Tiếng Việt
中文 (中国)
In the context of Vietnam’s deepening integration into the global economy with diverse and complex legal regulations, corresponding to each territory and international general regulations, Vietnamese manufacturing and exporting enterprises must equip themselves with skills and measures to prevent risks.
The Deputy Director of the Import-Export Department of the Ministry of Industry and Trade emphasized that economic integration opens up many trading opportunities for Vietnamese enterprises, thereby contributing to boosting exports. However, along with these opportunities, enterprises also face various risks in international trade.
When considering risks in international trade, many enterprises often only think of losing goods or money, as exemplified by the cashew nut incident in previous years. However, the reality is that the risks faced by enterprises are broader in scope and cover many different aspects.
Firstly, there are risks from global fluctuations. Currently, the world is undergoing rapid and complex changes, with trade and military conflicts affecting trade, supply and demand of goods in the market, thereby affecting the production of enterprises.
These geopolitical factors may create barriers to business operations, such as the inability to export products to partners located in conflict-affected areas or many banks in that country being economically sanctioned, thus unable to access international payment systems, etc.
Secondly, there are risks in payment and transportation. A typical example is the loss of goods or money that occurred when exporting to foreign countries. In international trade, there are various forms of payment, and there are loopholes that enterprises find difficult to anticipate.
In the cashew nut case, due to lack of experience and thorough legal advice, Vietnamese enterprises faced the risk of losing many exported cashew nut batches to individuals or organizations whose identities are still unclear.
Having support from consulting units in the fields of import-export and international trade remedy is particularly important to avoid existing risks.
Thirdly, related to cross-border trade transactions. Some enterprises still engage in transactions without foreign trade contracts or formal channels, leading to disputes over prices, quality, delivery conditions, etc.
Fourthly, risks arise when enterprises fail to timely grasp the regulations and standards regarding food safety and hygiene of the importing country, resulting in the inability to export goods or their return.
Finally, there are risks in trade remedy.
Risks in international trade for Vietnamese enterprises
In the initial four risks, enterprises will face difficulties in import and export, restrictions in transactions. However, the final risk usually arises when enterprises do not encounter too many obstacles in business activities but, in reality, conduct business very well, leading to Vietnamese exporting enterprises often entering the market of a country.
When the volume of exported products is too high, it can lead to product saturation in the importing market. Along with factors such as low prices, causing damage to the interests of domestic manufacturing industries, both the enterprises and the exporting country may face trade remedy investigation risks.
Some common forms of trade remedy investigation are anti-dumping, countervailing, self defence, and circumvention of trade remedy measures.
To avoid this possibility, enterprises and countries should establish a certain level of export, and at the same time, contact experienced consulting units in this field.
As Vietnam integrates into global markets with various legal regulations, enterprises need to equip themselves with preventive measures against risks, whether they are economic or legal risks.
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