Heliyon 8 (2022) e11796

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Heliyon
journal homepage: www.cell.com/heliyon

Research article

A two-phased decision-making based grey theory framework for the best

choice of payment methods in international trade
Phi-Hung Nguyen
Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi, 100000, Viet Nam

A R T I C L E I N F O A B S T R A C T

Keywords: This study aims to propose a two-staged Analytic Hierarchy Process and COmplex PRoportional ASsessment
SMEs model-based Grey Theory (AHP-G and COPRAS-G) to explore critical elements affecting international payment
International payment method selection in the case of import-export Small and Medium-Sized Enterprises (SMEs) from emerging
Vietnam
countries. First, the AHP-G model is applied to determine the relative weights of essential factors. Second,
MCDM
Grey theory
the COPRAS- G approach prioritizes international payment method alternatives. From the literature review and
AHP experts’ opinions, five main criteria were established, including: “relationship between the two parties” (RE),
COPRAS “type of goods” (GO), “political-economic framework factor” (MA), “characteristics of payment method” (PA);
“opinions and requirements of external parties” (EX) and four international payment methods are considered
as frequent payment alternatives. A real-world case study from Vietnamese SMEs in the import-export industry
is presented to exemplify the applicability and robustness of the proposed approach. The weighting results
indicated that (PA) had the most significant impact on international payment method selection, followed by
(MA) and (RE). Letter of credit (L/C) is considered the most reliable payment method for SMEs. Furthermore,
a comparative analysis was performed to examine the validity of the proposed model. The proposed approach
would assist stakeholders in import-export SMEs and other industries in effectively selecting suitable payment
methods in international trade.

1. Introduction tional policies, and foreign exchange policies of payment-participating

Economic links play a crucial role in international relations because
they provide as the basis for the existence and growth of other interna-
tional ties. Economic exchange operations produce demand for payment
and payment transfers between entities in other countries, resulting in
the emergence and growth of international payment activities in which
banks serve as a conduit [1]. As indicated by the initial concept, in-
ternational payments serve both economic and noneconomic purposes.
Commercial bank laws typically divide international payment activities
into two distinct categories. Trade payments are contingent on the mar-
ket price of imported and exported goods and the provision of commer-
cial services to other nations. Non-trade payments have nothing to do
with importing or exporting goods or supplying services abroad. This is
remuneration for noncommercial actions [2, 3]. International payments
(IP) are made globally, employing the world bank’s network to support
business, investment, and international collaboration. Therefore, IP ac-
tivities are conducted following international rules and trade practices
while also being governed by national laws, economic policies, interna-
countries. The international chamber of commerce has developed stan-
dards such as Uniform Customs & Practice for Documentary Credits
(UCP), Uniform Rules of Collections (URC), and International Commer-
cial Terms (INCOTERMS), among others, to create a level playing field
for parties involved in international trade and payment operations [4].
IP facilitates the expansion and promotion of international economic
contacts, a precondition for constructing a bridge across nations’ pay-
ment relationships. It is also a significant step in acquiring and selling
goods and services between persons and organizations from different
countries and is a vital link in the chain of national economic activity.
Moreover, intellectual property aids in the concentration and control of
domestic foreign currency sources, as well as the efficient use of for-
eign currencies, hence facilitating the government’s foreign exchange
management system. Assisting the government in successfully manag-
ing import and export operations in accordance with the established
international trade policy [5]. Without IP, foreign commercial activity
will confront numerous obstacles to its survival and growth. Moreover,
vice versa, once IP activities are implemented effectively, it will in-

E-mail address: hungnp30@fe.edu.vn.

https://doi.org/10.1016/j.heliyon.2022.e11796
Received 9 November 2021; Received in revised form 10 August 2022; Accepted 14 November 2022

2405-8440/© 2022 The Author(s). Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/li-
censes/by-nc-nd/4.0/).
P.-H. Nguyen
Fig. 1. Bank’s international payment services.
crease the prestige of each country on the international market, increase
the amount of foreign currency, contribute to the improvement of the
balance of payments, and simultaneously attract investment capital to
develop the domestic economy and promote robust international eco-
nomic activities.
IP operations are primarily employed for import-export businesses
to meet the payment demands of import-export goods and services. IP
operations aid organizations in mitigating risks associated with imple-
menting import-export contracts and instilling client confidence in their
international trading partnerships. By adopting international payment
systems, exporters and importers will be able to protect their inter-
ests and avoid risks the other side poses. When an exporter conducts
business, they can manage and control their products by managing the
paperwork according to the characteristics of the appropriate payment
methods, ensuring that they can control the products until the importer
pays. Using appropriate international payment methods, importers can
also protect their funds if they have not precisely described what they
desire in the contract. Consequently, IP plays a crucial role in import-
export businesses; it facilitates transactions and protects the interests
of both parties, provided they choose the suitable payment mechanism
[6]. In practice, the payment mechanisms utilized in international trade
are identical to those used in domestic trade. Methods of payment can
be divided into numerous categories based on the method or the time
period [7]. The four fundamental methods of payment utilized today,
categorized by how the payment is made and by the parties’ and banks’
roles, are presented in Fig. 1.
International payments are fundamentally international banking
transactions. They are founded and evolved based on international
trade contracts and currency transactions. In international transactions,
payment tools such as money orders, wire transfers, drafts, promis-
sory notes, and checks printed in foreign currencies regularly replace
cash [4]. Understanding, recognizing, and assessing the elements that
influence international payment methods is crucial, especially in the
context of highly emotive worldwide economic integration. Each pay-
ment method mentioned in Fig. 1 provides different benefits and risks
for exporters and importers as follows:
Document collection method (A1): Document collection is a sort of
trade financing in which an exporter is paid for its goods by an importer
following the exchange of the necessary documentation between the
exporter’s and importer’s banks. The exporter’s bank receives cash from
the importer’s bank in exchange for paperwork transferring ownership
of the shipping items, typically after the products have arrived at the
importer’s location [8, 9].
Open Account method (A2): This is a payment method in which
things are delivered, and papers are returned to the customer, along
with a request for payment at the appropriate time, which may be im-
mediately or at an agreed-upon future date. A transaction on an open
account ensures that things are shipped and delivered before payment
is due, which is often due within 30 days, 60 days, or 90 days [10, 11].
Letter of credit method (A3): Documentary Credit is defined as fol-
lows in Article 2 of UCP 600, International Chamber of Commerce (ICC)
Publication No. 600, issued in 2006: Credit refers to any agreement, re-
gardless of its name or description, which is irrevocable and constitutes
a firm commitment by the issuing bank to fulfill a compliant presenta-
tion. Documentary credits ease international payments by providing the
exporter and importer security. The seller receives an advance payment
guarantee upon submission of documents conforming to the terms and
2
Heliyon 8 (2022) e11796
conditions of the letter of credit. The buyer is assured that the bank will
not pay unless the seller has presented documents strictly adhering to
the documentary credit [12, 13].
Cash in Advance method (A4): Cash in advance is a condition in
international trade that requires the importer to pay the items’ owner
in cash prior to exporting the goods. The importer pays the exporter by
telegraphic transfer or international check before the exporter ships the
item. The parties may also agree to “cash on order” so that payment
occurs before the sale, or they may need credit cards for transactions
involving considerable amounts of money [8].
Vietnam has taken the initiative and actively participated in multi-
lateral and regional economic institutions, with the essential milestones
of joining the Association of Southeast Asian Nations (ASEAN), Asia-
Pacific Economic Cooperation (APEC), founding member of The Asia-
Europe Meeting (ASEM), and especially joining the Organization World
Trade (WTO) signifying the globalization of its economy. In addition,
Vietnam has participated in numerous bilateral and multilateral Free
Trade Areas (FTAs) to promote its international trade activity. Follow-
ing 2016-2020, the global economy will be confronted with numerous
obstacles and hurdles, which will negatively impact export growth. The
US-China trade dispute began in April 2018, and the COVID-19 out-
break that emerged at the start of 2020 is still not under control, which
significantly influences world trade. According to preliminary statistics
from the General Department of Customs, the overall value of imports
and exports for the entire country in the first quarter of 2021 reached
154.01 billion US dollars, an increase of 25.2% over the same time
the previous year. During which exports climbed by 23.7% and im-
ports by 26.8%. In addition, Vietnam has utilized the new generation
of free trade agreements, particularly the Comprehensive and Progres-
sive Agreement for Trans-Pacific Partnership (CPTPP), the European-
Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehen-
sive Economic Partnership (RCEP) Agreements, to promote import and
export activities, improve opportunities for competition, and increase
the value of exports of precious Vietnamese goods [14, 15].
In international trade, once a contract has been executed, the seller
is concerned with payment, while the buyer is concerned with the deliv-
ery of products. However, there are various complexities surrounding
the parties’ geographical distance, time zone differences, and curren-
cies. This has led to the creation of specific payment mechanisms to
accommodate global payment requirements [16]. It is well-noted that
international trade provides a range of risks, which creates uncertainty
over the timeliness of payments between exporter (seller) and importer
(buyer) (foreign buyer). Any sale is considered a gift until payment is
received. Thus, exporters prefer to collect money as quickly as possi-
ble, usually immediately after an order is placed or before the items
are shipped to the importer. Until the products are received, importers
view any payment as a charity. Hence, importers want to get the items
as quickly as possible while delaying payment for as long as possible,
ideally until the commodities are resold and enough revenue is gener-
ated to pay the exporter.
Choosing an optimal international payment methods can be re-
garded as a multi-criteria decision-making (MCDM) problem, because
stakeholders including buyers and sellers require a detail understand-
ing of the key characteristics of payment methods (as selection criteria)
and select appropriate payment methods of international trade (as al-
ternatives) [17]. Decision-makers (DMs) can employ various MCDM
techniques to reach appropriate conclusions in realistic applications
[18]. Even though numerous studies utilize Grey theory systems to ad-
dress real-world problems [19, 20, 21], there is no study utilizing the
combination of AHP-G and COPRAS-G frameworks to rank and prior-
itize international payment methods for exporting SMEs in emerging
countries, particularly Vietnam. As a result, the novelties of this study
are elucidated by the following:
P.-H. Nguyen Heliyon 8 (2022) e11796

Table 1. Proposed Criteria.

Code Criterion Description
(RE) Relationship between the two parties Having a long-term cooperation relationship or having no late payment or delivery in previous cooperation
processes will boost the reliability and affecting payment options to reduce payment risk [29].
(GO) Type of goods The characteristics of commodities related to quantity, quality, seasonality will affect to choose international
payment methods with a primary level of security and minimum risk [33].
(MA) The political-economic situation of partner If a country is politically unstable, exporters may choose a safer payment method. In such markets, exporters
may encounter foreign currency controls. Their international payment methods may be constrained [41].
(PA) Characteristics of each payment method Each payment method has benefits and drawbacks, including the cost, the level of risk involved, and the speed
of payment processing [2].
(EX) Opinions and requirements of external parties The banks as third parties have knowledge and experience to select an appropriate payment option and banks,
sometimes, provide guidance and recommendations during trade, influencing the trader’s decision-making [36].

(1) Based on the opinions of experts and an examination of the relevant
literature, a list of crucial factors affecting global payment systems
was established.
(2) To avoid the shortcoming of previous research, an extended model
is put forward for solving complex MCDM problems on the Grey
theory settings. In which, the subjective weights of criteria are ob-
tained by the AHP-G and then, the rankings of alternatives are
evaluated by COPRAS method.
(3) A case study from Vietnam is conducted to demonstrate the effi-
cacy of the suggested method applied to the international payment
method selection problem. In addition, a comparison analysis is
conducted to validate the results.
The study is organized as follows: Section 2 briefly review the litera-
ture on international payment methods and established MCDM models.
Section 3 develops the research model. Section 4 presents numerical
results and discussions. Finally, Section 5 provides conclusions of this
study.
2. Literature review
As aforementioned, many efforts have been made in international
payment methods and trade [22, 23, 24]. It is possible to conclude
that most previous studies used statistical regression to confirm or ex-
plore the critical variables influencing international payment activities
in the case of SMEs. A case study of the different payment alternative
selection was investigated by using firm-level data [9]. Binet et al. [23]
devised a system for qualifying overseas payments. Hwang and Im [8]
investigated the factors influencing the considerable change in Korea’s
export payment conditions between 1997 and 2015. Zhou et al. [25]
provided recommendations for international payment issues in the case
of China’s private SMEs. Mizan [26] investigated the legal foundation of
factoring, contemporary changes, and the challenges and prospects of
adopting international factoring from a Bangladeshi standpoint and in-
dicated that Bangladesh’s exports and imports are increasing, businesses
are using letters of credit to settle transactions. Puneri [27] provided an
investigation on the payment methods utilized in international trade,
particularly the traditional and Islamic Letters of Credit usage. In this
study, the author found that Islamic Financial Institutions around the
world were attempting to develop Islamic Letters of Credit; however,
implementing Islamic Letters of Credit presented certain new obstacles
and difficulties. As shown in the study of [28], Bank Payment Obli-
gation, a new form of the payment methods utilized in international
trade, was also examined. El-adaway et al. [6] examined the payment
clauses of the most commonly used standard construction contracts on
a national and worldwide scale. Although various studies have been
conducted on international trade, a set of critical aspects influencing
the selection of a payment method is rather modest. Therefore, it is
necessary to assess the criteria associated with the connection between
importers and exporters [29]. Among factors in the previous studies,
product characteristics were considered by Agbonika [30]. Also, Becker
[31] suggested that enterprises should exercise caution when select-
ing a payment mechanism for custom-made and customized goods. In
addition, Laurel Delaney [32] also indicated that businesses should con-
sider transaction value aspect as an important factor. On the basis of
the literature analysis and the perspectives of experts in the context of
Vietnamese import-export SMEs, Table 1 outlines a set of essential pa-
rameters influencing the selection of global payment methods.
In terms of international payments for import-export activities, it
has been discovered that the selection of the most appropriate tech-
nique for global payments becomes complex due to the presence of
many qualities, hence posing an MCDM problem. However, different
MCDM strategies may yield varying results; so, it is prudent to employ
two or more MCDM strategies for more precise results in order to ensure
successful outcomes [34].
The traditional MCDM methods can be classified according to sim-
ilar characteristics. The pair-wise comparison methods are beneficial
for determining the weight of various criteria and comparing alterna-
tives concerning a subjective criterion. The problem with these methods
is that they rely solely on the decision-makers’ knowledge. Further-
more, different decision-makers may have different perspectives on the
same issue. The Analytic Hierarchy Process (AHP) was the first pair-
wise method presented and is still one of the most commonly used in
decision-making problems today. The Analytic Network Process (ANP)
is a method that attempts to solve the problem of the AHP criteria’s
independence.
Among various MCDM models, AHP is widely used due to its apti-
tude for breaking down a choice problem into hierarchically arranged
essential components. Nguyen [35] pointed out that AHP was utilized
extensively for decision-making and addressing more complicated prob-
lems by integrating AHP and other MCDM methods [36]. One of the
key benefits of the AHP technique is that it allows for group decision-
making, combining all group members’ decisions to ensure the best
choice takes into account all group members’ opinions based on expe-
rience and knowledge. Linguistic values are inherently inconsistent, so
ambiguity is required to reduce the risk of making incorrect decisions.
The main point is that the classical method should be applied when the
information is uncertain; when the information is uncertain, the grey
theory should be used [37].
Among distance-based MCDM methods, Compromise Solution Više-
kriterijumsko kompromisno rangiranje (VIKOR) and the Technique for
Order of Preference by Similarity to Ideal Solution (TOPSIS), evalua-
tion based on distance from average solution (EDAS) are widely-used to
calculate the distance between each alternative and a specific point.
The scoring approaches are the most fundamental MCDM method-
ologies. Evaluation of options utilizing elementary arithmetic opera-
tions serves as their basis. The Simple Additive Weighting (SAW) and
Complex Proportional Assessment (COPRAS) methods compute the sum
of all the weighted normalized values. SAW is the most traditional
MCDM method, and it allows for the consideration of maximizing crite-
ria. COPRAS is a development of SAW. The distinction between the two
is that COPRAS allows for considering both maximizing and minimiz-
ing criteria [38, 39]. The COPRAS method’s capabilities include ease of
calculation, low calculation time, total scenario ranking, simultaneous
use of quantitative and qualitative criteria, and the ability to calcu-
late positive (maximum) and negative (minimum) criteria separately

3
P.-H. Nguyen Heliyon 8 (2022) e11796

Fig. 2. The research framework of a two-staged AHP-G and COPRAS-G model.

in the evaluation process, as well as adapting to local and empirical

conditions and realities. Regarding these advantages, various authors
have recently extended the COPRAS approach into various disciplines.
The classical COPRAS approach has been extended under different un-
certainties due to the increasing complexity and uncertainty of MCDM
problems [39, 40, 41, 42]. However, there have been few studies on
applying the COPRAS method in the case of SMEs’ international pay-
ment activities. Based on a comprehensive literature review, given the
limited use of MCDM techniques in the study of international trade and
Fig. 3. Grey number concept.
payment methods, as well as the absence of studies on factors affect-
ing payment terms choice and the lack of ranking methods for payment
terms selection, this study aims to fill the research gap by incorporating 3.2. Grey theory systems
two-phased MCDM approach and Grey theory to reduce ambiguity and
uncertainties for evaluating international payment methods. The crite- 3.2.1. Grey numbers
ria matrix and the group decision matrix were formed in this study after Grey theory was proposed by Deng [43]. It is an effective method
used to solve uncertainty problems with discrete data and incomplete
determining the group of decision-makers, criteria, and alternatives. By
information. The theory includes five significant parts: grey prediction
combining with grey numbers, the criteria weights were obtained using
[44], grey relational analysis (GRA) [45], grey decision, grey program-
the AHP, and the COPRAS approach was then applied to evaluate and
ming, and grey control. Here, we give some basic definitions of the grey
prioritize alternatives. Finally, a comparative analysis is conducted to
system, grey set, and grey number in grey theory.
compare the final rankings of the proposed method and distance-based
methods such as TOPSIS and EDAS based on grey numbers.
Definition 1. A grey system contains uncertain information presented
by a grey number and grey variables (Fig. 3).
3. Materials and methods
Definition 2. Let X be the universal set. Then a grey set G of X is defined
3.1. Research framework by its two mappings LG (x) and RG (x) as shown in Equation (1):
{
LG (x) ∶ x → [0, 1]
(1)
Fig. 2 presents the proposed research framework consisting of two RG (x) ∶ x → [0, 1]
phases. The AHP-G technique is applied to identify Grey weights (GW) LG (x) ≥ RG (x), x ∈ X, X = R, LG (x) and RG (x) are the upper and lower
of proposed criteria based on grey-linguistic scales in phase I. In phase membership functions in G, respectively. When LG (x) = RG (x), the grey
II, the COPRAS-G model evaluates four payment alternatives regarding set G becomes a fuzzy set. It shows that the grey theory considers the
international trade. Furthermore, a comparative analysis is performed condition of the fuzziness and can deal flexibly with the fuzziness situ-
to ensure the robustness and validity of the proposed procedure. ation.

4
P.-H. Nguyen Heliyon 8 (2022) e11796

Definition 3. The grey number can be defined as a number with un- Table 2. Linguistic level and the score of the important index for paired com-
certain information. For example, the linguistic variables describe the parisons matrix in AHP-G.
ratings of attributes; there will be a numerical interval expressing it. Grey Numbers Code Linguistic Levels Score of Important Index
(SI)
This numerical interval will contain uncertain information. Generally,
[8,10] EMI Extreme Importance 9
the grey number is written as ⊗G, (⊗G = G|LR ), as shown in Equation
[6,8] VSI Very Strong Importance 7
(2): [4,6] SI Strong Importance 5
[2,4] MI Medium Importance 3
3.2.2. Grey operations [0,2] EI Equivalent Importance 1

(1) Additive operation as shown in Equation (2): [ ] [ ]

[ ] ⎡ ⊗G11 ⋯ ⊗G1n ⎤ ⎡ GL11 , GR
11
⋯ GL1n , GR
1n ⎤
⊗G1 + ⊗G2 = GL1 + GL2 , GR + GR (2) ⊗A = ⎢ ⋮ ⋱ ⋮ ⎥=⎢ ⋮ ⋱ ⋮ ⎥ (9)
1 2 ⎢ ⎥ ⎢[ L ] [[ L ]] ⎥
⎣ ⊗Gm1 ⋯ ⊗Gmn ⎦ ⎣ Gm1 , GRm1
⋯ Gmn , GRmn ⎦
(2) Subtraction operation as shown in Equation (3):
Step 6: The paired comparison matrix is normalized as shown in
[ ]
⊗G1 − ⊗G2 = GL1 − GL2 , GR
1
− GR
2
(3) Equation (10)–(12):
[ ∗ ∗] [ L∗ R ∗ ]
(3) Multiplication operation as shown in Equation (4): ⎡ ⊗G∗11 ⋯ ⊗G∗1n 1n ⎤ ⎡ GL11 , GR11
⋯ G1n , G1n ⎤
⊗A =⎢ ⋮
∗
⋱ ⋮ ⎥=⎢ ⋮ ⋱ ⋮ ⎥ (10)
⎢ ⎥ ⎢[ ∗ ∗] [[ L∗ R∗ ]] ⎥
⊗ G1 × ⊗G2 ⎣ ⊗G∗m1 ⋯ ⊗G∗mn ⎦ ⎣ GLm1 , GR ⋯ Gmn , Gmn ⎦
m1
[ ( ) ( )] [ ]
= min GL1 GL2 , GL1 GR
2
, GR GL , GR
1 2
GR , max GL1 GL2 , GL1 GR
1 2 2
, GR GL , GR
1 2
GR
1 2 ∗
2GLij
GLij = ∑m L ∑m R (11)
(4) i=1 Gij + i=1 Gij

(4) Reciprocal operation as shown in Equation (5): [ 2GR ]

∗ ij
[ ] GR
ij
= ∑m L ∑m R (12)
⊗G−1 =
1 1
, L (5) i=1 Gij + i=1 Gij
R
G G
Step 7: Calculating the consistency rate (CR).
(5) Division operation as shown in Equation (6): Following the establishment of the paired comparisons matrix and
[ ] calculation of the relative weights of factors, the consistency of the
[ L R] 1 1
⊗G1 ∕ ⊗ G2 = ⊗G1 × ⊗G−1 2
= G 1
, G 1
× , paired comparisons matrix should be investigated. If the consistency
GR GL2
2 rate of the matrix (CR) is less than 0.1, then crisp matrix (CM) of
[ ( L L R R) ( L L R R )] (6)
G1 G1 G1 G1 G1 G1 G1 G1 paired comparisons matrix is acceptable; otherwise, the matrix’s con-
= min L
, R , L , R , max , , L, R tents are too inconsistent with yielding reliable results. In such cases,
G2 G2 G2 G2 GL2 GR2
G2 G2
the decision-maker must repeat the paired comparisons until the consis-
(6) Scalar multiplication as shown in Equation (7): tency rate (CR) is less than 0.1. MEAN value is denoted as the average
[ ] values of each row from the crisp matrix CM. CV is denoted as relative
k. ⊗ G = k.GL , k.GR (7) weights of criteria. CR can be calculated using Equations (13) to (17).
(7) Scalar power as shown in Equation (8):
WSV = CM × MEAN (13)
[( )k ( )k ] WSV
⊗G = GL , GR
k
(8) CV = (14)
MEAN
CV
3.3. Analytic hierarchy process based grey theory method (AHP-G) 𝜆max = (15)
n
𝜆max − n
The AHP-G model comprised of the conventional AHP technique CI = (16)
n−1
proposed by Saaty [46] and the Grey theory proposed by Deng [47]. CI
CR = (17)
The computing process of the AHP-G technique is presented as follows: RI
Step 1: The goal is to evaluate the available international payment Step 8: Computing the grey weights of criteria using Equation (18).
methods and determine the most helpful technique for international
1 ∑[ L∗ R∗ ]
m
payments.
GWi = G , Gij (18)
Step 2: Proposing potential criteria based on the literature and ex- n i=1 ij
perts’ opinions, including “relationship between the two parties” (RE),
“type of goods” (GO), “political-economic framework factor” (MA), 3.4. COmplex PRoportional ASsessment model-based grey theory method
“characteristics of payment method” (PA); “opinions and requirements (COPRAS-G)
of external parties” (EX), respectively.
Step 3: Four international payment methods are applied in this In real-world decision-making scenarios, the most viable options al-
study, including Document Collection (A1), Open Account (A2), Letter ways deal with ambiguous information and criteria evaluations stated
of Credit-L/C (A3), and Cash in Advance (A4). Each payment method in linguistic words. As a result, MCDM approaches should be used with
has distinct benefits and associated risks for exporters and importers. exact criteria values and fuzzy values or values within specified in-
Step 4: The hierarchy is built based on the selection criteria and tervals. For the reasons mentioned above, the COmplex PRoportional
options. First, the goal will be placed on top of this structure, and ASsessment with grey interval numbers (COPRAS-G) technique was cre-
the criteria on lower levels. Then, the available alternatives will be ated by Zavadskas and Kaklauskas [48] with criterion values given in
placed at the bottom of the hierarchical framework to make decisions, intervals based on real-world decision-making conditions and applica-
as shown in Fig. 4. tions of Grey systems theory [47]. The application of the COPRAS-G
Step 5: Creating the matrix of paired comparisons using grey linguis- approach consists of the following steps:
tic scales and the score of the important index in Table 2, as shown in Step 1: Applying the essential criteria, describing the alternatives in
Equation (9): phase I.

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P.-H. Nguyen Heliyon 8 (2022) e11796

Fig. 4. The hierarchical framework.

Step 2: Constructing the decision-making matrix using Equation Then, the normalized decision-making matrix ⊗D is shown in Equa-
(19). tion (21):
[ ] [ ] [ ]
⎡ [⊗C11 ] ⋯ [⊗C1n ] ⎤ ⎡ CL11 , CR11
⋯ CL1n , CR
1n ⎤ ⎡ C̃ L11 , C̃ R
11
⋯ [C̃ L1n , C̃ R
1n ⎤
]
⊗D= ⎢ ⋮ ⋱ ⋮ ⎥ = ⎢ ⋮ ⋱ ⋮ ⎥ ̃
⊗D = ⎢ ⋮ ⋱ ⋮ ⎥ (21)
⎢ ⎥ ⎢[ ] [ L ]⎥ (19) ⎢ [ ̃L ̃R ] [ L
̃ ̃
]⎥
⎣ [⊗Cm1 ] ⋯ [⊗Cmn ] ⎦ ⎣ CLm1 , CRm1
⋯ Cmn , CRmn ⎦ ⎣ m1 m1
C , C ⋯ C ,
mn mn ⎦C R

i = 1, m, j = 1, n Step 5: Calculating the weighted normalized decision matrix ⊗D.̂

Here ⊗Cij is determined CLij (the smallest value, the lower limit) and The weighted normalized values ⊗Ĉ ij are calculated using Equation
(22):
CRij
(the biggest value, the upper limit).
Step 3: Utilizing grey weights of the criteria (GWi ) based on AHP-G’s ⊗Ĉ ij = C̃ ij × GWi ; or Ĉ Lij = C̃ Lij × GWLi and Ĉ R = C̃ R × GWR (22)
ij ij i
results
Step 4: Normalizing the decision-making matrix ⊗D is calculated by Where GWi , be calculated using Eq. (18), is the Grey Weight of the
Equation (20): ith criterion. Then, the normalized decision-making matrix is calculated
using Equation (23):
CLij 2CLij [ ] [ ]
C̃ L =
1 ∑n ∑ = ∑n L ∑n R ⎡ [⊗Ĉ 11 ] ⋯ [⊗Ĉ 1n ] ⎤ ⎡ Ĉ L11 , Ĉ R
11
⋯ Ĉ L1n , Ĉ R
1n ⎤
( i−1 CLij + ni−1 CR
ij
) ( i−1 Cij + i−1 Cij ) ̂ =⎢
⊗D ⋮ ⋱ ⋮ ⎥ = ⎢ ⋮ ⋱ ⋮ ⎥ (23)
⎥ ⎢[ ] [ L ]⎥
2
i = 1, m, j = 1, n ⎢
CR 2CR ⎣ [⊗Ĉ m1 ] ⋯ [⊗Ĉ mn ] ⎦ ⎣ Ĉ Lm1 , Ĉ R
m1
⋯ ̂ ̂
Cmn , Cmn ⎦ R

C̃ R =
ij ij
= ∑n
1 ∑n ∑n L + CR Step 6: Calculating the sums Pj of criterion values, whose larger
2
( i−1 CLij + R
i−1 Cij ) i−1 (Cij ij
)
values are more preferable using Equation (24):
(20)
1 ∑( ̂ L ̂ R )
k
In formula (20) CLij is the lower value of the i criterion in the al- Pj = C + Cij (24)
2 i=1 ij
ternative j of the solution; CR ij
is the upper value of criterion i in the
alternative j of the solution; m is the number of criteria; n is the number Step 7: Calculating the sums Rj of criterion values, whose smaller
of alternatives compared. values are more preferable using Equation (25):

6
P.-H. Nguyen Heliyon 8 (2022) e11796

Table 3. Pair-wise comparison matrix of criteria.

Left Criteria Is More Important Right Criteria Is More Important Criteria
Criteria
EMI VSI SI MI EI MI SI VSI EMI
GO 1 3 8 3 EX
GO 2 3 3 7 MA
GO 2 5 5 3 RE
GO 4 7 4 PA
EX 3 5 6 1 MA
EX 3 7 3 2 RE
EX 1 7 5 2 PA
MA 2 5 7 1 RE
MA 1 1 4 5 4 PA
RE 5 5 5 PA

1 ∑ ( ̂ L ̂ R)
m
Rj = C + Cij , i = k, m (25) Table 4. Crisp matrix (CM) for CR.
2 i=k+1 ij Criteria GO EX MA RE PA
GO 1.000 2.822 0.439 0.582 0.210
Where m − k is the number of criteria that must be minimized. EX 0.354 1.000 0.721 0.807 0.270
Step 8: Determining the minimal value of Rj using Equation (26): MA 2.280 1.387 1.000 1.661 0.541
RE 1.719 1.239 0.602 1.000 1.000
Rmin = min Rj , j = 1, n (26) PA 4.773 3.701 1.849 1.000 1.000
j
SUM 10.1263 10.1495 4.6110 5.0499 3.0204
Step 9: Calculating the relative significance of each alternatively Qj
using Equation (27):
strongly important than EX (SI = 3). Only one expert considered GO
∑n
j=1 Rj
very important compared to EX (VSI = 1). For a more thorough under-
Qj = P j + ∑n 1 (27) standing of both the left and right sides of Table 2 throughout the data
Rj j=1 R
j transmission process, the pair-wise comparison of MA and PA is shown.
Step 10: Determining the optimal criterion by K using Equation (28): Regarding the left-hand side of Table 2, one respondent asserted that
MA is significantly more critical than PA (SI = 1), one expert concurred
K = max Qj , j = 1, n (28) that MA is moderately more essential than PA (MI = 1), and four experts
j stated that MA and PA are of equal importance (EI = 4). In contrast, ac-
Step 11: Determining the priority order of the alternatives. Calculat- cording to the right-hand side of Table 3, five experts deemed PA to be
ing the utility degree of each alternative using Equation (29): of moderate importance compared to MA (MI = 5), and four respon-
dents concurred that PA is more critical than PA (SI = 4).
Qj
Nj = × 100% (29) Second, as illustrated in Table 3–5, the CR computations check the
Qmax pair-wise comparison matrix’s consistency. The following formula is
used to find the CR of pair-wise comparison matrices.
4. Results analysis
SIGO in respect to EX
𝟐.𝟖𝟐𝟐
GO in respect to EX = = = 𝟎.𝟐𝟕𝟖
4.1. A case study SUMEX 10.1495
0.099 + 𝟎.𝟐𝟕𝟖 + 0.095 + 0.115 + 0.069
MEANGO = = 𝟎.𝟏𝟑𝟏𝟑
Using an online questionnaire, 15 specialists were surveyed in ac- 5
cordance with worldwide payment methods to collect the data. The ⎡ 1.000 𝟐.𝟖𝟐𝟐 0.439 0.582 0.210 ⎤ ⎡ 𝟎.𝟏𝟑𝟏𝟑 ⎤ ⎡ 0.7157 ⎤
method of collecting data required contacting experienced managers ⎢ 0.354 1.000 0.721 0.807 0.270 ⎥ ⎢ 0.1078 ⎥ ⎢ 0.5601 ⎥
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
and experts at regional universities. Five specialists work for the Viet- WSV = ⎢ 2.280 1.387 1.000 1.661 0.541 ⎥ × ⎢ 0.2173 ⎥ = ⎢ 1.1734 ⎥
nam Trade Promotion Agency and Agency of Foreign Trade, while three ⎢ 1.719 1.239 0.602 1.000 1.000 ⎥ ⎢ 0.1903 ⎥ ⎢ 1.0337 ⎥
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
academics are employed by colleges specializing in international busi- ⎣ 4.773 3.701 1.849 1.000 1.000 ⎦ ⎣ 0.3532 ⎦ ⎣ 1.9712 ⎦
ness and foreign trade. The remaining groups consist of Hanoi and Ho ⎡ 0.7157 ⎤ ⎡ 0.1313 ⎤ ⎡ 5.4505 ⎤
Chi Minh City-based managers having at least ten years of experience in ⎢ 0.5601 ⎥ ⎢ 0.1078 ⎥ ⎢ 5.1940 ⎥
the import-export industry. Fig. 4 depicts the hierarchy of five proposed ⎢ ⎥ ⎢ ⎥ ⎢ ⎥
CV = ⎢ 1.1734 ⎥ ∕ ⎢ 0.2173 ⎥ = ⎢ 5.3991 ⎥
criteria and the four most common foreign payment methods. The AHP- ⎢ 1.0337 ⎥ ⎢ 0.1903 ⎥ ⎢ 5.4318 ⎥
G and COPRAS-G decision support models are introduced to determine ⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎣ 1.9712 ⎦ ⎣ 0.3532 ⎦ ⎣ 5.5805 ⎦
the optimal international payment method choices. In addition, a com-
parative analysis is conducted to illustrate the reliability and usefulness In the following steps, the largest eigenvector (𝜆 max) is measured
of the suggested method by analyzing ranking results acquired using to assess the consistency index (CI), the random index (RI = 1.12), n =
various methods. 5, and the consistency coefficient (CR),
5.4505 + 5.1940 + 5.3991 + 5.4318 + 5.5805
𝜆max = = 5.4112
4.2. Results of AHP-G 5
𝜆 − n 5.4112 − 5
CI = max = = 0.1028
First, a group of 15 decision-makers looks at five recommended cri- n−1 5−1
teria for selecting international payment methods. Table 2 in this study CI 0.1028
CR = = = 0.0918
shows a group decision matrix of 15 experts. Each expert is asked to rate RI 1.12
the significance of each pair-wise criterion comparison. For example, As the result of CR = 0.0918 ≤ 0.1, the pair-wise comparison matrix
according to the obtained value linguistic level for paired comparisons is satisfactory.
matrix in terms of GO in relation to EX, three experts believed that GO Following that, as shown in Table 6 and Table 7, the results of AHP-
is equally important to EX (EI = 3), eight scientists agreed that GO is G weights are determined. To demonstrate, we calculated the weight
mediumly important to EX (MI = 8), three analysts claimed that GO is assigned to the GO criteria as follows:

7
P.-H. Nguyen Heliyon 8 (2022) e11796

Table 5. Normalized matrix for CR.

GO EX MA RE PA MEAN WSV CV
GO 0.099 0.278 0.095 0.115 0.069 0.1313 0.7157 5.4505
EX 0.035 0.099 0.156 0.160 0.089 0.1078 0.5601 5.1940
MA 0.225 0.137 0.217 0.329 0.179 0.2173 1.1734 5.3991
RE 0.170 0.122 0.131 0.198 0.331 0.1903 1.0337 5.4318
PA 0.471 0.365 0.401 0.198 0.331 0.3532 1.9712 5.5805

Table 6. Integrated grey comparison matrix.

GO EX MA RE PA
GO [1,1] [2.1520,3.9549] [0.3602,0.6300] [0.4829,0.9117] [0.1720,0.2699]
EX [0.2528,0.4647] [1,1] [0.5855,1.1487] [0.6856,1.3195] [0.2184,0.3760]
MA [1.5874,2.7760] [0.8706,1.7080] [1,1] [1.3819,2.6598] [0.4488,0.8154]
RE [1.0968,2.0710] [0.7579,1.4587] [0.3760,0.7236] [1,1] [0.7937,1.5874]
PA [3.7046,5.8145] [2.6598,4.5789] [1.2263,2.2284] [0.6300,1.2599] [1,1]

Table 7. Results of AHP-G weights.

GO EX MA RE PA Grey Weights Crisp Weights
(GW) (CW)
GO [0.1012,0.1012] [0.2137,0.3927] [0.0776,0.1358] [0.0852,0.1609] [0.0515,0.0808] [0.1058,0.1743] 0.1401
EX [0.0256,0.0470] [0.0993,0.0993] [0.1262,0.2476] [0.1210,0.2329] [0.0654,0.1125] [0.0875,0.1479] 0.1177
MA [0.1606,0.2809] [0.0864,0.1696] [0.2155,0.2155] [0.2439,0.4695] [0.1343,0.2441] [0.1682,0.2759] 0.2220
RE [0.1110,0.2095] [0.0753,0.1448] [0.0810,0.1560] [0.1765,0.1765] [0.2386,0.4752] [0.1363,0.2324] 0.1843
PA [0.3748,0.5883] [0.2641,0.4547] [0.2643,0.4803] [0.1112,0.2224] [0.2993,0.2993] [0.2628,0.4090] 0.3359

Table 8. The initial decision-making matrix and the values of evaluation criteria are described in intervals.
Initial decision-making matrix
Optimal Grey weights
Criterion
direction (GW) International Payment Method

A1 A2 A3 A4
GO max [0.1058,0.1743] [6.0,8.0] [3.6,5.6] [4.4,6.4] [2.6,4.4]
EX max [0.0875,0.1479] [4.4,6.4] [4.8,6.8] [3.8,5.6] [2.0,3.6]
MA min [0.1682,0.2759] [4.4,6.4] [6.0,8.0] [5.2,7.2] [4.4,6.4]
RE max [0.1363,0.2324] [4.8,6.8] [5.2,7.2] [6.0,8.0] [6.0,8.0]
PA max [0.2628,0.4090] [4.4,5.4] [4.6,6.0] [5.0,6.8] [5.0,6.4]

Grey weights of criteria GO with [L, R] = [0.1058, 0.1743] CLij 2CLij

C̃ L = ∑ ∑ = ∑ n L ∑n R
LGWGO =
1
× (0.1012 + 0.2137 + 0.0776 + 0.0852 + 0.0515) = 0.1058
1
2
( ni−1 CLij + ni−1 CR
ij
) ( i−1 Cij + i−1 Cij )
5
2 × 6.0
1 = = 0.2927
RGWGO = × (0.1012 + 0.3927 + 0.1358 + 0.1609 + 0.0808) = 0.1743 (6.0 + 3.6 + 4.4 + 2.6) + (8.0 + 5.6 + 6.4 + 4.4)
5
[ ] CR 2CR
Crisp Weights (CW) = (1 − 𝜆) ∗ LGWGO + (𝜆 ∗ RGWGO )
C̃ R =
ij ij
= ∑n
[ ] 1 ∑n ∑n L + CR
= (1 − 0.5) ∗ 0.1058 + [0.5 ∗ 0.1743] = 0.1401 2
( i−1 CLij + R
i−1 Cij ) i−1 (Cij ij
)
2 × 8.0
The AHP-G weights of the main criteria include Grey Weights = = 0.3902
(6.0 + 3.6 + 4.4 + 2.6) + (8.0 + 5.6 + 6.4 + 4.4)
(GW) and Crisp Weights (CW). As the results of the abovementioned [ L R]
calculations, the crisp weights of five main criteria are determined Ĉ GO in respect toA1 = Ĉ , Ĉ = [0.0310, 0.0680]
(PA>MA>RE>GO>EX). The most important criterion for selecting in- Ĉ Lij = C̃ Lij × GWLi = 0.2927 × 0.1058 = 0.0310 and
ternational payment methods is specified as “Characteristics of each
payment method” (PA) with the value of 0.3359, followed by “Politi- Ĉ R
ij
= C̃ R
ij
× GWR
i = 0.3902 × 0.1743 = 0.0680
cal and Economic situations of partner” (MA) with the value of 0.222.
1 ∑( ̂ L ̂ R )
k
Meanwhile, “Opinions of external parties” (EX) is the least relevant cri- PA1 = C + Cij
terion with a value of 0.1177. 2 i=1 ij
1
= × (0.0310 + 0.0680 + 0.0206 + 0.0506 + 0.0252 + 0.0608
4.3. Results of COPRAS-G 2
+ 0.0530 + 0.1013)
After summarizing the opinions of 15 experts and following the
= 0.2052
steps of AHP-G, the weights of evaluation criteria are provided in Ta-
1 ∑ ( ̂ L ̂ R)
m
ble 8. Table 8 also indicates the initial decision-making matrix ⊗D; the
RA1 = C + Cij
evaluation criteria values are described in intervals. The initial decision- 2 i=k+1 ij
making matrix ⊗D has been normalized and weighted initially, and the 1
obtained results (⊗D)̂ are provided in Table 9. Following the steps of = × (0.0308 + 0.0736) = 0.0522
2
COPRAS-G, the evaluation of four international payment methods is ∑n
j=1 RA1
computed, and the ranking of international payment methods is finally QA1 = PA1 + ∑n
discovered, as shown in Table 10. RA1 j=1 R1
A1
[ ] 0.0522 + 0.0670 + 0.0596 + 0.0522
C̃ GO in respect ̃ L ̃ R = [0.2927, 0.3902]
toA1 = C , C
= 0.2052 +
0.0522 × (19.1557 + 14.9239 + 16.7771 + 19.1557)

8
P.-H. Nguyen Heliyon 8 (2022) e11796

Table 9. Normalized and weighted-normalized decision-making matrix and the values of evaluation criteria described in intervals.
Normalized decision-making matrix Weighted-normalized decision-making matrix
Criterion
International Payment Method International Payment Method

A1 A2 A3 A4 A1 A2 A3 A4
GO [0.2927,0.3902] [0.1756,0.2732] [0.2146,0.3122] [0.1268,0.2146] [0.0310,0.0680] [0.0186,0.0476] [0.0227,0.0544] [0.0134,0.0374]
EX [0.2353,0.3422] [0.2567,0.3636] [0.2032,0.2995] [0.1070,0.1925] [0.0206,0.0506] [0.0225,0.0538] [0.0178,0.0443] [0.0094,0.0285]
MA [0.1833,0.2667] [0.2500,0.3333] [0.2167,0.3000] [0.1833,0.2667] [0.0308,0.0736] [0.0420,0.0920] [0.0364,0.0828] [0.0308,0.0736]
RE [0.1846,0.2615] [0.2000,0.2769] [0.2308,0.3077] [0.2308,0.3077] [0.0252,0.0608] [0.0273,0.0644] [0.0314,0.0715] [0.0314,0.0715]
PA [0.2018,0.2477] [0.2110,0.2752] [0.2294,0.3119] [0.2294,0.2936] [0.0530,0.1013] [0.0554,0.1126] [0.0603,0.1276] [0.0603,0.1201]

Table 10. Evaluation of utility degree and alternative rankings. bank’s guarantee, but costs are associated with using an L/C [8]. In this
International Payment A1 A2 A3 A4 section, this study provides some key points of Characteristics of the
Method payment method factor (PA) and the Political and Economic situations
Pj 0.2052 0.2010 0.2150 0.1860
of partners (MA).
Rj 0.0522 0.0670 0.0596 0.0522
Regarding Characteristics of payment method (PA), Im [51] veri-
1∕Rj 19.1557 14.9239 16.7771 19.1557
fied that the influence of the characteristics of payment methods was
Qj 0.2684 0.2503 0.2704 0.2492
Nj 99.294% 92.571% 100.000% 92.169%
evaluated and measured through various aspects, including transaction
Ranking 2 3 1 4 processing time, cost of procedures, and the simple or complex nature of
payment methods. Obviously, for each different payment method, the
transaction processing speed is different because it depends on many
Table 11. Comparative analysis. factors (set of documents, related parties). Due to processing time, it
COPRAS-G TOPSIS-G EDAS-G
is first mentioned that the processing time for international payment
Ni Rank Si Rank Si Rank transactions of banks is different, so the processing time for different
A1 99.29% 2 0.57 2 0.53 2 types of payment methods is different, some fast/slow depending on
A2 92.57% 3 0.60 3 0.47 3 the type of transaction (for example, a collection transaction is usually
A3 100% 1 0.56 1 0.56 1
faster than an L/C transaction). Therefore, based on the nature and pro-
A4 92.17% 4 0.64 4 0.44 4
cessing time of the bank may lead to the decision to choose the payment
method for enterprises [52].
= 0.2684 Of course, each different payment method will have different costs.
QA1 0.2684 For a business participating in a transaction, if the cost factor is the top
NA1 = × 100% = × 100% = 99.294% concern in choosing payment methods, they will prioritize Cash in ad-
Qmax 0.2704
vance or Open Account. According to documents provided by several
Table 10 presents the results of ranking alternatives using the banks, such as Vietcombank, BIDV, and Agribank, about the L/C ser-
two-stage AHP-G and COPRAS-G methods. More precisely, Nj values vice fee schedule and money transfer fee schedule, it can be seen that
provide rankings of the international payment methods as follows: the cost of opening L/C is very expensive and very complicated due to
A3>A1>A2>A4. other costs attached, while the money transfer fee is much less expen-
sive and very simple. Moreover, the complex/straightforward nature of
4.4. Comparative analysis the methods’ operation process also influences the choice decision of
enterprises. For payment methods such as Cash in advance, Open ac-
In this current section, the author compares the proposed method count, and Collections, it is pretty easy to understand and grasp, so
with existing methods, including TOPSIS-G [49] and EDAS-G [50], in incredibly new/small businesses may prefer to use it. As for the L/C
Table 11. The grey weights for the criteria are also determined using the method, due to the relatively complex nature of the process and un-
AHP-G results. The computation process can be referred to in previous derstanding/grasping of the relevant international practices UCP 600,
studies [49, 50]. The results of TOPSIS-G and EDAS-G are presented International Standard Banking Practice (ISBP 745) is also a complex
in Table A1 and A2 (as shown in Appendix). Table 10 shows that the problem for them, leading to fear of using it [53]. In addition, de-
TOPSIS-G and EDAS-G approaches’ outcomes are consistent with this pending on each transaction, businesses will consider choosing suitable
study’s proposed approach. Table 11 compares the rankings with each payment methods to minimize risk (shipment, solvency, document dis-
of the three MCDM approaches. The rankings of both three approaches agreement) because no business wants to choose a payment method
indicated that A3 is the most suitable international payment method that brings many risks to them [54].
for Vietnamese SMEs, followed by A1, A2, and A4 (A3>A1>A2>A4). Regarding the Political and Economic situations of partners (MA),
It means that the rankings are the same, indicating that the proposed Hwang and Im [8] also assessed several factors such as political sta-
MCDM ranking result is stable and applicable. Therefore, this work can bility and legal environment in the context of the political side. In
be a helpful decision-making framework for evaluating international contrast, for the economic aspect, the factors mentioned are economic
payment methods and related industries. development, capacity liquidity, and currency exchange rate fluctua-
tions. According to the Global Peace Index (GPI) report released by
4.5. Discussions the Institute for Economics and Peace (IEP) in 2020, Vietnam ranked
64th out of 163 countries in the ranking of the safest countries in the
Regarding weighting results’ AHP-G method, the findings of this world [55]. The GPI ranks the safety of countries based on 22 factors,
study confirmed that all proposed criteria are critical criteria affecting including homicide rates, political terrorism, and deaths from internal
SMEs’ selection process of the payment method in terms of international conflicts. This is quite understandable when Vietnam has stable politics,
trade in the case of Vietnam. Based on the relative weight of AHP-G rarely violence, territorial disputes, security indicators, and people are
(PA>MA>RE>GO>EX), the COPRAS-G technique evaluated four types increasingly improving. With the above conditions, Vietnam’s import
of payment methods in international transactions, including Document and export activities are developing daily with great strides and high
Collection (A1), Open Account (A2), L/C (A3), and Cash in Advance trust and confidence from foreign partners. Vietnam’s import-export
(A4). The finding revealed that L/C (A3) is the optimal choice among sector has grown from the above favorable political conditions, both in
alternatives; compared with an open account, L/C is safer due to the quantity and value of commercial transactions. Foreign partners have a

9
P.-H. Nguyen
certain confidence in the business environment of domestic export and
import enterprises. Some payment methods that foreign partners can
still trust to use, such as remittance and collection. Even if L/C is used,
most of them are standard L/C, no need to confirm because they trust
their solvency and do not worry about the risks of the issuing bank,
especially under the aspect of political risk in Vietnam [56].
Besides the achievements, Vietnamese SMEs face many potential
risks when cooperating with many countries and territories worldwide.
The first notable thing is that in 2019, the Ministry of Industry and
Trade issued a warning to businesses trading in Turkey. At that time,
Turkey conducted a military operation, “Peace Spring,” in Syria, which
received a lot of strong objections from the international community.
The US government has threatened to impose strong sanctions, affect-
ing export transactions of enterprises, including Vietnamese enterprises.
The Ministry of Industry and Trade recommendations apply to the Turk-
ish political situation and all other transactions, and businesses need to
learn more about the country with political instability and prepare plans
to prevent risks. Therefore, businesses need to monitor the exchange
rate of foreign currencies constantly and are safe, and they can choose
payment methods at sight to avoid future currency fluctuations. By de-
termining the credit rating, businesses/investors have more information
to assess the financial capacity and debt solvency of the subject of credit
rating, the financial products specified in the credit rating creditworthi-
ness, and the risks involved. It can be seen that this factor does not
directly affect the solvency between businesses but indirectly through
the transaction process. In other words, the political and economic is-
sues of the partner country affect the entire transaction process, not
just the payment stage of a transaction. In addition, most businesses
carrying out large-value transactions often want to use safe methods
with the participation of banks such as collection or L/C but are still
quite lest because this method is relatively complex. In this case, the au-
thors recommend that businesses use a combination of credit packages
to export and import finance from banks to provide financial support.
Specifically, for exporters, it is a capital financing service in payment
for export goods. From the time of delivery, submit the set of docu-
ments to the advising bank until it is recorded “Yes” on the required
account must go through a certain period to process and circulate docu-
ments. The exporter in need of money can negotiate a set of documents
for a discount or advance payment at the bank specified in the L/C or
any bank. In the form of discounting a set of documents, the bank will
require the set of documents to be perfect and presented on time. The
bank opening the L/C must have a good reputation in the international
market and regular transaction relationships with the discounting bank.
The production and business situation and the enterprise’s financial po-
sition are stable, solvency assured, and reputable with the bank. The
amount of the discount must be within the credit limit. After receiving
the application from the customer, the bank appraises the loan purpose,
financial situation, and solvency. The bank checks the documents care-
fully and logically because if the documents are not reasonable, they
can be refused payment by the importer, making it difficult to recover
the debt. The bank checks the conformity on the surface of the doc-
uments against the terms and conditions stated in the L/C. The bank
considers and decides the current discount rate at about 90% of the ex-
port L/C value. However, depending on the bank, each case will decide
on a discount rate. If the documents are not eligible for a discount, there
are errors that the bank does not agree to discount; the exporter can ask
the bank to advance the goods. Usually, the advance rate is about 50-
60% of the export value. The primary cause of this challenge is that the
internal capacity of SMEs is still inadequate, in which the founders of
SMEs have not concentrated on the reality of the business model but
also focused too much on ideas leading to a lack of information to seek
support from the government. Secondly, difficulties in accessing cap-
ital are not only in SMEs but also in banks. Many banks are still not
interested in the SME segment due to the evaluation based on capital
business efficiency. With the limited human resources of banks, when
processing a set of loan applications for SMEs, usually small loans, the
10
Heliyon 8 (2022) e11796
collection of documents, appraisal, and management during and after
the loan still have to comply with the regulations. The loan program
is as complete as the loans of ordinary enterprises, so, with the ex-
act management costs and resources, the lending efficiency of SMEs is
not commensurate. Design specific loan products suitable for SME cus-
tomers in each industry group to flexibly meet customer requirements.
These will help SMEs struggling with credit problems be more willing
to learn and use this payment method.
5. Conclusions, implications, and future research
5.1. Conclusions
The study employs qualitative and quantitative research method-
ologies to generate the most precise results using a combined MCDM
model of AHP-G and COPRAS-G. This study provided an overview of
the factors influencing the choice of IP methods by import-export busi-
nesses across Vietnam’s territory. Timely gives some recommendations
for businesses to minimize the risks do not present in the payment
process. Hopefully, through this study, there will be more comments
and suggestions to contribute to the development of Vietnam’s import-
export industry in general and Vietnam’s international payment services
shortly, particularly in the context of globalization.
5.2. Managerial implications
First, in any transaction, the business needs to be the person who
knows the nature of the goods in their transaction to decide to choose
the appropriate IP method. For example, what will impact the business
for perishable or seasonal goods when the partner may refuse to receive
the goods or pay because the goods are not guaranteed quality after the
delivery or shipping time is too long, leading to product loss seasonality.
Besides that, businesses must learn and understand the trading proce-
dures in the international market for specific items to fully understand
their responsibilities, obligations, and rights in transaction techniques.
For example, with petroleum import transactions, the international best
practice is to use the L/C payment method, but the documents that need
to be presented to claim payment next to the Invoice, Bill of lading usu-
ally include a Letter of Indemnity. This practice has required businesses
to learn and understand the format of this letter, its content, and how to
use it in practice. L/C is also frequently used for seafood export trans-
actions to some markets, such as the United States and the European
Union; however, the content of L/C terms is typically unique.
As a result, even if the documents are acceptable, payment may not
have been made, and it is also necessary to meet the condition that
the products have passed inspection by the importing country’s compe-
tent authorities. When exporting seafood to the US, the credit usually
requires the following: “Fifty percent is payable at sight against presen-
tation of documents complying with the credit terms. The remaining
fifty percent is payable only after the applicant notices that goods have
passed U.S food and drug. Administration inspection requirements. The
remaining fifty percent balance payment will be made either immedi-
ately upon notification of passage by the applicant if so, instructed by
them or no later than one hundred eighty days after the bill of lad-
ing date unless we are provided notice by the applicant that the goods
have not passed inspection/have not been inspected/have not been re-
leased/have been detained or held by US food and drug administration.
If we are provided any of the above type notices or any similar no-
tice by the applicant, then our deferred payment obligation becomes
null and void at that time”. The Ministry of Industry and Trade, to-
gether with industry associations and trade promotion agencies, have
constantly innovated ways to carry out trade promotion activities, di-
versify trade promotion forms and improve the effectiveness of trade
promotion activities. In the context of the increasingly complicated
COVID-19 pandemic, the Ministry of Industry and Trade of Vietnam
P.-H. Nguyen Heliyon 8 (2022) e11796

has proactively and quickly presided over and coordinated with min-
istries, branches, localities, and foreign trade promotion agencies to
promote the application of information technology and digital plat-
forms in trade promotion, organizing more than 500 international trade
promotion conferences in the online form. Online trade promotion ac-
tivities have helped Vietnamese exporters save costs while maintaining
and developing good relationships with foreign partners in 5 continents
(55 export markets of Vietnam, including major markets such as China,
USA, EU, Japan, and potential markets such as Africa and Australia).
In order to innovate trade promotion to adapt to the industrial revo-
lution 4.0 and support businesses to take advantage of opportunities
from this revolution, in 2020, the Ministry of Industry and Trade has
developed 05 applications. Software, including Customer management,
shared database system (CRM); Trade promotion ecosystem (VECOBIZ;
Trade promotion traceability portal (www.itrace247.com); Import and
export guide portal (https://vietnam.tradeportal.org).
In addition to focusing on the relationship between the two par-
ties, learning about the legal and political environment of the partner
is also an issue that businesses need to pay attention to before signing a
contract because the Contract signing is sometimes troubled by differ-
ent legal systems and disagreements in language and business culture.
Learning about countries’ laws and business conditions worldwide is es-
sential because each country has its import-export policy and different
tariff regulations. For example, CPTPP countries commit to eliminat-
ing from 97% to 100% of import tax lines for goods originating from
Vietnam, depending on the commitments of each country: Singapore
committed to eliminating tariffs on all goods immediately upon imple-
mentation of the Agreement; Chile commits to eliminate 95.1% of tariff
lines as soon as the agreement comes into effect, equivalent to 60.2%
of import turnover from Vietnam and will eliminate tariffs on 99.9%
of tariff lines in the 8th year immediately after the implementation of
the Agreement; Mexico commits to eliminate 77.2% of tariff lines as
soon as the agreement comes into force, equivalent to 36.5% of import
turnover from Vietnam and will eliminate tariffs on 98% of tariff lines
in the 10th year since the agreement came into effect.
Political stability is something that businesses care about when trad-
ing goods because politics can significantly impact economic markets.
Therefore, it is necessary to be careful when dealing with countries
with unstable politics. Businesses can monitor the situation of partner
countries through mass media, the internet, or through consulates and
embassies to be updated on the market situation of the partner country
timely. In addition, before signing, it is also necessary to add a specific
legal basis to an international sale of goods contract by choosing the
law applicable to that contract. The parties must agree on the choice of
national law that applies to a contract after its conclusion, even when a
dispute arises. In practice, this method is complicated because it is diffi-
cult for the parties to agree on applicable law when a dispute has arisen.
After all, the seller and the buyer only want to apply the country’s law
to protect their interests. In this case, the two parties can only reach an
agreement when the chosen law is not too inclined to protect the in-
terests of either party. The Vienna Convention of 1980 is the optimal
solution for the parties in this case. Learning about the law and risks be-
fore import-export will help us to draw valuable lessons and minimize
disputes arising later.
5.3. Future research
The AHP-G and COPRAS frameworks are based on the responses
of 15 experts in the current study. For a deeper understanding of
import-export SME’s, the questionnaire could be administered to SME’s
utilizing the convenience sample method. In the succeeding step, a
combination of the MCDM model and Partial Least Squares Structural
Equation Modeling (PLS-SEM) is used to identify strongly correlated
elements connected to foreign payment methods in international com-
merce operations. Next, the concept and methodology of the study can
be used to assess international payment method selection in other coun-
tries and other factors. In the future, this paradigm can be broadened
by evaluating the relative performance of MCDM techniques that use
emerging current fuzzy extensions or machine learning techniques in
solving real-world situations.
Declarations
Author contribution statement
Phi-Hung Nguyen, Dr: Conceived and designed the experiments;
Performed the experiments; Analyzed and interpreted the data; Con-
tributed reagents, materials, analysis tools or data; Wrote the paper.
Funding statement
Dr Phi-Hung Nguyen was supported by FPT University [304].
Data availability statement
Data will be made available on request.
Declaration of interests statement
The authors declare no conflict of interest.
Additional information
No additional information is available for this paper.
Acknowledgements
The author would like to express sincere thanks to experts for their
contributions.

Appendix A

Table A1. TOPSIS-G results.

Alternatives GO EX MA RE PA Si + Si - Rank
A1 0.500 0.533 0.500 0.601 0.645 2.779 0.556 1
A2 0.748 0.500 0.637 0.571 0.580 3.036 0.607 3
A3 0.659 0.606 0.589 0.500 0.500 2.854 0.571 2
A4 0.895 0.769 0.500 0.512 0.530 3.206 0.641 4

Table A2. EDAS-G results.

Alternatives Q+ S+ Q- S- Si Rank
A1 [0.0000,0.4836] [0.0000,0.9349] [0.0000,0.4258] [0.1784,1.0000] 0.528 2
A2 [0.0000,0.4275] [0.0000,0.8265] [0.0028,0.4850] [0.0642,0.9946] 0.471 3
A3 [0.0000,0.5173] [0.0000,1.0000] [0.0000,0.3858] [0.2556,1.0000] 0.564 1
A4 [0.0000,0.3911] [0.0000,0.7561] [0.0000,0.5182] [0.0000,1.0000] 0.439 4

11
P.-H. Nguyen
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