The Prime Minister directed 6 ministries to take action.

The Prime Minister has just issued a directive on supporting businesses exporting pepper to the UAE (United Arab Emirates) market, following press reports that some businesses that are members of the Vietnam Pepper Association are at risk of losing export shipments of pepper, cinnamon, star anise, and cashew nuts to the UAE due to trade fraud.

Prime Minister Pham Minh Chinh instructed the Ministry of Foreign Affairs to take the lead, in coordination with the Ministries of Industry and Trade, Justice, Agriculture and Rural Development, and Transport; and the State Bank of Vietnam to direct the Vietnamese Embassy in the UAE to continue working urgently with UAE authorities, requesting their cooperation in investigating and clarifying the case of the four lost containers of agricultural products, in order to take measures to ensure the legitimate rights and interests of Vietnamese businesses, in accordance with international law and local law.

Four shipments of Vietnamese exports to the UAE, worth half a million USD, may have been involved in a sophisticated fraud scheme. (Illustrative image)

The head of government requested that relevant agencies submit reports on the handling of the issue before August 5th. In the meantime, it is necessary to request that the UAE take urgent measures to protect one container of star anise belonging to a Vietnamese company at Jebel Ali port (UAE).

The Ministry of Industry and Trade, in coordination with the Vietnam Pepper Association and Vietnamese representative agencies abroad, advises businesses to regularly inform relevant authorities to verify and thoroughly assess foreign partners before signing any transaction agreements to prevent risks related to disputes or suspected fraud. Businesses should also promptly and fully notify relevant authorities when incidents occur to receive support in resolving them and avoid potential losses.

The Prime Minister also requested the Ministry of Agriculture and Rural Development to take the lead in coordinating with relevant ministries and agencies to promote the establishment of associations linking Vietnamese agricultural export businesses with UAE import and distribution businesses, in order to create a mechanism for cooperation, information exchange, preventing fraudulent activities, and resolving trade disputes.

Previously, the Vietnam Pepper Association issued a statement saying that five export containers belonging to domestic businesses, including two containers of pepper, one container of cinnamon, one container of star anise, and one container of cashew nuts, were involved in a suspected sophisticated fraud scheme.

The total value of the shipment was $516,761. Of this, 4 shipments were taken from the port without payment, totaling approximately $400,000; 1 shipment of star anise, expected to arrive at the port on July 26th, was valued at $126,300 (the original documents were also lost).

At a recent cashew industry review event, Mr. Bach Khanh Nhut, Permanent Vice President of the Vietnam Cashew Association, reported that the company suspected of being defrauded had met with a partner company at a trade fair in Dubai in February 2023. The two parties signed a contract, and subsequently, one container of goods was successfully delivered and sold in April 2023.

In June, the Vietnamese company signed a contract for a second container of goods, but then encountered a problem with the goods being lost.

Alleged $0.5 million fraud: Vietnamese business meets buyer at trade fair. A Vietnamese export business met and signed an order with a buyer at a trade fair in Dubai. The first shipment went smoothly, but the second was a scam. The goods were lost, and the partner disappeared without a trace.

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