Vietnamese Trade Office in Spain Alerts of Export Risks

DNHN - The Vietnamese Trade Office in Spain has advised improved coordination with the Trade Office and cautioned domestic enterprises about the risks involved in exporting to verify partner businesses before signing agreements.

On 16 January 2024, the Vietnamese Trade Office in Spain reported on the difficulties that some Vietnamese enterprises are facing in the process of exporting cashew nuts and pepper to Spanish businesses.

Domestic businesses have reported on the company ISASA SIGLO XXI, S.L. in Spain, with the representative being Mr Manuel Gil or Ms Anniz. It is known that ISASA SIGLO XXI has delayed payment for goods, putting Vietnamese enterprises in a difficult situation in terms of time and warehousing costs.

The reason given by ISASA SIGLO XXI for this situation is that the goods of Vietnamese businesses do not ensure quality at the port or due to a decrease in local market prices, leading to losses and failure to comply with the sales contract.

The Vietnamese Trade Office in Spain warns domestic enterprises about risks in exporting and recommends increased coordination with the Trade Office to verify partner businesses before signing agreements. This aims to minimise the risk of encountering dishonest or fraudulent partners, while also protecting the interests of domestic businesses.

Currently, Spain is an important market for the export of Vietnamese consumer goods, especially in the agricultural sector. Spain is not only a destination for agricultural and aquatic products but also has strong potential for consumer goods and other industries.

Mr Vu Chien Thang, Commercial Counsellor of the Vietnamese Trade Office in Spain, emphasised that to take advantage of this market opportunity, Vietnamese enterprises need to proactively research the market, apply incentives from the EU-Vietnam Free Trade Agreement (EVFTA), and always keep up-to-date with market information. This helps businesses adapt to and face challenges in the process of exporting and doing business in the Spanish market.

PV