Vietnam

Sourcing risk, regulatory exposure and audit intelligence for Vietnam-origin supply chains.

Forced & child labour

Garments and fish listed on ILAB 2024 TVPRA. Forced labour in garment sector documented. Child labour in fish processing.

Worker rights & FOA

Freedom of association challenges flagged in ILAB 2024. Independent trade unions restricted. Collective bargaining limited.

OHS & audit transparency

Growing audit maturity in export manufacturing. Recurring findings on working hours and migrant worker conditions.

Food & product safety

Improving food safety infrastructure. Moderate RASFF alert rate. Aquaculture residue alerts recurring.

Environmental & regulatory

EUDR low-risk classification (May 2025) but active EU IUU yellow card since October 2017 — not yet lifted as of 2025.

Governance & anti-corruption

TI CPI 2024: 40/100. One-party state limits institutional independence. Improving on regulatory transparency.

Tariff & preferential access

EU-Vietnam Free Trade Agreement (EVFTA) in force since August 2020. Best preferential access of any country in this group.

Non-tariff barriers

Some products under enhanced controls. IUU yellow card creates additional scrutiny for seafood. No sanctions.

Supply chain traceability

Growing EcoVadis and SMETA coverage in garments and electronics. Seafood traceability improving under IUU pressure.

Labour & Social Risk

Worker rights: Vietnam does not permit independent trade unions. The Vietnam General Confederation of Labour (VGCL) is the only legally recognised trade union body. Limited collective bargaining in practice.
Sectors at risk: Garments, footwear, electronics assembly, seafood processing, furniture manufacturing.
Primary audit findings: Excessive working hours, overtime payment calculation, freedom of association restrictions, migrant worker documentation in seafood sector.
ILO conventions: Vietnam ratified ILO C105 (Abolition of Forced Labour) in 2020 and C98 (Right to Organise) in 2019 following EVFTA commitments. C087 not yet ratified.
ILAB status: Shrimp, fish, garments, and sugarcane listed on US Department of Labor List of Goods Produced by Child or Forced Labor.

EU Regulatory Exposure

EVFTA: EU-Vietnam Free Trade Agreement entered into force August 2020. Reduces tariffs on most goods to zero over 10 years. Vietnam must meet ILO labour commitments as a condition.
IUU fishing — yellow card: Vietnam received an EU IUU yellow card in October 2017. The card remains in place as of 2024. EU import checks on Vietnamese fishery products are enhanced. A red card would result in an import ban.
EUDR exposure: Vietnam is a significant exporter of rubber and coffee, both EUDR-regulated commodities. Due diligence statements required from 2025/2026.
Pet food HS codes: 2309.10 (dog/cat food for retail) — under EVFTA, duty phased to zero. Tariff preference conditional on rules of origin compliance.
Official controls: Vietnamese seafood exporters subject to EU enhanced import checks under Regulation (EU) 2019/1793 due to IUU yellow card status.

Logistics & Supply Chain

Primary export corridor: South China Sea → Strait of Malacca → Indian Ocean → Suez Canal → EU ports
Key transit chokepoints: Strait of Malacca, Suez Canal
Main EU destination ports: Rotterdam, Hamburg, Felixstowe, Antwerp
Typical transit time: 26–32 days to Northwest Europe
Scope 3 relevance: Long-haul maritime freight from Vietnam to Northwest Europe generates approximately 0.9–1.2 kg CO₂e per kg of cargo (sea freight estimate)