Seafood exporters try to manage risks

The Viet Nam Association of Seafood Exporters and Producers (VASEP) in collaboration with the Training and Trade Promotion Centre and Jardine LIoyd Thompson Co yesterday held a seminar to help seafood exporters identify and manage risks to improve their global competitiveness.

Truong Dinh Hoe, general secretary of VASEP, said:”Viet Nam is integrating internationally and developing export trade. However, while the business environment has expanded, risks also appear more diversified and difficult to control.”

Exporters are especially concerned with risk management issues, given the rapid growth of Viet Nam’s economy.

Risk management can reduce financial losses and improve competitive ability by ensuring company credibility.

Bui Hai Tri, general manager of Jardine LIoyd Thompson Asia, said risks could occur in the transporting of goods and in contracts as well as loans and liabilities for export goods.

Businesses should have reliable risk and insurance advisers or providers that can help them understand the potential risks and raise their awareness about the need for protection of their rights.

For risks in transporting goods, exporters should sign contracts with prestigious and reliable transporting companies.

“The terms and conditions of transport contracts should be discussed carefully and in the most detailed way to make sure that goods are fully insured in case of damages,” he said.

For credit risks, Tri said the Letter of Credit payments were common among Vietnamese exporters.

But they have potential risks. For example, some foreign importers may be using unreliable banks to open an L/C or some European banks have bad debts and have become bankrupt.

Many Vietnamese exporters have shifted their attention to Africa, a potential market for Vietnamese seafood.

But Tri said they should be cautious because the credit risks among transactions in Afria were high.

Industries that need to participate in trade credit insurance include seafood, rice, coffee, rubber, vegetable, pepper, cashews, tea and cassava, textiles and garments, leather and footwear, and the wood and plastic industry.

Exporters should also adhere to import regulations and international certificates in seafood processing and farming to avoid having their goods rejected.

Insurance played a major role in import and export activities, especially product liability insurance, cargo transportation insurance and credit insurance, Tri said.

These should be required for all goods purchases and sales contracts signed with partners in the US, Japan and the EU, he added. — VNS.

Source: Vietnamnews

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