Vietnamese businesses need to adapt to Europe's supply chain 'test'

(Chinhphu.vn) - In the context of European laws on social and environmental responsibility coming into effect, Vietnamese enterprises need to act quickly to maintain their position in the global supply chain and do business in the European Union (EU) market.

Mr. Dau Anh Tuan, Deputy Secretary General, Head of Legal Department of VCCI - Photo: VGP

Good compliance is required when participating in the EU 'playground'

On October 21, the Vietnam Federation of Commerce and Industry (VCCI) in collaboration with the FNF Institute (Germany) organized a workshop on "Vietnam's exports facing the European market's supply chain assessment requirements - What businesses need to know". The event attracted a large number of export enterprises, industry associations and policy experts to attend.

Speaking at the workshop, Mr. Dau Anh Tuan, Deputy Secretary General, Head of the Legal Department of VCCI, emphasized that in the context of deep globalization, the global supply chain is becoming the backbone of international trade. However, along with opportunities, businesses are facing new challenges regarding social responsibility, environment and information transparency.

According to Mr. Tuan, the European Union (EU) with countries such as Germany, France, the Netherlands... has been implementing a series of regulations on supply chain appraisal, to ensure that production and business activities do not violate human rights or cause environmental damage. Two important legal documents are the German Supply Chain Due Diligence Obligation Act (SCDDA) and the EU's Corporate Sustainability Due Diligence Directive (CSDDD) - considered the most comprehensive legal framework today.

Although not directly applicable to Vietnamese enterprises, these regulations cover the entire supply chain, including foreign suppliers. Therefore, all Vietnamese enterprises participating in the production chain for the European market must comply with environmental, labor and data transparency standards if they do not want to be eliminated from this "playground".

Challenges are also opportunities to improve production.

According to VCCI, Vietnam is currently an important link in the global supply chain in areas such as textiles, footwear, electronics, agricultural products and seafood. The EU has always been Vietnam's largest and most stable export market, especially in the context of the volatile US market.

Mr. Dau Anh Tuan warned that the new EU regulations will certainly create big challenges. If Vietnamese businesses do not meet the requirements, they may lose orders, be eliminated from the supply chain or lose the opportunity to expand market share.

Mr. Tuan emphasized that early awareness and preparation are key factors to maintain competitiveness when the official regulations come into effect.

A quick survey conducted by VCCI in July-August 2025 showed that 59.3% of enterprises exporting to the EU had never heard of these regulations and 36.6% had only heard of them briefly but did not fully understand their content. This awareness gap reflects the risk of Vietnamese enterprises "falling behind" in the race to comply.

Ms. Nguyen Thi Thu Trang, Head of VCCI Research Group - Photo: VGP

Ms. Nguyen Thi Thu Trang, Head of the VCCI Research Team, said that the EU currently accounts for 15.3% of Vietnam's total export turnover in the 2015-2024 period, equivalent to 51.7 billion USD in 2024. While tariff tensions in the US are increasing, the EU market is becoming increasingly important. Therefore, new regulations on supply chain due diligence should be considered a vital factor in the long-term export strategy.

"Textiles and footwear are the two sectors that are most closely monitored, due to their labor-intensive nature and large impact on the environment. Businesses in this sector must pay special attention to compliance, because just a small violation at any stage can affect the entire chain," said Ms. Nguyen Thi Thu Trang.

From a 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 is a traditional market and accounts for a large proportion of footwear exports. "Each European brand has its own requirements, not only in terms of quality but also in terms of production processes, labor, and environment. If they do not comply, businesses will certainly fail," she said.

According to Ms. Xuan, in recent years, domestic enterprises have been more proactive in self-assessment, participating in certification and independent audit. However, this rate is still low, especially in the group of small and medium enterprises - where limited resources make it difficult to meet international standards.

According to the Vietnam Leather, Footwear and Handbag Association, to adapt, businesses need to invest in a team specialized in international standards, enhance human resource training, and cooperate with independent inspection organizations. Being proactive not only helps maintain orders but also creates a foundation for Vietnamese businesses to move up in the global supply chain.

Ms. Vanessa Steinmetz, Director of FNF Vietnam Institute - Photo: VGP

From an international perspective, Ms. Vanessa Steinmetz, Director of FNF Vietnam, commented: The European market is an important export destination for Vietnam, but the approach is changing dramatically. Helping businesses grasp new regulations in a timely manner will shape their export strategies in the coming period.

“Supply chain due diligence is not only a challenge, but also an opportunity for businesses to demonstrate transparency, responsibility and good governance – factors that are increasingly appreciated by European consumers. Businesses that adapt early will gain a competitive advantage and create a sustainable position in the international market,” said Ms. Vanessa Steinmetz.

To support the business community, VCCI and FNF Vietnam Institute have coordinated to develop a special report "Regulations on supply chain appraisal of the European market and their impact on Vietnam's exports".

This report focuses on two main objectives: Providing information and raising awareness for businesses, agencies and relevant organizations about policy changes from the EU. At the same time, identifying specific requirements for Vietnamese businesses, especially in the textile and footwear industries, and proposing solutions to help businesses adapt effectively.

Mr. Minh

Source: https://baochinhphu.vn/doanh-nghiep-viet-can-thich-ung-truoc-bai-kiem-tra-chuoi-cung-ung-cua-chau-au-102251021175447064.htm