Tuesday, November 21 2017

VietNamNews

Beware of UAE losses: Ministry

Update: July, 31/2017 - 10:45
The Ministry of Industry and Trade has advised enterprises to carefully study export regulations of the United Arab Emirates (UAE) when conducting business with firms there to avoid suffering losses. — VNA/VNS Photo

HÀ NỘI — The Ministry of Industry and Trade has advised enterprises to carefully study export regulations of the United Arab Emirates (UAE) when conducting business with firms there to avoid suffering losses.

According to the Vietnamese Trade Office in the UAE, many Vietnamese firms have recently been cheated by some UAE businesses.

Vietnamese enterprises should be vigilant when selling goods to UAE firms as they can arm-twist these businesses into accepting their payment methods and prices, and even devalue Vietnamese goods in the market.

Most of the UAE importers of vegetable and fruits prefer deferred payment in which they can deposit an amount, and pay the rest only 15 to 30 days after receiving the goods, the ministry’s Department of African, West Asian, South Asian Market said. Also, they rarely open Letter of Credits at banks, a step that minimises risks for exporters.

The department suggested that Vietnamese firms should not compromise on the payment method, and deferred payment should be applicable on receivables equivalent to 10-20 per cent of the contract value.

Phạm Trung Nghĩa, Vietnamese Trade Counselor in Dubai, recommended that Vietnamese businesses contact the Trade Office in the UAE before starting business in the UAE market, an open, transit market for 40 per cent of the exported goods.

Also, Vietnamese firms that sign contracts with new UAE partners should enlist the office’s support in confirming the legal status and reputation of their potential partners.

To boost sustainable trade between Việt Nam and the UAE, experts advised that Vietnamese firms should abide strictly by import-export regulations in the UAE so as to prevent their goods from being sent back.

Vietnamese companies should also invest in human resources specialised in import-export activities, improve their staff’s knowledge of foreign languages, as well as study the market and potential partners thoroughly.

In the future, the Vietnamese Trade Office in the UAE will strengthen trade promotion through exhibitions and showcase Vietnamese foods, farm produce and fruits in major supermarkets in the UAE, such as Al Maya, Union Corps, Choithrams and Lulu. It will also help enterprises seek UAE partners and verify information.

Minister of Industry and Trade Trần Tuấn Anh said his ministry would continue negotiating and signing co-operation deals to facilitate enterprises from both sides to access each other’s markets. At the same time, the ministry will work with the UAE to encourage their enterprises to invest in agriculture, aquatic farming, culture, tourism, sports and construction.

Anh also suggested that all firms study reference contracts for international trade in the guidebook for international trade activities. — VNS

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