International Payments with Vietnam for Business

International settlements with Vietnam are becoming increasingly in-demand for Russian companies that purchase goods, equipment, components, and services from Asian suppliers. Vietnam is one of the fastest-growing manufacturing centers in Asia and is actively used by Russian businesses to organize import deliveries.

However, paying a Vietnamese supplier requires careful attention to document preparation and counterparty verification. The international payment undergoes bank control, in which the financial organization assesses the legality of the operation, documentary basis, and economic purpose of the transaction.

To avoid delays and additional bank requests, it is necessary to prepare the foreign trade contract in advance, verify the supplier’s details, and ensure that all documents correspond to each other.

Features of international settlements with Vietnam

Vietnamese companies work with Russian business in various directions:

clothing and textile production;
electronics and components;
industrial equipment;
furniture and consumer goods;
agricultural products;
raw materials;
IT services.

At the same time, each transaction has its own features. For the bank, it is important to understand:

who the supplier is;
what goods or services are being paid for;
on what contract the transfer is made;
how the operation corresponds to the Russian company’s activities.

The more transparent the transaction, the faster the bank verification is.

1. Verification of the Vietnamese supplier before payment

Before signing the contract, it is recommended to verify the foreign company.

It is necessary to obtain:

full company name;
registration number;
legal address;
information on owners or managers;
bank details;
information on company activities.

It is important to ensure that the supplier indeed engages in the production or sale of the stated products.

Special attention should be paid to companies that:

offer too low a price;
require urgent payment without a contract;
use third-party bank accounts;
refuse to provide registration documents.

2. Preparation of foreign trade contract

A contract with the Vietnamese company must be signed to conduct an international payment.

It is recommended to specify in the contract:

details of both parties;
subject of the transaction;
product specifications;
cost;
payment currency;
payment terms;
delivery schedules;
delivery terms according to Incoterms.

If equipment or complex products are purchased, technical specifications must be described in detail.

For example, instead of:

«components»

it is better to specify:

part name;
model;
purpose;
quantity;
technical parameters.

3. Documents for paying the Vietnamese supplier

For conducting the payment, the Russian company usually provides:

foreign trade contract;
invoice;
specification;
payment order;
delivery documents if available.

Depending on the nature of the operation, the bank may request:

transport documents;
packing list;
quality certificates;
documents on the origin of goods;
explanation of the economic purpose of the transaction.

4. Verification of bank details

When paying to Vietnam, it is necessary to carefully check the recipient’s details.

It should be checked:

bank name;
SWIFT code;
account number;
account holder name;
bank address.

The company name in the contract, invoice, and bank details must match.

If the supplier sends new details just before payment, it is recommended to further confirm them through an alternative communication channel.

5. Selection of settlement currency

The payment currency must be agreed with the supplier in advance and fixed in the contract.

When choosing a currency, the following are considered:

the possibility of the operation by banks of both countries;
contract terms;
conversion costs;
payment processing time.

Any changes to payment terms should be formalized in an additional agreement.

6. Banking compliance for payments to Vietnam

The bank checks the international payment in several directions:

foreign counterparty details;
payment purpose;
transaction documents;
operation correspondence to the company’s activities;
absence of heightened risk factors.

Additional questions may arise with:

large payment amount;
first cooperation with the supplier;
advance payment;
non-standard goods.

To speed up verification, it is recommended to prepare an explanation for the transaction in advance.

7. Features of importing goods from Vietnam

If the company purchases goods in Vietnam, it is necessary to consider further delivery documentation.

May be required:

transport documents;
customs documents;
certificates of conformity;
manufacturer documents.

The product description in payment documents must match the information in accompanying documents.

Typical errors in settlements with Vietnam

In practice, companies most often face such issues:

lack of supplier verification;
fund transfer without a signed contract;
error in bank details;
non-compliance of the invoice with the contract;
too general payment purpose;
missing supporting documents;
payment to the intermediary instead of the manufacturer.

Such errors may lead to payment delays and additional bank requests.

Pre-payment checklist for a supplier in Vietnam

✓ Company registration data has been verified.
✓ Foreign trade contract is signed.
✓ A correct invoice has been received.
✓ Bank details are verified.
✓ The amount and currency match the contract.
✓ Payment purpose is filled out in detail.
✓ Documents for the bank are prepared.
✓ The economic purpose of the transaction has been verified.

Conclusion

International settlements with Vietnam for business require careful preparation and control of each transaction stage. Main risks are not associated with the fund transfer itself but with document quality, supplier reliability, and compliance with bank requirements.

Verification of the foreign counterparty, properly executed contract, and complete document package allow for safe and minimally delayed payments to Vietnam.