[NEWS] - Solution to prevent risks in import and export payment

According to experts, payment risks in import and export are increasing due to geopolitical fluctuations as well as depending on the safety and reliability of foreign partners. Therefore, taking advantage of solutions from banks should be a top choice of businesses.

Learn from risk

Up to now, thanks to the active support of stakeholders in both Vietnam and Italy, the case of 100 containers of cashews exported to Italy, through the broker of Kim Hanh Viet Company, has been successfully handled after the whole process. set of 35 cargo containers that lost control of the original documents were released. This is a case of great public interest and has received the direction of handling from the top leaders of the Government.

According to experts and lawyers, this case has drawn many lessons for Vietnamese businesses such as checking partners, contracts before transactions and signing. Especially businesses need to choose safer payment methods such as T/T (electrical money transfer) or L/C (letter of credit). Because with these forms, the seller will know the buyer’s bank information, helping to ensure more safety.

Commenting on the capacity in trade with international partners, Ms. Trinh Thi Huong, Department of Business Development, Ministry of Planning and Investment said that businesses, especially small and medium-sized enterprises, are still quite passive when searching for products. understanding partners, customers as well as skills in implementing international commercial contracts, international payments... Many businesses do not have specialized staff in import and export to control contracts and connect partners Internationally through functional agencies, representative agencies on Vietnamese trade and investment abroad to find out information. Therefore, businesses need to prepare carefully, especially about international contracts and payments to minimize risks when dealing with foreign partners.

Take advantage of solutions from banks

In the above context, banks have developed financial solutions to support international payment transactions which are convenient, safe and avoid many risks. Currently, banks have a lot of trade finance and international payment products such as L/C, D/P (collective with documents), T/T, UPAS L/C (deferred letter of credit), Indochina fast money transfer, cross-border payment, international payment transaction lookup service via SWIFT GPI…

For example, at ABBank, along with L/C, UPAS L/C product has become one of the modern trade finance products, bringing many benefits to import-export customers as well as domestic trade. with both domestic and international partners. UPAS L/C is a letter of credit issued on deferred payment, which contains a provision that allows the beneficiary to receive funds immediately or early from the sponsoring bank on the due date for payment of the letter of credit, ABBank will return both principal and interest incurred to the Sponsoring Bank.

Similarly, LienVietPostBank provides effective financial solutions in international payments with diverse products such as money transfer to/from, collection, L/C... and exchange rate support. The representative of VietinBank also said that the bank has solutions to maximize profits, increase revenue, secure payment transactions, etc. in import and export activities.

With Sacombank, this bank has completed the digitization of the entire online transaction process - electronic documents through website and ebanking. As a result, businesses can execute payment orders through automated solutions, diversifying payment channels and methods according to each business’s needs on the basis of modern technology for fast, secure transactions. Safe and secure…

In addition, many banks said that in order to operate import and export payments conveniently, the bank has a team of experts to advise and accompany businesses in handling customs procedures and international payments.

Commenting on this issue, according to economic expert Dr. Le Xuan Nghia, businesses that regularly trade in import and export should choose banks with good trade finance capabilities, capable of providing simple exchange risk prevention services... Import and export activities are planned in a scientific and long-term manner. These measures will give the donor bank confidence as well as its international customers to be able to respond to any market risks.

But in the end, the problem of businesses is still to actively and flexibly learn about customers as well as the regulations in international trade and the laws of each market to have a suitable business solution. Because obviously, when meeting with an untrustworthy partner, the enterprise using any payment method can still have risks, lose money, lose goods... Therefore, improving the capacity of the sales team, exporting Importing at each enterprise is very necessary, along with the support of appraisal of partners from trade counselors, associations ... to facilitate business, import and export.

To reduce risks and increase accuracy in import and export processes, Indochina Holdings offers trade promotion services. We orient and connect businesses, focus on reducing risks and offer the most effective solutions based on operational and business criteria. With a team of experienced in supporting as well as consulting optimal and useful solutions to Vietnamese businesses.

Cao Duy