Vietnam's export turnover rose sharply last year and in the first halfof 2014, but challenges in legal and administrative procedures andother risks remain for enterprises.
"Vietnam'sexports will face more international lawsuits and technical barriers inthe time ahead and local exporters must increase their capabilities toavoid such risks and problems," Deputy Minister of Industry and TradeTran Tuan Anh said in his opening speech at a conference held in HCMCity on August 21.
The conference, themed "Riskidentification and management for exporters to the US and EUmarkets", was held by AIG Vietnam in partnership with the VietnamEconomic Times, Baker & McKenzie Vietnam and FedEx.
The seminar aims to help businesses in Vietnam identify potentialrisks, protect their bottom line and strengthen their competitiveability as they engage with international markets, especially the US andEU.
Fred Burke, managing partner of Baker & McKenzie Vietnam spoke about the federal system of American laws.
"Fifty states have their own laws, along with the federal government'slaws. Businesses have difficulties caused by having 50 different setsof state laws," he said.
He also pointed out thatdifferences in laws and practices between Vietnam and the US makeit more likely that an export contract will result in a dispute.
"The International Chamber of Commerce has developed a set of uniformterms for export contracts that help to avoid misunderstanding anddisputes, available at www.iccwbo.org/incoterms," he added.
Burke suggested that to avoid disputes, export contracts shouldspecify the goods, purchase price, payment terms, inspection anddelivery; and the location where the title transfer of goods will takeplace.
Also, exporters should include informationon: the warranty and maintenance terms and conditions; who isresponsible for import or export licences, taxes; security requirements(e.g., bank letters of guarantee) and default provisions; mediation orarbitration clauses with the appropriate governing laws; andintellectual property rights (if applicable).
He said exporters should by strictly comply with all applicable laws and regulations.
"If you receive a summons from a US court, don't ignore it. Consult your lawyer to see how to respond," he said.
Providing clear, concise warnings and labels when applicable is alsoimportant, he said. In addition, businesses should implement meaningful,rigorous quality assurance programs to ensure product safety anddocumentation.
Exporters should consider theirrisk to exposure to product liability claims and have appropriateinsurance, and ensure that comprehensive insurance cover has beenobtained, he added.
Ensuring that trademarks,names, and slogans do not infringe existing third-party trademark isalso important, and educating sales, marketing and research staff iscritical as well.
Nguyen Duy Binh, senior countrymanager of Indochina and chief Vietnam representative of FedExExpress, spoke about US customs procedures at the conference.
"As pre-clearance processes must be done before physical shipmentsarrive, accurate description of commodities must be declared on shippinginvoices," he said.
He also suggested that a fulldescription include details on what the product is, what it is made of,what it is used for. Components, and the country of origin of goods mustbe included as well.
Also speaking at the conference, Susan Loftus, CEO and general director of AIG Vietnam, said:
AIG's "Made in Vietnam (MIV) Protect" is designed to protectorganisations and their management with a selection of insurancesolutions such as Directors and Officers liability, Marine Cargo,Product Liability and Trade Credit.
Vietnam's export volume has been increasing at an average of 19.5 percent peryear since 2007, the year the country joined the World TradeOrganisation.
Total estimated exports in 2013amounted to 128 billion USD, ranking Vietnam 34th worldwide inexport size. In 2017, the country is expected to have 327 billion USD inexports, and be ranked 27th globally.-VNA
"Vietnam'sexports will face more international lawsuits and technical barriers inthe time ahead and local exporters must increase their capabilities toavoid such risks and problems," Deputy Minister of Industry and TradeTran Tuan Anh said in his opening speech at a conference held in HCMCity on August 21.
The conference, themed "Riskidentification and management for exporters to the US and EUmarkets", was held by AIG Vietnam in partnership with the VietnamEconomic Times, Baker & McKenzie Vietnam and FedEx.
The seminar aims to help businesses in Vietnam identify potentialrisks, protect their bottom line and strengthen their competitiveability as they engage with international markets, especially the US andEU.
Fred Burke, managing partner of Baker & McKenzie Vietnam spoke about the federal system of American laws.
"Fifty states have their own laws, along with the federal government'slaws. Businesses have difficulties caused by having 50 different setsof state laws," he said.
He also pointed out thatdifferences in laws and practices between Vietnam and the US makeit more likely that an export contract will result in a dispute.
"The International Chamber of Commerce has developed a set of uniformterms for export contracts that help to avoid misunderstanding anddisputes, available at www.iccwbo.org/incoterms," he added.
Burke suggested that to avoid disputes, export contracts shouldspecify the goods, purchase price, payment terms, inspection anddelivery; and the location where the title transfer of goods will takeplace.
Also, exporters should include informationon: the warranty and maintenance terms and conditions; who isresponsible for import or export licences, taxes; security requirements(e.g., bank letters of guarantee) and default provisions; mediation orarbitration clauses with the appropriate governing laws; andintellectual property rights (if applicable).
He said exporters should by strictly comply with all applicable laws and regulations.
"If you receive a summons from a US court, don't ignore it. Consult your lawyer to see how to respond," he said.
Providing clear, concise warnings and labels when applicable is alsoimportant, he said. In addition, businesses should implement meaningful,rigorous quality assurance programs to ensure product safety anddocumentation.
Exporters should consider theirrisk to exposure to product liability claims and have appropriateinsurance, and ensure that comprehensive insurance cover has beenobtained, he added.
Ensuring that trademarks,names, and slogans do not infringe existing third-party trademark isalso important, and educating sales, marketing and research staff iscritical as well.
Nguyen Duy Binh, senior countrymanager of Indochina and chief Vietnam representative of FedExExpress, spoke about US customs procedures at the conference.
"As pre-clearance processes must be done before physical shipmentsarrive, accurate description of commodities must be declared on shippinginvoices," he said.
He also suggested that a fulldescription include details on what the product is, what it is made of,what it is used for. Components, and the country of origin of goods mustbe included as well.
Also speaking at the conference, Susan Loftus, CEO and general director of AIG Vietnam, said:
AIG's "Made in Vietnam (MIV) Protect" is designed to protectorganisations and their management with a selection of insurancesolutions such as Directors and Officers liability, Marine Cargo,Product Liability and Trade Credit.
Vietnam's export volume has been increasing at an average of 19.5 percent peryear since 2007, the year the country joined the World TradeOrganisation.
Total estimated exports in 2013amounted to 128 billion USD, ranking Vietnam 34th worldwide inexport size. In 2017, the country is expected to have 327 billion USD inexports, and be ranked 27th globally.-VNA
