Corporate Social Responsibility on Labour in European Union New-Generation Free Trade Agreements: Legal insights and implication for Vietnam within the EVFTA

Abstract

This thesis examines the transition of Corporate Social Responsibility (CSR) in the labour sector from voluntary commitments to mandatory legal obligations within the European Union's (EU) new-generation Free Trade Agreements (FTAs), with a focal emphasis on the EVFTA. Through the "Trade for All" strategy, the EU is implementing stringent ESG risk governance standards and mandatory due diligence mechanisms to ensure that corporate entities comply with core international labour standards. The research conducts an in-depth analysis of advanced legislative practices in Europe (such as the CSDDD and CSRD regulations) to draw lessons learned for risk governance. Regarding Vietnam, despite commendable legislative progress such as the promulgation of the 2019 Labour Code and the National Action Programm on Responsible Business Practices (RBP), the practical enforcement system still manifests numerous bottlenecks due to the lack of an independent and unified legal framework governing CSR/ESG. Substantial gaps in responsible supply chain management, gender-equal remuneration transparency, and due diligence expose Vietnam to the risk of facing stringent trade barriers from the EU. By applying process-tracing and comparative methods, the thesis measures Vietnam's level of compliance with labour laws in both legislative and practical enforcement dimensions under the impact of the EVFTA. Consequently, the author proposes policy implications to assist Vietnam in perfecting its institutional framework, fulfilling EVFTA standards, maximising the protection of workers' rights, and maintaining a sustainable competitive advantage