Vietnam Rubber Company Huy Anh Rubber Co., Ltd. Appoints KOLTIVA to Achieve EUDR Compliance, Fortify its EU Market Presence

Hồ Chí Minh, September 12, 2024 – Huy Anh Rubber Co., Ltd., a prominent player in Vietnam’s rubber sector, has taken a significant step toward sustainability by partnering with KOLTIVA, a leading sustainable agriculture and supply chain traceability company. This collaboration aims to ensuring full compliance with the European Union Deforestation Regulation (EUDR),  a critical regulation that raises the bar for sustainable practices by mandating zero deforestation in the production of EUDR-related commodities. As Vietnam continues to assert its leadership in the global rubber industry, the EUDR inspires companies like Huy Anh Rubber Co., Ltd. to embrace enhanced compliance measures, highlighting the nation's broader commitment to environmental stewardship and sustainable development.

The production of natural rubber in Vietnam has experienced considerable growth since 1961. With its expansive rubber plantations, Vietnam is the third-largest rubber exporter in the world, contributing approximately 8.7% of global rubber production (The Investor Vietnam, 2023). In 2021, Vietnam’s rubber production reached an impressive 1.3 million metric tons, with the tire industry consuming a substantial 70% of this output (Statista, 2024). The nation’s rubber is not only a critical component in tires but also finds applications in various sectors, from automobile parts to medical equipment. With its substantial production, Vietnam’s rubber sector is keen to maintain market access to the EU by adhering to the EUDR requirements, prompting the businesses to follow suit.

Huy Anh Rubber Co., Ltd., established in 2014 and headquartered in Thua Thien Hue, Vietnam, operates three processing plants—two in Vietnam and one in Laos—where it produces high-quality natural rubber products such as SVR10/TSR10, TSR20, RSS3, SVR3L, SVRCV60, Masticated Rubber, and Compound Rubber. With the demand for sustainable rubber products grows, Huy Anh is significantly expanding its cultivation area, with projections to increase from 3,000 hectares in 2024 to 15,000 hectares by 2025. Given the vast yet fragmented nature of its small-scale cultivation areas, it is crucial for Huy Anh to develop a comprehensive traceable supply chain that links its factory, suppliers, and producers.

In a significant move, Huy Anh has enlisted the expertise of KOLTIVA to achieve EUDR compliance. KOLTIVA’s innovative supply chain traceability and EUDR solutions are designed to help companies navigate the complexities of the regulation. Through this collaboration, Huy Anh aims to enhance its supply chain transparency, ensuring that its products are not only sustainable but also free from deforestation—a key requirement of the EUDR.

Le Thi Hong Mai, Deputy Director of Huy Anh Rubber Co., Ltd. shared their perspective on the collaboration, “Our partnership with KOLTIVA marks a pivotal moment in our journey towards sustainability. The EUDR sets a high bar for environmental responsibility, and with KOLTIVA’s expertise, we are confident in our ability to meet these standards. This collaboration not only strengthens Huy Anh’s position in the global market but also reinforces our commitment to responsible business practices.”

The KoltiTrace MIS platform, developed by KOLTIVA, will play a crucial role by offering comprehensive supply chain mapping and risk assessment capabilities to ensure full compliance with regulatory requirements. It simplifies the process of documenting connections in Huy Anh’s supply chain.

As part of the process to map producers and farms, KOLTIVA trains Huy Anh's field agents who work closely with processors and suppliers to map approximately 10,000 smallholders within the processors' supply chains using the KoltiTrace MIS mobile application. These field agents then conduct comprehensive farm and risk assessments for each producer, ensuring a thorough understanding of the associated risks within the agricultural landscape through the application. The KoltiTrace MIS supports traceable transaction data from plantation to processor, ensuring reproducible data with detailed origin information, including farming data collection, producers' profiles, and verified transactions.

The KoltiTrace MIS also plays a crucial role in deforestation and legality verification, featuring automatic deforestation checks using annually updated Sentinel satellite data and local protected area maps to assess producers' legal compliance. To meet EUDR requirements, KoltiTrace MIS facilitates the automatic generation of Due Diligence Statements, including GeoJSON format polygons and risk assessments, simplifying the process for Huy Anh to complete the data required by their buyers.

Manfred Borer, CEO and Co-Founder of KOLTIVA, emphasized the importance of working together with Huy Anh, stating, “The European Union’s Deforestation Regulation represents a critical step towards global sustainability. We assist Huy Anh, our rubber client in Vietnam, by ensuring that their products comply with the stringent requirements of the EUDR. Through our KoltiTrace MIS platform, we offer them comprehensive supply chain mapping, real-time risk assessment, and deforestation monitoring. This allows for precise tracking from plantation to processor, enhancing transparency helping Huy Anh’s commitment to environmental stewardship and sustainable practices.”

Starting in September 2024, Huy Anh will offer rubber products that comply with the European Union Deforestation Regulation (EUDR), ensuring that its customers in the EU receive products meeting the highest environmental standards. This will ensure that they can provide the best products with enhanced marketability as it opens new opportunities in the EU market, where consumers and businesses are increasingly prioritizing sustainability.

Huy Anh’s commitment to sustainability, supported by KOLTIVA’s holistic solutions, positions the company as a leader in the rubber industry. As Vietnam continues to expand its role in the global rubber market, collaborations like this will be crucial in driving the industry toward a more sustainable future.