Bangladesh, Vietnam, Pakistan, India and Cambodia each have different regulatory environments, typical audit frameworks and certification landscapes. Here is what to adjust in your vetting process by market.
Supplier vetting cannot use the same checklist in every market. Labour law compliance, typical audit acceptance, dominant certifications and the reliability of local third-party auditors vary significantly across South and Southeast Asia. This article covers the key differences for Bangladesh, Vietnam, Pakistan, India and Cambodia — the five markets that account for the majority of textiles, footwear and sporting goods sourced by European and US brands.
Bangladesh is the world's second-largest garment exporter and has undergone significant factory safety reform since Rana Plaza (2013). The Accord on Fire and Building Safety (now the International Accord) operates inspection and remediation programmes covering signatory factories. For buyers from EU Accord member brands, an active Accord certificate is now the baseline for structural and fire safety — not an optional extra. Social audits (SMETA, BSCI) are widely conducted. GOTS and OEKO-TEX certification are common among larger export factories. The Bangladesh Labour Act and its amendments govern working conditions; enforcement is uneven at sub-tier level.
Vietnam is the largest footwear exporter and a significant apparel and technical textiles source. EU-Vietnam FTA (in force since 2020) provides preferential tariff access to the EU for goods meeting rules of origin. Workers are represented through a single union structure (VGCL) — independent unions are not legally established [VERIFY: check status of Vietnam's ILO commitments on freedom of association]. Social audits are widely accepted; Higg FEM (facility environmental module) is increasingly requested by US and EU brands. Chemical compliance tends to be stronger than in some other markets because of the electronics and footwear industries' established RSL culture.
Pakistan is a major source for textile fabric, knitwear, and sporting goods (footballs, cricket equipment). GSP+ status with the EU provides preferential access but requires compliance with 27 international conventions on human rights, labour, environment and governance. The 2026 EU GSP+ compliance report is the latest formal assessment [VERIFY: confirm 2026 report publication and key findings]. Factory audits face practical challenges including informal subcontracting that is difficult to map, and electricity supply constraints that affect production records. GOTS-certified spinning mills exist but are fewer than in India or Bangladesh. REACH compliance varies; testing infrastructure in-country is less developed than in Vietnam.
India is a complex sourcing market — enormous scale and capability at the top tier, significant informality at sub-tiers. It is the largest producer of organic cotton (certified to GOTS and USDA NOP). GOTS-certified spinning and weaving facilities are among the most numerous in the world. Social compliance auditing is well-established at tier 1 but becomes unreliable below that level. State-level labour law variations add complexity — India's Labour Codes (enacted but implementation timeline varying by state) are consolidating previous legislation [VERIFY: confirm which states have fully implemented the new Labour Codes]. Home-based work (homework) is common in certain product categories and is rarely audited.
Cambodia is a smaller sourcing market focused on garments and footwear, with EU EBA (Everything But Arms) trade access as an LDC. ILO Better Factories Cambodia (BFC) operates an ongoing monitoring programme covering a significant proportion of the garment sector — BFC compliance status is a baseline expectation for most European buyers. The Cambodia Labour Law is relatively comprehensive on paper but enforcement at smaller factories and sub-tiers is inconsistent. Wage levels are among the lowest in the region; brands sourcing from Cambodia are routinely asked about living wage commitments.
| Market | Key trade access | Baseline audit requirement | Strongest certification sector | Main compliance risk |
|---|---|---|---|---|
| Bangladesh | EU GSP+, US AGOA | International Accord (for Accord brands) | Structural/fire safety, GOTS in larger mills | Sub-tier visibility, homeworkers |
| Vietnam | EU-Vietnam FTA, CPTPP | SMETA or Higg FEM | Higg FEM, footwear RSL | Freedom of association limitations |
| Pakistan | EU GSP+ | SMETA or BSCI | Fewer — GOTS mills exist | Subcontracting, power supply records |
| India | Standard; EU FTA under negotiation | SMETA or SA8000 | GOTS organic cotton, USDA NOP | Sub-tier informality, homework |
| Cambodia | EU EBA, GSP | ILO Better Factories Cambodia | BFC compliance | Living wage gap, smaller factory tier |
SMETA (Sedex Members Ethical Trade Audit) — particularly the 4-pillar version covering labour, health and safety, environment and business ethics — is accepted by the broadest range of buyers across all five markets. BSCI (amfori) is also widely used, particularly among European brands. Higg FEM is increasingly required alongside a social audit for brands with SBTi commitments or CSRD obligations.
Start with a contractual requirement: the purchase order should prohibit undisclosed subcontracting and require notification and approval before any work is subcontracted. In practice, sub-tier mapping requires your tier 1 supplier to disclose their input suppliers and for you to audit or assess them separately. Tools like Sourcemap and Ulula are used for sub-tier mapping; none of them remove the need for direct engagement with tier 1 on disclosure.
Yes, for companies in scope. The Corporate Sustainability Due Diligence Directive (CSDDD, now CS3D) requires companies to identify and address adverse human rights and environmental impacts in their value chains. After Omnibus I changes, the threshold is companies with more than 1,000 employees and €450 million turnover. Their suppliers — including those in Bangladesh, Vietnam, Pakistan, India and Cambodia — are in scope of the due diligence obligation even if they are not themselves required to report.
Need a CSRD gap analysis or hands-on implementation? Sustainability Frisk can help. www.sustainability-frisk.com
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