Firms advised to be cautious when doing business with Indian partners
The Ministry of Industry and Trade has urged firms to be cautious when doing business with companies in India that were severely hit by the COVID-19 pandemic.
India is struggling with severe cases of COVID-19 and deaths are increasing every day. Many states have imposed lockdowns and social distancing to prevent the spread of the virus, which was negatively affecting the transportation of goods at ports, operations of banks as well as production and business of firms in India.
A number of major ports such as Mundra, Nhava Seva, Chennai and Kolkata halved their operations due to a severe shortage of workers. This situation made shipping lines hesitant to transport goods to India with a fear that they would return with empty containers or store containers at the ports incurring storage fees.
According to the ministry, many banks in India only operate two or three days a week with around 30-50% of employees, working hours were limited from 11am to 2pm. Banks with positive cases were forced to close for one to two weeks. Therefore, transactions at banks were very limited.
The ministry urged firms to be cautious when doing business with partners in India.
Firms should regularly keep contact to maintain the partnership and keep informed about the pandemic development as well as the India Government’s prevention measures.
Before signing commercial contracts, it was necessary to study regulations, measures and policies that each locality was applying, the ministry said, urging firms to choose to do business with reputable enterprises.
It was also important to anticipate difficulties that might arise and affect customs clearance and banking transactions in India, the ministry said, adding that firms should negotiate carefully all terms, including delivery, payment and dispute resolutions. Companies should also insure for all shipments.
Firms should contact with the ministry’s Asia-Africa Market Department for supports via telephone number 024.2220.5479 and email: hieudc@moit.gov.vn; or the Vietnam Trade Office in India via email in@moit.gov.vn.
The bilateral trade between Vietnam and India reached US$3.3 billion in the first quarter of this year, representing a rise of more than 34% over the same period last year. The two-way trade was set to reach US$12 billion this year.