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German supply chain due diligence act coming 01.01.2023-What does Vietnam need to know?
Welcome Speech by German Ambassador to Vietnam Dr. Guido Hildner, © GIZ
A High Level Event in Hanoi on July 20, 2022 on the Embassy compound, in which the German Embassy Hanoi together with the ILO and the Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH provided information on the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz) and its impact on Vietnamese companies that are part of a supply chain of German companies, attracted great interest. Participants were stakeholders from technically responsible Vietnamese ministries, the business community, employers' and business associations, trade unions, UN organizations and academia.
The aim of the law, which will apply from 2023, is to improve the protection of human rights along global supply chains and, among other things, to prevent child and forced labour and ban substances that are hazardous to people and the environment. But the focus is also on occupational safety, protection against discrimination, sufficient wages and appropriate working hours. The law requires German companies to establish appropriate and effective risk management for their supply chains that is integrated into all relevant business processes. Risk management is effective when human rights and environmental risks are identified, prevented, minimized or ended.
Companies in Vietnam can also be indirectly affected if they are part of a supply chain of a German company that has to comply with the Supply Chain Due Diligence Act.
In the first part of the event, the law was presented and its background discussed. The second part already focused on the exchange with companies and associations from different industries and their experiences and wishes regarding sustainable global supply chain management. The focus was also on the wide range of assistance and support offered by international cooperation organizations such as the ILO, GIZ and UNDP in order to make business activities in supply chains in Vietnam environmentally and socially compatible. The helpdesk that will be set up with the help of GIZ at the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi in the coming months - with a comprehensive range of support services for implementing due diligence requirements – attracted great interest.
German Ambassador to Vietnam Dr. Guido Hildner:
The Supply Chain Due Diligence Act also gives Vietnam the chance to gain a locational advantage on the world markets. Strong environmental and labor laws and even more effective enforcement can thus become a locational advantage for Vietnam, no longer just low production costs. This also improves the situation for workers and the environment in Vietnam.
Further information on the Supply Chain Due Diligence Act is available on the homepage of the German Embassy in Hanoi at: Link
Auf großes Interesse stieß ein High Level Event in Hanoi am 20. Juli 2022 auf dem Botschaftsgelände, in dem die Deutsche Botschaft Hanoi gemeinsam mit der ILO und der Deutschen Gesellschaft für…
Deutsches Lieferkettensorgfaltspflichtengesetz kommt zum 01.01.2023 – Was muss Vietnam wissen?