Firms warned about defraudation in rail steel product trading from Saudi Arabia
The Vietnam Trade Office in Saudi Arabia has issued a warning over deals related to used rail tracks and urged domestic enterprises to be cautious of fraudulence.
The trade office said some brokers in Saudi Arabia offered to sell used rail tracks, new ones as well as those with technical errors, originating from the Middle East country to Vietnamese enterprises.
These agents often gave the offer in large quantities of 2-10 million tonnes and a preferential price of only about US$175 per tonne. In addition, they are ready to give an additional discount of 20% of the contract value if an advance payment equal to 20% of the contract value is paid.
They also require the buyer to open a standby letter of credit (SBLC) at an international bank. However when the business opens a SBLC, they do not confirm and continue to offer sales to other businesses, to appropriate the money.
The agents often provide unclear information about the company and its representative as well as a fake address. Notably, the buyer can not access to the company's website.
To avoid unnecessary damage, the trade office recommends Vietnamese businesses not to conduct transactions in rail steel products with Shiekha Mohammed Baghlaf Est Company (website: www.baghlafsteel-saudiarabia.com) because it is not a steel producer in Saudi Arabia.
When businesses receive an offer letter, they shouldn’t make transactions and contact the trade office to be provided with additional information at the email address: arx@moit. gov.vn or phone number: 966544.326.015 for more support.