ANALYZING THE INTERNAL AND EXTERNAL FACTORS AFFECTING THE COMPETITIVE ADVANTAGE IN THE FIELD OF GOODS TRANSPORTATION BY ROAD AT XUAN ANH TRANSPORT SERVICE TRADING CO LTD DURING THE PERIOD OF 2019 2021

UNIVERSITY OF ECONOMICS AND LAW FACULTY OF INTERNATIONAL ECONOMIC RELATIONS - - INTERNSHIP REPORT ANALYZING THE INTERNAL AND EXTERNAL FACTORS AFFECTING THE COMPETITIVE ADVANTAGE IN THE FIELD OF GOODS TRANSPORTATION BY ROAD AT XUAN ANH TRANSPORT SERVICE TRADING CO LTD DURING THE PERIOD OF 2019 - 2021 INSTRUCTOR: NGUYEN THI GAM STUDENT: PHAM THI NGOC VY STUDENT ID: K184081136 HO CHI MINH CITY, APR 2022 UNIVERSITY OF ECONOMICS AND LAW FACULTY OF INTERNATIONAL ECONOMIC RELATIONS - - INTERNSHIP REPORT ANALYZING THE INTERNAL AND EXTERNAL FACTORS AFFECTING THE COMPETITIVE ADVANTAGE IN THE FIELD OF GOODS TRANSPORTATION BY ROAD AT XUAN ANH TRANSPORT SERVICE TRADING CO LTD DURING THE PERIOD OF 2019 – 2021 INSTRUCTOR: NGUYEN THI GAM STUDENT: PHAM THI NGOC VY STUDENT ID: K184081136 HO CHI MINH CITY, APR 2022 TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES INTRODUCTION Reasons for choosing the report It can be seen that the majority of domestic logistics enterprises has been operating with small scale, limited financial capacity and management level, mainly still stopping at providing 2PL logistics services and specifically is freight services Meanwhile, FDI enterprises or FMCG manufacturers often look for integrated logistics service packages (3PLs are common) that are freight and come with many low-cost services Other added values include the customs clearance, storage, packaging, and distribution of products There are many factors that hinder the development of the logistics industry in Vietnam, including the transport infrastructure system, especially the road, which has not been developed commensurate with the speed of industrialization, leading to overcrowding load and congestion Despite facing intense competition from foreign competitors, the prospects of domestic logistics enterprises are still highly appreciated because Free Trade Agreements (FTAs, TPP) promote FDI inflows and they poured into the Vietnamese manufacturing industry In addition, the infrastructure has been improving, increasing the connection between logistics facilities and production zones The planning and supporting factors for this industry from the State and customs procedures that are gradually improving in a positive direction are also factors that support businesses With subjective and objective supporting factors, the potential of Vietnam's logistics industry is still enormous This will be an attractive industry to invest in the long term For the above reasons, I chose the topic "Analyzing the internal, micro and macro factors affecting the competitive advantage in the field of goods transportation by road at Xuan Anh Transport Service Trading Co Ltd during the period of 2019 – 2021” in the internship report period Report objectives As mentioned in the above section, the research objective of the internship report is to analyzing the internal, micro and macro factors affecting the competitive advantage in the field of goods transportation by road at Xuan Anh Transport Service Trading Co Ltd during the period of 2019 – 2021 and propose some solutions to improve the business efficiency of the company in particular as well as enterprises in the logistics industry in general Report methodologies To achieve the report objectives, two following research methods have been used in this report: - Primary and secondary data collection methods: Searching for documents through articles, websites, textbooks and company’s data over the years Method of statistical analysis, comparison and data synthesis: Conducting statistical analysis to describe the company's performances, compare the results achieved over the years and then synthesize the data to make a final conclusion based on the research purpose Report limitations Due to the limitations, comprehensive information about the company, not enough time to work, so it is impossible to evaluate the company comprehensively Furthermore, because this is based on the author's understanding during her short internship time at the company, there are some unavoidable shortcomings in the research process Report structure The report "Analyzing the internal, micro and macro factors affecting the competitive advantage in the field of goods transportation by road at Xuan Anh Transport Service Trading Co Ltd during the period of 2019 – 2021" has main parts: - - Chapter 1: Introduction of Xuan Anh Transport Service Trading Co., Ltd Chapter 2: Analyzing the internal, micro and macro factors affecting the competitive advantage in the field of goods transportation by road at Xuan Anh Transport Service Trading Co., Ltd during the period of 2019 – 2021 Chapter 3: Proposing solutions to improve the competitive advantage in the field of goods transportation by road of Xuan Anh Transport Service Trading Co., Ltd Internship description My position at Xuan Anh Transport Service Trading Co., Ltd was Accounting Intern My duties included: - Assisting with financial modeling Providing general accounting support Helping with accounts receivable management Providing support for annual budgeting process Assisting with statistical analysis and other special projects Presenting data-driven recommendations to the finance team - Preparing monthly/ quarterly financial analysis packets for management CHAPTER 1: INTRODUCTION OF XUAN ANH TRANSPORT SERVICE TRADING CO., LTD 1.1 History of establishment and development 1.1.1 Overview of Company - Company name (in Vietnamese): CÔNG TY TNHH THƯƠNG MẠI DỊCH VỤ VẬN TẢI XUÂN ANH Company name (in foreign language): XUAN ANH TRANSPORT SERVICE TRADING CO.,LTD Operation status: Active (have been granted CTR) Enterprise code: 0313334473 Founding date: 07/07/2015 Representative: BÙI THẾ LÂN Department of tax management: District Tax Department Head office address: 232 Le Van Luong, Tan Hung Ward, District 7, Ho Chi Minh City, Vietnam  1.1.2 History of establishment and development Xuan Anh Transport Service Trading Co., Ltd was established on July 07, 2015 Business license number: 0313334473 issued by the Department of Planning and Investment of Ho Chi Minh City The Company was born in the solid competition of the import and export market However, with high determination and solid expertise, the Company has found a place in the market with its reputation and good service quality In 2015, at the beginning of its operation, the Company faced many difficulties: lack of capital, few markets, few customers, and primarily irregular shipments - only one shipment per week, facilities, and transport Business operation facilities are pretty limited The workforce is only three people, no salary in the first month since its establishment However, in the third month, along with sewing and constant effort, the Company has found customers with very regular shipments, and the business is growing day by day In 2018, the Company added FCL freight forwarding service - full container cargo and LCL cargo - retail cargo by sea In 2020, the Company further developed customs brokerage and logistics services, providing warehousing and distribution services 1.2 Organizational structure Board of Directors Document Accounting Department HR Department Department Forwarding Department Sales Department Figure 1.2: Xuan Anh’s organizational structure Source: Company’s HR Department (2022) Board of Directors: The person who are responsible for operating and deciding all activities of the company by the provisions of law and is responsible before the law As the person who directly directs employees, approves and signs service contracts, and participates in finding customers for the company Accounting Department: Managing financial issues, how to use capital Collect, analyze and synthesize financial information during the company's business activities Store documents and invoices related to the operation of employees in other departments Sales Department: Searching for new customers and building long-term cooperative relationships with customers Make a business plan to find out the appropriate directions for the company's performance in each period Document Department: Prepare necessary documents for the import and export process Contact foreign agents to track shipment status, freight, and related procedures during import and export of goods to handle situations during timely delivery Forwarding Department: Carrying out the customs declaration and customs clearance procedures Find a suitable carrier for the specified customer 1.3 Business sectors Xuan Anh Transport Service Trading Co Ltd currently offer the following services: - Domestic freight forwarding services; International freight forwarding services; Customs declaration services; Import and Export consulting services; Transportation of goods by road 10 - Most of the company's employees are inexperienced; the average experience in the transportation field is only 3.5 years, so they not know how to handle situations quickly Therefore, Xuan Anh Transport Service Trading Co Ltd often loses customers 2.3.1.3 Capital sources With registered capital of 4.5 billion VND and invested in large areas such as Hai Phong, Hanoi, Da Nang, and Ho Chi Minh In these areas, everything is costly compared to the rest Currently, the investment capital structure for business fields is gradually more balanced than when it was first established 3Figure 2.3.1.3: Capital structure of freight forwarding business of Xuan Anh Transport Service Trading Co Ltd (Source: Company’s Sales Department) 2.3.1.4 Company’s policies 2.3.1.4.1 Service offer policy Xuan Anh Transport Service Trading Co Ltd has conducted offers via website, email and text messages about the variety of routes in the Northern transport market, which is highly appreciated for having a fleet of vehicles with pretty good quality, with quite a lot of means of transport This makes Xuan Anh have perfect trust from customers for the Company's services Although the Company's employees conduct to offer the Company's services, the initiative in shipping services outside the main route is generally low because Xuan Anh Transport Service Trading Co Ltd does not have many customers Most of the customers in this segment are retail customers with unstable cargo traffic, which sometimes causes a lack of local vehicles 2.3.1.4.2 Pricing policy Fees for additional services of Xuan Anh Transport Service Trading Co Ltd are considered to be quite good compared to the surcharges of other carriers This is a consequence of the process of building a management and moderation system in order to minimize the costs incurred In addition, good relationships with providers of related 19 services such as lifting or handling goods also significantly impact this result In addition, the payment time is considered an advantage of Xuan Anh Transport Service Trading Co Ltd; this is quite a favorable advantage to help the Company always be noticed by customers and big factories when there is a problem Table 2.3.1.4.2: List of prices of domestic road freight at Xuan Anh Transport Service Trading Co Ltd Departure Destination Rate Delivery form Receive goods and deliver to your place from tons or more Ho Chi Minh Ho Chi Minh Only from 1,700,000 to 1,900,000 VND/ton Delivery address does for heavy goods not prohibit trucks from Ha Noi, Hung Yen, Bac Ninh, 10 tons Bac Giang, Hai Duong, Hai Phong, Nam Dinh, Ninh Binh, Thanh Hoa, Ha Nam, Pick up and delivery to Nghe An,… your door with orders of Only from 400,000 to 18 blocks or more 420,000/ block for Delivery address does light goods not prohibit trucks from 10 tons Quang Binh, Quang Tri, Hue, Receive goods and Quang Nam, Da Nang, Binh deliver to your place Only from 1,500,000 - from tons or more Dinh 1,700,000 VND/ton Delivery address does for heavy goods not prohibit trucks from 10 tons Only from 350,000 to Pick up and delivery to 400,000 VND/block your door with orders of for light goods 18 blocks or more 20 Delivery address does not prohibit trucks from 10 tons Receive goods and deliver to your place from tons or more Only from 1,000,000 to 1,400,000 VND/ton Delivery address does for heavy goods not prohibit trucks from 10 tons Ho Chi Minh Nha Trang, Phu Yen, Tuy Hoa, Binh Thuan Pick up and delivery to your door with orders of Only from 250,000 18 blocks or more 300,000 VND/block Delivery address does for light goods not prohibit trucks from 10 tons (Source: Company’s Accounting Department, 2021) Note: The above price is just a reference price; there will be different quotes depending on the item In addition, the above price does not include costs, oversized goods, roads prohibited for large vehicles, and receiving goods in Ho Chi Minh at the warehouse Nevertheless, at the same time, the freight rate of Xuan Anh Transport Service Trading Co Ltd is considered to be at a high level in the market This also has a significant impact on the psychology of retail customers who are not regular and are subject to quite a lot of competition by other competitors 2.3.1.4.3 Promotion activities for transportation services Currently, the policy of support, remuneration and customer care of Xuan Anh Transport Service Trading Co Ltd is being recognized by customers as very good compared to other competitors Because of that, the Company hardly participates in advertising activities in newspapers, magazines, etc., to attract customers' attention Xuan Anh does not have any separate 21 sponsorship activities of the community nature to bring the image of Company's transportation services closer to the public This is one of the actions that reduce the Company's access to customers 2.3.2 External factors 2.3.2.1 Micro factors 2.3.2.1.1 Supplier The company are building a good relationship with suppliers who specialize in providing transportation goods for the Company, namely ASEAN Trading and Transport Service Co., Ltd., SDB Vietnam Joint Stock Company, Southern Logistics Joint Stock Company, branch of Rexco Technical Materials Import-Export Joint Stock Company, Besides that, petroleum companies such as Xuan Truong II Trading and Transport Joint Stock Company, Viet Duc Petrol Station,… are important supplier of the company These partners have played an important role of the company’s activities are reliable suppliers in the last few years, which have provided favorable and reliable conditions for the Company's business activities In the upcoming time, the Company will keep developing these cooperations to build concrete relationships with suppliers, thereby promoting the business process of enterprises 2.3.2.1.2 Competitors The transportation industry, as analyzed above, is a potential service industry with promises for rapid development in the future that has attracted a large number of economic sectors to participate in the operation It can be said in a general way that Vietnam's transport market is a very active market with more than 200 enterprises engaged in providing services (according to statistics of the Ministry of Transport) Most of these enterprises are state-owned enterprises, so they have more or less the support policies of the State in terms of capital and technical materials Due to the appropriate adjustment policies of the State, in general, the competition among these enterprises is fair and favorable, and the competition is quite fierce In addition, there are many private enterprises, limited liability companies, joint venture companies, and individuals involved in service provision activities in the auto transport market, making the situation worse Competition is more and more fierce It is worth noting that the State does not have many policies and tools to manage non-state transport enterprises, so the competition between these enterprises and state enterprises is not fair The unfair competition between these economic sectors has somewhat slowed down the industry's growth rate 22 The current primary competition mode among enterprises in the auto transport industry is competitive on price, service quality and accompanying services However, the most dominant factor is price, although service quality is often considered Usually, there is no fixed, expected price in the market, but companies are always flexible to change their prices for each type of customer, product, and supply area It can be said that price is the most effective competitive tool in the transport market today Another issue that needs to be mentioned is the competition between different modes of transport (competition outside the industry) Currently, there is competition outside the industry between different modes of transport including Road, Railway, Sea and Air One thing that is difficult to change is that the buyer can decide the means of transport for a type of goods based on the characteristics of the goods and the advantages of each means of transport However, in general, the interchangeability of vehicles is not high because each type of vehicle has its advantages and is suitable for certain groups of goods Therefore, the competition between these vehicles is not too high It is essential that the combination of transport companies (rail, land, air and sea) best and fully satisfy customers' needs because many types of needs require much use-vehicles for transporting goods Ho Chi Minh City has a convenient transportation and goods exchange environment because it is considered the main gate of the entire Southern region That is why Xuan Anh Transport Service Trading Co Ltd always faces many competitors such as Nguyen Ngoc Logistics Joint Stock Company, VIJAI International Trade and Service Co., Ltd., Hoan Thien Transport Company Limited It is also businesses operating in the field of road freight transport Each company has its strengths, so it is challenging for Xuan Anh Transport Service Trading Co Ltd to business effectively in such an environment In recent years, understanding these obstacles, Xuan Anh has constantly researched competitors based on information, analyzed results on freight transport, mobilized capital, the number of customers that the companies have signed or their summary reports Analyzing competitors includes collecting and classifying information about competitors, analyzing the structure and quality of their customers, and determining their strengths in what areas And customer acquisition tactics 2.3.2.1.3 Customers More than anyone else, Xuan Anh Transport Service Trading Co Ltd is always aware that customers are consumers who will determine the success or failure of the business Therefore, the Company is not only looking to improve its relationships with partners in its supply network but is also undertaking to develop closer links and loyalty with its customers 23 The Company has a branch in Ho Chi Minh City, so the number of customers the Company focuses on and cares about the most are still businesses located in the city The Company's customers are present in most southern provinces; many transportation routes have been expanded, such as Long Thanh - Dau Giay Expressway Ho Chi Minh City Trung Luong Expressway Soon, roads are about to be built and put into operation, such as Ho Chi Minh City - Thu Dau Mot - Chon Thanh Expressway, Dau Giay - Da Lat Expressway, In general, the Company's customers are reputable businesses, and it can be said that the customer quality is better and more stable than that of competitors' customers Some of the Company's long-term reputable customers are Asia Shipping Joint Stock Company, Science and Technology Trading Materials Co., Ltd., General Trading and Transport Service Joint Stock Company, and Kieu Trinh Transport Services Co., Ltd.,… Customers are expanding more and more, so it requires businesses to make more efforts to serve well with attentiveness, enthusiasm and dedication, always thinking of new methods and value-added services to attract and keep customers 2.3.2.2 Macro factors 2.3.2.2.1 Economic environment Along with the strong development of the country's economy and the trend of economic restructuring (from production to service), Vietnam's auto transport industry has made remarkable developments both in terms of scale and quality The industry's average annual growth rate is 7.1% and is trending higher and higher The developed market economy has led to the strong development of the auto transport industry due to the increasing demand for freight transport of the economy Moreover, the means of transport are also increasingly modern due to the impact of science, technology, and communication, which has made the transportation industry have significant changes and changes in quality and scale of operations Its motion The role of road transport in general and automobile transport, in particular, is becoming increasingly crucial in domestic transportation The share of road freight transport in our country's domestic transport is 63% (Transportation Journal No 5/2014) which is the most apparent evidence for the importance and development of the road transport industry, However, Vietnam's road infrastructure is generally still weak, with many roads unable to be transported in all four seasons, making the auto transport industry difficult Many roads have a large tonnage or a container truck cannot enter, thus affecting the productivity of road freight transport However, in recent years, the state has invested in expanding and 24 repairing some main roads and, in the future, will perfect the road network This will be a favorable condition for the auto transport industry to develop in the coming years Currently, the road network distributed throughout the country is: - Roads running along with the whole country: National highways 1, 14, 15 Road network connecting the North: National highways 2, 4, 5, 6, 32 Southern road network connecting with Ho Chi Minh City: National highways 20, 22, 51 Route connecting the coastal area with the North: National Highway 7, 8, 9, 19, 22, 51 Currently, road transport accounts for a large proportion of the domestic freight transport industry It accounts for 23% of freight and almost exclusively on intra-provincial routes The growth rate of means of transport is tremendous, all economical sectors and each individual can invest capital in means of transport, so it can be said that competition in the industry is very high Moreover, the competition outside the industry (competition between different modes of transport) is also very fierce Along with such positive changes, the auto transport industry still has the following limitations: - - Supply is more significant than demand excess means but lacks appropriate management policies and tools; competition in transportation also shows unhealthy manifestations and a lack of equality among economic sectors The means of transport left behind during the subsidy period are very large but technically obsolete and have been fully depreciated, thus not ensuring the safety of goods transportation and the increasing demands of the market The number of 100% new imported cars is minimal, so the situation of vehicles has increased, but the quality of means of transport does not have the necessary breakthrough to innovate "transportation technology." Thanks to the shift towards market mechanisms, our country's economy has achieved many achievements in recent years People's lives are increasingly modernizing, There has also been a significant change in the business sector, which is the rapid development of different types of businesses, leading to a massive increase in the number of businesses Businesses According to preliminary statistics, there are currently 10,000 state-owned enterprises in our country, more than 26,021 private enterprises, over 10,156 limited companies, and millions of small and large business households, along with a large number of joint venture companies; foreign companies are operating in our country, the more the number of companies and enterprises, the more the number of products, goods or services will also increase accordingly This factor has created opportunities for 25 Xuan Anh Transport Service Trading Co Ltd to develop and improve its business position in the current business environment and promote efficient methods of goods exchange However, this is also a factor that makes it difficult for businesses because the demand for transporting goods is significant; more and more businesses will participate in this business, creating a competitive environment Fiercely among businesses 2.3.2.2.2 Socio-cultural environment It can be said that using transportation services is a natural need of businesses, organizations and individuals related to production consumption This comes from the birth and development of freight services and the development of goods production and trading activities, and transportation is a tool linking the production - distribution of consumer goods Along with developing the country's economy, the demand for car transportation services has also increased due to the increasing volume of goods produced Moreover, the increased demand for freight transportation has contributed to the increase in the scale of transportation demand Currently, the transportation demand of our country has the following characteristics: - Transportation demand depends greatly on different production industries and consumption levels This demand can come from manufacturers, suppliers of input products, or business customers - The demand for auto transport is seasonal At certain times of the year (usually the end of the year), the demand for transportation increases due to the increased consumption of the people and the massive volume of goods produced Therefore, businesses providing this service need to learn about the seasonality of goods to have a plan to regulate their work - The demand for auto transport is often dispersed because transportation requirements on different routes are often placed 2.3.2.2.3 Legal environment Our country's economy has been transformed from a subsidized economy to a socialistoriented market economy for a long time, this is considered a critical transition This fundamental transformation has created conditions and promoted our country's economy to develop in many aspects, both in breadth and depth The explosion of business types has led to a rapid increase in the number of businesses and an increase in the need to exchange and transport goods between businesses, creating more and more opportunities for the business industry Transportation in general and Xuan Anh Transport Service Trading Co Ltd in particular Set challenges for businesses so that they need to try, 26 maintain and promote their strengths, overcome weaknesses, and create a strong position in the market In order to create favorable conditions for economic organizations and promote economic development, the State has recently issued a series of economic policies such as the Law on Enterprises, the Law on Companies, and the Law on Cooperatives Besides, there are a series of laws and legal documents regulations in many areas, including transportation goods circulation, creating a more transparent legal environment for operation Although our country's legal policy system is on the way to completion and there are still many irrationalities, the State always creates the best conditions for businesses to develop their best business lines In the past, Xuan Anh Transport Service Trading Co Ltd has always conducted its business in strict compliance with the provisions of the law, considering it as the fundamental premise for all activities of the Company 2.3.2.2.4 Information technology Today, information technology has played an indispensable role in all fields, including the import and export forwarding industry The use of digitization in the stages of business management to business processing, staff training, and development has been It will bring many benefits to companies, including Xuan Anh Company As a small and medium-sized company, the system is not too cumbersome Hence, the company takes advantage of business management software that is not too bulky and low cost but has the necessary features to support In addition, the company also uses the customs declaration software ECUS5VNACCS, which is relatively modern software, supporting the following features: Integrated ECUSSignPro signing system to support businesses to sign on DC system (Data Center) has a professional, fast, and convenient transmission line Besides, it also integrates the ECUSDRIVE data storage service system, supporting businesses to store data online on DC (Data Center) to ensure data security and confidentiality to avoid data loss or corruption At the same time, integrating online public service declaration: Helping businesses conveniently manage declaration procedures With full professional procedures such as cancellation of declarations, additional declaration of customs documents In general, Xuan Anh Transport Service Trading Co Ltd Company is entirely invested in information technology, from the business management system to support the delivery process, help increase productivity and efficiency, reduce unnecessary errors and improve the company's competitiveness Conclusion of chapter Business activities in the field of freight transport by road of Xuan Anh Transport Service Trading Co Ltd have achieved specific achievements, but besides that, there are always problems that need to be solved, especially when more and more More and more transport 27 enterprises have been developing everywhere Therefore, the Company needs short-term and long-term measures to improve its competitiveness in the challenging but equally fatty race ahead CHAPTER 3: PROPOSING SOLUTIONS TO IMPROVE THE COMPETITIVE ADVANTAGE IN THE FIELD OF GOODS TRANSPORTATION BY ROAD OF XUAN ANH TRANSPORT SERVICE TRADING CO LTD 3.1 SWOT Analysis As analyzed in the previous chapters, besides the existing successes, problems always need to be solved due to objective and subjective reasons.First, when talking about the Company's subjective reasons, it is the limited financial potential and the relatively thin human resource to exploit all the customers in the area of operation Next is the objective reason because the Company's business environment faces intense competition from competitors In general, Vietnam's infrastructure is still weak, with many routes unable to be transported in all four seasons, making the transport industry more difficult in the road transport process Table 3.1 SWOT Analysis Strengths Weaknesses S1: With work slogans "Prestige - Fast Safe - Effective", the staffs of the company always put themselves in the position of customers to build the best and most diverse services in order to minimize import and export expenses for customers From there, help to improve business efficiency and to create added value for customers W1: The size of the human resources is still small, the level of foreign language proficiency of the company's employees is still low, there is a lack of diversity, and it is not easy to work with foreign partners who not use English W2: High outsourcing costs due to using another company's transport services because they not have a fleet of S2: With a team of more than thirty trailers to tow containers for customers young, dynamic, enthusiastic, and experienced employees in this field, Xuan W3: Postpaid T/T is the primary payment Anh is growing stronger and asserting its method, causing the company to position in the market Therefore, we are misappropriate capital confident that Xuan Anh is always a reliable partner of the Company on every W4: Trade promotion has not been appropriately developed by the company journey 28 S3: Building a good relationship and having many loyal customersowing to fast delivery, sturdy packaging, beautiful designs as well as service attitude of the staff Opportunities Challenges O1: The logistics industry is currently developing; the demand is enormous with the number of goods circulating continuously, which will bring a great source of revenue for the Company shortly W1: The number of Logistics companies is growing up more and more everyone wants to break into this lucrative market, creating much pressure and dividing the current and existing customer force O2: Technology is increasingly developing things that can be automated more efficiently to reduce pressure on human resources and service costs 03: Major arterial roads connecting major cities are being implemented soon, which will reduce time and material pressure for the critical stage of transporting goods of the Company W2: Vietnam's road infrastructure system is still facing many difficulties; major roads are still incomplete, increasing transportation costs; in addition, the increasing costs of gasoline and fuel vehicles make the price of vehicles more expensive The service provided by the company is challenging to compete with other businesses 3.2 Proposing solutions 3.2.1 Increasing the size of human resources, promoting foreign languages in staff recruitment Problem: Xuan Anh Transport Service Trading Co Ltd currently has a relatively modest number of sales staff, not yet fully exploiting customers' needs Besides, the level of foreign language proficiency of the staff is not high, causing many limitations in communication and finding potential customers To overcome this shortcoming, the Company needs to improve both quantity and quality recruitment requirements 29 Solutions: Xuan Anh Transport Service Trading Co Ltd Company should draw up a specific plan for increasing the size of employees, especially sales staff, corresponding to the annual sales target that the company aims to achieve Because today, customers' needs are increasing day by day, but with the current number of employees, the company cannot fully exploit the potential of customers In addition, the company should raise the standards of recruitment for employees, especially in foreign language skills Specifically, English is the minimum and mandatory requirement for sales staff The reason is that English is an international language, which is officially used in business, especially in the forwarding industry with professional characteristics that require contact with foreigners, so English is a fundamental requirement Besides, to maintain a robust human resource in foreign languages, Xuan Anh Transport Service Trading Co Ltd should consider the remuneration policy for employees who are fluent in or more foreign languages to maintain quality human resources High quality, especially in terms of language level, is emphasized in Chinese, Thailand, and Laos These are the three languages commonly used in corporate transactions, second only to English In addition, the three countries, China, Korea, and Japan, are complex markets in terms of language, always emphasizing their national language, so when dealing with customers in the three markets above, proficient English is not enough 3.2.2 Upgrade facilities to reduce outsourcing costs Problem: The company currently does not have a team of trailers, which makes it take much time and cost to pull customers' goods to the warehouse due to the use of outside services In addition, the number of orders spiked in the peak season, causing delays in arranging trailers for customers and leading to a passive situation Therefore, the company's addition of trailers is an essential requirement Solutions: Xuan Anh Transport Service Trading Co Ltd needs to purchase a certain number of new tractors to serve towing containers at the request of customers to avoid being passive when cooperating with garages during the peak season Suppose the cost of developing a fleet of trailers is still limited In that case, it is possible to make long-term car rental contracts from other carriers or with individuals who not currently need to use vehicles In addition, it is recommended to strengthen cooperation with a variety of carriers, increase flexibility in car rental, and have the most optimal backup plan 3.2.3 Change payment method from postpaid T/T to prepaid T/T 30 Problem: Currently, the postpaid T/T payment method accounts for the highest percentage of transactions at Xuan Anh Transport Service Trading Co Ltd This makes the company misappropriate capital, reduces liquidity, causes many disadvantages in business activities, and reduces competitiveness because it reduces financial resources to invest in other complementary activities The company should gradually restructure the payment method to reduce postpaid T/T transactions and increase prepaid T/T transactions Solutions: Xuan Anh Transport Service Trading Co Ltd can maintain a postpaid T/T payment method for loyal customers to maintain a close relationship with these customers As for new customers, the company should gradually switch to applying the prepaid T/T payment method in order to minimize risks in transactions optimally, ensure the capital source for the company to maintain the other business activities, and invest in other aspects of the company in order to improve the company's competitiveness in all aspects such as investment in facilities, human resource size, and process improvement 3.3.3 Increase investment in trade promotion activities Problem: To compete with competitors, nowadays, trade promotion is an indispensable factor However, from 2017 to 2019, Xuan Anh Transport Service Trading Co Ltd has not focused on investing in this activity The solution is to actively attend seminars, conferences, and exhibitions related to the issues of the freight forwarding industry In addition, it is necessary to establish a new marketing department specializing in activities to promote the company's image and brand to attract potential customers' attention or hire the services of a marketing company to save money Solutions: The company should invest in practical promotion activities at a low cost, such as: Actively participating in seminars, conferences, fairs, and exhibitions about goods and services in domestic and foreign markets Significantly, the fairs introduce freight forwarding services with the participation of many businesses doing business in this field and businesses wishing to forward and export goods In addition, Xuan Anh Transport Service Trading Co Ltd should establish a specialized marketing department to focus on image building, brand promotion, and attracting potential customers for the company Because today, if we not focus on investing in marketing, small and medium enterprises like Xuan Anh are easily caught in the highly competitive market Alternatively, the company can hire a package service from a marketing company, which can save labor costs and departmental management costs and 31 increase the efficiency of marketing activities because these companies have more specialized, more experienced Conclusion of Chapter These are the current measures; I think it will help more or less for the future development and the current competition in the field of road freight transport However, besides that, there are gaps in knowledge, experience, and time that measures may not achieve the expected results CONCLUSION Xuan Anh Transport Service Trading Co Ltd is one of the companies interested and trusted by customers The Company has long affirmed its position in the market and is growing more robust in the new conditions That is achieved through the efforts and efforts of the board of directors and the entire Company The knowledge of management and strategic planning for business development is the means to help the Company succeed as it is today Currently, along with the fast and robust development trend of the Logistics industry, the application of information technology in the business activities of enterprises is a vital thing In addition, the Company needs to take measures to improve its competitiveness in terms of facilities, capital, and human resources Due to the limited time, knowledge, and capacity of a student, the topic inevitably has shortcomings I look forward to receiving the comments and suggestions of the teachers to help me further improve my graduation thesis and apply it in practice to help the Company's business during this time Furthermore, finally, most importantly, I would like to express my sincere thanks to the direct, very trustworthy, and equally strict guidance of Lecturer Nguyen Thi Gam Furthermore, thank you for the enthusiastic help, always creating the best possible conditions of Xuan Anh Transport Service Trading Co Ltd’s employees who helped me 32 this thesis REFERENCES Accounting Department of Xuan Anh Transport Service Trading Co Ltd (2019, 2020, 2021), Annual Financial Statement of Xuan Anh Transport Service Trading Co Ltd Cam, T H (2014), International Transport - Insurance of international transport, Statistical Publishing House, 2nd edition Chung T 2021 Retrieved April 2022, from http://tphcm.chinhphu.vn/70-doanhnghiep-logistics-tap-trung-o-tphcm-va-vung-lan-can Danh, B.V (2022) Retrieved April 2022, from http://vlr.vn/thi-truong/tham-giatpp-co-hoi-thach-thuc-cho-logistics-vn-2052.vlr Human Resources Department of Xuan Anh Transport Service Trading Co Ltd (2019, 2020, 2021), Overview papers about Xuan Anh Transport Service Trading Co Ltd Vietnam News Agency, 2020, Domestic logistics enterprises are still less competitive (2022) Retrieved April 2022, from https://bnews.vn/doanh-nghieplogistics-noi-dia-con-kem-suc- canh-tranh/109077.html 33 ... structure The report "Analyzing the internal, micro and macro factors affecting the competitive advantage in the field of goods transportation by road at Xuan Anh Transport Service Trading Co Ltd during. .. the planned targets CHAPTER 2: ANALYZING THE INTERNAL AND EXTERNAL FACTORS AFFECTING THE COMPETITIVE ADVANTAGE IN THE FIELD OF GOODS TRANSPORTATION BY ROAD AT XUAN ANH TRANSPORT SERVICE TRADING. .. electrical components 2.3 The factors affecting the competitive advantage in the field of goods transportation by road at Xuan Anh Transport Service Trading Co Ltd 2.3.1 Internal factors 2.3.1.1 Infrastructure