Expanding your sourcing operations to Vietnam offers numerous advantages, from cost-effective production top access to a skilled and experienced workforce, with expertise in sectors like textiles, furniture, rubber, coffee, and other agricultural commodities.
Vietnam’s position as a rapidly growing manufacturing hub in Southeast Asia also provides strategic proximity to other regional suppliers, offering flexibility for companies pursuing a China +1 strategy to diversify their supply chains.
However, with the European Union’s Deforestation Regulation (EUDR) coming into effect, it is imperative for businesses to understand compliance requirements, risk management, and traceability obligations before engaging suppliers.
Vietnam’s supply chains are often complex, involving smallholder farmers and multiple layers of processing, which can make data collection and verification challenging.
This is why partnering with reliable local sourcing agencies or consultants becomes essential, not only to identify compliant suppliers but also to ensure audits, geolocation tracking, and documentation align with EU standards.
For European companies, understanding Vietnam’s regulatory environment, logistical landscape, and sourcing ecosystem is critical to mitigate risks, maintain market access, and capitalize on the cost, quality, and sustainability benefits the country offers.
Understanding the EUDR and Its Implications
The European Union Deforestation Regulation (EUDR) is a major piece of legislation aimed at prohibiting the entry of certain agricultural products and derivatives into the EU if they are linked to deforestation or forest degradation occurring after December 31, 2020.
The regulation, effective from December 30, 2024, for large companies and June 30, 2025, for SMEs, replaces the EU Timber Regulation (EUTR) and is part of the European Green Deal, which seeks to reduce Europe’s environmental footprint and promote sustainable supply chains.
Products Covered
The EUDR applies to the following commodities:
Palm oil
Cocoa
Coffee
Rubber
Soy
Wood and wood-derived products (paper, furniture, etc.)
Derivative products such as leather, chocolate, tires, etc.
Compliance Requirements
To comply with the EUDR, companies must:
Conduct risk assessments: Identify deforestation risks associated with each product and its supply chain.
Provide geolocation data: Supply GPS coordinates of production areas to prove that production did not occur on land deforested after December 31, 2020.
Ensure legal compliance: Verify that land use complies with the laws of the country of production.
Maintain due diligence statements: Submit declarations confirming that products meet EUDR requirements, along with evidence of sustainable sourcing practices.
Challenges for International Suppliers
For European companies, EUDR compliance presents several challenges:
Lack of digital infrastructure: Many small producers lack access to digital tools, making it difficult to collect and verify the required data.
Dependence on Chinese inputs: Although Vietnam offers competitive costs, many components still come from China, which can complicate traceability and compliance.
Increased costs: Implementing traceability systems, training producers, and conducting audits increase operational expenses.
Complex supply chains: Vietnamese supply chains are often fragmented, involving numerous small producers, making effective traceability challenging.
For European companies, complying with the EU Deforestation Regulation (EUDR) is essential but challenging. Developing a traceable and legally compliant supply chain requires both preparation and proactive management.
EUDR compliance is achievable with the right strategy, investing in traceability systems, working with reliable sourcing partners, and engaging closely with producers. This approach not only ensures market access but also promotes sustainable and responsible sourcing practices.
The Role of Reliable Sourcing Partners
In this context, local sourcing agencies play a critical role. They can:
Facilitate data collection: Help gather GPS coordinates and legal documentation of production sites.
Train producers: Provide guidance on EUDR requirements and compliance processes.
Ensure compliance: Conduct regular audits to verify that producer practices meet EUDR standards.
Simplify communication: Act as a bridge between Vietnamese producers and European companies, helping both sides understand requirements and expectations.
EUDR compliance is now essential for accessing the European market. For European companies sourcing from Vietnam, partnering with competent and experienced local agencies is crucial. These partners can help navigate compliance challenges, implement effective traceability systems, and ensure that products meet EU standards, securing continued access to the European market.
Top 7 Vietnam Sourcing Agencies with EUDR-Ready Capabilities
The agencies listed below are frequently cited when companies look for sourcing and contract manufacturing partners in Vietnam and Southeast Asia with a strong ability to address EUDR (EU Deforestation Regulation) requirements.
This selection is based on cross-checking public case studies, client feedback, industry references, and the agencies’ demonstrated ability to integrate regulatory compliance, traceability, and supplier audits into real sourcing operations.
What differentiates these actors is not only their sourcing reach, but their capacity to embed EUDR checks directly into supplier scouting, factory audits, and ongoing production monitoring, rather than treating compliance as a purely administrative task.
1. Sourcing Agent Vietnam
SourcingAgentVietnam.com is widely recognized for its strong on-the-ground presence in Vietnam and its pragmatic approach to supplier verification.
The agency is often involved early in factory scouting, short-listing, and audit phases, which makes it well positioned to identify EUDR risks at source.
For products affected by EUDR, Sourcing Agent Vietnam verifies raw material origins, reviews supplier documentation practices, and confirms whether factories are already working under EU compliance constraints.
Its local proximity allows Sourcing Agent Vietnam to check that what is declared on paper aligns with actual sourcing practices at factory and sub-supplier level.
2. MoveToAsia
MoveToAsia combines sourcing execution with structured project management, making it a frequent choice for European companies that need both operational support and regulatory reassurance.
In EUDR-sensitive supply chains, MoveToAsia integrates compliance criteria during supplier selection and factory audits. This includes reviewing material traceability, existing certifications, supplier awareness of EUDR obligations, and the ability to provide supporting evidence such as legal harvesting documents or chain-of-custody records. MoveToAsia’s reporting structure helps buyers consolidate EUDR-related data throughout the sourcing lifecycle.
3. Vietnam Sourcing Team
Vietnam Sourcing Team is known for long-term supplier follow-up and ongoing production support rather than one-off sourcing projects.
This continuity is particularly relevant for EUDR compliance, which requires consistent documentation over time, not just initial approval.
The team supports EUDR alignment by embedding traceability and compliance checks into routine inspections, supplier reviews, and production monitoring. This approach reduces the risk of compliance gaps when volumes scale up, materials change, or new sub-suppliers are introduced.
4. Sourcing Notes
Sourcing Notes adopts a broader ASEAN-level perspective, helping companies benchmark suppliers across Vietnam and neighboring countries. Its strength lies in risk analysis and structured due diligence.
From an EUDR standpoint, Sourcing Notes assists companies in identifying which products, materials, and sourcing routes carry higher deforestation-related risk, and then adapts supplier selection and audit criteria accordingly.
This makes the agency particularly relevant for companies redesigning supply chains to meet EU regulatory expectations rather than retrofitting compliance afterward.
5. FVSource
FVSource positions itself at the intersection of sourcing consultancy and operational execution, with strong experience supporting large SMEs and industrial groups.
EUDR considerations are typically addressed at an early, strategic level. FVSource integrates traceability and regulatory criteria into supplier mapping, factory audits, and sourcing strategies across Vietnam and wider Asia.
This includes assessing supplier readiness to provide geolocation data, proof of legal origin, and auditable documentation required under EUDR. The agency’s structured methodologies make it suitable for companies with complex, multi-country supply chains.
6. Deloitte
Deloitte is generally engaged by multinational companies that require formal governance, compliance frameworks, and audit-ready processes.
In the context of EUDR, Deloitte supports companies by designing and implementing end-to-end due-diligence systems. This includes supplier risk classification, documentation standards, internal controls, audit trails, and alignment between procurement, sustainability, and legal teams. Deloitte is often combined with local sourcing operators to ensure that EUDR compliance is both operationally verified and defensible at regulatory level.
7. KPMG
KPMG is another key player for organizations that need to structure sourcing and procurement within a robust risk and compliance framework.
For EUDR-related sourcing, KPMG focuses on building supplier assessment models, compliance workflows, and performance indicators that ensure traceability and regulatory alignment.
While less involved in daily factory operations, KPMG plays a critical role in ensuring that sourcing decisions, audit methodologies, and supplier data management meet EU expectations and can withstand external audits.
Why these seven agencies stand out for EUDR-sensitive sourcing
These agencies were selected because they go beyond basic supplier matching. Each demonstrates the ability to connect regulatory requirements with real factory-level practices.
EUDR compliance requires supplier education, traceability verification, disciplined audits, and continuous monitoring.
Whether through local inspections (Sourcing Agent Vietnam, MoveToAsia, Vietnam Sourcing Team), structured regional due diligence (Sourcing Notes, FVSource), or formal compliance frameworks (Deloitte, KPMG), these actors are capable of ensuring that EUDR obligations are addressed during scouting, audits, and production, not after problems arise.
New challenges brought by the EUDR in Vietnam
Vietnam offers significant opportunities for international sourcing, but companies aiming to comply with the European Union Deforestation Regulation (EUDR) face several unique challenges due to the structure and characteristics of the country’s supply chains.
Fragmented Supply Chains
In sectors such as rubber, coffee, cocoa, and timber, supply chains are often highly fragmented.
Many smallholder farmers, local workshops, and subcontractors contribute to the production process, making it difficult to trace the origin of every component or raw material.
Unlike industrialized supply chains, where tracking and reporting are more standardized, Vietnamese supply chains require layered oversight and continuous monitoring to ensure compliance.
Limited Digital Infrastructure
A major challenge is the lack of digital tools among small producers. Many farmers and small-scale processors do not use digital record-keeping systems, relying instead on paper-based logs or informal tracking.
This makes it difficult to collect, verify, and store geolocation data, harvest dates, and land-use documentation, all of which are required under the EUDR. Companies must consider investing in digital solutions, such as mobile apps or cloud-based platforms, and provide training to producers to bridge this technological gap.
Reliance on Paper-Based Documentation
Even larger exporters in Vietnam often maintain paper-based documentation systems, which can be inconsistent or incomplete. This complicates compliance with the EUDR, which emphasizes digital traceability, auditable records, and verifiable data. Converting these processes to digital formats requires additional time, investment, and careful auditing.
Complexity of Verifying Legal Compliance
EUDR compliance requires companies to demonstrate that products are not linked to deforestation and that land use adheres to local laws.
In Vietnam, the legal framework can be complex, with overlapping jurisdictions and varying interpretations of land rights. Companies sourcing from Vietnam must work with local experts or legal consultants to ensure accurate verification of land titles, land-use practices, and regulatory compliance.
Dependence on Intermediaries
Many international buyers rely on local sourcing agencies or intermediaries to navigate the Vietnamese supply chain. While these partners are essential for auditing, data collection, and communication, relying on intermediaries introduces potential risks if they lack sufficient expertise or fail to maintain consistent oversight. Selecting a trusted, experienced sourcing partner is therefore critical for maintaining compliance and minimizing risk.
A Positive Perspective: Vietnam’s Forest Context
It is important to nuance these challenges: unlike some major commodity-producing countries, Vietnam’s forests are not a primary source of deforestation for the commodities covered by the EUDR. This means that, in practice, the risk of sourcing products directly linked to deforestation is lower than in regions like Brazil or Indonesia. While compliance still requires traceability and audits, the environmental risk associated with Vietnamese supply chains is relatively moderate, which can be considered a positive factor for European companies.
Companies can turn these challenges into an opportunity to implement robust traceability systems and build strong relationships with local producers. Moreover, the lower deforestation risk in Vietnam provides a reassuring context for European buyers, making the country a viable and increasingly attractive sourcing destination. Partnering with reliable local sourcing agencies remains key to navigating these challenges efficiently and ensuring full EUDR compliance.
How to Prepare for EUDR Compliance
Meeting EUDR requirements is not just a matter of documentation, it’s about building a transparent and verifiable supply chain. European companies can take several key steps to prepare effectively and minimize risk.
1. Map your supply chain early.
Identify all suppliers and production sites connected to your products, including raw-material sources. Understanding where each input comes from is the foundation of compliance and allows you to detect potential risk areas.
2. Strengthen traceability systems.
Implement digital tools capable of collecting and storing geolocation data, proof of land-use, and supplier certifications. Platforms that combine blockchain or cloud-based traceability can streamline this process and ensure data integrity.
3. Collaborate closely with suppliers.
Compliance will only succeed if local producers and manufacturers are actively involved. Provide training, clear guidelines, and ongoing communication to help them understand and meet EUDR requirements.
4. Conduct regular audits and risk assessments.
Independent audits remain one of the most reliable ways to verify that no deforestation-linked materials enter your supply chain. Partnering with on-the-ground auditing teams in key sourcing countries ensures both transparency and practicality.
5. Work with trusted sourcing partners.
Specialized sourcing agencies or local partners can bridge regulatory, cultural, and technical gaps. In countries such as Vietnam, Thailand, or Indonesia, these partners play a crucial role in verifying suppliers, conducting due diligence, and aligning local practices with EU sustainability standards.
6. Treat compliance as a long-term investment.
While EUDR compliance may increase short-term costs, it enhances resilience, brand reputation, and access to the European market in the long run. Early adopters will likely gain a competitive advantage as sustainability regulations tighten globally.
The Future of Sustainable Sourcing Under EUDR
As EUDR enforcement approaches, European companies face both challenges and opportunities. Those who invest early in traceability, local partnerships, and transparent sourcing models will not only ensure compliance but also strengthen their global competitiveness.
In this new regulatory context, Vietnam stands out as a particularly strategic sourcing destination. Unlike other regions affected by large-scale deforestation, Vietnam’s forestry management practices and growing focus on sustainability align well with EUDR expectations. The country’s manufacturers are increasingly adopting certified sourcing (such as FSC timber and sustainable rubber), making it a lower-risk partner for European importers seeking both quality and compliance.
Moreover, Vietnam’s expanding network of export-ready factories and experienced sourcing agencies provides a solid bridge between European standards and local production realities. By working with trusted partners capable of auditing suppliers and verifying traceability, companies can turn compliance into a competitive advantage.
Ultimately, EUDR is more than a legal requirement, it represents a shift toward a more responsible and data-driven approach to international trade. Businesses that embrace this change, especially through partnerships in forward-looking markets like Vietnam, will be best positioned to build resilient, transparent, and sustainable global supply chains.