HCM CITY — Product safety and compliance with export market requirements were discussed at an international conference in HCM City on Tuesday.

The event was organised by the American Chamber of Commerce in Việt Nam and the American Apparel & Footwear Association (AAFA).

Product safety, responsible sourcing, compliance, and transparency are the backbones of successful and respected supply chains, experts told the seminar.

Speaking at the event, Director General of the German TUV Rheinland Vietnam Frank Juettner, said Vietnamese enterprises need to comply with legal regulations and the requirements of each export market.

Vietnamese exporters need to focus on developing brand names and labeling to ensure their products meet international safety standards, Juettner said.

He suggested that ministries, agencies and businesses develop a management system for a supply chain from materials to finished products, especially for apparel and footwear.

AAFA Senior Vice President Nate Herman said all stakeholders in a supply chain, such as producers, exporters and partners need to communicate closely with one another and comply with legal regulations.

Monica Gorman, vice president of global compliance, New Balance Athletics Inc, shared her company’s experience in building a culture of compliance, creating strong partnerships between buyers and suppliers and having zero tolerance for corruption and lack of transparency.

Speakers at the seminar also focused on utilising a restricted substances list for AAFA’s supply chain, chemical compliance in the European and the US markets and social compliance requirements to drive profitability.

Việt Nam is now a leading global supplier of apparel and footwear. This year it accounted for 25 per cent of the US imports from ASEAN members and could achieve a one-third share by 2020.

According to experts, Việt Nam will need to join global supply chains and carry out customs reform to fulfill commitments it made to join free trade agreements (FTA), such as the Trans Pacific Partnership and the Vietnam–Europe FTA, thus enabling companies to reduce costs, stay competitive and crack new markets.
Business representatives pointed to difficulties facing them in meeting US requirements, particularly the safety requirements of each state. — VNS