EU Council Officially Adopted the Corporate Sustainability Due Diligence (CSDDD)


After reaching the vital milestone on April 24, 2024, marked by the endorsement of the EU Parliament for the proposal of CSDDD, on May 24, 2024, the Directive was adopted by the EU Commission. 20 days after the publication in the Official Journal of the EU, CSDDD will officially enter into force.

Below are the important timelines for businesses to pay heed to:

1. Expected by 2026: 

  • Member States and European Economic Area (EEA) countries transpose CSDDD into national law and establish national supervisory authorities. 
  • The EU Commission will publish an assessment on the potential application of due diligence requirements for financial institutions.

2. Expected from 2027-2029: The scope of CSDDD will affect companies from 5.000 down to 1.000 staff and from a turnover of 1.5 billion euros to 450 million euros. 

3. Expected by 2030: The EU Commission will have the first review of the implementation of CSDDD.

Not only focusing on a human-centric approach as LkSG, but CSDDD also set out requirements for large businesses to align with the Paris Agreement goal of limiting global warming to 1.5°C and achieving Net Zero by 2050.

As a promising investment hub and one of the major suppliers to the European market, Vietnam affirms its determination and commitment to design a comprehensive legal framework for Vietnam-EU investment protection. This is demonstrated through the Prime Minister's Decision No. 1055/QĐ-TTg on the promulgation of the "National Adaptation Plan for the period 2021-2030, with a vision to 2050", as well as the Prime Minister's Decision No. 843/QĐ-TTg on the promulgation of the "National Action Plan to Improve Policies and Laws to Promote Responsible Business Practices in Vietnam for the period 2023-2027 ". 

For more information, access the link here.

AHK Vietnam supports our partners in mapping out efficient business strategies in alignment with due diligence. Contact and stay updated with us at Sustainability Consulting or contact Ms. Huyen Nhu Lanh | Email: