​Vietnam's cocoa industry revives thanks to EU’s support in applying circular economy

​Vietnam's cocoa industry revives thanks to EU’s support in applying circular economy

Although cocoa trees in Dak Lak and Dak Nong Provinces, located in Vietnam’s Central Highlands, were once cut down due to low productivity and economic efficiency, the sector is now gradually reviving thanks to the efforts of farmers and support from the European Union (EU) in applying the circular economy model.

EU Ambassador to Vietnam Julien Guerrier visits a cocoa farm in Dak Lak Province, located in Vietnam’s Central Highlands. Photo: Thanh Hien / Tuoi Tre

During a visit to farms and cooperatives in the two provinces last week, EU Ambassador to Vietnam Julien Guerrier witnessed the process of planting and harvesting cocoa, tasted fresh cocoa fruits, and listened to local farmers' stories about cocoa cultivation.

Cocoa prices have surged due to climate change impacting supply, making cocoa more economically attractive. The yield and quality of cocoa in Dak Lak and Dak Nong have improved significantly.

After selling fresh cocoa beans at Nhat Tam Cooperative in Ea Kar District, Dak Lak, farmer Nguyen Duc Thanh expressed his excitement as the price increased about four times, from VND20,000–30,000 (US$0.8-1.2) to VND80,000 ($3.1) per kilogram of wet beans.

Nguyen Hong Thuong, director of Nhat Tam Cooperative, said that Ea Kar District currently has 750 hectares of cocoa, which is expected to increase to 11,000 hectares by 2030.

In Dak Nong, Hoang Van Phuc, head of Thien Loc Phat Cooperative, shared that thanks to technical support, cocoa yield has increased to two to three metric tons per hectare, compared to one metric ton per hectare previously, with better quality, which has improved local incomes and living standards.

For long-time cocoa farmers in Dak Nong like 72-year-old Nguyen Kim Dinh, this change is a positive development. Last year, his cocoa income reached VND200 million ($7,797) per hectare, and he is now using a solar-powered irrigation system.

These positive changes are partly due to the support of the EU through the project 'Circular Economy in Cocoa Production: From Cocoa Beans to Chocolate Bars.'

The project, with a budget of 1.9 million euros ($2.1), is funded by the EU under the SWITCH-Asia program to promote sustainable production and consumption models in Asia.

Through Switzerland’s Helvetas development organization and the Community Development Center, the project has provided training in Dak Lak and Dak Nong on circular cocoa farming, processing cocoa by-products into biochar, fertilizers, and animal feed, as well as high qualitycocoa bean fermentation and processing models.

The support of businesses also plays a significant role in promoting sustainable cocoa development. Puratos Grand-Place, an arm of Belgium’s Puratos Group, is not only committed to buying cocoa but also offers rewards to farmers.

Currently, Vietnam’s cocoa output reaches only 3,000 metric tons per year, while Puratos requires up to 10,000 metric tons, indicating the vast potential for expanding cocoa cultivation.

Chocolate manufacturer Marou is also interested in sourcing organic cocoa from Nhat Thong farm in Dak Lak, which has received technical support from the EU for cultivation techniques, establishing nurseries, developing circular farming models, creating organic products that meet international standards.

EU Ambassador to Vietnam Guerrier said he was impressed by how EU support had helped local farmers develop a high-quality, sustainable, and circular cocoa production chain.

Guerrier told Tuoi Tre (Youth) newspaper that Vietnam is leading the way in upgrading production to a circular economy model.

At farms, farmers grow not only cocoa but also many other crops. They make use of cocoa fruit, from beans to pods and other by-products, and use organic fertilizers for crops.

Vietnam is truly leading in this field of circular economy and could become a model for the region and the world, the ambassador affirmed.

He also highlighted the positive impacts of the EU Deforestation Regulation (EUDR), which bans the import of products, such as cocoa, coffee, soybeans, palm oil, wood, beef, rubber, and paper, into Europe if they originate from land that has been deforested or degraded.

The EUDR has pushed local producers to trace the origin of their cocoa to ensure no deforestation occurs. This has also helped increase cocoa prices and enabled farmers to achieve sustainability certifications not only from the EU but also from Japan and other developed markets.

As a result, they can export cocoa at higher prices to leading markets, he said.

The ambassador also praised Vietnam’s proactive approach in preparing for the EUDR. Although the regulation’s enforcement has been postponed for one year due to some countries not being ready, Ambassador Guerrier believes that Vietnam is fully capable of meeting the requirement by December 31, 2025.

Vietnam should use this time to finalize the remaining steps. By then, Vietnamese producers will be able to export their products to Europe, while competitors from other markets may not be prepared, he suggested.

According to data from the International Cocoa Organization (ICCO), global cocoa output in 2024 was over 4.3 million metric tons.

Although Vietnam only accounts for 0.1 percent of the global cocoa output, ICCO listed Vietnamese cocoa beans as one of the best.

Tuoi Tre News