State management agencies in the fields of labour, environment, production, export, and international trade, particularly the Ministry of Home Affairs, Ministry of Agriculture and Environment, Ministry of Industry and Trade, as well as trade unions at various levels, may support enterprises in complying with supply chain due diligence requirements imposed by European markets through both regulatory and advisory functions.

From a regulatory and governance perspective, relevant state agencies and trade unions may assist enterprises in meeting European due diligence requirements through the following activities:

- Identifying and alerting enterprises to risks of potential violations of labour and environmental standards connected to European supply chain due diligence requirements (e.g., child labour, collective bargaining rights, hazardous chemicals).

- Issuing confirmations or certifications, within their authority, related to enterprises’ compliance with labour and environmental regulations, upon request by enterprises, associations, or European partners.

- Cooperating with enterprises and associations, when necessary, in communications with European partners or competent authorities to verify allegations or risks of non-compliance, thereby protecting the legitimate interests of Vietnamese enterprises.

From an information and advisory perspective, relevant state agencies and trade unions can provide support to enterprises through information-sharing and consultation activities similar to those recommended for business associations.

Notably, these bodies may offer deeper and more specialized support owing to their institutional mandates, including:

- Timely and updated information on policy developments regarding supply chain due diligence in global markets, particularly those linked to the EU’s Corporate Sustainability Due Diligence Directive (CSDDD).

- Identifying, mobilizing, and disseminating domestic or international information on available financial and technical resources that may be used to support business associations and enterprises, especially for capacity-building and training activities.

In summary, although supply chain due diligence regulations in the European market primarily target large European enterprises, they nevertheless impose corresponding compliance and cooperation obligations on Vietnamese suppliers participating in the supply chain. These obligations may affect suppliers operating in both export-oriented manufacturing sectors and export-supporting services. Within this context, suppliers in the textile and footwear industries, given the characteristics of these sectors, such as the high proportion of female workers, risks of child labour, environmentally sensitive production processes, and the use of hazardous chemicals, may attract particular attention from relevant European authorities.

Although human rights and environmental standards under the EU’s CSDDD and Germany’s SCDDA are fundamentally consistent with Vietnam’s labour and environmental legislation, Vietnamese enterprises still need to acquire a clear and appropriate understanding of the specific due diligence obligations applicable to them. At the same time, they must prepare the necessary human resources and material conditions to ensure effective cooperation with European partners once these due diligence obligations are activated.

Currently, most enterprises are not yet aware of, prepared for, or engaged with the requirements of these due diligence regulations. Therefore, the support of business associations, government agencies, and relevant organizations plays a crucial role in helping enterprises strengthen their readiness and ensure effective compliance.

Source: Compiled by the TTWTO-VCCI Research Group

• Scope of Vietnamese suppliers potentially affected from the supply chain due diligence requirements of European markets
• Responsibility to comply with human rights and environmental standards of Vietnamese suppliers in the supply chain due diligence process
• Responsibility to implement certain measures of Vietnamese suppliers in the supply chain due diligence process
• Supply chain due diligence and textile and footwear supply chains in EU
• Actors in textile, garment and footwear supply chains potentially affected by due diligence requirements