The primary objective of supply chain due diligence in relation to business partners/suppliers is to identify, assess, prevent, mitigate, address and/or remedy risks, violations, or adverse human rights and environmental impacts arising within the scope of the suppliers’ business activities

This group of responsibilities relates to measures that suppliers may be required to implement within the due diligence process upon request by EU/German partners subject to the regulations

Textiles and footwear are two manufacturing sectors characterized by extensive supply chains, involving numerous actors and a large workforce, particularly female workers

In the context of Viet Nam’s textile, garment and footwear exports to the EU, this means that all Vietnamese business entities participating at any stage of production and export for EU/German partners subject to these regulations may be affected by the due diligence requirements.

Suppliers participating in the supply chains of companies subject to due diligence obligations are required to comply with human rights and environmental standards

A survey conducted by the Center for WTO and International Trade - VCCI in July - August 2025, with a total of 375 responses from stakeholders involved in EU supply chains, produced results that were unsurprising but somewhat concerning.

Although supply chain due diligence regulations are relatively complex, the participation of Vietnamese suppliers in meeting these requirements is considered fairly favorable

Despite these advantages, the implementation of due diligence-related responsibilities under the SCDDA and CSDDD presents several challenges for Vietnamese suppliers

From the perspective of enterprises, enhancing awareness and building the capacity to fulfil supply chain due diligence responsibilities is an inherent requirement that demands proactive engagement from businesses themselves.