Role of financial services in international trade highlighted
International payments and logistics services play a crucial role in global economic integration, especially the development of guarantee services and Standby Letters of Credit – the modern instruments that provide a sense of security for businesses’ transactions.
Hoang Quang Phong, vice President of the Vietnam Chamber of Commerce and Industry (VCCI) made the statement at a conference on financial services in international trade held in Hanoi on April 21.
Guarantee services have been used in a line-up of sectors such as construction, pharmaceuticals, communications, finance, infrastructure and mining, he said.
Meanwhile, Vincent O’Brien from the International Chamber of Commerce of Bangladesh (ICC Bangladesh) briefed some 200 attendees about surveys on global finance and trade in 2015, practices of the Standby Letter of Credit and rules of guarantee services.
Regarding logistics services, the ICC Bangladesh representative mentioned the International Commercial Terms (INCOTERMS) – the internationally recognised standard trade terms used in sales contracts. They are used to clear up businesses’ queries such as who is responsible for the cost of transporting goods and where goods should be picked up from and transported to, among others.
At the conference, the Vietnam International Arbitration Centre and Bangladesh International Arbitration Centre inked a cooperation agreement.
The event, jointly held by the VCCI and ICC Bangladesh, aims to enhance trade exchange between Vietnam and countries in South Asia.
It will run until April 22, covering discussions on depositary receipts and solutions to conflicts with a third party’s support.