4th DAG-to-DAG meeting under the EU-Viet Nam FTA

Workshop: "EUDR – consequences for SMEs and farmers and how to navigate"

On 20 January 2026, members of the EU and Viet Nam Domestic Advisory Groups (DAGs) met in Brussels for a thematic workshop followed by a full DAG-to-DAG meeting under the Trade and Sustainable Development (TSD) chapter of the EVFTA. Discussions focused on the implementation of key EU regulatory instruments, environmental cooperation, labour standards, and the importance of maintaining high sustainability commitments in bilateral trade relations.

The workshop examined the implications of the EUDR for SMEs, farmers, and exporters. The amended Regulation does not introduce new requirements for Viet Nam but extends compliance deadlines to 30 December 2026 (timber; large and medium operators) and 30 June 2027 (other products; small and micro-operators). Implementation will be supported by Commission guidance, FAQs, and implementing acts.

Core obligations include ensuring that products placed on the EU market are deforestation-free, supported by due diligence systems and traceability to farm level, including geolocation data. Viet Nam’s classification as a low-risk country was welcomed. However, significant challenges were identified, including low awareness among farmers, limited access to mapping technologies, high compliance costs, land documentation gaps, and discrepancies between national forest definitions and the EUDR framework. Participants stressed the importance of technical assistance, digital training, improved land administration, and coordinated stakeholder engagement to avoid disproportionate burdens on smallholders and SMEs.

 DAG-to-DAG Meeting under the EU–Viet Nam Free Trade Agreement (EVFTA)

The meeting addressed the transition of the EU Carbon Border Adjustment Mechanism (CBAM) to its definitive phase in 2026. Vietnamese enterprises face challenges related to technical expertise, monitoring and reporting systems, verification capacity, and financial constraints. Calls were made for clearer guidance, capacity-building initiatives, and enhanced cooperation, including alignment with Viet Nam’s planned domestic carbon market.

On fisheries and aquaculture, continued cooperation under the EU framework on illegal, unreported and unregulated (IUU) fishing was emphasized. Strengthening governance, expanding monitoring systems, addressing enforcement gaps, and improving alignment with EU sustainability and animal welfare standards were identified as priorities. Particular attention was given to the constraints faced by small-scale operators and the need for practical technical support. Concerns regarding child labour in fisheries were also raised.

The implementation and ratification of key ILO conventions—particularly Conventions No. 87, 98, and 155—were discussed. Updates were provided on trade union participation and reforms related to anti-discrimination and collective representation. While progress has been made, further clarity on timelines and implementation remains necessary. Forced labour prevention and occupational safety continue to require sustained attention.

In the textile and garment sector, participants highlighted the role of trade in driving improved labour conditions and sustainability. Ensuring comparable standards, supporting a just transition, and strengthening monitoring of working conditions were identified as ongoing priorities.

Across discussions, participants underlined that maintaining high environmental and labour standards is essential for safeguarding market access and ensuring credible implementation of the TSD chapter. Emerging EU regulatory measures, including forthcoming legislation on forced labour, were recognised as requiring proactive engagement across entire value chains.

The meeting concluded with agreement on a joint statement to be presented at the fifth Joint Forum on Trade and Sustainable Development. Both DAGs reaffirmed the importance of structured dialogue, transparency, and enhanced cooperation to advance sustainable trade under the EVFTA framework.