Vietnam - Methods of PaymentVietnam - Methods of Payment
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.
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