Responsible Supply Chains in Vietnam
Webinar: Integrating Responsible Business Conduct to Create a Resilient GarmentIndustry
Concept Note
14 October, 2021
2:00-3:30 pm Vietnam I 9:00-10:30am ParisRegistration Link

Background
Viet Nam has emerged as one of the leading textiles exporting countries worldwide in recentyears, becoming the fourth apparel exporting country in 2019 (by value – 30.6 billion USD)1.
The Vietnamese garment and footwear industry accounts for 16% of the country total exports,employs 2.5 million workers. The growth of the garment and footwear sector was also boosted
by Viet Nam’s increased integration into Global Value Chains (GVCs), through the coming into
force of a number of trade agreements, including, the Progressive Agreement for Trans-PacificPartnership (CPTPP) (2019), the EU – Viet Nam Free Trade Agreement (EVFTA) (2020), or the
UK –Viet Nam Free Trade Agreement (UKVFTA) (2021).
However, the COVID-19 crisis has exerted a substantial toll on economies and societies.
Worldwide, general and targeted lockdown measures were implemented to contain theoutbreak, which paused sections of the global economy, resulting in global trade declining byover 15% in the first half of 2020. These disrupted GVCs, leading to business closures,
insolvencies and increased unemployment rates, and this perhaps nowhere more so than in
the garment & footwear sector. At point of sale, retailers experienced an instant loss of footfall
as they had to close stores and a drop in demand hit online sales, creating direct shocks inproducing economies.
In Viet Nam in particular, the initial impact of GVC disruptions has been twofold. First, Viet
Nam’s economy experienced falling international demand for manufactured goods, whichplaced manufacturers in difficulty for meeting their wage bill as orders were cancelled or notplaced. Second, the disruption of GVCs interrupted Viet Nam’s material imports, so there would
be difficulty fulfilling even those orders that were placed. Some manufacturers adapted toproduce personal protective equipment (PPE) for the growing demand, where materials could
be sourced. Since April 2021, Viet Nam is facing its most serious health crisis of the COVID-19
pandemic with the fourth wave. A low coverage of vaccination across the population andextreme containment measures mean the COVID-19 crisis is bearing vast impacts to workers
and businesses. Companies fear delays in delivery move orders overseas: about 18% of EU1

Ministry of Planning and Investment (2021), Vietnam earns nearly 19 billion from textile exports in H1,
http://www.mpi.gov.vn/en/Pages/tinbai.aspx?idTin=50976

businesses have moved orders out of Vietnam; whereas more than 60% of textile and footwear
enterprises have been penalized by their brands for slow delivery (Viet Nam Textile andFootwear Association, 2021). Many businesses are facing bankruptcy, domestic andinternational supply chains are broken, workers lose their jobs and incomes, and are at risk ofpoverty.
COVID-19 has amplified the voices from many stakeholders on the importance of rethinking
global supply chains. Adopting Responsible Business Conduct (RBC) standards can help
businesses become more resilient when exposed to GVC disruptions. RBC means integrating
and considering environmental and social issues within core business activities, including
throughout your supply chain. A key element of RBC is risk-based due diligence – a process
through which businesses identify, prevent, and mitigate their actual and potential adverse
impacts on people and planet - and account for how those impacts are addressed. To that
extent, RBC standards provide companies a method to understand and mitigate adverse
impacts, for instance, by adapting health & safety protocols to responds to the emerging risks,and encouraging supplier-buyer two-way dialogue in face of disruptions. Companies that
already have integrated RBC standards may be better placed to apply their risk assessment
frameworks and, therefore, react more quickly to emerging risks while ensuring that workers’
rights are respected and that health and safety measures are upheld. On the longer run, RBC
can help building a resilient garment industry by in increasing participation and competivenessin GVCs. Notably, it will support business’ efforts to meet international expectations on RBC
enshrined in trade and sustainable development chapter of free trade agreements, complywith the increasing number of legislations on supply chain due diligence.
As Viet Nam’s garment and footwear sector recovers from the Covid-19 impact, adopting andintegrating RBC standards throughout the sector is the key to unlocking future opportunities
outside of the context of the pressing and immediate risks posed by the pandemic.
Webinar description
OECD, in collaboration with EuroCham, AusCham, BritCham and AmCham, is holding a series ofwebinars on building resilient supply chain in the context of Viet Nam. The first webinar of theseries “Integrating Responsible Business Conduct to Create a Resilient Garment Industry” will
include a brief presentation of the OECD’s Garment & Footwear Due Diligence Guidance, whichwill be launched in Vietnamese during the webinar, how it can help Vietnamese businesses
become more resilient and future proof their place in the global supply chain. The webinar will
include insights from organisations that have practical experience working with due diligencestandards.
The webinar is bringing together key speakers in the garment industry including policy makers,
business associations, global and domestic companies, and trade union representatives. A
Business Consultation session will be available where the companies and manufacturers canshare experiences and ask questions directly to the OECD and other speakers.

The webinar will be organised virtually for 1.5 hours, on Thursday, 14 October 2021, 2:00 –3:30 pm Vietnam / 9:00 – 10:30 am Paris. Vietnamese-English simultaneous interpretation will
be available.
Draft Agenda

Thursday 14 October 2021

Integrating Responsible Business Conduct to Create a
Resilient Garment Industry

2:00 - 3:00 pm (Vietnam)
9:00 – 10:00 am (France)

Panel Discussion
Moderator: Ms. Dorothy Lovell, Lead, Due Diligence for
Responsible Supply Chains in the Garment & Footwear
Sector, OECD Centre for RBC, Directorate for Financial &Enterprise Affairs
Panellists
 Ms. Thuy Nguyen
Vietnam Industry Agency, Ministry of Industry & Trade Mr. Truong Van Cam
Vice Chairman, Vietnam Textile & Apparel Association(VITAS) Mr. Nguyen Thai Duong, Vice President, Viet Nam TextileUnion Mr. Alexander Falter
General Director, ECCO Vietnam
 Mr. Paul Norriss
CEO, UnAvailable Vietnam

3:00-3.30pm (Vietnam)
10:00 – 10:30 am (France)

Business Consultation
Open discussion for companies and manufacturers
Moderator: Ms Dorothy Lovell - Lead, Due Diligence forResponsible Supply Chains in the Garment & FootwearSector

About the Organisers:
About OECDThe Organisation for Economic Co-operation and Development (OECD) is an internationalorganisation that works to build better policies for better lives. Our goal is to shape policies
that foster prosperity, equality, opportunity and well-being for all. We draw on 60 years ofexperience and insights to better prepare the world of tomorrow.

Together with governments, policy makers and citizens, we work on establishing evidencebased international standards and finding solutions to a range of social, economic andenvironmental challenges.
The Responsible Supply Chains in Asia (RSCA) Programme
The workshop is part of the Responsible Supply Chains in Asia Programme (RSCA), apartnership between the European Union (EU), the International Labour Organization (ILO)
and the Organisation for Economic Co-operation and Development (OECD), funded by theEuropean Union. The RSCA works with partners in Asia to promote responsible businessconduct in global supply chains.
The overarching objectives of the RSCA Programme are to promote smart, sustainable andinclusive growth by ensuring that investors and businesses have a better understanding ofcorporate social responsibility; and to create policy environments conducive to promoting
responsible business conduct and increased opportunities for dialogue. The programme istaking place in partnership with six Asian economies, namely Japan, China, Thailand, VietNam, Philippines, and Myanmar.

About EuroCham
The European Chamber of Commerce in Vietnam, better known as EuroCham, is the voice ofthe European business community in Vietnam.
The Chamber was established in 1998 to help develop Vietnam into an attractive investment
destination and trading partner for European businesses. With more than one thousandmembers, we are one of the biggest foreign Chambers of Commerce in Vietnam.
Representing a plethora of sectors and companies ranging from SMEs to MNCs, EuroCham hasa very strong business network in both Vietnam and Europe.

Through our members, more than 150,000 people are directly employed and the EU is
Vietnam’s second-biggest trade partner.
About AmCham
Our mission is to promote trade and investment between Vietnam and the United States andto serve as the voice of American business in Vietnam.
ValuesResponsible: We act in an ethical, transparent, balanced constructive, respectful, andresponsible manner with our members and stakeholders.
Impactful: We make a positive impact on the U.S.-Vietnam economic partnership andVietnam’s business environment by proactively exercising innovative leadership and forming
strategic alliances and partnerships to advance shared interests.
Solidarity: We promote solidarity by being inclusive and diverse in our membership andrepresenting the interests of our members with a unified voice.
Enduring: We promote sustainable, enduring growth in Vietnam and globally by giving back to
our communities, aligning our operations with Environment, Social, and Governance values,and encouraging implementation of ESG values by our members and stakeholders.
About AusCham
The Australian Chamber of Commerce in Vietnam (AusCham) is an independent, not for profit,
membership-based NGO (non government organisation). It does not receive any funding fromthe Australian Government or any of its agencies. Its revenue is generated throughmemberships, sponsorships, events and advertising.
AusCham represents and promotes the interests of Australian businesses operating in Vietnam.
We are proud to have a pivotal function in providing invaluable business and cultural support
to our members’ and sponsors’ activities in this country.
AusCham provides all its members with a voice to express their views on the businessenvironment in Vietnam, directly within the business community and via our liaison with theVietnamese Government. We actively co-ordinate a regular program of high profile businessseminars, networking and social functions as well as a number of charity events.
About BritCham
The British Chamber of Commerce Vietnam (“BritCham Vietnam”), started as a luncheon clubin 1991. We became the first ever Foreign Business Group to obtain formal recognition inVietnam in 1998.
BritCham Vietnam now boasts more than 500 members. We pride ourselves on ourfriendliness and approachability. BritCham Vietnam’s main objective is to promote ourmembers’ business interests in Vietnam, through various business and social events.

Our Business Centre aims to facilitate better trade ties between British and Vietnamesecompanies via our trade services.
References and Links

Find out more about the key activities in Viet Nam under the joint OECD-EU-ILO
Responsible Supply Chains in Asia Programme.
Find out more about Responsible Supply Chains in the Garment and Footwear Sector.
Download the OECD
English|Vietnamese

Due

DiligenceforGarment

Follow us on Twitter @OECD_BizFin |@RSCAProgramme

andFootwearSector