Voluntary Sustainability Standards

     

In many discussions with businesses and farming households, the GEVA project has observed a common reality: the concept of Voluntary Sustainability Standards (VSS) often causes confusion. In theory, VSS are designed as voluntary options that businesses can choose to adopt in order to demonstrate their commitment to sustainable development. However, in practice, VSS are increasingly becoming a “soft barrier” that is almost mandatory for companies wishing to enter high-value export markets. In fact, many countries have begun to formalize parts of VSS into legislation to raise production quality standards and facilitate exports.

This shift stems from changes on multiple fronts—governments, large buyers, and most importantly, consumer behavior. Many countries and economic blocs such as the European Union, the United States, Japan, and Canada have integrated sustainability standards, including VSS, into their trade and public procurement policies (ISEAL, 2023). On the private sector side, multinational corporations use VSS as a “common language” to assess and select suppliers. Therefore, even when regulations do not explicitly require a specific certification, commercial practices effectively make VSS an indispensable condition for trade.

It is important to note that achieving a VSS certification does not guarantee customs clearance. Mandatory technical barriers—such as maximum residue levels (MRL) for pesticides, microbiological tests, heavy metal checks, and food safety standards—still apply. For example, in cases where no specific MRL has been established, the EU default level is just 0.01 mg/kg—a very stringent threshold that forces farmers to change their fertilizer and pesticide practices (European Commission, 2023). In other words, VSS help standardize production processes and enhance credibility, but they do not replace mandatory legal requirements.

At the same time, new layers of requirements are emerging. A prime example is the EU Deforestation Regulation (EUDR), which obliges exporters of coffee, cocoa, wood, rubber, and other commodities to prove that their products are not linked to deforestation after December 31, 2020. This regulation requires precise geographic coordinates of the production area and a traceability system that can distinguish compliant and non-compliant batches (European Commission, 2023). Although the enforcement deadline has been extended until the end of 2025 for medium and large enterprises and until 2026 for small enterprises, the message is clear: no transparent data, no export.

In this context, many businesses have adopted short-term survival strategies—selling fast and cheap rather than investing in small but certified batches. This “survival choice” reflects three underlying factors:

• High conversion costs – including investment in data systems, staff training, and certification fees, which are a major burden for SMEs (Rainforest Alliance, 2024).
• Behavioral inertia – particularly in agriculture, where changing production habits is much harder than changing techniques.
• Short-term cash flow pressure – forcing businesses to prioritize large-volume, low-margin sales to stay afloat rather than investing in new models that take time to mature.

However, this approach cannot build long-term competitiveness. The State of Sustainable Markets report by ITC, FAO, and IISD shows that VSS-compliant agricultural areas and production volumes continue to grow annually across crops such as coffee, cocoa, and rubber (ITC/FAO/IISD, 2023). This means that early adopters are steadily gaining market trust and competitive advantage, while those focusing solely on low-cost, fast exports risk being excluded from high-quality supply chains.

The key to overcoming this challenge lies in a mindset shift. Instead of passively reacting to buyer demands, businesses should proactively embrace ESG (Environmental – Social – Governance) as a core business goal. ESG should not be viewed as a cost but as a foundation for operational efficiency, risk reduction, brand reputation, and investment opportunities (CRIF Digital, 2024; EdenSeven, 2023). Meanwhile, VSS should be regarded as a measurement and roadmap tool—helping businesses understand their current status, identify improvement areas, and transparently demonstrate progress to customers.

Initial actions do not need to be complex. Businesses and farmers can start by:

• Assessing current status: compare technical requirements of target markets with actual production conditions.
• Building a data handbook: record farming logs, maps of production areas, and participant lists.
• Product segregation: minimize mixing risks through batch codes and separate storage.
• Testing micro-lots: apply strict standards to 5–10% of production as pilot certified lots.
• Studying suitable VSS: understand core requirements before registering for certification.

In short, VSS are no longer an optional choice but have become a crucial tool for accessing export markets. At the same time, ESG must serve as an internal foundation. The shift from a “fast-and-cheap” mindset to a “proactive-and-sustainable” strategy is the only viable path for Vietnamese enterprises and farmers to increase product value and seize opportunities in global supply chains.

To assess your readiness for green transformation, you can use the tool developed by KisStartup under the GEVA project:
https://greenexport.vn/vi/bo-cong-cu-do-luong-muc-do-tuan-thu-tieu-chuan...

© Copyright by KisStartup. This content was developed within the framework of the GEVA project – Incubating and Accelerating Green Exports through Voluntary Sustainability Standards (VSS). Any reproduction, quotation, or reuse must cite KisStartup/GEVA as the source.

References
[0] ITC/FAO/IISD (2023). State of Sustainable Markets.
[2] CRIF Digital (2024). Integrating ESG for sustainable business growth.
[4] Social Value Portal (2023). Social Value and ESG: What’s the difference?
[5] EdenSeven (2023). ESG as a bolt-on vs. strategic integration.
[11] European Commission (2023). EU Deforestation Regulation (EUDR).
[13] European Commission (2023). Maximum Residue Levels (MRLs) for pesticides.
Rainforest Alliance (2024). Certification costs and assurance system.