Contract between Koltiva and Huy Anh Rubber.
Huy Anh Rubber Co., Ltd. partners with KOLTIVA to ensure compliance with the European Union Deforestation Regulation (EUDR), paving the way for sustainable rubber production in Vietnam, transparent supply chain practices, and ensuring their products meet the stringent international standard.
KOLTIVA, a global agriculture and supply chain traceability company, draws on over 11 years of expertise supporting over 10,800 businesses across 61 countries, leverages its traceability platform, KoltiTrace MIS to collect and manage data from Huy Anh’s rubber plantations in Vietnam, Laos and more countries where Huy Anh operates in the future. Additionally, the company provides on-ground support and training to ensure effective data collection by Huy Anh’s field agents.
KoltiTrace MIS allows Huy Anh Rubber to assess their EUDR compliance according to a high standard as the methodology is accepted by many major tire manufacturers, hence enhancing the company’s marketability within the European Union, aligning with the increasing demand for sustainable materials.
Background
In 07 August, 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 it’s 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.
Introduction
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.
Training and Monitoring
In a significant move, Huy Anh has enlisted the expertise of KOLTIVA to achieve EUDR compliance. KOLTIVA’s innovative supply chain trace ability 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 products aren’t only sustainable but also free from deforestation—a key requirement of the EUDR.
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 small holders 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 towards a more sustainable future.
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About Koltiva
Offering human-centered technology and boots-on-the-ground solutions that digitize agribusinesses and help smallholder producers transition to sustainable practices and traceable sourcing, KOLTIVA is recognized as the leading global sustainable agriculture and supply chain trace ability startup. As a global technology provider, it constructs ethical, transparent and sustainable supply chains, assisting enterprises in fortifying their resilience and transparency. The company helps businesses, and their suppliers comply with ever-changing regulations and consumer demands worldwide with traceability solutions. Operating in more than 61 countries and fortified by a network of customer support offices in 16 countries, KOLTIVA is committed in supporting over 10,800 enterprises in establishing transparent and robust supply chains while empowering over 1,400,000 producers to increase their annual income. www.koltiva.com.
About Huy Anh
Huy Anh Rubber Co., Ltd., established in 2014 in Thua Thien Hue, Vietnam, proudly stands as a leading entity in the natural rubber processing industry. With significant investment and a sustainable development strategy, the company has continuously expanded it’s operations, with headquarters and a production plant located in Thua Thien Hue, alongside three additional processing facilities in Quang Tri and Laos. The company specializes in delivering high-quality rubber products such as SVR10/TSR10, TSR20, SVR3L, SVRCV60, Masticated Rubber, and Compound Rubber, which are exported to demanding markets including India, Taiwan, Germany, South Korea, Spain, Switzerland and America. It’s commitment to provide the partners with internationally certified natural rubber products, ensuring maximum satisfaction and long-term collaboration.
