Ngo Khac Le, an arbitrator at the Vietnam International Arbitration Centre, said to prevent risks and improve efficiency in exports Vietnamese companies should carefully vet their customers before signing export contracts. (Photo: VNA) HCMCity (VNA) - Risks that companies face while exporting andmeasures to mitigate such risks and collect overseas receivables were discussedat a seminar in HCM City on December 22.
Speaking at the “Risk Management and Offshore Debt Prevention in Free Trade”seminar, Quyen Anh Ngoc from the Ministry of Industry and Trade’s MultilateralTrade Policy said existing and future free trade agreements would bring greatopportunities for Vietnamese firms to boost exports and enter the global supplychain.
But they would also face challenges like technical barriers and the threat oflosing domestic market shares, he said.
Besides, exporters face the risk of not getting payments from their buyers, hesaid.
He urged export firms to fully understand the commitments made under the FTAs,draw up suitable business strategies and strengthen their competitiveness totake better advantage of them.
Ngo Khac Le, an arbitrator at the Vietnam International Arbitration Centre,said to prevent risks and improve efficiency in exports, before signing exportcontracts, Vietnamese companies should carefully check the antecedents of theircustomers, especially new customers, through consultancies, Vietnam tradeoffices abroad and other sources.
They should choose suitable INCOTERMS (international commercial terms), haveclauses ensuring the independence of the contract, and set a duration fornegotiations and dispute resolution, among others, he said.
Firms should resolve their disputes through arbitration centres, he added.
Christopher McNabb, Director of Assurance Global Financial Services andSolutions in Vietnam, said collection of delinquent offshore accountreceivables is very challenging and expert advice is critical.
According to his company’s statistics, Vietnam’s exporters lost an estimated 8million USD last year, he said.
Uncollectable account receivables result in high financial losses to exportersand so they need to have a credit management system to manage these risks andemploy global best practices to avoid delinquent debts, fraud and revenue loss,he said.
He also introduced his company’s services and measures for collectingdelinquent offshore account receivables.
Organised by the Vietnam Chamber of Commerce and Industry and Assurance Global,the seminar attracted more than 100 delegates, including members of businessassociations and executives of large export firms.-VNA
VNA
