SMETA Audit in Vietnam: Complete Guide for Manufacturers, Exporters,

What is an SMETA Audit?

SMETA Audits (Sedex Members Ethical Trade Audit) are one of the most common social compliance audits in the world. You can think of an SMETA audit less like an inspection of product quality and more like an inspection of the people, the safety of the workplace, the health and safety practices, and the ethics of the business.

Sedex, a non-profit organization, created and maintains the SMETA audit framework. Sedex is one of the largest ethical supply chain data platforms worldwide. SMETA and Sedex shape the supply chain landscape with over 74,000 members.

SMETA audits do not inspect product quality; they inspect people and processes.

SMETA audits determine how a factory develops its workforce, maintains safe work environments, ensures transparency in management, and more.

SMETA is made up of four main areas:

Labor Standards:  this will cover the payment of wages, working hours, child labor, the prevention of forced labor, and the protection of the rights of associations and the non-discrimination of members. In Vietnam, this directly correlates to the Vietnamese Labor Code 2019 (Bộ luật Lao động 2019) and relevant MOLISA inspections.

Health and Safety: covers factory conditions, machinery safety, adherence to emergency and fire safety procedures, personal protective equipment, and worker welfare facilities.

Environment:  this covers compliance with and the management of safety and health regulations, the management of wastes and pollution, and the management of energy.

Business Ethics: covers management integrity, data transparency, anti-bribery policies, and sub-supplier policies.

What is the Meaning of SMETA Audit? 

SMETA Audit means Sedex Members Ethical Trade Audit, a common method businesses use to assess ethical practices in their supply chains.

Its purpose is to check if a company ensures a safe, fair, and responsible work environment by following labor laws and ethical standards.

Unlike product quality inspections, an SMETA audit focuses on how a business treats its workers, manages workplace safety, protects the environment, and conducts its operations ethically. 

Why SMETA Audit is Important in Vietnam

Vietnam continues to attract significant foreign investment and international sourcing activity. As supply chains become more transparent, buyers increasingly evaluate suppliers based on compliance performance.

Growing International Buyer Requirements

Many buyers require suppliers to undergo social compliance audits before initiating orders.

A positive SMETA audit demonstrates:

• Commitment to worker welfare
• Safe workplace conditions
• Ethical business practices
• Compliance with labor regulations
• Improved Export Opportunities
• Factories that successfully complete an SMETA audit often gain easier access to international supply chains.
• Many sourcing teams prefer suppliers with recognized audit reports because they reduce risk and improve transparency.
• Stronger Business Reputation

A successful SMETA audit demonstrates professionalism and responsibility.

This can strengthen relationships with:

• Global brands
• Retailers
• Importers
• Investors
• Business partners
• Competitive Advantage
• Vietnam's manufacturing sector is highly competitive.

A SMETA audit provides a clear way for businesses to distinguish themselves from competitors by showcasing their proven commitment to social responsibility and compliance, which can be a decisive factor for prospective buyers seeking reliable partners.

Why SMETA Matters For Vietnamese Factories  

Vietnamese exporters must urgently comply with SMETA. Understanding why and building a compliance case will help factory planners.

The EU Corporate Sustainability Due Diligence Directive (CSDDD)

The EU Corporate Sustainability Due Diligence Directive (CSDD) will be a law in the European Union in 2024. It will require large European companies to identify human rights and environmental risks in their supply chain, including Vietnamese suppliers, and to take measures to avoid and, if they have occurred, to mitigate those impacts. For European brands that have sourcing in Vietnam, it will be necessary to be able to demonstrate that suppliers are ethical and legal. For a Vietnamese factory, supporting its buyers in meeting that requirement is best done with a valid SMETA audit report.

The EVFTA Compliance Premium

The EU-Vietnam Free Trade Agreement (EVFTA) has been in effect since 2020 and has a large impact on the elimination of tariffs on Vietnamese textile and garment exports to the European Union. This provides Vietnamese factories a large price advantage compared to factories in countries with no equivalent trade agreement with the EU. The EVFTA also has an impact on extensive, observable, and measurable labor, environmental, and corporate governance issues. European buyers who benefit from EVFTA expect their Vietnamese supply chains to be SMETA compliant.

SMETA 7.0 — New Procedures  Starting 2024

SMETA 7.0 launched in September 2024. The most recent Auditing method by Sedex has a New Management Systems Assessment (MSA). With this, auditors do not just check if policies exist. They check if the for-profit entities’ senior executives actually control systems that fulfill the commitment of long-term compliance. This is a large change for many Vietnamese factories. Many factories’ compliance documents for past audits do not represent actual practices. SMETA 7.0 is designed to find these gaps. SMETA 7.0 also added New Collaborative Action Required (CAR) findings, which are another new tier for intricate and general issues that demand a long-term corrective action plan, which can even extend to multiple years. Factories in Vietnam that bypassed prior audits by rapidly editing documents to comply will now have to make a substantive change to comply, as required by SMETA 7.0.

Audit Fatigue

SMETA 7.0 addresses the issue of Vietnamese factories undergoing as many as six international compliance audits per year. Because audits vary in requirements, structure, and deadlines, they are costly and disruptive. SMETA enables factories to upload a single report to Sedex for sharing with all relevant buyers, allowing broader acceptance and reducing the need for multiple audits each year.

Vietnam Now Supplies The Most US Apparel After Surpassing China

By the end of 2025, Vietnam had become the leading apparel supplier to the United States, a position with both opportunities and new challenges. US retailers routinely require factories to obtain SMETA or an equivalent social compliance certification. Without SMETA, factories are unlikely to participate in RFQs or RFPs.

Industries in Vietnam That Need SMETA Audits

SMETA audits are commonly requested across multiple sectors.

Textile & Garment Manufacturing: Vietnam is one of the world's largest garment exporters. Many apparel brands require SMETA audits from suppliers.

Footwear Manufacturing: Global footwear companies often request social compliance verification.

Electronics Manufacturing: Electronic component suppliers increasingly undergo SMETA assessments.

Furniture Industry: Furniture exporters use SMETA audits to demonstrate responsible manufacturing practices.

Packaging & Consumer Goods: Packaging manufacturers and consumer goods factories often require SMETA reports for international business opportunities. 

Benefits of SMETA Audit for Vietnam Businesses

A Step-by-Step Overview of the SMETA Audit Process in Vietnam

Learning the SMETA audit process allows Vietnam factories to prepare in advance and minimize delays.

Step 1: Sedex Registration

The process begins with the supplier creating an account on the Sedex platform. Factories complete the registration process, select the relevant membership, and link to the buyers who have requested the audit. GSCS Vietnam can provide account creation and registration assistance.

Step 2: Self-Assessment Questionnaire (SAQ) Completion

The Sedex Self-Assessment Questionnaire must be completed by the factory. This questionnaire captures information regarding the factory’s stance on labor standards, health and safety, the environment, and business ethics. This information will be reviewed by the audit team prior to the audit and, therefore, must be completed accurately.

Step 3: Documentation Preparation

Factories must prepare and organize documentation for the audit, which must include, but is not limited to:

•  Employment Contracts
•  Payroll & Wage Records
•  Records of Working Hours
•  Health & Safety Records
•  Fire Safety & Emergency Records
•  Environmental Permits
•  Business Ethics & Documentation of Employee Training
• Audits assess documentation, and well-prepared documents improve audit readiness.

Step 4: Gap Analysis Pre-Audit

Most factories will complete a gap analysis pre-audit to assess their readiness for the official audit. This step is used to address issues which improves the likelihood of a successful audit.

Step 5: On-Site SMETA Audit

GSCS Vietnam Auditors will perform an SMETA audit step, which includes an extensive review of the factory through various methods, including an inspection of the facility, documentation, interviews with management, and interviews with factory workers, which will be conducted in a one-on-one and confidential manner. This audit measures the gap between what is being done in the factory and what is required by the SMETA standards.

Step 6: Audit Results Submission

After the audit, SMETA documentation will be prepared, and the results will be published on the Sedex platform. Results can be accessed by buyer audit requesters and therefore allow factories to show their compliance to multiple buyers through one audit.

Step 7: Corrective Action Plan (CAP)

When issues are discovered, a Corrective Action Plan is formulated and put in place by the factory. GSCS Vietnam supports businesses in tackling non-conformities and improving long-term compliance performance.

By following these steps and preparing properly, Vietnamese factories can refine audit results and elevate buyers' trust and their factories' standing in global supply chains.

Why Choose GSCS Vietnam for Your SMETA Audit?

At GSCS Vietnam, you gain the combined advantage of our global audit network and deep knowledge of Vietnam’s manufacturing and compliance landscape, ensuring your SMETA audit succeeds.

SMETA Auditing Experts

Our auditors use the latest Sedex requirements and cutting-edge SMETA methods to maximize audit accuracy and relevance.

Vietnam Compliance Specialists

Our team’s deep understanding of local labor laws, wage rules, work hour regulations, and safety requirements ensures robust compliance.

Gap Assessment Pre-Audit

We pinpoint compliance gaps before the audit, giving your factory time to make targeted improvements and boost audit readiness.

Corrective Measures Backing

When issues arise, we deliver actionable corrective steps that help you maintain compliance and build buyer trust.

Wider Compliance Alternatives

GSCS Vietnam supports ongoing compliance through SMETA, WRAP, SLCP, C-TPAT, ISO certifications, and tailored solutions for your business.

Contact GSCS Vietnam today to discuss your SMETA audit and discover how our expertise can help elevate your compliance strategy.