Vietnamese firms are being encouraged to use letters of credit (L/Cs) in their endeavours to tap market opportunities in Africa and the Middle East.

The L/Cs should be used by Vietnamese traders to mitigate risks in the regions where, according to a Ministry of Industry and Trade official, there is huge demand for all kinds of Vietnamese exports, especially consumer goods.

Market opportunities

Deputy director of the ministry's Middle East, Africa, West and South Asia Markets Department, Pham Trung Nghia, told participants at a seminar in Ho Chi Min city that there are opportunities for Vietnamese exporters of several types of product.

Main exports to the regions include agricultural produce, mobile phones, computers and accessories, seafood, coffee, garments and textiles, footwear, and pepper.

Vietnam's main imports from Africa and the Middle East include crude oil, copper, liquefied gas, cashews and wood.

Risk warning

But Nghia warned that there are still risks for Vietnamese companies doing business in these regions, including payment issues,

To avoid these risks, the ministry official advised that payments for imported goods should be made on L/C terms while exporters should negotiate at least a 30 per cent advance payment from importers.

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