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

- First, although the due diligence standards under the SCDDA and CSDDD are not entirely new, many are referenced from international conventions and phrased in complex legal terminology open to varying interpretations. Consequently, in certain situations, Vietnamese suppliers may not clearly understand what precise actions are required to ensure compliance with specific standards.

- Second, although coordination in implementing due diligence measures may not be overly complicated, it nonetheless entails compliance costs (in terms of personnel and resources). In a context of tariff pressures and volatile business conditions, even modest increases in operating costs can place additional burdens on enterprises participating in these supply chains.

- Third, in some specific cases (e.g., due to differing interpretations of certain labour rights), certain stages within particular supply chains may be exposed to allegations of non-compliance. For example, concerns may arise about the involvement of children or elderly individuals in simple production tasks in craft villages, cooperatives, or small-scale agricultural and aquaculture processing activities.

In summary, most Vietnamese suppliers appear reasonably prepared and possess sufficient capacity to comply with supply chain due diligence regulations, given that the relevant standards are largely consistent with existing domestic regulations. However, effective implementation still requires a precise understanding of the nature of the regulations and proactive capacity building to ensure readiness to act when necessary.

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