Hanoi (VNS/VNA) - While enterprises are seeking to diversify markets tocope with drops in orders, experts urge attention to be attached to legal riskswhich might arise from doing international trade in a volatile world.

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

He pointed out that international business partners were trying to insertpressure, making negotiations no longer on an equal footing. They did not evenaccept safe payment methods such as L/C but required payment by money transferwith a delay of up to 90 days which was creating significant risks forexporters. In addition, import markets were erecting technical barriers withstrict requirements.

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

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

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

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

Vanalso stressed the important role of industry associations in supportingenterprises in policy consultancies and dispute resolution and protection oflegitimate rights.

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

Giang said the Vietnam International Arbitration Centre (VIAC) shouldstrengthen the consultancies and regularly provide market updates toenterprises.

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

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