Firms advised to be cautious when doing business with Indian partners

Containers loaded at Hai Phong Port. Firms should be cautious when doing business with firms in India in the context that the COVID-19 pandemic was severely hitting this country. (Photo thoibaotaichinhvietnam.vn)

Hanoi (VNS/VNA) - The Ministry of Industry and Trade has urged firms to becautious when doing business with companies in Indiathat were severely hit by the COVID-19 pandemic.

Indiais struggling with severe cases of COVID-19 and deaths are increasingevery day. Many states have imposed lockdowns and social distancing toprevent the spread of the virus, which was negatively affecting thetransportation of goods at ports, operations of banks as well as production andbusiness of firms in India.

Anumber of major ports such as Mundra, Nhava Seva, Chennai and Kolkatahalved their operations due to a severe shortage of workers. Thissituation made shipping lines hesitant to transport goods to India with a fearthat they would return with empty containers or store containers at the portsincurring storage fees.

Accordingto the ministry, many banks in India only operate two or three days a weekwith around 30-50 percent of employees, working hours were limited from 11am to2pm. Banks with positive cases were forced to close for one to two weeks.Therefore, transactions at banks were very limited.

Theministry urged firms to be cautious when doing business with partners in India.

Firmsshould regularly keep contact to maintain the partnership and keep informedabout the pandemic development as well as the India Government’sprevention measures.

Beforesigning commercial contracts, it was necessary to study regulations, measuresand policies that each locality was applying, the ministry said, urgingfirms to choose to do business with reputable enterprises.

Itwas also important to anticipate difficulties that might arise and affectcustoms clearance and banking transactions in India, the ministry said, addingthat firms should negotiate carefully all terms, including delivery, paymentand dispute resolutions. Companies should also insure for all shipments.

Firmsshould contact with the ministry’s Asia-Africa Market Department for supportsvia telephone number 024.2220.5479 and email: [e-mail]; or the VietnamTrade Office in India via email [e-mail].

Thebilateral trade between Vietnam and India reached 3.3 billion USD in the firstquarter of this year, representing a rise of more than 34 percent over the sameperiod last year. The two-way trade was set to reach 12 billion USD thisyear./.

VNA