Businesses need to quickly respond to the European market's supply chain assessment requirements.

Speaking at the workshop, Mr. Dau Anh Tuan, Deputy Secretary General, Head of the Legal Department, Vietnam Chamber of Commerce and Industry (VCCI), said that in the context of increasingly deep globalization, the global supply chain is becoming the backbone of international trade. However, along with this development are new challenges regarding social responsibility, environment and transparent governance. Major economies , including the European Union (EU), are gradually transforming their approach to supply chain management – not only for economic efficiency but also for sustainable development values.

Mr. Dau Anh Tuan noted that, especially in recent years, the EU and some member states such as Germany, France, and the Netherlands have issued and prepared to implement a series of new legal regulations on monitoring, assessing and preventing risks related to human rights and the environment in the supply chain - often called "supply chain due diligence". Two typical legal documents are: the Law on Enterprises' Supply Chain Due Diligence Obligations (SCDDA) of the Federal Republic of Germany and the EU's Directive on Enterprises' Sustainability Due Diligence (CSDDD).

These are the most comprehensive and rigorous regulations on supply chain due diligence ever enacted in the world . While these laws primarily apply to large corporations and businesses based in Europe, it is important that the entire supply chain – including suppliers in foreign countries such as Vietnam – is covered by the regulations.

According to the representative of VCCI, Vietnam is currently an important link in many global supply chains, especially in the textile, footwear, electronics, agricultural and aquatic products industries... The EU has always been one of the largest and most stable export markets of Vietnam. In the context of traditional markets such as the United States having many fluctuations in trade policy, the EU becomes more and more important in the export market diversification strategy of Vietnamese enterprises.

“However, the EU’s new regulations on supply chain assessment will certainly create significant challenges for Vietnamese businesses. Although we are not directly subject to the law, as raw material suppliers, manufacturers, logistics enterprises or transport units, we are forced to comply with requirements on transparency, environmental responsibility and human rights if we want to maintain cooperative relationships with major partners in Europe. Refusing to provide information, failing to meet standards, or violating rules during the cooperation process can lead to serious consequences: order rejection, being removed from the supply chain or losing opportunities to expand market share,” Mr. Dau Anh Tuan emphasized.

VCCI representative said that with such importance, early awareness and preparation are key factors to help Vietnamese enterprises adapt and maintain competitiveness when these regulations come into effect. However, according to a quick survey conducted by VCCI in July-August 2025, up to 59.3% of enterprises and organizations involved in export activities to the EU have never heard of these regulations, and an additional 36.6% have only heard of them but do not understand them specifically. This shows a huge gap between the policy changes taking place in Europe and the readiness level of the Vietnamese business community.

Sharing about this issue, Ms. Nguyen Thi Thu Trang - Head of VCCI Research Group said, according to the Statistics Department, in the period 2015-2024, the EU market accounts for an average of 15.3% of Vietnam's total exports to the world. In 2024, the total export turnover of Vietnamese goods to this market is 51.7 billion USD. This is also a very potential market, especially with the Vietnam - EU Free Trade Agreement (EVFTA) and in the context of complicated escalating tariff tensions in the United States. Therefore, regulations that may affect imported goods from outside the EU in general and the law on EU supply chain assessment in particular, need to be complied with by Vietnamese enterprises.

In particular, Ms. Trang added, the EU is one of the most important export markets for Vietnamese textiles and footwear. Therefore, Vietnamese enterprises, associations as well as State management agencies related to textile and footwear exports need to pay attention to implementing regulations on supply chain assessment of this important market.

“Textiles and footwear are two manufacturing sectors with extensive supply chains, involving many entities, employing a large number of workers, especially female workers, with relatively specific working environments and some production stages and input materials that can have a direct and heavy impact on the environment. For these reasons, textiles and footwear are among the supply chains that are expected to be heavily monitored during the enforcement of supply chain assessment laws in EU markets,” Ms. Nguyen Thi Thu Trang emphasized.

From the business perspective, Ms. Phan Thi Thanh Xuan, Vice President and General Secretary of the Vietnam Leather, Footwear and Handbag Association (LEFASO), said that the EU market is a traditional market, closely associated with the Vietnamese footwear industry for a long time. In export activities, businesses understand that each customer, especially global brands, has its own regulations, in addition to the requirements of the import market. Therefore, to export successfully, businesses must fully comply with these standards and regulations. If they do not meet them, they will certainly fail.

“In recent years, the change in awareness of domestic enterprises has been very clear. Previously, most factories were passive, doing whatever customers asked, and were less proactive in learning and updating. Now, many enterprises have been more proactive in self-assessment, participating in certification programs, and independent auditing to improve their capacity and reputation,” said Ms. Phan Thi Thanh Xuan.

However, Ms. Xuan said that this initiative is still limited and the rate is not high. For small and medium enterprises, this is a big challenge. Many units do not have enough resources to build a team to comply with and meet international standards.

“The industry needs more efforts to expand and raise awareness, especially in the context of the EU continuously issuing new laws related to supply chains, sustainable development and social responsibility, including the leather and footwear industry. In fact, after the EVFTA Agreement took effect, many European customers came to Vietnam to seek cooperation opportunities and expand production. However, through the assessment process, many small businesses were rejected because they did not meet compliance requirements. Meanwhile, qualified businesses have full production capacity. This is a major problem, showing the need for an appropriate support strategy to help small and medium-sized enterprises improve their compliance capacity to meet the requirements of deeper integration in the coming time,” Ms. Phan Thi Thanh Xuan emphasized.

Source: https://baotintuc.vn/kinh-te/doanh-nghiep-can-nhanh-chong-ung-pho-truoc-yeu-cau-tham-dinh-chuoi-cung-ung-cua-thi-truong-chau-au-20251021143730355.htm