"Risk management by insurance will help exporters reduce the damage and encourage them to boldly develop new markets and increase the ability to exploit the old market,” confirmed Mr Phung Khac Loc, General Secretary of Vietnam Insurance Association at the workshop "Risk Management by insurance for Vietnam enterprises with import and export activities in the context of international integration" organised by Chartis Vietnam, Vietnam Chamber of Commerce and Industry (VCCI ) and Insurance Association in Hanoi.
According to Ms Pham Thi Thu Hang, General Secretary of VCCI, export performance in recent years has grown relatively by around 18-20 percent, contributing significantly to socio-economic development. Particularly in 2011, export turnover of Vietnam increased by over 33 percent against the previous year, reaching more than US$96.3 billion. However, according to Ms Hang, increased production activities will result in bigger and unexpected export-related risks such as commercial risk, bank risk, political risk ... Therefore, risk management by insurance is actually an effective tool to help Vietnam businesses to compete with foreign ones, boost exports to ensure safety in business and enhance the value of export products for Vietnam.
Ms Vu Hong Van, Director of Trade Credit Insurance Chartis Vietnam, sees risk management by export insurance as an effective solution to settling risks threatening Vietnamese exporters including factories, trade companies and foreign companies. As an official insurer selected by Ministry of Finance for insurance program "export credit insurance of the government in 2011 - 2012", Chartis Vietnam provides risk management for 3 aspects with the corresponding trade terms: material loss during transportation; financial loss and product liability.
"This is a tool that not only improves risk management for businesses but also provides solutions to creating more added values to export products, helping companies improve negotiation ability and enhance the competitiveness on international markets, " said Ms Van.
According to Ms Van, risk management by export insurance will help the export business have necessary protection of unexpected losses such as the bankruptcy of the purchaser and other liabilities in case of compensation claim from suppliers. In addition, this solution also gives customers a competitive advantage by providing insurance products similar to the business partners in China and Southeast Asia to meet the terms of trade of the buyer.
Currently, the trend of changing sales contract from FOB to CIF condition is getting popular in the Southeast Asian and European countries, USA, Japan. In general, companies supplying goods increases the attractiveness of their products not only via price but also their associated services such as flexible payment terms, goods insurance, product liability...
The workshop aims to provide Vietnam's exporters with solutions to settling risk for exported and imported goods during the transport process when the exporters have to deal with financial losses, responsibility for exported goods in foreign markets ...Simultaneously, the workshop provides a thorough analysis of the different international trade conditions and ways to minimize unexpected losses and damages during exporting process.
Quynh Chi
Vietnamese
