Vietnam: Trade fraud warning when trading in some Middle Eastern countries

Published 2023년 7월 25일

Tridge summary

Vietnamese businesses that are members of the Vietnam Pepper Association (VPA) have reported signs of commercial fraud in transactions with a shopper and a bank based in Dubai, UAE. The fraudulent activity involves the payment terms specified in the contract, where shipments are supposed to be paid under the terms of payment for collection (D/P). The Ministry of Industry and Trade advises businesses to be cautious when dealing with foreign enterprises and negotiate payment terms carefully to ensure safety.

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Original content

According to a report by the Vietnam Pepper Association (VPA), recently, businesses that are members of VPA have traded and exported agricultural products to the UAE including pepper, cinnamon, anise, and cashew nuts. However, these companies said the transactions showed signs of commercial fraud from the same shopper and the same bank based in Dubai, UAE. Specifically, according to the payment terms specified in the contract, all shipments are paid under the terms of payment for collection (D/P). This means that the original documents will be transferred by the Seller's bank to the Buyer's bank, then the Buyer will pay the Buyer's bank. After the Buyer's bank receives the full amount, it will simultaneously transfer the money to the Seller's bank. Only then, the Buyer's bank is allowed to deliver the original set of documents to the Buyer to receive the goods. However, if the Buyer's bank has not yet transferred the money to the Seller's bank, the Buyer will not be able to obtain ...

Source: Vov