Việt Nam
English
Japan
Korea
China
VIETNAMESE COMPANY LOSES USD 600,000 DUE TO EXPORT PAYMENT RISKS IN PEPPER TRADE: A WARNING FOR THE ENTIRE INDUSTRY
According to the Vietnam Pepper and Spice Association, a pepper export company shipped approximately 21 containers of goods to the Pakistan market between March and July 2025.
Key characteristics of the transaction:
- No deposit was required from the buyer
- The partner used multiple intermediary entities for transactions
- Goods were delivered to Karachi Port
After the cargo arrived, the buyer began delaying payment with various excuses, including pending bank confirmation and transfer processing.
Fraud Tactics: Delaying Payment to Create Financial Pressure
The payment process was prolonged from May to September 2025, accompanied by several unusual signs:
- Providing fake remittance documents
- Requesting unnecessary additional paperwork
- Repeated delays in processing
As a result, the cargo remained at the port for an extended period, incurring demurrage and storage charges.
When costs escalated, the buyer proposed a significant price reduction (approximately 25%), forcing the exporter to concede in order to minimize losses.
Total estimated loss: nearly USD 600,000, including:
- Discounted selling price
- Storage and demurrage costs
- Additional logistics expenses
Why Did the Company Lose Control?
From an operational perspective, the case highlights several common weaknesses in export activities:
Lack of Payment Security
Shipping goods without an L/C, deposit, or bank guarantee resulted in a loss of financial control.
Insufficient Partner Due Diligence
Fraudulent parties used multiple intermediary entities to create credibility, making risk identification more difficult.
No Contingency Plan Upon Cargo Arrival
Once the cargo reached the destination, costs accumulated over time, forcing the company into unfavorable decisions.
Lessons for Exporters: Control Risks from the Start
In an increasingly complex global trade environment, businesses should proactively:
- Use secure payment methods (L/C, deposits, bank guarantees)
- Verify partners through multiple channels (trade offices, banks, intermediaries)
- Establish well-structured contracts, especially regarding cargo handling terms
- Prepare logistics contingency plans in case of disputes
Most importantly: never let the situation become “goods delivered, but payment uncertain.”
Dolphin Sea Air – Your Partner in Export Risk Management
With extensive experience in logistics and supply chain consulting, Dolphin Sea Air supports businesses by:
- Advising on appropriate payment methods for each market
- Providing risk alerts in international transactions
- Assisting in partner verification
- Proposing transport solutions and contingency handling plans
Contact Dolphin Sea Air for safe and cost-optimized export solutions.
Frequently Asked Questions (FAQs)
Why should you avoid shipping without payment guarantees?
Because once the goods are delivered, businesses lose financial control—especially in high-risk markets.
Is L/C a completely safe payment method?
Not entirely. L/C terms and issuing banks must be carefully reviewed to ensure validity.
How can businesses verify foreign partners?
Through Vietnamese trade offices, banks, logistics providers, or international credit organizations.
A Warning for the Entire Export Industry
The loss of nearly USD 600,000 is not just a single company’s damage—it is a clear warning for the entire export sector.
In international trade, risk management is just as important as securing orders.
Contact Dolphin Sea Air Services Corp.
- Hotline: 1900 986 813
- Email: info@dolphinseaair.com
- Website: www.dolphinseaair.com
