A Passport to Global Value Chains

Advantages Giving Lam Dong Produce a “Passport” to Global Markets

For Lam Dong’s agricultural products—including coffee, vegetables, fruits, flowers, silk and tea—the “passport to global value chains” means adopting ESG practices alongside digital governance and green transformation through digitization.

Sustainable ESG practices have become a new and increasingly stringent set of rules that businesses must follow to enter major, high-potential international markets such as the European Union, the United States, Japan and South Korea. In these markets, commercial contracts are no longer based solely on price, product quality and delivery schedules. Businesses must also meet new “green technical barriers,” including the EU Deforestation Regulation (EUDR), the Carbon Border Adjustment Mechanism (CBAM) and net-zero emissions standards.

As Vietnam’s high-tech agriculture hub, Lam Dong has established a presence in domestic markets and key export destinations, including the EU, the United States, Japan, South Korea and China. Its principal agricultural products include coffee, pepper, macadamia, vegetables, fruits, fresh flowers, dragon fruit, durian, tea and medicinal herbs.

These advantages stem from large-scale production and specialized high-tech farming areas in Da Lat, Lac Duong, Duc Trong, Lam Ha, Di Linh, Dak Mil, Dak Song, Krong No, Ham Thuan, Bac Binh, Tanh Linh and Ham Tan, among others.

Recognized brands, geographical indications and certifications have further reinforced the quality and identity of local products. These include Cau Dat Arabica Coffee, Lam Dong Coffee, Da Lat Vegetables, Da Lat Flowers, B’Lao Tea, Chu Ru Jar Wine, Da Lat Persimmons, Da Lat Strawberries, Lac Duong Laba Bananas, Dak Nong Coffee, Krong No Rice and Binh Thuan Dragon Fruit.

Agricultural producers in Lam Dong have also proactively shifted toward circular and organic farming models and reduced their use of chemical fertilizers to comply with green technical requirements and carbon credit mechanisms. They are working to meet international certification standards such as GlobalGAP, Rainforest Alliance, Fairtrade and UTZ.

To date, Lam Dong has approximately 500 products rated three to five stars under the One Commune One Product (OCOP) program.

Notably, the certification mark “Da Lat – The Crystallization of Good Land” has been registered for protection, helping establish strong brand recognition for four product groups: vegetables, flowers, Arabica coffee and agricultural tourism. The initiative has initially attracted major corporations, domestic supermarket chains and international partners in Japan, South Korea, Singapore and the EU to place direct production orders.

Challenges Holding Lam Dong Produce Back in International Markets

According to the latest statistics cited, Lam Dong has more than 330,000 hectares of coffee plantations, with output exceeding 1 million tonnes. Vegetables and fruits cover more than 75,000 hectares, producing over 2.8 million tonnes annually. Fresh flowers are cultivated on more than 10,000 hectares, supplying over 3.8 billion stems a year. The province also has more than 11,000 hectares of tea, over 45,000 hectares of durian and 25,820 hectares of dragon fruit.

Lam Dong leads the country in high-tech agricultural production area, with more than 110,000 hectares, including approximately 1,400 hectares using smart farming applications.

However, compliance with standards such as VietGAP, GlobalGAP and Rainforest Alliance remains a bottleneck in the local agricultural value chain. This contributes to a high proportion of raw exports and a low rate of deep processing. Local producers have yet to fully control their brands or establish a strong presence at the final point of sale in international markets.

Cold-chain infrastructure and agricultural logistics also constrain the distribution and commercialization of goods. Links between businesses, cooperatives and farmers remain weak, fragmented and small-scale.

In addition, the high cost of transitioning to ESG models and the lack of carbon emissions measurement tools create further pressure. Yet these are central challenges that must be addressed to secure a “passport” for Lam Dong’s agricultural products to enter demanding international markets.

The Lam Dong Department of Agriculture and Environment is developing technological and digital transformation solutions for a shared agricultural database, including a digital agricultural map and a system for managing cultivation-area codes.

The department is also working toward the application of the Internet of Things (IoT) in smart agriculture, artificial intelligence (AI) and blockchain technology to digitize traceability processes from farm to table.

More importantly, cultivation-area identification codes—the mandatory “passport” for formal export channels—are not yet managed through a fully integrated system in Lam Dong. This creates risks of inadequate data transparency and potential disruptions to supply chains.

Therefore, directives issued by the Lam Dong Provincial People's Committee to promote exports and support agricultural businesses have clearly emphasized that cultivation-area codes and packing-facility codes are not merely administrative procedures or management numbers. They are a “passport” that enhances credibility and enables Lam Dong’s agricultural products to enter the world’s most demanding markets through legitimate, formal export channels.