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How Bank Guarantee Letter Could Help Secure a Transaction and Risks Involved?

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In the process of performing civil transactions, there is a need to bind the performance of obligations of the parties hence secured transaction is needed and guarantee is one of the commonly used methods to secure the performance of obligations in business and commercial activities. The party that provides guarantee is normally a commercial bank and bank guarantee is normally a loan service. In reality, there are potentially many risks involved in the guarantee transaction through issuing of bank guarantee letter which needs the attention of dispute lawyers in banking and finance to provide legal advice throughout the process. Bank guarantee or guarantee commitment is a document issued by the guarantor or counter-guarantee or the guarantee-confirming party in the form of a Letter of Guarantee or a Guarantee Contract. Thus, a letter of bank guarantee is understood as a written commitment of the bank to the guarantee recipient that the bank will perform financial obligations on beha...

Risk Management: A Vital Element When Doing Business

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Risk management is a vital element when doing business but so far, not many enterprises concern about it. According to a recent survey with 522 companies, there are only 43 companies, accounting for about 8%, have the independent  risk management  department in their business. More noteworthy, the majority of these 43 companies operating in the banking and financial sector, which has nothing new to risk management. In fact, not all banks have independent and effective risk management departments. The negative problems related to the banking system in recent times somewhat showed the picture about the risk management of this sector. Risk is understood as any events and situations that could harmful to the ability to achieve the business objectives of the enterprise. Risk management is organized in a formal way and is conducted continuously to identify, control and report the risks that may affect the achievement of the business objectives of the enterprise. So why businesses ar...

Correct Understanding of Risk Management

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The concept of risk is not strange to businesses in particular and those who do business in general. “Doing businesses is taking the risk” became a popular saying of the business people, whether they are owners of large or small businesses. Although business has to face with risk every day and every hour but risk management is relatively new concept, not many businesses have understanding about it. Therefore, the risk management activities of the business are often being conducted in a half-hearted way. Not many businesses, including large enterprises, have proper risk management departments in their organizational structure. Hence, the uncertainties and crises are usually occurs, causing negative effects and sometimes become disaster for the business. There are always potential risks in any business environment, whether that environment is developed with clear and transparency rules, or that environment is primitive environment with many confusing and complicated. If the business env...

How to Manage Risk

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Method Depending on the size and characteristics of the enterprise that they may establish a risk management department consists of experienced professionals, or at least they should use the risk management services of professional consulting and law firms with extensive experiences in this field. The risk management departments have to perform many tasks but should focus on three main functions: risk identification, risk analysis and risk response. First, we need to identify the risks. It is the process of gathering information, data and analysis of factors that may impact negatively on the achievement of goals, including the inside and outside, macro and micro factors. We can use analysis tools such as brainstorming, interviewing, root-cause analysis, checklist, SWOT analysis… along with other tools that are used in the strategic planning process. Enterprises need to create and regularly update the information and data system to serve for the analysis. The next process is risk analys...

Risk Management: A Vital Element When Doing Business

Hình ảnh
  Risk management is a vital element when doing business but so far, not many enterprises concern about it. According to a recent survey with 522 companies, there are only 43 companies, accounting for about 8%, have the independent  risk management  department in their business. More noteworthy, the majority of these 43 companies operating in the banking and financial sector, which has nothing new to risk management. In fact, not all banks have independent and effective risk management departments. The negative problems related to the banking system in recent times somewhat showed the picture about the risk management of this sector. Risk is understood as any events and situations that could harmful to the ability to achieve the business objectives of the enterprise. Risk management is organized in a formal way and is conducted continuously to identify, control and report the risks that may affect the achievement of the business objectives of the enterprise. So why busine...

Correct Understanding of Risk Management

Hình ảnh
The concept of risk is not strange to businesses in particular and those who do business in general. “Doing businesses is taking the risk” became a popular saying of the business people, whether they are owners of large or small businesses. Although business has to face with risk every day and every hour but risk management is relatively new concept, not many businesses have understanding about it. Therefore, the risk management activities of the business are often being conducted in a half-hearted way. Not many businesses, including large enterprises, have proper risk management departments in their organizational structure. Hence, the uncertainties and crises are usually occurs, causing negative effects and sometimes become disaster for the business. There are always potential risks in any business environment, whether that environment is developed with clear and transparency rules, or that environment is primitive environment with many confusing and complicated. If the business env...

How to Manage Risk

Hình ảnh
  Method Depending on the size and characteristics of the enterprise that they may establish a risk management department consists of experienced professionals, or at least they should use the risk management services of professional consulting and law firms with extensive experiences in this field. The risk management departments have to perform many tasks but should focus on three main functions: risk identification, risk analysis and risk response. First, we need to identify the risks. It is the process of gathering information, data and analysis of factors that may impact negatively on the achievement of goals, including the inside and outside, macro and micro factors. We can use analysis tools such as brainstorming, interviewing, root-cause analysis, checklist, SWOT analysis… along with other tools that are used in the strategic planning process. Enterprises need to create and regularly update the information and data system to serve for the analysis. The next process is risk ...

Good Risk Management for Enterprise – The Key to Success

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Risk is an inevitable factor in business operation activities, higher return is always accompanied by higher risks. Coping and managing risk is an integral part of any business if you want to make profit and create value to shareholders. However, in fact, there are a lot of businesses does not manage risk effectively and furthermore not fully understand about the risks that they are facing. Risk can be defined broadly as any factors or events could drive business and production activities of the enterprise below forecasted. Specifically, the measures that are commonly used as capital risk, profit risk or cash flow risk, depending on the emphasis that are accounting balance sheet and statement of cash flows. According to the Vietnam Ministry of Industry and Trade, in recent times, there are many corporate scams between Vietnam and foreign enterprises. In particular, the main behaviors are foreign companies purchase/sell goods or provide services for partners in Vietnam and the Vietnam p...

Risk assessment and management in enterprise

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Risk assessment service in Vietnam helps identity risks for management Conceptually, risk is any uncertainty that may be harmful to the ability to successfully implement the business objectives of the enterprise. Especially, for business operating in Vietnam, a developing country, the enterprise might encounter potential risks that only local professional whom is aware of culture, local practice could identify and explain. In general, businesses can identify potential risks to manage them. Risk management is a process of a comprehensive review of the business operations to identify potential risks that may impact adversely to the operational aspects of the business taking into consideration of the environment it operates in. Based on that, the response solutions will be given corresponding to each risk. We can also understand that the risk management process is a process that is organized in a formal way and ongoing to determine, control and report the risks that can affect the achi...

Risk of disputes from transactions through social networks in Vietnam

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Social networks have become popular and become an indispensable part of modern life. Along with the development of the internet, social networking applications are also used by many people as a transaction method to exchange and conclude contracts or business transaction with each other. When a dispute occurs, it is difficult for the parties to prove the transactions and the parties involved. Hence, it is important to conduct background check on the business counterparts from financial, operational aspects instead of blind belief in the exaggerated advertising or discounted offer from them. In fact, many individuals and organizations have reported that their partners have denied purchase and sale transactions through social networks and caused huge damages. However, the evidence provided is only messages, icons … stored in social networking applications that carry many meanings and are easily confused in interpretation. These are quite common electronic transaction disputes today, b...

Tips to reduce risks when purchasing medical supplies from Vietnam

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As the Covid 19 pandemic is still occurring in many countries around the world, a large number of medical equipment or accessories being Personal Protective Equipment (PPE) such as N95 respirator masks, surgical masks and other items essential to protecting doctors, nurses, others on the front lines of the pandemic are required to be purchased and sold from many different countries to meet the demand for treatment disease globally. Vietnam is a country that has many enterprises producing medical supplies such as medical gloves, medical masks, which are the focal points supplying goods to many businesses around the world. However, buying and selling quickly, and without researching their partners has caused many businesses to face many risks when purchasing of medical supplies in Vietnam. Here are some tips for buying and selling medical equipment in Vietnam safely and effectively. Searching for a partner is the necessary work. Currently, to meet the increasing demand for buying and sel...

How to minimize risks buying from Vietnam sellers in the new era

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Currently, the purchase and sale of international goods are very popular from Vietnam and around the world, taking the advantage of Vietnam the signing a number of Free Trade Agreements (FTAs), and the application of technology 4.0 in the business helping the international transaction of goods just got easier. However there are many risks involved in the meantime for international buyer purchasing goods from Vietnam sellers if due diligence on the seller, whether being corporates or individuals are not under taken. In the international goods sale and purchase using technology, the best benefits are that, the parties in the transaction do not need to meet, negotiate, and check goods before buying. All of the international goods purchase and sale activities are done via the internet means such as Website, Email, Social media,… which help parties save time and costs when doing the purchase. However, the use of digital technology in the goods sale and purchase transactions still has many ...

Why do we have to undertake background check before recruitment

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Recruitment is the process of screening and recruiting qualified people to meet a job in an organization in general and in particular business. Recruitment plays a very important role in business development. Effective recruitment will provide businesses with a team of skilled, active, creative employees and provide human resources in accordance with the business performance of the business. Only when doing well the recruitment stage can we do well in the next stages. Therefore, businesses need to recruit the right people right the first time as well as arrange them in an important position. Most of the information that enterprise has is provided by the employee and there is no verification of the information. And if the enterprise only relies on the information provided by the employee, it is likely that the employee is dishonest, or causes mistakes and avoid responsibility. To recruit “right employee, right job”, enterprise needs to check the applicant’s background. Checking employee...