Implications of the EU Corporate Sustainability Due Diligence Directive for Vietnam's Textile and Garment Value Vhain: Challenges and Adaptation Parthways for CMT Manufacturers

Abstract

As the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) evolves beyond an internal regulation into a new global standard for value chain governance, Vietnamese textile and garment enterprises - particularly those operating under the Cut - Make - Trim (CMT) model, face increasing sustainability pressures. Using a desk-based research approach grounded in systematically reviewed secondary sources, including strategic reports from the Vietnam Chamber of Commerce and Industry (VCCI) and international organizations, combined with behavioral data analysis from digital platforms, this study examines the level of awareness and readiness of these enterprises in responding to environmental and social responsibility requirements. The findings indicate that most firms remain reactive, constrained by limited data governance capacity and asymmetric relationships with international buyers. The study proposes policy and managerial implications to promote a dual transformation, digital and green, aimed at supporting firms in upgrading their positions within global value chains.