Business
Catfish exporters warned over unreliable export partners
  • By Bich Diep | dtinews.vn | January 14, 2017 12:46 PM

The Vietnam Association of Seafood Exporters and Producers (VASEP) has warned local companies against trade fraud with an Egyptian company.

 

Workers at Vinh Hoan Company

Eygpt-based Al-Reda Group For Trading and Development bought USD58,881 of frozen catfish from Vinh Hoan Company in June 2015. However, they have never paid for the goods.

Vinh Hoan is one of Vietnam's leading catfish exporters. Their turnover reached VND7.2trn (USD318m) last year, an increase of 11% on previous year. The post-tax profit of the mother company was VND550bn, an increase of 70% compared to same period last year.

However, Vinh Hoan and many other local companies are having problems with foreign partners. Several aquaculture companies have been tricked by Canadian firm Echopack Inc. and may lose hundreds of thousands of USD.

Firms are advised to be careful about the credibility of foreign partners, especially if they are introduced by a third party.

Firms can search for information via open sources or hire other firms such as the National Credit Information Centre of Vietnam or through overseas associations to find out more about their partners. As contracts are used to solve disputes, firms must understand their contract terms in order to ensure their interests.

Local firms are advised to consider using banking service as another protection.

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