According to data shared at a workshop organised by the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi on October 21, nearly 60 per cent of Vietnamese businesses exporting to the EU have never heard of the bloc’s new supply chain due diligence rules.

The event focused on how these regulations will affect Vietnamese exporters, highlighting the urgent need for better communication and stronger preparedness as compliance pressures increase.

“Several European countries, including Germany, France, and the Netherlands, are strengthening legal requirements to ensure human rights and environmental protection across global supply chains,” said Dau Anh Tuan, deputy secretary-general of the VCCI. “Key frameworks such as Germany’s Supply Chain Due Diligence Act, in force since 2023, and the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), effective from 2024, are reshaping the way exporters must operate.”

While formally targeting large EU-based firms, these regulations extend to their suppliers worldwide. For Vietnamese companies – whether in raw materials, manufacturing, or logistics – compliance has become a prerequisite to remain in European value chains. Failure to provide information or meet standards could mean losing contracts or being excluded from supply networks.

However, the VCCI’s quick survey in mid-2025 found that just under 60 per cent of Vietnamese exporters to the EU had never heard of these rules, while another 36.6 per cent had only superficial awareness. Even for the CSDDD, the best-recognised regulation, nearly half of respondents admitted no knowledge, with most of the rest having heard of it but not studied its details.

This lack of awareness is fostering excessive concern without real preparedness. Many firms correctly assumed the rules would cover human rights and environmental standards but misunderstood their scope and requirements. "There is a large gap between the speed of regulatory change in Europe and the readiness of Vietnamese businesses," said Tuan

However, experts have stressed, compliance is not solely a threat. Vanessa Steinmetz, director of the Friedrich Naumann Foundation in Vietnam, argued that the rules also create opportunities. By raising transparency and accountability, Vietnamese exporters can strengthen trust with EU buyers and consumers. "Those demonstrating good governance and responsibility will become stronger, more competitive partners internationally," she said.

To help businesses adapt, the VCCI’s Nguyen Thi Thu Trang recommended that companies start by fully complying with domestic labour and environmental regulations, while gradually aligning with European standards. She emphasised the need for closer coordination with EU partners on due diligence practices, and urged business associations and regulators to expand training, guidance, and early warning systems.

“Compliance is no longer just a requirement – it’s the foundation for survival and sustainable growth in this vital export market,” Trang said.

Source: VIR