Vietnam registers complaint on trade fraud in Middle East

The MoIT held an emergency conference with the the United Arab Emirates' Embassy to Vietnam on July 25 to prevent commercial fraud transactions as soon as possible.

The Africa-West Asia-South Asia Market Trade Office of the MoIT stated on the afternoon of July 27 that a container of star anise destined for the port on July 26 is likely to be lost. Previously, four containers worth $400,000 were lost at the port of Jebel Ali, the UAE.

Agricultural products including pepper, cinnamon, anise, and cashew nuts are exported to this market, according to a report from the Vietnam Pepper Association (VPA). Transactions from the "same buyer" and "same bank in Dubai, UAE" exhibited symptoms of commercial fraud, the report said.

The MoIT recognises that fraud in the Middle East has become more prevalent in recent years, concentrating primarily on small-scale commercial enterprises. When signing sales contracts with Vietnamese companies, foreign businesses frequently request telegraphic transfer terms or issue checks to the mortgage vendor. This is the most prevalent form of deception in the world today.

The Ministry of Agriculture and Rural Development has also sent a request for assistance to the UAE Embassy in Hanoi

In accordance with the contract's payment provisions, all shipments are paid for using the documents against payment (D/P) clause. This means that the seller's bank will transfer the original documents to the buyer's bank, and then the buyer will pay the buyer's bank. After receiving the complete payment, the buyer's bank will simultaneously transfer the funds to the seller's bank. Then and only then may the buyer's bank give over the original documents to the buyer to receive the products.

However, if the funds have not been transmitted from the buyer's bank to the seller's bank, the buyer will not be able to acquire the original set of documents at the port. Thus, the aforementioned transactions reveal indications of deception at the bank where the Vietnamese business sent the D/P documents. It is possible these bank officials are implicated in the affair.

According to the Africa-West Asia-South Asia Market Trade Office, the MoIT has instructed the Vietnam Trade Office in the UAE to address the aforementioned case as soon as possible.

The ministry has sent a note to the UAE Ministry of Foreign Affairs, Dubai Police, UAE Central Bank, and a number of related banks and shipping lines, as well as worked with the relevant Dubai Bank Branch, Dubai Police, and the Jebel Ali Port Authority to file a report on the incident.

Vietnam cashew industry flags suspected UAE fraud The Vietnam Cashew Association (Vinacas) has raised concerns over suspected fraudulent activities impacting one of its members and two other companies, ostensibly perpetrated by a client or financial institution in the United Arab Emirates (UAE).

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