According to the Vietnam Pepper and Spice Association (VPSA), from March to May 2025, a domestic enterprise signed a contract to export 21 containers of pepper to Karachi (Pakistan) for a foreign partner, but did not require a deposit.
The partner used multiple intermediary legal entities to build initial credibility, leading the Vietnamese side to trust and deliver the goods. From the end of May to mid-July 2025, 20 containers arrived at Karachi port.
However, after the goods arrived, the partner repeatedly delayed payment with unclear reasons, while making formal promises such as processing the money transfer or waiting for bank confirmation. During this process, the partner repeatedly provided fake money transfer documents and requested unnecessary additional documents to prolong the process.
The prolonged payment delay from May to September 2025 has resulted in goods being held up at ports, incurring significant container and storage costs, and putting serious pressure on the cash flow of export businesses.
Taking advantage of this situation, the partner continued to exert pressure, demanding a significant price reduction of approximately 25% compared to the original contract, considerably lower than the market price, along with a commitment to quick payment which was not fulfilled.
Amid rising costs and the risk of goods being subject to regulatory penalties in the importing country, businesses are forced to accept price adjustments to minimize losses. However, even after reaching an agreement, the partner continues to delay payment until the end of 2025, repeatedly submitting forged documents and failing to fulfill its obligations.
In conclusion, although some of the goods were recovered, the total estimated loss for the business was nearly $600,000 (approximately 15 billion VND), including reduced selling prices, storage costs, and logistics expenses. The incident also negatively impacted the company's cash flow and reputation with transportation partners and banks.
According to VPSA, the incident illustrates a deliberate fraudulent scheme: the buyer places large orders but fails to pay a deposit, prolonging the payment period to incur port storage costs, thereby pressuring the seller to lower the price, and then continues to delay payment in order to misappropriate profits.
Based on this reality, the Association recommends that pepper and spice exporting businesses exercise particular caution when dealing with new partners, especially in high-risk markets. Businesses should not ship goods without payment guarantees such as deposits, letters of credit (L/C), or bank guarantees; they should also verify partners through multiple channels and proactively coordinate with the Vietnamese Trade Office in the importing country. Contract terms should also be carefully drafted, especially regulations for handling goods at the port in case of disputes.
In recent years, many Vietnamese businesses have faced risks when exporting pepper, cashew nuts, cinnamon, and other spices to certain markets. A common scenario involves partners placing large orders to build trust but failing to provide a deposit, then delaying payment and using forged bank documents.
Previously, in 2024, several VPSA member companies also encountered problems when exporting pepper to Malaysia for customer Mafipro SDN BHD. Upon arrival at the port, the shipment was seized even though the Vietnamese side still held the original bill of lading.
Amidst continued growth in pepper exports, VPSA emphasizes that controlling trade risks must be a top priority to protect businesses. In 2025, Vietnam's pepper exports are expected to reach a record value of $1.66 billion, despite a decrease in production to 246,132 tons, thanks to a sharp increase in average export prices.
According to VNE
