According to the Vietnam Pepper and Spice Association (VPSA), the case unfolded over several months in Karachi, where a foreign buyer placed large orders for pepper without making any deposit.
Le Viet Anh, secretary general of the association, said the scheme began in March 2025 when the buyer initiated transactions for a total of 21 containers. To build credibility, the counterparty used multiple intermediary entities with different names to create the appearance of legitimate business operations.
Trusting the scale of the order and supporting documentation, the Vietnamese firm proceeded with shipments. Between late May and mid July 2025, all 21 containers arrived in Karachi.
However, once the goods reached port, the buyer began delaying payment, citing reasons such as pending bank confirmations and transfer processing. The company also provided falsified payment documents and repeatedly requested unnecessary paperwork to prolong the process.
The delays stretched from May to September 2025, during which the goods remained at port, incurring mounting storage and demurrage costs.
VPSA said the case bore the hallmarks of a deliberate fraud strategy, with the buyer exploiting time to increase financial pressure and force the exporter into concessions.
Facing rising costs and the risk of goods being disposed of under local regulations, the Vietnamese company was compelled to cut prices by around 25 per cent compared with the original contract, significantly below market rates.
Even after agreeing to the reduced price, the buyer continued to delay payment until the end of 2025. The total loss was estimated at nearly USD 600,000, including reduced sale value, storage, logistics and other associated costs.
Beyond direct financial losses, the incident disrupted cash flow, damaged the company’s credibility with logistics providers and banks, and affected its overall operations.
Farmers harvesting pepper (Photo: Huan Tran).
The case is not isolated. VPSA said similar scams have affected Vietnamese exporters of pepper, cashew nuts, cinnamon and other spices in recent years, particularly in higher risk markets.
These schemes often follow a pattern: buyers place large orders without deposits, delay payments using various pretexts, and in some cases present fake banking documents. Once goods arrive at port and storage costs rise, sellers are pressured to accept lower prices or risk further losses.
In some instances, fraudsters attempt to take possession of goods or prolong disputes to evade payment obligations.
In 2024, several VPSA member companies encountered a similar case involving a buyer identified as Mafipro SDN BHD in Kuala Lumpur. Goods were reportedly removed from port despite the exporter still holding the original bill of lading, indicating that procedures had not been fully completed.
Le Viet Anh warned that such schemes are becoming increasingly sophisticated, with perpetrators well versed in international trade practices. The use of multiple entities, forged documents and contractual loopholes makes early detection difficult.
VPSA advises Vietnamese pepper and spice businesses to be cautious when conducting export transactions (Photo: Huan Tran).
VPSA has urged exporters to tighten risk control measures, including securing payment guarantees such as deposits, letters of credit or bank guarantees before shipment. Businesses are also advised to thoroughly verify partners through multiple channels, including Vietnamese trade offices abroad.
Clear contractual terms, particularly regarding the handling of goods at ports in the event of disputes, are seen as critical to reducing risks.
In 2025, Vietnam’s pepper exports reached a record USD 1.66 billion. Although output declined by 1.5 per cent to 246,132 tonnes, export value rose 26.3 per cent, driven by a 28.3 per cent increase in average export prices. Key markets included the United States, the United Arab Emirates and China.
