Vietnam exporters reclaim cashew stock following Italian swindle

Six Vietnamese companies have regained ownership of all 100 cashew nut containers sold in a suspected scam in Italy this March, Vietnam Cashew Association (Vinacas) stated Saturday.

The six exporters had earlier signed contracts with a group of five importers in Italy, and 74 of the 100 containers were shipped, but early this March, Vinacas heard from the firms that they had not received any payment as agreed from the buyers and had lost track of the original consignment documents. Right after the detection of fraudulent activity, the six exporters worked with relevant authorities to stop the delivery of the other 26 containers.

Trade officials, diplomats, and police from Vietnam and Italy have worked closely together in solving the case to protect the legitimate rights of the Vietnamese exporters, Vinacas vice president Bach Khanh Nhut told the association’s first-half 2022 wrap-up meeting in Ho Chi Minh City.

On June 15-16, Italian police made a decision to return the last two of the 74 already shipped containers to Vietnamese businesses, he added.

Vinacas is supporting the Vietnamese Trade Office in Italy as well as lawyers to force the shipping lines that had carried the containers to return the six exporters their deposits, said Nhut.

Vinacas advised its members to draw lessons when exporting cashew nuts, stressing the importance of knowing who the importers are, and to effectively coordinate with Vietnamese trade officers in the import markets.

“The set of export documents needs to be complete, opposed to this case. International brokers must be trustworthy,” said Vinacas president Pham Van Cong.

For this year’s cashew nut export target, the association has proposed the Ministry of Agriculture and Rural Development cut the ministry-set $3.8 billion goal down to $3.2 billion due to existing difficulties and uncertainties worldwide. The Vinacas-proposed goal is $400 million lower than last year’s result.

Vietnam is one of the world's biggest cashew exporters. The country's cashew exports in 2021 reached $3.63 billion, up 13% year-on-year, with the U.S and China being the major markets, according to official data.