Enterprises must actively improve their capacity in negotiating export contracts

International integration helps to improve the capacity of the economy in general and of each enterprise in particular. Import and export of goods creates opportunities for businesses to sell, do business and expand their scale, but it comes with challenges, including fraud and fraudulent commercial contracts.

There have been many cases where businesses have tasted “bitter fruit” in the market, so more than anyone else, in order to prevent risks, Vietnamese enterprises must improve their legal capacity, build close relationships with the authorities. representatives, experts to do it right the first time. Around this issue, Dong Nai at the weekend had a discussion with Mr. TO BINH MINH, deputy director of the Vietnam – Japan Institute of Human Resource Development (VJCC), member of the Scientific Council of the Arbitration Center Vietnam International (VIAC).

* The more you integrate, the more fraud you will face

Mr. To Binh Minh, Deputy Director of the Vietnam – Japan Human Resource Development Institute (VJCC): Enterprises must actively improve their capacity in negotiating export contracts.

* Sir, international economic integration is a way for Vietnamese enterprises to grow up and spread their brands, but through doing business and trading with foreign countries, there are also many challenges, including commercial pitfalls. . In your opinion, what problems do our businesses often face?

– The economy is open, enterprises are participating in the international market more and more. Previously, people did not pay attention to risks in international trade, the reason was that the activities revolved around a few traditional customers, brother partners and mainly focused on a few large enterprises, domestic enterprises. country.

International integration is an opportunity but also a difficulty for Vietnamese enterprises, especially the majority of small and medium-sized enterprises. The understanding of customs and international trade rules of most businesses is not much, many of them face problems when doing business. There have been units that only made a few contracts and then stopped, even had to pay compensation or go bankrupt. Most Vietnamese enterprises do not have a thorough understanding of international law, the law of the partner country, do not have a legal department to support, leading to drafting contracts with loose terms, not suitable for real situations. present or entrust the partner to draft the contract and do not consider it carefully before signing. Disputes can even arise with close partners and business partners.

* What is the capacity of most of our businesses in understanding international trade laws and resolving disputes when incidents occur today? Is the case of 100 containers of cashews that were nearly lost in the past time an alarming problem for the business community?

As mentioned, businesses will have to face many tricks, tricks and commercial frauds, if not alert, they will easily fall into the situation of “losing money”, even bankruptcy. There are many reasons, lack of orders, pressure of cash flow, or lack of business methods and experience that make Vietnamese enterprises easy to become victims of contracts full of traps. Most Vietnamese enterprises are small and have very limited professionalism, so they are often in a weak position.

Not only that, lack of knowledge and skills makes it easy for businesses to fall into the trap. Too trusting in importers when they make attractive promises such as “buy as much as you can”, and pay on time in the first 5-7 shipments… DN is easy to lack vigilance, not to mention There are contract traps. When the situation is over, the resolution of the consequences even if it can be removed, most businesses are also disadvantaged.

Going back to the case of 100 containers of cashew nuts exported to Italy that were almost scammed, this is exactly a warning bell to the business community. It is not possible to remain blind in signing and concluding export contracts. This is just one of many cases of fraud and commercial fraud in import and export of goods. The disadvantage of enterprises is mainly due to the limited capacity to understand international trade law, experience in importing and exporting goods to foreign countries.

* So, in this case, what should enterprises do, sir?

– When cases of fraud and commercial disputes occur, businesses need to contact Vietnamese representative agencies and trade deals abroad so that they can timely intervene and assist in effectively handling problems, ensuring safety and security. protect their lawful and legitimate interests. In the process of resolving the case, use all possible channels such as Vietnam’s international commercial arbitration, knowledgeable lawyers for assistance.

* Enterprises must improve their capacity

* When an incident occurs, ask for help from agencies to solve, even if it can be removed, the business has more or less suffered damage, according to you, how proactive should the enterprise itself be to prevent?

– We know that prevention is always better than cure, but as mentioned, due to limited capacity, businesses are still entangled in many lawsuits and disputes. The important thing here is to make sure right from the start, doing the right thing in commercial transactions will limit a lot of problems that arise. Before cooperating, exporters should check the identity of buyers, especially customers who work for the first time but order in large quantities, customers specializing in this field offer to buy other products, customers can unusual signs…

Besides, when doing business with any market, it is necessary to learn the laws of that country and their business practices. Doing import and export, the legal department, experts are therefore very important. Enterprises need to be careful from how to draft contracts to avoid unfavorable terms later on.

The sad thing is that with decades of working in the industry, most businesses only come to me when something goes wrong. That is very, very inappropriate!

Enterprises need to understand the market and customers to avoid risks in export (illustration). Photo: V.The

* To be professional, do businesses need a strong enough legal team?

– That’s for sure! There is no other way, to train a team of qualified import-export staff who are knowledgeable about related issues such as transportation, logistics, etc. Must contact and cooperate closely with experts from the very beginning. rather than going to them when problems arise.

* In your opinion, what is the role of associations here?

– To support businesses, the role of associations is very important, especially industry associations such as garment, wood, cashew, rice… When there is a combination and cooperation, the Information about the market, about partners is shared by everyone. This partner is decent, the other is often litigated, market prices, consumption demand … shared by businesses and associations will reduce risks. The weakness of enterprises is that they share little, link together to create strength, sometimes compete against each other to lower prices, creating more of their weakness.

Industry associations also need to be supported by the State, creating mechanisms and conditions for development. Industry associations are also the extension arm of the State, helping to strengthen the relationship between the State and enterprises, thereby jointly building development programs and building common capacity for enterprises.

* Thank you Sir!

Source: Dong Nai Newspaper