PM directs five ministries to solve cashew export scam

Tuesday, Mar 15, 2022 16:15

Illustrative photo. Processing cashew for export. — Photo

The Government has called upon five ministries to help get to the bottom of a recent problem Vietnamese cashew nut exporters have been facing in the European market.

The dispatch, No 1583/CD-VPCP, was sent to the ministers of industry and trade, agriculture and rural development, public security, transport and the governor of the State Bank of Viet Nam.

Accordingly, a number of press agencies have reported that many Vietnamese cashew exporters are at risk of losing hundreds of millions of US dollars.

In this regard, Prime Minister Pham Minh Chinh assigned the ministries to urgently coordinate with the Viet Nam Cashew Association (Vinacas) and other agencies to clarify the causes of this problem. They must quickly take measures to ensure the legitimate interests of people and businesses, in accordance with the provisions of domestic and international laws, and promptly report to the Prime Minister difficulties and problems beyond their authority.

A source from the Ministry of Industry and Trade said that it had received an official dispatch from the Viet Nam Cashew Association informing that some businesses had difficulties in making payments when exporting cashews to Italy on March 8.

"The Ministry of Industry and Trade, Vinacas and relevant authorities are coordinating and quickly stepping in to remove difficulties for businesses," said a representative of the Ministry of Industry and Trade, emphasising that, in the context of the volatile international situation, enterprises needed to be careful and have contingency plans for risks in commercial transactions.

Sharing more about this case, Tran Thanh Hai, Deputy Director of the Import-Export Department, Ministry of Industry and Trade said that cashew exporters often used telegraphic transfer (T/T), documents against payment (D/P), and letter of credit (L/C) when signing contracts.

Each form of payment had its advantages and disadvantages from the perspective of each business party. Once there was a fraudulent intent to take away documents, the risk was outside the payment method, including L/C, he added.

The VTC News online newspaper quoted Hai as saying that the case of cashew nuts in Italy was not over yet. The parties needed to join hands to find the best possible solution to support businesses, thereby drawing necessary lessons for agricultural exports to continue to grow up.

Vietnamese exporters may have lost as many as 36 containers of cashew nuts in Italy due to a scam.

The containers are priced at VND10 billion each, or US$437,000, meaning losses could reach up to $15.7 million.

The containers' original documents, required by shippers to release the containers, have gone missing and Vietnamese exporters have not yet received payment for their goods. — VNS

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