October 22, 2025 | 07:30

Many Vietnamese businesses unaware of EU supply chain due diligence regulations

Song Hà

Vietnam is currently an important link in many global supply chains, especially in textiles, footwear, electronics, agricultural products, and seafood.

Many Vietnamese businesses unaware of EU supply chain due diligence regulations
The EU has consistently been one of Vietnam's largest and most stable export markets.

A rapid survey conducted by the Vietnam Chamber of Commerce and Industry (VCCI) in July-August 2025 revealed that a significant 59.3% of businesses and organizations involved in export activities to the EU had never heard of supply chain due diligence regulations. An additional 36.6% had only heard of them but did not specifically understand them.

Speaking at the workshop "Vietnamese exports and the supply chain due diligence requirements of European markets: What businesses need to know" on October 21, Mr. Dau Anh Tuan, Deputy Secretary-General and Head of the Legal Department at VCCI, stated that in the context of increasing globalization, global supply chains are becoming the backbone of international trade.

He emphasized that, particularly in recent years, the EU and several member states like Germany, France, and the Netherlands have enacted and are preparing to implement a series of new legal regulations concerning the monitoring, assessment, and prevention of human rights and environmental risks within supply chains – commonly referred to as "supply chain due diligence."

Among these, two prominent legal documents are the German Supply Chain Due Diligence Act (SCDDA) and the EU's Corporate Sustainability Due Diligence Directive (CSDDD).

"These are the most comprehensive and stringent supply chain due diligence regulations ever enacted globally to date. Although these laws primarily apply to large corporations and businesses based in Europe, it is crucial that the entire supply chain – including foreign suppliers in countries like Vietnam – falls within the scope of these regulations," Mr. Tuan said.

Moreover, Vietnam is currently an important link in many global supply chains, especially in textiles, footwear, electronics, agricultural products, and seafood. The EU has consistently been one of Vietnam's largest and most stable export markets.

To fully grasp the requirements for supply chain due diligence in the EU market, Dr. Nguyen Thi Thu Trang, Head of VCCI's research team, suggests that, on the one hand, it is necessary to enhance information dissemination about EU supply chain due diligence regulations to relevant stakeholders in Vietnam (including businesses, associations, state management agencies, consulting organizations, training institutions, etc.).

On the other hand, these stakeholders also need to actively seek information and raise awareness, thereby making appropriate preparations to adapt and comply. They should neither be complacent nor overly anxious about the issue of supply chain due diligence.

Vietnamese businesses participating in supply chains for export, especially those linked to large EU/German partners subject to supply chain due diligence regulations, need to take appropriate actions to protect their long-term export interests.

First and most importantly, they need to ensure strict compliance with Vietnamese laws on labor and environment; promptly review and prevent all risks and potential violations; and fully store documents and evidence of these activities.

Next, they should proactively seek information, and prepare their awareness and resources for collaborating in the due diligence process of partners when necessary.

Finally, they need to actively communicate and reasonably coordinate with partners in implementing due diligence measures when requested by partners.

Attention
The original article is written and published on VnEconomy in Vietnamese, then translated into English by Askonomy – an AI platform developed by Vietnam Economic Times/VnEconomy – and published on En-VnEconomy. To read the full article, please use the Google Translate tool below to translate the content into your preferred language.
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