As many as 34 containers of cashew nut from Vietnamese exporters might be in hands of fraudulent persons in Italy.

The shipment belongs to 100-container deals worth VND1 trillion (US$434 million) between five Vietnamese exporters and Italian customers through Kim Hanh Viet, a US-based company owned by Vietnamese-Americans.  

Workers in a cashew processing plant in Vietnam. Photo: Duc Thanh

As of Mar 9, Vietnamese firms lost control of bills of lading for 34 containers valued at VND160 billion ($7 million), according to the Vietnam Cashew Association (Vinacas).

Deputy Head of Vinacas Bach Khanh Nhut said at a press conference on Mar 9 that the problem came when banks, which are believed to be of buyers, informed that the buyers are not their clients and the documents are not original.

It becomes urgent and serious as anyone who has original papers are assumed consignee and eligible to take goods at the port of discharge. So far, two out of 34 containers arrived at the port of unloading, and others are on their way to reach the destinations which include Genoa and LA Spezia, Italy.     

Nhut said the Vietnamese sellers noticed signs of fraud and stopped shipping in Vietnam when someone came to pick up the shipment in Italy’s ports while they were not paid.

Vinacas contacted the shipping company – China Ocean Shipping Company Limited (COSCO), requesting it to temporarily hold all the containers at the port of discharge while waiting for confirmation from the Vietnamese sellers.

Vietnamese Trade Counselor in Italy Nguyen Duc Thanh. Photo: VNA

In the latest move, the Embassy of Vietnam in Italy worked with COSCO in Genoa, Italy on Mar 8. The shipping line agreed not to deliver the shipments to the buyer even though they have the original bills of lading and have paid the port fees, according to Vietnamese Trade Counselor in Italy Nguyen Duc Thanh. The company gives the Vietnamese side several days to resolve the incident.

The Vietnamese Embassy in Italy also sent a diplomatic note to the Italian Ministry of Foreign Affairs, the Ministry of Economic Development, relevant agencies, chambers of commerce, banks, and partners to seek timely support for the case that might cause big losses to many Vietnamese companies, the Vietnam News Agency reported.

According to Pham Van Hong, deputy head of the Italy-Vietnam Chamber of Commerce in Torino, Italy, said the scam is largely done due to Documents against Payment D/P in which someone can only collect imported goods after paying for them at a bank and showing proof of having paid.

For this case, the Vietnamese exporters need to quickly authorize Italian lawyers in writing. The letter of authorization will enable the lawyers to report the scam to the police of the host country and consult documents made by banks of both sides.

Italy is the 11th largest cashew nut import market in the world. Vietnam’s cashew nut exports to Italy reached $45 million in 2020, accounting for 59% of Italy’s total cashew imports, excluding a large volume shipped by road from Germany and the Netherlands, according to counselor Nguyen Duc Thanh. He noted that Vietnamese cashew nut gains popularity in Italy thanks to quality.

Currently, Vietnam is the world’s biggest exporter of cashew nuts, accounting for 55% of the volume processed.

The country maintained the leading rank since 2006. It reaped $3.7 billion from exporting this item in 2021.