The Ministry of Industry and Trade supports Vietnamese businesses to get back 13.4 billion VND from UAE partners

A source from the Asia-Africa Market Department (Ministry of Industry and Trade) said that recently, a Vietnamese business requested support in resolving a case related to a suspicious shipment of imported goods from a partner in the UAE. There are signs of fraud.

According to this business, in January 2024 and February 2024, the business signed 3 purchasing contracts with UAE partners, the total purchase amount is 1,000 tons of PET plastic, the contract value is 665,500 USD. Delivery in Hai Phong according to CFR form.

By March 13, 2024, Vietnamese businesses had paid their partners an amount of 526,257 USD. After receiving the deposit, the UAE partner delivered 25 containers of goods to the Vietnamese enterprise.

However, after opening the declaration and importing goods into the warehouse, Vietnamese businesses discovered that the actual weight of goods in each container was only 15-20% of the invoices and documents.

During the process of goods inspection and import, Vietnamese enterprises conduct this with the coordination of an independent inspection unit and under the witness of the local Customs Branch.

After discussing with the partner to jointly resolve the problem, the Vietnamese business said the partner did not have a positive response.

Faced with that situation, Vietnamese businesses contacted the Ministry of Industry and Trade of Vietnam and the Vietnam Trade Office in the UAE to request support in resolving the case.

Immediately after receiving the enterprise’s request, the Ministry of Industry and Trade directed the Vietnam Trade Office in the UAE to urgently send a note to the local authorities, and at the same time directly work with the enterprise’s partners. Vietnam, as well as the leaders of the Bank conducting the transaction, requested support in temporarily seizing the transaction amount between the two parties to clarify the situation and ensure legal benefits for the business.

With the timely intervention of the Ministry of Industry and Trade and the Vietnam Trade Office in the UAE, by April 11, 2024, Vietnamese businesses had received back the full advance amount to their UAE partners and helped the company avoid damage. is 526,257 USD (equivalent to 13.4 billion VND).

Through the above incident, in order to minimize risks in commercial business transactions with partners from countries in West Asia, the Ministry of Industry and Trade recommends that Vietnamese businesses need toPay special attention to large value contracts and partners searching online.

Before signing a contract, businesses need to carefully find out information about the partner, contact the Vietnam Trade Office in the host country or concurrently to receive additional support and information about the partner.

Pay attention to the sanctions provisions in the signed contract, taking into account the risk that disputes may arise during the transaction process.

Vietnamese businesses should coordinate with an independent inspection unit when conducting import procedures and customs clearance of goods.

In case a dispute arises, businesses need to urgently contact domestic authorities and Vietnamese diplomatic/trade representative agencies abroad for timely support.