Discusses the most common methods of payment, such as open account, letter of credit, cash in advance, documentary collections, factoring, etc. Includes credit-rating and collection agencies in this country. Includes primary credit or charge cards used in this country.
Last Published: 7/19/2018

Most U.S. firms exporting to Vietnam conduct business using various methods of payment, such as letters of credit (L/C’s), drafts, and wire transfers. Vietnamese companies often resist the use of confirmed L/C's because of the additional cost and collateral requirements from banks. Local companies with acceptable credit risk, including major private enterprises and State-Owned Enterprises (SOEs), can usually obtain credit facilities, including import financing from foreign banks. For these importers, confirmation of L/C’s opened by their foreign bank may not be required and faster payment can be expected. At present, L/C’s up to 60, 90, or 120 days are most common. Foreign banks have greater capacity, but costs will be lower if the L/C is opened by one of the four state-owned banks or 34 private joint stock commercial banks.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



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