What do supply chain businesses think about the growing international pressure for human rights due diligence across supply chains? We recently sat down with Mr. Dung le Tuan, Founder of Anh Minh Technology (AMT) to listen to his perspective. Anh Minh Technology (AMT) is a leading manufacturer of industrial equipment and machinery in Vietnam who is actively engaging in the Ganapati Initiative.
The Ganapati Initiative is a Embode led programme that takes a systems-building approach to strengthen the capacity of supply chain businesses in responsible recruitment and labour practices. The programme is currently engaging supply chain businesses in Vietnam, Thailand, Malaysia, Singapore and Indonesia.
In our conversation, Mr. Dung shared common challenges suppliers face when implementing human rights due diligence, such as when buyers prioritise the lowest bid approach and delay payments. He highlighted transparent incentive structures, open dialogue and co-developing improvement plans with buyers as key ways to support supply chain businesses in embedding HRDD in their operations.
Question 1: How do supply chain businesses in Vietnam want to be engaged by buyers and brands?
Public Recognition: Public recognition from buyers would strongly motivate us to improve our HRDD standards. When buyers acknowledge responsible suppliers, it enhances our reputation and gives us a real competitive advantage. This kind of visibility, such as being listed as a compliant or trusted supplier, also encourages others in the industry to follow similar practices. From our experience, recognition from international partners has helped us build credibility and gain new business opportunities.
Meaningful Collaboration: Beyond recognition, we believe that meaningful collaboration is key. Buyers who engage in open dialogue and co-develop improvement plans with suppliers foster long- term trust and shared success. A partnership built on mutual understanding and realistic roadmaps is far more effective than a top-down compliance approach.
Realistic Roadmaps: We would also value a partnership where buyers work with us to identify obstacles and develop realistic roadmaps for improvement. From a procurement perspective, open dialogue between buyers and suppliers is essential to building trust and achieving long-term success. It allows both sides to understand operational realities, adapt to regulatory changes, and co-create realistic improvement plans. This collaborative approach reduces unnecessary costs, increases flexibility, and encourages innovation in HRDD implementation. At AMT, we’ve seen that regular engagement with buyers through shared evaluation tools and transparent communication leads to more effective outcomes than rigid compliance models.
Question 2: How do capability-building initiatives, such as the Ganapati Initiative, support supply chain engagement on labour standards?
Worker Orientation: The Ganapati Initiative provided very practical training on how to improve worker orientation programs. It helped us design clearer onboarding sessions so new workers can better understand their rights, responsibilities, and workplace policies from the start. After applying these methods, we saw fewer misunderstandings and better communication between workers and supervisors. This also created a more positive and transparent working environment, where employees feel respected and included. In addition, the initiative helped us reassess our workplace safety protocols. Through training, we identified gaps in emergency preparedness and implemented new procedures. As a result, our team feels more secure and confident, and we’ve seen a reduction in minor incidents. These improvements have contributed to a safer and more resilient working environment.
Worker Safety: The Ganapati Initiative has supported us in updating our Safety policy, translating some Safety guidelines into Vietnamese, and preparing a Safety manual to make these documents more accessible to workers. Last but not least, they have updated our grievance mechanism clearly so that we can receive full information from our staff.
Question 3: What more can be done to ensure brands and buyers support and collaborate with suppliers?
Payment Terms: A common challenge we face is that buyers are extending their payment terms. Previously, payments were settled within about one month, but now they are typically stretched to three or even four months. In addition, stricter acceptance and inspection requirements often delay the final approval process, further postponing payment. These factors together create significant cash flow pressure, making it difficult for suppliers like us to maintain stable operations and ensure timely payments to our workers and subcontractors.
Lowest Bidder Approach: Another concern is the “lowest bid” approach that many buyers still apply when awarding contracts. For instance, some low-cost competitors can offer cheaper prices simply because they do not fully comply with HRDD standards such as by not paying social insurance for their workers. In contrast, responsible suppliers like us who strictly follow labour and compliance requirements inevitably face higher costs. When price alone becomes the decisive factor, it discourages ethical practices and undermines fair competition. We strongly recommend that buyers take sustainability and responsible business conduct into account when evaluating suppliers, to create a healthier and more balanced supply chain.
To strengthen supplier engagement, we recommend three key strategies:
