Be wary of risks when trading with partners in some European markets

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Many export businesses have had to face being deceived and suffering losses when being subjective about partners in international trade transactions. Illustrative photo: Internet

The Vietnam Trade Office in the Netherlands warns of cases of online fraud, especially for petroleum products in this market.

Recently, in the Netherlands there have been many cases of online fraud, especially related to petroleum products in the context of increased demand for this group of products. Fraudsters often set up a fake website with completely fabricated information or set up a website impersonating real import-export companies or companies providing fuel tank rental services, with the contact point is usually a mobile phone number or an internet phone number (4G SIM number).

Taking advantage of the belief that the Netherlands is a developed country, with a strict legal system and reputable companies, some businesses, when they see contracts with attractive terms, quickly proceed with fear of losing opportunities and not carefully checking information about partners.

Even when these businesses intend to verify their legal status, they provide information by copying business registration license data extracted from competent authorities or allowing businesses to proceed direct verification by an independent third party but reality cannot be verified because it is not real.

Therefore, the Vietnam Trade Office in the Netherlands warns businesses to be careful when conducting transactions, noting that: for reputable businesses in this field, contact information is shown above website is a contact form, landline phone number, email (usually info@...). The form of payment for petroleum trading transactions is usually payment by L/C.

Similarly, the Vietnam Trade Office in Spain said that recently, the deal received feedback from a number of domestic enterprises exporting cashew nuts and pepper to Spanish enterprises.

Specific contact information is as follows:

ISASA SIGLO XXI Company, S.L.

Representative: Mr. Manuel Gil or Ms. Annie

Headquarters: CALLE RIOGORDO, NAVE 4, ESTRELLA, 29006 MALAGA, SPAIN

Phone: +34 617 36 75 03; +34 689 77 10 04

Email: info@isasaexport.com; isasa@isasaexport.com

Website: https://isasaexport.com/en/home/

“This Spanish enterprise claimed that our goods did not ensure the quality of the goods at the port of destination or that they were at a loss due to the decline in local market prices, so they did not comply with the contract buying and selling, specifically delays and delays in paying for goods", the Vietnam Trade Office in Spain informed.

This reality has caused difficulties, lost time, storage costs and had to pull goods back for Vietnamese businesses.

Therefore, the Trade Office would like to warn domestic businesses to pay attention when signing actual sales contracts with the above mentioned Spanish businesses. At the same time, it is recommended that domestic businesses increase coordination with the Trade Office in verifying local businesses before actually signing sales contracts to minimize the risk of encountering fraudulent partners or not properly implementing contracts.

Regarding this issue, at the Trade Promotion Conference with the system of foreign trade agencies at the end of 2023, Deputy Director of the Trade Promotion Department (Ministry of Industry and Trade) Hoang Minh Chien said, in a volatile market context, trade disputes and fraud are a problem that exists in international trade transactions that export businesses always have to consider.

“As Vietnam integrates more deeply, Vietnamese businesses do business with many partners, wider playing fields, and different rules of the game, the risk of disputes and fraud is also greater and more complicated. Frauds and disputes that businesses often face are due to not having the conditions to thoroughly check the partner, choosing an inappropriate payment method, and possibly from calculated manipulations from the partner in the process. contracts that Vietnamese businesses do not have much experience in," the leader of the Department of Trade Promotion emphasized.

According to the Ministry of Industry and Trade, although many of Vietnam's export industries are currently leading in the world, most Vietnamese businesses are small and medium-sized enterprises, inexperienced in international trade disputes. Furthermore, Vietnamese businesses have too much trust in brokers. Currently, many contracts drafted by brokers are very simple, lacking many important terms, but businesses still accept them. More worryingly, the business also skipped the partner checking stage while this is a mandatory requirement when dealing with new partners. Therefore, businesses do not recognize signs of risk.

In particular, taking advantage of the long period of being affected by the pandemic, while businesses need to promote import and export, they tend to accept higher risks in transactions. Online fraud not only takes place in the Middle East and Africa but is increasingly common and occurs even in large, reputable markets such as the US, Netherlands, Italy, Norway...