Escolar Documentos
Profissional Documentos
Cultura Documentos
SOLUTIONS TO
PRACTICING
LETTER OF CREDIT IN
VIETNAM
Nguyen Van Ha - 1311110189
Vu Thi Ha
Trang - 1411110651
Phung
Quang Huy 1411110291
DO YOU KNOW?
11-15% of international trade
utilizes L/C, over a trillion dollars
(US) each year
Section 5: Solutions
SECTION 1:
THEORETICAL BASIS
LETTER OF
CREDIT THIRD
Issued by BANKS PARTY
& FINANCIAL INSTITUTIONS
APPLICANT
ISSUING
bank ADVISING bank
UCP
Uniform Customs &
Practice for
Documentary Credits
BENEFICIARY
TYPES &
FEATURES
REVOCABLE LC
CAN BE CHANGED @ ANY TIME
IRREVOCABLE LC
CANT BE CHANGED & CANCELLED, EXCEPT
FOR SOME CASES
TYPES &
FEATURES
CONFIRMED LC
A SECOND BANK AGREES TO PAY ON DEMAND
OF THE ISSUING BANK HIGHLY SECURE FOR
PAYMENT
UNCONFIRMED LC
IN CONTRAST WITH CONFIRMED LC,
GUARANTEED ONLY BY THE ISSUING BANK.
TYPES &
FEATURES
TRANSFERABLE LC
THE BENEFICIARY IS SIMPLY AN INTERMEDIARY.
THE PAYMENT SHALL BE TRANSFERRED ALL OR
PARTLY.
UN-TRANFERABLE LC
TRANSFERENCE OF THE LC IS NOT ALLOWED
TYPES &
FEATURES
AT SIGHT
PAYABLE ASA THE DOCUMENTATION HAS BEEN
PRESENTED & VERIFIED
BACK-TO-BACK LC
USED IN A TRADE INVOLVING AN INTERMEDIARY.
MADE UP OF 2 LC:
+ 1 ISSUED BY THE BUYERS BANK
INTERMEDIARY
+ 1 ISSUED BY THE INTERMEDIARYS BANK
SELLER
DOCUMENTATION
REQUIREMENTS
INVOICES PHYTOSANITARY CERTI
2016
CASE STUDY 1
TRADING PARTNERS FRAUD
Different
Signature
Real Delivery
SOLUTIONS
Being CAUTIOUS
Being INFORMED
CASE STUDY 2
BANKERS FRAUD
Nov
2011
HSBCs
Employee
CASE STUDY 2
BANKERS FRAUD
500
MIL VND
Commission
CASE STUDY 2
SOLUTIONS
PROCESS reviewed
BANK self-improved
DEALING promptly
SECTION 5:
SOLUTIONS
BANK
Strengthen human resource
management, inspection and
supervision of compliance with the
regulations on management and use
of seals.