Vietnam's trade counsellor in India, Bui Trung Thuong, has recommended that Vietnamese traders should do business on letter of credit (L/C) terms in their dealings with Indian business partners.

He also advised them to carefully study information about their partners and verify their reputation before signing contracts to avoid trade disputes.

Safe L/C transactions

It is necessary to choose the L/C payment method to ensure transaction safety, Thuong advised Vietnamese traders, adding that exchanges of information between them and their Indian counterparts should be in writing or via email.

Vietnamese traders should travel to India to meet partners, verify Indian companies' business activities and find out important information such as company name, address, phone number, email, website, legal representative and business code, according to Thuong.

The official also recommended exporters to buy cargo and marine insurance to minimise transaction risks.

Dispute resolution

The trade counsellor suggests that if a dispute should arise, Vietnamese traders should assess the situation and discuss matters directly with their partners and intermediaries such as customs, transport and logistics service providers.

If necessary, he says they should file a complaint with the directorate general of foreign trade of India.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.