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Exporters urged to insure
Trade credit insurance is becoming increasingly important with many Vietnamese exporters having suffered payment defaults, a seminar heard in HCM City yesterday.
Christopher Shortell, Vice President of Chartis Asia Pacific's Trade Credit, Surety and Political Risks, said the insurance protects a policyholder against non-payment by a customer due to financial or political events.
For industries like paper, chemicals, pharmaceuticals, food, services, apparel, textile, metals, and electronics, it was especially important, he said.
It would also help reduce bad debts and help Vietnamese exporters significantly improve their competitiveness, he added.
Le Thi Ngoc Huong, Operations Director of AON Viet Nam Company, which provides risk management services, insurance, and human resource consulting services, said, many exporters just think about marine cargo insurance against damage to export products during transit.
Together with marine cargo and product liability insurance, trade credit insurance is a complete solution for managing risks pertaining to exports, she added.
Risk management for exporters is a major concern in a rapidly growing economy like Viet Nam.
Vo Tan Thanh, Director of the HCM City chapter of the Viet Nam Chamber of Commerce and Industry, said, Vietnamese exporters face myriad difficulties like inflation, high interest rates and input costs, and foreign exchange volatility.
In this scenario, they should manage export risks well to ease their burden, he said.
Viet Nam's exports are growing at an annual rate of 20-25 per cent.
The seminar was organised by Chartis Viet Nam in collaboration with HCM City branch's VCCI and AON Viet Nam.
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