The situation of Vietnamese cashew scam 2022: Latest News and Lessons

Vietnamese-cashew-export

At the beginning of 2022, the world’s cashew industry had great changes. In particular, the Vietnamese cashew scam in Italy is one of the most interested news. So from the Vietnamese cashew scam in Italy, what actions have businesses taken?

Overview of the Vietnamese cashew scam case in early 2022

Vietnamese-cashew-export
Vietnamese cashew scam

Five cashew exporters signed a contract to export cashew nuts to Italy with a total volume of nearly 100 containers. According to the buyer’s instructions, businesses submit the original documents to a Vietnamese bank to collect money from the sale. The Vietnamese bank then sends the original set of documents to the buyer’s Turkish payment bank.

However, the Turkish bank informed that the buyer is not their customer. They has returned all documents to the Vietnamese bank. They informed that the sets of documents were not originals, the Industry and Trade newspaper reported.

Detecting signs of fraud, businesses, and banks have made efforts to find ways to keep goods and withdraw documents. But out of 100 sets of documents of 36 containers that have been arriving at Italian ports, documents are lost. This means that Vietnamese exporters no longer have control over 36 containers of cashew nuts. All of 36 containers worth more than $7 million, equivalent to more than VND160 billion; according to Ho Chi Minh City Law.

Lessons learned from the Vietnamese cashew scam

The reasons is Vietnamese export companies have not verified their partners, through brokers, and lack information.

Therefore, the eternal lesson is to learn, carefully evaluate the partners as well as understand the risks of the market. Especially in the current international trade conditions, mainly electronic transactions. However, many businesses were very subjective, even when signing a large contract.

The next lesson is to regularly keep in touch with Vietnamese representative agencies in export markets. Besides contacting companies providing credit verification services to find out about partners. Finally, a lesson on compliance with business safety principles, in which the payment stage is vital.

The latest situation on the Vietnamese cashew scam in Italy

As of April 3, 2022,

Vietnamese-cashew-export
Vietnamese companies have recovered 12/35 containers

of cashew nuts exported to Italy with lost original documents, a huge victory thanks to their best efforts and active supported by stakeholders. This is the latest news about the Vietnamese cashew scam in Italy.
Vietnamese companies have regained ownership of 9 containers of cashews that have lost their original documents by negotiating and confirming with the buyer that they are not related to the shipment, according to information from the Law Office.

The lawyers tried their best to work with an Italian company and it was confirmed by their side that it was not related to the above 9 containers and had never purchased goods from Vietnam. Based on that confirmation, Vietnamese businesses have taken out 9 containers and can exchange bills of lading to sell to new customers in a very short time, reducing large losses.

In addition, Vietnamese businesses have also paid a guarantee for the shipping company to bring 3 containers of goods to Vietnam.

Another success in the case of 100 containers of cashews exported to Italy is that so far, Vietnamese businesses have sold 18 containers to the Netherlands and Turkey.

The lawyer also cooperates with the Vietnam Trade Office in Italy to connect with reputable overseas Vietnamese businesses in countries such as Italy, Germany, the Czech Republic, Austria, Belgium, and Hungary to assist in finding reputable distributors in Europe. Europe to find new customers. Currently, many partners have shown interest and are considering buying these cashews.

Cashew nut exports decreased in the first quarter of 2022

According to the General Department of Customs, Vietnam’s cashew exports in March 2022 reached 40,000 tons, worth USD 241 million. It up 57.9% in volume and 59.9% in value compared to the previous year. February 2022, but compared with March 2021, down 11.8% in volume and 9.0% in value.

Vietnamese-cashew-export
Cashew nut exports decreased in the first quarter of 2022

In the first quarter of 2022, Vietnam business exported cashew at 105 thousand tons, worth 630 million USD, down 6.7% in volume and 5.0% in value over the same period in 2021.

In March 2022, the average export price of Vietnam’s cashew nuts was estimated at $6,024 per ton; up 1.2% compared to February 2022 and 3.2% higher than March 2021.

In the first 2 months of 2022, the export of W320 cashew nuts reached 25.35 thousand tons, worth USD 171.83 million, down 10.4% in volume. In which, the export of W320 cashew nuts to many key markets decreased, such as the Netherlands, Canada, China, Australia, and Russia. However, W320 cashew nut exports to the US, Germany, UK, and France markets increased. The decrease in W320 cashew nut exports has affected the whole industry.

Attorney Davide Galllasso of the Law Office Davide Galasso said that the process of resolving the case has had initial positive results. However, the victims need to unite and act together quickly to avoid loss.

Contact Vihaba for detailed product information and the best deals for Vietnamese agriculture products.

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