Enterprises urged to pay attention to legal risks in int'l trade: Experts

While enterprises are seeking to diversify markets to cope with drops in orders, experts urge attention to be attached to legal risks which might arise from doing international trade in a volatile world.
Firms urged to pay attention to legal risks in international trade in volatile world
Enterprises urged to pay attention to legal risks in int'l trade: Containers at Hai Phong International Container Terminal. (Photo: VNA)

Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, said that as global consumption demand falls, firms are forced to look for solutions to diversify markets. However, a number of problems arose.

He pointed out that international business partners were trying to insert pressure, making negotiations no longer on an equal footing. They did not even accept safe payment methods such as L/C but required payment by money transfer with a delay of up to 90 days which was creating significant risks for exporters. In addition, import markets were erecting technical barriers with strict requirements.

Giang said that firms must pay attention to legal risks which might arise from doing international trade in the difficult market, adding that it was necessary to provide support to enterprises in terms of legal consultancies and improving the capacity of dispute prevention and resolution.

Enterprises should also study the opportunities and challenges in the market carefully to develop specific business plans and strategies, former Director of the Foreign Investment Agency under the Ministry of Planning and Investment Phan Huu Thang said.

Besides solutions to overcome the current difficulties of capital shortage, and shortage of high-quality human resources, Thang urged the focus to be placed on improving product quality and capacity to participate in global value chains.

Nguyen Van, Vice Chairman of the Hanoi Supporting Industry Enterprise Association, said that in the international progress, besides improving management capacity, enterprises needed to improve their legal capacity and the capacity of risk prevention and dispute resolution.

Vanalso stressed the important role of industry associations in supporting enterprises in policy consultancies and dispute resolution and protection of legitimate rights.

Sharing the same viewpoint with Van, Giang said that arbitrators also played an important role in supporting enterprises to prevent legal risks.

Giang said the Vietnam International Arbitration Centre (VIAC) should strengthen the consultancies and regularly provide market updates to enterprises.

Vu Tien Loc, VIAC’s President, said that VIAC would work with associations to promote the sustainable development of enterprises with priorities on providing legal consultancies and disputes resolutions.

Within the framework of the Vietnam ADRs Week (VAW2023) which is taking place from Monday to Friday, VIAC has signed cooperation agreements with 19 associations in Hanoi and southern regions.

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(Source: VNA)