Trang 1 FOREIGN TRADE UNIVERSITYSCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS---***---MODULE: INTERNATIONAL TRADE POLICYTOPIC: THE CASE OF EXPORTING 100 CONTAINERS OF CASHEW NUTS FROM V
FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS *** MODULE: INTERNATIONAL TRADE POLICY TOPIC: THE CASE OF EXPORTING 100 CONTAINERS OF CASHEW NUTS FROM VIETNAM TO ITALY: DEVELOPMENTS AND LESSONS Class : TMAE301.2 Instructor : PhD Vu Huyen Phuong Group: : Group members: Numbe r Full name Student ID Role Nguyễn Nhật Mai Kiều Ngọc Dung Bùi Quỳnh Chi Nguyễn Đặng Nhật Minh Trương Quốc Hùng Nguyễn Thảo Linh 2111110178 2113150014 2112150034 2119090015 2111110113 2014340206 Leader Member Member Member Member Member Hanoi, May 2023 Abstract: Keywords: Introduction 1.1 Background information Vietnam has transformed over the past 30 years from a nation that exported raw cashew nuts in modest amounts to the top exporter of cashew kernels worldwide Even during difficult times, Vietnam's cashew sector has consistently maintained its top spot for 15 years running, from 2006 to 2020 More than 90 nations and territories have received cashew kernel exports from the cashew industry, making up around 80% of global exports Exports of cashews brought in more than 31 billion USD That is a significant increase in the cashew business over the past 30 years since the Vietnam Cashew Association was founded Statistics from the International Trade Center were referenced by the Import-Export Department (Ministry of Industry and Trade) to demonstrate that Turkey's cashew imports increased by an average of 20% per year between 2016 and 2020, from 5.58 thousand tons in 2016 to 9.3 thousand tons in 2020 In this, from 762 tons in 2016 to 8.5 thousand tons in 2020, Turkey's cashew nut imports from Vietnam increased by an average of 88.1 %/year Due to the convoluted course of the Covid-19 outbreak in 2020, Turkey had to continually enact social segregation policies that forced individuals to stay at home and increased the demand for goods Cashew seeds rose significantly Turkey imported more cashews from Vietnam in the first two months of 2021 than it did from Mozambique Vietnam's cashew nut market share in all Turkish imports was 92.58% in the first two months of 2021, a significant increase from 86.65% in the same period in 2020 The cashew market in Turkey has been controlled by Vietnam In light of the increasingly severe competition in the EU's key markets, the fact that Vietnamese businesses successfully utilize the Turkish market is a step in the right way Italy's entry into the EU occurred in 1957 The EU is one of the most significant export destinations for Vietnamese cashews The EU is expected to be Vietnam's second-largest cashew nut export market in 2021, accounting for 23% of the industry's entire volume and 22% of its overall value in terms of exports In particular, cashew exports to the EU market were 135 thousand tons, valued at 816 million USD, an increase of 8% in value and 16.5% in volume over 2020 1.2 Research objective In truth, Vietnamese enterprises frequently encounter fraud in the crossborder trade of commodities The Vietnam Trade Office and the Ministry of Industry and Trade frequently issue market warnings about this unforeseen phenomenon, which manifests in many different ways However, due to subjective psychology and a lack of knowledge about cross-border transactions, many Vietnamese firms continue to fall prey to criminals from other countries A prime example and one from which important lessons regarding transactional prudence may be learned is the recent scam involving 100 containers of cashew nuts with a value of more than 20 million USD trading internationally 1.3 Research subject and scope Consider the topic: “The case of exporting 100 containers of cashew nuts from Vietnam to Italy: developments and lessons” The brief information on the cashew nut containers of Vietnamese businesses allegedly defrauded in Italy is included in the study topic's scope Vietnamese businesses responded quickly to the predicament by figuring out how to handle it and limit the damages brought on by the tragedy However, while undertaking commodities exchange and purchase operations with overseas partners, Vietnamese enterprises may learn a lot from the aforementioned situation 1.4 Methodology In order to uncover Italy and Turkey's trickery and our nation's blunders and draw conclusions, we used qualitative methodologies to examine the causes and effects of the occurrence known as "The case of exporting 100 containers of cashew nuts from Vietnam to Italy: developments and lessons” Literature review 2.1 Cashew nuts export process According to figures from the General Department of Customs, Vietnam is anticipated to export over 520,000 tons of cashew nuts valued at roughly 3.09 billion USD in 2022 For 16 years running, Vietnam has consistently held the top place in the world for cashew kernel exports Vietnamese cashew nuts are mostly imported into the United States, China, and the Netherlands Drawing lessons from the experiences of previous nations and leveraging its existing advantages, Vietnam has identified agricultural exports as one of its key export industries Notably, cashew nuts have emerged as the primary export commodity among various types of nuts According to a research on Solutions to Promote Cashew Exports, each enterprise is advised to devise their own appropriate export process However, in a broader sense, the procedures for exporting goods in general, or exporting cashew nuts in particular, predominantly include a set of fundamental stages Firstly, businesses need to conduct market research both domestically to assess the supply and internationally to enhance business efficiency, then formulate a detailed export business plan Secondly, businesses engage in trade activities, negotiation, and finalizing export contracts This is a critical step ensuring the establishment of mutually beneficial agreements Finally, businesses execute their export contracts by undertaking a series of essential tasks, including preparation of goods, conducting inspections, securing appropriate insurance coverage, selecting suitable transportation methods, facilitating customs clearance and preparing payment documentation (Vang, 2015) Vietnam is not the only country implementing such an export process; countries like India also follow a similar approach Nevertheless, during the stage of identifying key markets and export destinations, businesses in India receive assistance and collaboration from The Cashew Export Promotion Council of India (CEPC) Furthermore, the CEPC plays an active role in resolving export or import-related complaints through peaceful means (Margabandhu, Sundararajan, 2015) 2.2 Similar cases 2.2.1 Vietnam's seafood export scam to Sri Lanka The case of fraud in Vietnam's seafood export industry serves as a concrete example of the financial losses that exporting businesses may suffer when they fall victim to scams Several seafood exporters in Vietnam have been deceived when buyers request payment through unreliable means, such as transferring money through obscure intermediary companies or using unofficial payment methods An instance of such deception occurred, when two shipments of basa fish, worth nearly $112,000, were exported from Ho Chi Minh City to Sri Lanka in the period 2021-2022 According to the initial contract, the delivery terms were CIF Colombo (delivery at the port of Colombo), and the payment condition was D/P 100%, with collection through banks upon presentation of the documents However, after delivering the goods and completing the documentation for the first shipment, the buyer cited high D/P payment fees and requested a change to payment via telegraphic transfer (T/T) The buyer also demanded that the Vietnamese company send one-third of the original bill of lading in advance to facilitate customs clearance and import licensing Business representatives had expressed their hope that the relevant authorities in Vietnam would intervene and assist them After receiving the complaints, the authorities in Vietnam have taken steps to investigate and resolve the issue Businesses reporting the deception have been provided with guidance on legal procedures and complaint processes However, the investigation findings have not been made public yet Experts have advised businesses to carefully authenticate new clients, especially for high-value transactions They recommend establishing direct communication channels and drafting their own contracts to ensure clarity on terms, obligations, and regulations 2.2.2 6,000 tones rice of 20 Indian exporters was vanished In an incident, a Dubai-based company vanished along with its owner and staff after placing orders for approximately 6,000 tonnes of rice from 20 Indian exporters In response to questions, the Department of Economic Development (DED) stated that they are unable to discuss current investigations due to the need to safeguard the confidentiality of the parties concerned The DED's Business Protection Division handles complaints related to commercial disputes within and outside the UAE, but they can only intervene when the complainant is a registered commercial entity in Dubai and the dispute is solely of a commercial nature Disputes that have already been resolved or are under consideration by other competent judicial, legal, or administrative authorities are not within the jurisdiction of the DED Businesses frequently choose not to report fraud Perhaps for one of the following: reputational damage, business interruption, etc Because consulting fees are likewise highly exorbitant in the aforementioned case, Indian rice exporters also thought about taking the matter before the court Theoretical framework 3.1 Documents against Payment - D/P Definition: Documents against payment (D/P) Collection terms of payment that require the drawee to pay a draft prior to receiving the accompanying documents Typically, such collections include a document that restricts possession or ownership, thereby forcing the drawee to honor the draft in order to obtain the relevant goods While it is possible to protest for non-payment of sight drafts, the benefit is questionable, as the drawee will not have received the contract goods (Dictionary of International Trade - olegario llamazares) The required documents for importing and exporting goods: Sales contract Commercial invoice Packing list Bill of lading Airway bill Customs declaration General documents Certificate of Origin (℅) Insurance certificate Phytosanitary Certificate &Fumigation Certificate Letter of credit (L/C) Material Safety Data Sheet The process flow for Document Against Payment (D/P) describes how payment and goods are exchanged between the buyer and the seller Sales Contract: Exporter and importer sign sales contract defining the terms of payment against shipment of goods Good dispatch: The exporter will dispatch of goods to importer based on the sales contract Export Documents: Exporter will prepare export documents i.e., Bill of Exchange (at sight), Bill of lading, commercial invoice, packing list, import manifest, as and when goods are shipped All documents are required to be submitted to the exporter's bank i.e., remitting bank Basically exporters will rely on remitting banks Documents to Collecting Bank: The remitting bank will check the entire set of documents and pass the instruction to the collecting bank or presenting bank who is in the importer's country The collecting bank or presenting bank can be a branch or associate of remitting bank The presenting bank can be separate or collecting bank and presenting bank can be same Document continues below Discover more from: International trade policy Trường Đại học… 381 documents Go to course ANALYSIS OF 28 VIETNAM'S… International trade policy 100% (4) ĐỀ CƯƠNG KINH TẾ 19 Chính TRỊ International trade policy 100% (4) 04.07.2021 Final Test TMAE302 International trade policy 100% (2) Package (Mỹ sửa lại theo ý Mỹ, bài gốc củ… International trade policy 100% (2) Cstmqt International trade policy 100% (2) 49 Hợp đồng ngoại thương mẫu: Hợp… International Payment from Importer: When the goods arrive, meanwhile, goods also100% (2) trade policy The arrive at the port Goods arrive at the port but not to importer importer will get delivery of goods when he will present the documents The term of payment under Document against payment (D/P) is “at sight” that means importer has to pay first Importer will go with document against payment when he does not want credit period Documents to importer: The collecting bank will present documents to importer post receipt of import payment Goods received: After presenting corresponding documents to customs, he will be able to release goods from port Transfer of payment by the collecting bank to remitting bank: Post receipt of goods collecting bank will transfer proceeds to remitting bank Final settlement of export bill: On receipt of collection from collecting bank remitting bank will transfer the same to the exporter At first glance, transactions involving D/P may appear secure for sellers, but in reality, there are hazards entailed With the D/P method, there will be a constrain between payment and the receipt of goods by the buyer Accordingly, the bank will act on behalf of the seller to control the shipping documents if the buyer has not paid the money Advantage: Easy to use because it does not require a credit limit from a bank It is also convenient for both buyers and sellers in terms of procedure Using this payment method incurs significantly less cost and management fees compared to other methods such as documentary credit Disadvantages: The D/P method poses risks for sellers as they have to rely on a bank to control the right to dispose of the buyer's goods, but they cannot control the payment of the buyer 3.2 SWIFT Definition: Payment made through international electronic funds transfer via the system known as SWIFT (Society for Worldwide inter-bank Financial telecommunications) offered by most major bank SWIFT codes (also known as BIC codes) ensure safe and speedy international payments through the SWIFT system When making an overseas transaction, a SWIFT code is used to verify the identity of the banks or financial institutions This safety measure helps ensure that funds are sent to the correct account A SWIFT/BIC code consists of 8-11 characters and follows a format that identifies your bank, country, location, and branch – Bank code (4 letters) The first four letters represent the bank and usually look like an abbreviated version of the bank name – Country code (2 letters) These two letters indicate the country where the bank is located – Location code (2 letters or numbers) These two characters designate the location of the bank’s main office – Branch code (3 digits) These digits identify a specific branch ‘XXX’ is used for a bank’s head office Evaluation/ Analysis 4.1 Case summary and related objectives 4.1.1 Related objectives: Vietnamese enterprises - Exporters Italian buyers - Importers Vietnamese bank - Remitting bank Italian bank - Collecting bank Turkish bank - Collecting bank Kim Hanh Viet Company - Brokerage company 4.1.1 Case Summary The case of a shipment of nearly 100 containers of cashew nuts from Vietnamese enterprises exported to Italy in March 2022 with a value of tens of millions of dollars through the broker of Kim Hanh Viet Company "nearly" lost everything provides a great experience for businesses when entering into commercial contracts with foreign partners Vietnam's businesses initially contracted with a brokerage company to export cashew nuts; however, after the goods were shipped, they discovered that another number of containers had been out of control There are signs of being scammed by buyers when the application for collection of money from a Vietnamese bank is sent to a Turkish bank Even though the money has not been received, the buyer has obtained all the original documents of the goods above but has not yet paid for them Thanks to Vietnamese and local authorities' active participation and timely intervention, Vietnamese businesses didn't lose a single container to the fraudsters in this incident Almost half a year after being held for settlement, all goods have been returned to Vietnamese enterprises 4.2 Case developments On March 8, 2022, the Embassy together with the Vietnam Trade Office in Italy and relevant agencies received an express dispatch from the Vietnam Cashew Association (VINACAS) to request urgent support and find out how to solve 100 containers of cashew nuts exported to the EU are scammed and are at risk of losing goods According to the report, cashew nut exporters in Vietnam had signed a contract through Kim Hanh Viet brokerage company to export 100 containers of cashew nuts worth 20 million USD to Turkey and Italy According to the contract, the payment method agreed and agreed by the two parties is "By collection with documents (D/P)" More specifically, after the enterprise completes the procedures and prepares the set of documents, the enterprise transfers the documents to the exporter's bank in Vietnam Then, the Vietnamese bank conducts express delivery of the documents to the importer's bank After that, when the buyer completes the payment to the bank of the importing country, the buyer will receive the original documents to receive the goods at the port Finally, the importer's bank will transfer the money to the Vietnamese bank Problems started to arise when businesses sent the first containers of cashew nuts with the set of documents During the process of the Vietnamese bank’s sending the collection documents to the Turkish bank of the importing party according to the instructions, the SWIFT number of the importing party's bank (the unique code of each bank used in interbank transactions) worldwide) had changed, thereby representing inconsistencies in the importer's bank Thereafter, upon receipt of the original set of documents, the alleged importer's Bank informed that the importer was not its customer and returned the set of documents without clearly stating that it was returning the original documents in which way The Vietnamese bank had repeatedly contacted but did not receive a reply As for the collection of documents sent to Italy, the bank here said that it had received the complete set of documents but only a copy, not the original Therefore, Vietnamese enterprises exporting cashew nuts to these two markets did not know where the original documents were and had to face the risk of losing some containers because anyone holding the original documents could go to the shipping company to receive the goods After receiving the report and detecting signs of fraud, the Vietnam Cashew Association immediately coordinated with the Embassy, the Vietnam Trade Office, and relevant agencies to negotiate and complain to minimize the risk of damages The options offered include (i) immediate stop of un-delivered containers; (ii) stop shipping and return containers in transit at the port of Singapore, and at the same time request the document delivery unit not to deliver the documents to the importer's bank but return the Vietnamese enterprise; (iii) regain ownership of containers with lost original documents, brought to Vietnam or sold to customers in neighboring countries in need With active support, by June 16, 2022, Vietnamese enterprises had regained control of all 100 containers with only a fraction of the cost of storage, transportation, and release of cheap goods, which was much less than expected 4.3 Reasons 4.3.1 Subjective reasons: According to Mr Bach Khanh Nhut - Standing Vice Chairman of the Vietnam Cashew Association (VINACAS), the cause of the 100 tons of cashews being tricked into Italy was that businesses had too much trust in the brokerage company and did not control Check partner information carefully Cashew businesses in Vietnam have trusted too much in the partner brokerage company and have ignored the verification of partner information It is known that the brokerage company for Vietnamese businesses is a fairly reputable company with 15 years of experience and has been a partner with many Vietnamese businesses, as an export broker for domestic businesses and also as an export broker There has never been an accident Because of that information, Vietnamese businesses have trusted too much but subjectively did not carefully check the object of cooperation, only to realize that important information such as the address of the importing business is a virtual address, the address of the importer is a virtual address The contract is also fake and not where the business is registered More importantly, before that, Italy was not a country that imported very few Vietnamese cashew nuts It is a suspicious sign, but domestic enterprises have been too subjective, because of the immediate benefit without careful consideration, leading to more than 70 containers being blatantly deceived It can be said that, during the epidemic season, when exporting becomes more difficult, the cashew industry in general and businesses, in particular, face many difficulties in consuming goods The cashew industry became stagnant Therefore, when receiving a large order, businesses rushed without consideration, hastily leading to the above incident Mr Nhut also said that at that time, many businesses were willing to pay or times their salary so that employees could return to work during the epidemic season, Tet season as well as timely packing goods Businesses even mobilized more local people to complete orders as quickly as possible And a big reason can be mentioned as the lack of legal awareness of businesses With such a large order, the amount is huge, businesses need to use more reliable payment methods such as L/C (Letter of credit) to ensure strict legality in trade 4.3.2 Objective reasons: Fraudsters have been extremely clever when hitting the psychology of businesses when making a large order in difficult times As discussed above, during the Covid-19 pandemic, it took a lot of work for companies to find sales orders They have hit on that weakness, providing a huge order with dozens of containers, in order to manipulate the psychology of businesses, giving them a great bargain Another unusual sign of the scam is that the import partner constantly urges and presses Vietnamese exporters to provide the bill of lading code It is known that this is not allowed because the bill of lading code is a piece of information that must be kept confidential Finally, it is the lack of mechanisms to support businesses to handle risks In the past, there have been many similar cases, however, there is no unit to analyze, support and give lessons to the business community 4.4 Evaluation Thanks to the timely intervention of the government as well as the authorities, 100 export containers from Vietnam were not lost to fraudsters However, we can also see the profound consequences as well as the lack of knowledge and carelessness in commercial transactions of Vietnamese enterprises The use of Documents against Payment (D/P), the lack of understanding of customer information as well as excessive dependence on brokers, this is a loophole that facilitates the scam With this payment method, the Vietnamese business side has to pay a heavy price when the goods may be lost or not, they may also lose a large amount of money to bring the goods back Remember, the order is worth more than 20 million dollars, it is quite possible that it will be the price that the Vietnamese business side will lose everything Not to mention, the amount of money they have to spend to return orders, the money used to create orders is almost a loss for them Although the government's help is timely, luck is also on the side of Vietnamese businesses when a number of containers have also been acquired by other countries such as Poland Vietnamese businesses are clearly showing a lack of knowledge when letting partners take advantage and cheat They could have used other payment methods It is really not a good way to use the D/P payment method Enterprises not need to export and then accept the buyer's request but must use D/P The enterprise does not force the buyer to pay any deposit in order to pay for a bad situation Moreover, the Vietnamese business side has lacked the initiative in solving the problem, until the matter has become more complicated to solve When detecting suspicious signs such as bogus shipping addresses, and missing partner information, businesses need to quickly authorize an Italian lawyer specializing in import and export and can through the Italian Embassy or the Italian Consulate in Vietnam to confirm the information Authorized attorneys can report fraud at the local economic police agency However, it takes a long time for the enterprise to realize the problems and they have to rely too much on the Government and the authorities The incident is a big wake-up call for Vietnamese businesses in international transactions It is really worrisome that if businesses continue to be so careless and ignorant, the consequences will be more and more severe Not every scam will be lucky and fully resolved Therefore, businesses need to look at this case and draw their own experiences Vietnamese enterprises have clearly revealed their weaknesses in international trade, partly because of a lack of knowledge and understanding of international transactions, partly because of a lack of care, and only paying attention to profits Lessons for Vietnam exporters The story of 100 cashew containers is just one of many cases of trade fraud in import and export of goods Unfortunately, Vietnamese traders are often the ones who suffer more because of their limited ability to understand international trade laws, experience in importing and exporting goods to foreign countries, and even lack of language proficiency With a view to help prevent scams in Vietnam international business activities, this paper clarified some lessons and suggested related solutions to minimize losses in the future 5.1 For enterprises The first lesson for enterprises when entering an international trade transaction is to research the customer (as known as importer) carefully and thoroughly The scam happened due to our lack of information about the importer’s real identity While relying on the broker completely, the exporters failed to investigate credit information about the importers According to the trade counselor of Vietnam in Italy, who directly supported the exporters to recover 76 containers, most of the import partners are companies registered to business in the local areas They are very small companies with only few employees and there was even a closed down one located in a deserted area Hence, specific addresses, reputation and financial ability of business partners are some of the information that must be verified before drawing contracts Furthermore, when preparing for a transaction, instead of relying totally on brokers, enterprises should order brokers to provide contact information and address of the importer and check directly with the partner For high value contracts, it is necessary for firms to send employers abroad to have face to face deals and negotiations with the import companies Enterprises should consider sending business registrations in advance to partners In this way, there will be a groundwork to ask them to submit business registration In addition, exporters can get to know partners through the help of the Embassy of Vietnam trade office in the host country, national bank, or professional consultants Secondly, carefully negotiating payment terms and appropriate payment methods is a mandatory step In our case, the enterprise's overconfidence in the broker has led to risky payment methods The Vietnamese exporters signed cashew nut export contracts worth millions of US dollars with new partners and accepted payment by D/P, which means that they accepted delivering the documents before receiving the payment This is the most popular payment method in import and export of goods with outstanding advantages such as simple, fast and low-cost procedures However, this method carries a relatively high risk because it does not require the buyer to deposit at the bank As was the case with Vietnamese cashew businesses, the buyer has the option to appropriate the original set of paperwork in order to receive goods without having to complete payments With this method, even if there are no scams, exporters may still face risks if the importers for some reason not receive documents to receive goods If this happens, the exporters must find other importers to resell at a lower price or ship the goods back to Vietnam For large value transactions and new partners, exporters need to negotiate with partners on payment conditions and appropriate payment methods to ensure that they receive payment when delivering goods Businesses should choose safer payment methods such as L/C (letter of credit), or the minimum deposit requirement for large-value contracts Because when requesting a deposit or issuing L/C, the buyer must provide information about tax code, bank account, representative with more reliable verification bases; thus reduce payment risks The third lesson for enterprises is to act in accordance with legal procedures properly and as quickly as possible Actually, this was our smartest move in dealing with the scam related to the cashew nut containers exported to Italy, which helped it settle more successfully than expected From the risk of losing all, Vietnamese exporters gained back control and ownership of all 76 containers, without losing any containers even though the scammers have swapped and appropriated 33 sets of original documents (Duc Nguyen, 2022) The above outcomes were made possible by the banks and exporters involved, as well as government ministries and sectors, particularly the Vietnam Trade Office in Italy, for their prompt reaction, proper, and legal procedures Thus when a scam is present or suspected, firms should take immediate and appropriate action in accordance with the law If at all possible, involvement with departments and agencies of the government is highly recommended The fourth lesson learned from this scam is that exporters should not accept a request to present straight bills of lading unless the importers have paid for the goods in advance In this transaction, Vietnamese traders used the original Bill of Lading (Master Bill) issued by the shipping line along with other documents to form the original set of documents sent to the bank for collection from the buyer Therefore, in case the document's delivery from a Vietnamese bank to overseas bank collection is swapped or stolen, the risk of losing goods will occur Instead of using the original Bill of Lading, businesses should use the House Bill – a bill of lading issued by a logistics agent (also known as a Forwarder) Forwarders will issue House Bill to establish the transaction between Vietnamese cashew traders and forwarders After that, Vietnamese cashew traders will use the House Bill along with other documents to form a set of D/P payment documents to send through banks for foreign collection of payment Thus, in case the set of documents sent through the bank is lost or stolen, the risk of losing the goods will not occur 5.2 For authorities Firstly, the Ministry of Industry and Trade and the Ministry of Foreign Affairs shall coordinate with the Vietnam Federation of Trade and Industry in coordination with relevant agencies and business associations to enhance the dissemination of international trade and financial knowledge At the same time, it is necessary to train international transaction skills for Vietnamese localities and enterprises, especially small and medium enterprises to improve the capacity to tackle frauds Vietnamese representative agencies and trade offices abroad need to continue to inform and warn ministries, functional branches, associations and domestic enterprises about organizations and objects showing signs of fraud, illegal business phenomena, and new forms of fraud The final recommendation is to strengthen the network of relations with the government, economic security management agencies, organizations, business associations, and prestigious law firms in the locality Thus, the effectiveness of supporting Vietnamese enterprises in preventing and handling fraud cases and disputes can be improved 6 Conclusion Vietnam is one of the countries proactively integrating in the global economy through setting a network of 17 free trade agreements (FTAs) FTAs have opened market doors for Vietnam's exports to many new promising markets However, when the playing field is getting bigger, Vietnamese enterprises will have to face more and more diverse risks The fraud of exporting 100 containers of cashew nuts from Vietnam to Italy in 2022 is one of the examples which raise awareness in international transactions Through this case, some lessons can be drawn to support the export of Vietnam in the future Vietnamese exporters need to research and prepare thoroughly before signing international contracts, especially with first time partners The most vital lesson is to carefully evaluate the partners as well as understand the risks of the market, especially in the current international trade conditions where transactions are mainly electronic.The next lesson is to have compliance with business safety principles, in which the payment stage is vital Finally, firms are advised to regularly keep in touch with Vietnamese representative agencies in export markets Firms should contact and work with companies providing credit verification services to find out about partners References More from: International trade policy Trường Đại học… 381 documents Go to course ANALYSIS OF 28 19 VIETNAM'S… International trade policy 100% (4) ĐỀ CƯƠNG KINH TẾ Chính TRỊ International trade policy 100% (4) 04.07.2021 Final Test TMAE302 International trade policy 100% (2) Package (Mỹ sửa lại theo ý Mỹ, bài gốc củ… International trade policy Recommended for you 100% (2) 195 02 Incoterms®2020 Mr Nam International trade policy 100% (2) ITP Midterm 34 86 Assignment International trade policy 100% (1) A27-1111150117-Nguyễn Thùy An-Graduation… Business Economics 100% (1) Midterm with answers 11 Business Economics 100% (1)