The vendor has global ACL set:
and in the global ACL, Product Approve is disabled:
I also tried setting the non-global vendor acl settings with the same results.
Another issue that I have just noticed is that the Warehouse setting for the product is not displaying correctly if viewed from the vendor control panel. (I have renamed 'Warehouse' to 'Despatch'):
Back end product edit:
Vendor admin view of the product:
These all look similar to the problem I reported a few days ago:
http://www.hikashop.com/forum/19-hikamarket/883556-shipping-methods-not-displayed-on-product-edit-pag.html