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What do you need to pay attention to when doing business with Bangladeshi customers?

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Note: Bangladesh is one of the countries with the highest population density in the world, but it is also an underdeveloped country.

Bangladesh is a South Asian country with a long history, which advocates water lilies and magpies as national flowers and birds.

Bangladesh is one of the countries with the highest population density in the world, but it is also an underdeveloped country. It's not that the poor and the evil are the ones who make trouble for the people. It's just that the laws and systems in the economically underdeveloped areas are not perfect, so we must be careful when doing business with these areas.



Now let's introduce what we need to pay attention to when doing business with Bangladeshi customers.

1. Collection issues

The ultimate goal of foreign trade is to make money. If you can't even get the money, what else can you talk about. So in doing business with any country, collecting money is always the most important thing.
Bangladesh is very strict with foreign exchange control. As stipulated by the Central Bank of Bangladesh, the payment method of foreign trade must be in the form of bank letter of credit (if there are special circumstances, the Central Bank of Bangladesh needs special approval). That is to say, if you do business with Bangladeshi customers, you will receive bank letter of credit (L / C), and the days of these letters of credit are basically short It's 120 days. So you should be ready to be detained for half a year.

2. Banks in Bangladesh

According to the data released by international credit rating agencies, the bank credit rating of Bangladesh is also very low, which is a high-risk bank.
Therefore, in international trade, even if you receive the letter of credit issued by the bank, you will face great risks. Because many banks in Bangladesh do not play cards according to the routine, that is to say, they never follow the so-called international practices, international laws and regulations, etc. in selecting the L / C issuing bank, it is better to communicate well with the customers in Bangladesh, and it is better to write it into the contract. Otherwise, because of the bank credit factor, you may want to cry without tears!
In the business office of the Chinese Embassy in Bangladesh, you can see that many letters of credit issued by Bangladeshi banks have records of bad operations, and the Central Bank of Bangladesh is one of them.

3. Risk prevention always comes first

Even if you don't do business, you have to guard against risks. Many friends who have done business with Bangladesh told me that risk prevention is far more important than making money.

Therefore, when doing business with Bangladeshi customers, if Bangladeshi customers want to open L / C, they must first understand the credit standing of the issuing bank (this information can be inquired through the bank channel of the embassy). If the credit standing is too poor, they will give up the cooperation directly.

The above is to do business with Bangladeshi customers need to pay attention to what the relevant content, I hope to help you.

However, I heard recently that PayPal has finally entered Bangladesh after five years of efforts. This should be good news for many customers who want to have trade relations with Bangladesh. After all, if PayPal's payment method is adopted, the risk will be reduced a lot. By binding personal bank accounts with PayPal, you can use relevant transfer services at home or abroad.

 
 
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