, launched in Đắk Lắk on 6 November.
Funded by the European Union under its Global Gateway initiative, the project is implemented by CARE International in Viet Nam in collaboration with local partners. Running from December 2025 to May 2029 in Đắk Lắk and Sơn La provinces, it is expected to indirectly benefit approximately 1.4 million coffee farmers and supply chain workers.
The initiative comes as Việt Nam’s coffee industry faces increasing pressure to meet international environmental, social, and governance (ESG) standards, particularly in the European Union, a major export market.
New research highlights gaps in sustainability readiness
Findings from a baseline desk review conducted by MCG Management Consulting Group for SustainCoffee highlight significant gaps in the sector’s readiness to meet evolving market requirements.
According to findings cited in the review, 84% of surveyed coffee cooperatives and micro, small and medium enterprises have adopted environmental and social sustainability measures, but only 44% engage in formal governance practices. None of the surveyed businesses had published sustainability reports, while just 1% had accessed green credit.
The review also estimates that only around 30% of Việt Nam’s coffee production in 2025 was covered by certified or traceable supply chains with geolocation data, pointing to challenges in meeting international traceability requirements.
Turning sustainability commitments into action
SustainCoffee aims to bridge these gaps by helping coffee businesses translate ESG standards into practical improvements. The project will provide tailored assessment tools, technical training, mentoring and financial support for enterprises and cooperatives to strengthen governance, improve traceability and invest in sustainable business practices.
It will also work with industry associations and local authorities to strengthen ESG advisory services, promote access to green finance and support public-private policy dialogue.
At the launch event, representatives from the European Union, provincial authorities, industry associations, businesses and development organisations discussed practical approaches to ESG implementation and opportunities for collaboration. By strengthening the capacity of local businesses and connecting them with sustainable market opportunities, SustainCoffee aims to contribute to a more competitive, resilient and inclusive coffee industry in Việt Nam.
About SustainCoffee: The project is funded by the European Union under its Global Gateway initiative and implemented by CARE International in Viet Nam with local partners. For more information, visit www.care.org.vn.
Please refer to the full press release here.
Photos: Nguyen Quoc Hieu / CARE