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.