1. APT Rubber's Pioneer Position in EUDR Compliance
APT Rubber (An Phu Thinh Kon Tum PST., Ltd) has established itself as one of the leading Vietnamese companies proactively transforming its business model to fully meet the EU Deforestation Regulation (EUDR). This transformation is not only a legal obligation but a strategy to affirm the quality and sustainability of Vietnamese rubber globally.
APT Rubber’s strategy centers on building a robust Farm-to-Factory Traceability system, ensuring that all products exported to the EU meet the stringent requirements for Deforestation-free and Legality.
2. The Three-Pronged Traceability Strategy
To ensure EUDR-Readiness, APT Rubber focuses on three core elements, addressing the complex traceability issues inherent in smallholder rubber sourcing:
Collaboration with Sourcing Areas (Collaboration with rubber plantations and smallholders)
- Supply Shed Identification: Close cooperation with smallholder farmers, co-operatives, and partner plantations to accurately define sourcing area boundaries.
- Ensuring EUDR Criteria: Partnership training and technical support to ensure all harvesting areas comply with the non-deforestation principle after December 31, 2020.
Traceability to Each Plantation Plot (Traceability to each plantation plot)
- GIS/Polygon Mapping: This is the most critical step. APT Rubber has implemented a GPS/Polygon (Geojson) mapping program for every land plot providing raw material. This data is stored and used as legal evidence to prove the production location and the deforestation-free status of the shipment.
- Traceability Database: A digitized database is built to link the final product code with the geographical coordinates (Polygon) of the original land plot.
Traceability to Each Transaction
- Transparent Purchase Records: Implementation of an electronic recording system at purchasing points to accurately log the volume of raw rubber, the purchase date, and the corresponding land plot identifier (Polygon ID) for each transaction.
- DDS Records Management: Maintaining transparent Due Diligence System (DDS) records for every batch, ready for inspection.
3. Due Diligence and Reporting System (DDS/DDR)
The Due Diligence Report (DDR) Process
APT Rubber has established a rigorous internal Due Diligence System (DDS), encompassing the three fundamental steps of EUDR:
- Information Collection: Gathering Polygon data, legal land ownership documents, and lawful harvesting permits.
- Risk Assessment: Analyzing risks related to the geographical area, supplier, and deforestation risk based on satellite imagery analysis.
- Risk Mitigation: Applying mitigation measures such as field audits and requiring partners to provide additional proof if a risk is identified.
The results of this process are summarized in the mandatory Due Diligence Report (DDR), which must be submitted to the EU competent authority before the product is placed on the market.
EUDR Platform in Use (Which platform EUDR in use?)
To manage and report this complex data, APT Rubber utilizes a third-party platform combined with commercial GIS tools and satellite data sources. This approach allows the company to customize the system to best fit the specifics of the Vietnamese rubber supply chain while ensuring data ownership and security.
4. Market and Competitive Advantage
EUDR Transaction Results
As the first company in Vietnam to achieve EUDR readiness, APT Rubber has quickly gained a competitive edge. The company is actively escalating contracts and has begun transacting shipments of EUDR-compliant SVR rubber grades.
- Markets: Primarily EU member states, particularly countries with large tire and rubber processing industries.
- Volume: APT Rubber is working with major partners to ensure stable volumes, leveraging its first-mover advantage to capture market share.
Risk Classification and Vietnamese Rubber
The potential for Vietnam to be classified as a low-risk country is a strategic goal strongly supported by companies like APT Rubber. This classification would allow EU operators to benefit from a simplified due diligence process when importing Vietnamese rubber, providing a significant advantage over competitors from standard or high-risk countries.
Leading Countries in EUDR-Ready Rubber
Currently, pioneer countries and companies in EUDR preparation include:
- Vietnam (APT Rubber, VRG): Leading the way in proving the feasibility of traceability in complex smallholder supply chains.
- Malaysia & Thailand: Large corporations here are also heavily investing in digital tracking systems, particularly in palm oil and rubber sectors.
APT Rubber is positioning Vietnam as one of the most reliable suppliers of sustainable and EUDR-compliant natural rubber.
