The risks of international trade is rising, causing billions of dollars in damage to Vietnamese exports. Then, what should the companies do to overcome? One of famous law firm in international business consultation, Dragon Law Firm is willing to support.
According to Vietnam International Arbitration Center, from 2013 up to now, it is estimated that foreign importers do not pay or pay late for export companies of Vietnam $ 6 billion, this number has been rising due to the economic recession in the Western countries. The recovery of late payments is a difficulty for Vietnamese exporters. About 5% never recovered. As for long-term debt, many recoveries are low with high rates and large costs.
Often, such long-standing international trade debts are irrecoverable. For example, the debt of $180,000 in debt collection from Mexico, collected only 65%, the cost accounted for 40% of the proceeds. This cost is high because debt collection process is very difficult in foreign country, while other costs in Vietnam are lower. In case the debt recovery can not be collected, the cost is just the procedural fees.
One important point that the companies should start ask for debt recovery after several months of contractual delays, if longer, debt recovery difficult, low recovery rate and costly. Vietnamese enterprises often delay too long. As Dragon Law know, a seafood company in the debt collection in Mexico just mentioned for debt collection after more than a year and a half. After a long time of contact to the debtor via email and telephone, however, the debtors has no sign to settle, the creditors plan to assign to law firm in debt collection.
Famous law firm in debt collection in Vietnam advise the strategy for companies is to actively prevent the risk and effectively use the legal mechanisms in international trade. They should be proactive with legal risks to understand legal risks and regularly update policy and regulatory changes. In the long run, improve the accounting system, quality control, contract system and record keeping. When a dispute arises, it is essential to choose the law, arbitration, and court to protect the interests.
For more support in debt collection, kindly contact to best law firm in international sales contracts in Vietnam at:
Dragon Law Firm - Hotline: 1900.599.979
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