Workers of the Hồ Gươm garment Company in Hưng Yên District. — VNA/VNS Photo Trần Việt

HÀ NỘI — The Vietnam Trade Office in Spain has issued a warning to domestic businesses to be careful when signing contracts with Spanish businesses to avoid risks.

Previously, the Vietnam Trade Office in Spain received feedback from several domestic cashew and pepper export businesses about delays in payment of goods from ISASA Export Company in Malaga, Spain.

The representative is Mr. Manuel Gil or Ms. Anniz; headquarters located at Calle Riogordo, Nave No.4, Estrella, 29006 Malaga, Spain; Email: info@isasaexport.com; isasa@isasaexport.com and website address https://isasaexport.com/en/home/.

ISASA Export said the Vietnamese enterprise's goods did not meet quality standards at the port of destination or that the company suffered loss due to the decline in local market prices, so it did not comply with the purchase contract. Specifically, the company was late in paying for the goods, causing difficulties, time loss, and storage costs for domestic businesses, and many businesses even had to take back the goods.

To avoid risks in exporting, the Vietnam Trade Office in Spain warned domestic businesses to be careful when signing sales contracts with ISASA Export Company. At the same time, it suggested domestic businesses increase coordination with the Trade Office in Spain in verifying local businesses before actually signing sales contracts.

The Vietnam Trade Office in Spain said that Spain is currently a large consumer market for all of Việt Nam's exported consumer goods industries because of its large population of over 47 million people and quite high average income (about US$36,700/year). Furthermore, this is also a potential niche market for direct domestic consumption of Việt Nam's agricultural, aquatic products and tropical fruits and vegetables, especially off-season products and raw products that are suitable inputs for the highly developed export food processing industry in Spain.

Spain attracts an average of over 80 million international visitors annually with Europe's leading tourism service industry, resort facilities and cuisine. Therefore, this is a market opportunity for tourism related industries (including handbags, suitcases, wallets, hats, umbrellas; handicraft products, rattan, bamboo, rush, carpets), textiles, footwear, wood and wood products, food ingredients, coffee and spice products of Việt Nam.

To promote Vietnamese goods in the Spanish market, the Vietnam Trade Office in Spain suggested Vietnamese businesses increasingly take advantage of incentives from the Vietnam - EU Free Trade Agreement (EVFTA). Vietnamese businesses need to proactively research consumption trends and market requirements, and stay updated on new regulations and policies of the host country to proactively plan production, business and export.