However, what will be the feasible option, especially for small and medium enterprises that first step into the big sea.
The current technological trend in the 4.0 era has helped communication overcome geographical barriers. However, international transactions including the transportation of goods and payments are still governed by international principles as well as the management of each country in the role of export or import side.
Giving trust to banks or logistics enterprises?
The reason that the Vietnamese exporter has not received payment from the buyer in Dubai (importing country) as we may know is because the documents have not been sent to the correct receiving bank address, and the importer receive a set of documents. If the above information is true, it is certain that the role and responsibility of the international express delivery unit (transporting the set of documents) is not small. However, from a business perspective, to control risk we cannot rely solely on these units. That is not to mention the regulation on compensation for lost documents or wrong delivery of the object, which has been minimized by the courier units, even the determination of the compensation value does not depend on the value of the cargo or the documents themselves which the carriers are responsible for shipping.
The question is why the exporters in this case do not use the payment method of letter of credit (L/C) or the more common method of money transfer via bank called Telegraphic Transfer (T/T). In case businesses are transacting with each other for the first time or have not yet gained certain trust, the L/C method is always recommended. In accordance with the provisions of the applicable Documentary Credits Unified Rules and Practices UCP600 allows the bank to act as a consignee instead of the actual importer. Different from the D/P method, which is regulated by the unified rule on collection URC522, the documentary credit method ensures that in case a set of documents is lost or the shipping unit delivers the wrong recipient, this false recipient after having the set of documents still impossossible to complete the import procedure because the transfer endorsement procedure has not been completed at the bank.
On the other hand, according to Dr. Byron Lee - Chairman of the Hong Kong Logistics and Shipping Association (HKSTLA), the T/T payment method seems to contain many risks, but if the exporter combines with a reputable Logistics service provider and a good network of international agents (Network Agent), by issueing Surrendered B/L or Telex Release to the right subjects after receiving payment according to contract is completely controllable. Thus, the role of enterprises operating in the field of Logistics, especially related to international transportation, has always played an important role in addition to bringing goods to the right place, but also contributing to ensuring the delivery of goods. the right person and at the right time.
The story needs national involvement
In addition to closely coordinating with financial intermediaries such as banks or logistics units, exporters must always pay attention to even the smallest and unusual factors in any international trade activities. For example, the time of establishment of the importer or the bank in the importing country has a certain reputation or not. However, verifying the above factors has never been easy, especially for small and medium-sized businesses in Vietnam.
From the above difficulties, it is thought that the role of trade promotion departments, trade counselors in other countries or import-export departments should have mechanisms and tools to support and protect Vietnamese exporters, especially This is for a group of items that are difficult to trace and easy to subdivide and resell as agricultural products. Specifically, activities can be mentioned such as providing a list of importers under warning or economic zones where situations related to international fraud are arising.
In addition, the information linking between different countries should be implemented synchronously and drastically in order to build healthy international trade activities as well as update new regulations related to financial activities to be consistent. with business practice. In the case of the above- mentioned agricultural export enterprises, proving that any bank staff (even the security department) received a set of documents from the delivery unit, and at the same time the buyer himself (consignee) has completed the procedures to receive the shipment in accordance with the contract, the payment to the exporter is completely grounded. Once again, we see that in business in general and international trade in particular, the role of industry associations, logistics service business associations, and representative state agencies in foreign countries plays an important role. It plays a very important role in supporting businesses in solving difficulties and minimizing losses when incidents occur.