OVERVIEW ABOUT BATIMEX
Business formation
Vietnamese name: Công ty cổ phần xuất nhập khẩu Thái Nguyên
English name: Thai Nguyen Import Export Joint Stock Company
General Director: Tran Thi Lan Huong
Address: No.25, Hoang Van Thu Str, Phan Dinh Phung Ward, Thai Nguyen Province.
Email: Batimex_tn@yahoo.com.vn
The legal basis of company: the company operates under the registration certificate of the enterprise JSC.
The first registration date at March 31, 2005
Registration change 8 th at August 27, 2012
Brief history
- Batimex established in 1958, based on Thai Nguyen Foreign Trade Department
From its establishment until 1990, the company's mission focused on purchasing and supplying export products for the Ministry of Industry and Trade while simultaneously importing machinery, fertilizers, and consumer goods.
- From 1990, company turned to direct export Together with traditional markets, the company expanded its market to other countries in the region such as Malaysia, Taiwan, China, and Japan
- From 2000 to 2002, Batimex overcame the challenges to build a new house with three floors on 700m2 to serve for labor export activities Many machineries and facilities equipped for the company's departments
- On April 2005, the company privatized and had a great transformation
- In 2005, Batimex invested in building two green tea processing factories and gained the high profit from them
- In 2006, Thai Nguyen Mineral Company merged into the Batimex so it was great time to expand capacity and develop business.
To sum up, the company has 57 years of construction and growth Batimex is trying to have significant growth including high quality of products and charismatic brand.
Function, Mission, and Core values
Batimex is a versatile company operating across various sectors, with distinct functional groups dedicated to each business area These include wholesale foods, such as tea, fresh fruits, and frozen seafood, as well as the production and export of high-quality tea.
The company generates 27% of its revenue from wholesale activities in metals and metal ores, including iron ore and non-ferrous metal mining such as tin, iron, manganese, titanium, copper, and zinc Additionally, it offers services as a counseling agency and labor brokers, while also providing primary vocational and technical training Furthermore, the company operates as a dealer for Honda products.
2 Mission o Research domestic and foreign market and understand clearly the demand of customer to set up right marketing strategy o Create capital for production and business activities o Expand production and renew equipment o Implement effectively the policy of economic management mode, import management and external transactions o Implement effectively the management policies about asset, finance, labor, salary, as well as distribute of labor, training advanced educational level and professional skills of officers and employees in the company o Implement the commitments in foreign trade contracts and contracts related to import and export activities of the company o Implement effectively labor protection and labor safety, public order, environmental protection, protection of socialist property, national defense duties and obligations
Core values are essential for fostering long-term trust and significantly influence decision-making within a business At Batimex, these values serve as the driving force that connects the company with customers, partners, and society Efficiency is prioritized to enhance the effectiveness of all operations, while a commitment to creativity ensures respect for traditional values alongside continuous innovation for sustainable growth Social responsibility is a guiding principle, as Batimex aims to contribute positively to the community through various initiatives, promoting a prosperous and happy society The company emphasizes sharing successes and responsibilities among its members, fostering collective growth for both the enterprise and the community With a focus on reliability and strong performance, Batimex positions itself as a trusted partner for investors and trading associates.
Organizational structure
The Board of Management is responsible for making decisions on all matters of fundamental importance, as well as in situations where Vietnamese law mandates a decision from the entire Board The Board's procedural rules outline specific topics that require full Board discussion and resolution.
2 Board of Supervisors o Review the financial affairs of the company o Monitor the performance of directors and senior officers; removal of directors or senior officers in the case of violation of laws, administrative regulations or articles of association o Require rectification from directors or senior officers if they cause harm to company interests
3 Board of Directors o Recruit, supervise, evaluate and compensate the manager o Provide direction for the organization The board has a strategic function in providing the vision, mission and goals of the organization o Fiduciary duty to protect the organization’s assets and member’s investment o Monitor and control function
4 Chief Accountant o Perform financial analysis and reporting to management as needed o Monitor and record financial transactions according to company policies and regulations o Analyze financial discrepancies and recommend effective resolutions
Other department of Batimex involves Head of Department, Deputy Head of Department, Import and Export Department, Sales Department
The primary functions include conducting active market research to identify potential development partners and gradually expanding both domestic and international markets This involves advising the Board of Directors on strategic import-export initiatives, executing contracts related to the company's operations, and managing all aspects of the import-export process, including sourcing, appraisal, and customs procedures Additionally, it entails researching foreign contracts and addressing any complaints related to business activities The role also requires the development and implementation of a business plan approved by the Board, with accountability for the outcomes of business operations, as well as maintaining records and economic contracts in compliance with current legal regulations.
Product and Market
Thai Nguyen Import - Export Joint Stock Company (Batimex) is the pioneering enterprise in the import and export sector in Thai Nguyen, established in the 1960s Currently, Batimex operates in four key areas: import-export and mineral mining, labor export, Honda dealership, and tea manufacturing.
1 Import-export and mineral mining
Batimex is allowed to import and export goods under the Vietnamese’s laws and the International Law of Incoterm 2000
Importing: Steel billets and steel scraps are the main products with 80,000 tons per year
Exporting: Company exports products such as tea, wolfram, tin ingots, and zinc ingots to United Kingdom, China, Taiwan, Singapore, and Pakistan
Batimex, licensed by the Ministry of Labor, War Invalids and Social Affairs, specializes in sending skilled labor and experts to work abroad Currently, the company is actively recruiting workers for markets in Japan, Taiwan, the Middle East, and Malaysia.
Batimex imports cars and motorcycles from Japan and it is the selling agent commissioned by Honda
4 Manufacturing process and export tea
The company specializes in the production, processing, and export of high-quality tea, a fundamental and traditional sector that contributes significantly to its revenue With potential markets spanning China, the Middle East, including Pakistan and India, as well as Europe, this sector generates approximately 27% of the company's annual income.
REPORT ON BATIMEX’S BUSINESS OPERATION
General business activities
With multiple business activities, Batimex had some difficulties to control the turnover However, from changing company’s structure, the turnover still ensured the annual plan
(Source: Batimex Import-Export turnover report from 2009-2013)
Looking at the Table 1 we can see that turnover value of Batimex from 2009-2013 was not stable In more details:
In 2010, import-export turnover gained $17,197 million increasing $884 million compared with year 2009
Total import-export turnover decreased dramatically from $17,197 million from
The reason is the bank tightened the capital so company faced with difficulties and challenges in business such as decreasing in credit limits and traditional source of goods
From 2011 to 2013, Batimex should try to connect with its partner to rehabilitate gradually the economic growth Thus, import-export turnover increased steadily over the years
Export and import activities are the main sources bring profit to company We can understand more about this through below analysis
Company still focused on traditional products such as tea, wolfram, tin ingots, and zinc ingots These products are strong points and bring large export turnover for company
Table 2.Export items of company from 2009-2013
Total 10,589,000 10,575,000 9,008,000 7,454,000 9,565,000 (Source: Batimex Import-Export turnover report from 2009-2013)
Looking at the table 2, we can see that:
Total export turnover reduced rapidly in four years (2009, 2010, 2011, 2012), about 29.60%
Stiff competitions of other company producing the same items
Need the large capital to trade these commodities
After economic crisis in 2008, price of these products on London market declined sharply, about 50% compared with the beginning of year
Export products fluctuated erratically through years In 2009, the turnover of tin ingots, zinc ingots, wolfram was in turn $4,566,000 million, $256,655 million,
$2,500,000 million, but in 2012, Batimex could not export these items
Tea export production rose stably from 2010 to 2012 but it increased dramatically from $1,100,300 million in 2010 to $3,322,300 million in 2013
The reason of increasing tea export:
Company locates in raw material area
Focusing on investing tea production line
Steel billets and steel scraps imported and supplied for the company in the province and neighboring areas Besides, it also imports some kinds of machine and equipment
Table 3.Import items of company from 2009-2013
(Source: Batimex Import-Export turnover report from 2009-2013)
Looking at the Table 3, import situation of company was not stable
Steel billet was the main import product Its import turnover was always highest and held more than 60% of total import turnover every year
Machinery had the lowest import quality and from 2013, Batimex did not import any machinery
Fluctuating price of these product
Focusing on domestic business and exporting agricultural product
Table 4.Financial situation of Batimex from 2009-2013
(Source: Accounting and Administration Department of Batimex)
Figure 2 Financial situation of Batimex from 2009-2013
Batimex has maintained a stable financial situation despite facing stiff competition and limited goods, which has hindered consistent revenue growth By shifting focus to new products that require less capital but offer higher profit margins, the company has successfully increased its profit after tax steadily over the years.
Tea export situation of Batimex
1 Market and price of Vietnamese green tea
The growth of foreign trade and international commerce is paving new avenues for Vietnam's economic development Exports, particularly of green tea, play a crucial role in this progress, significantly contributing to agricultural reconstruction, job creation, and improved living standards for rural populations, ultimately helping to alleviate poverty.
Export revenue significantly boosts industries such as technical services and tea production, leading to the development of transportation sectors as well This growth not only enhances average working capital but also transforms the agricultural labor force, as these industries demand a substantial workforce, resulting in many individuals becoming involved in production and processing roles.
Vietnamese green tea has been exported to more than 30 countries, the industry also imports new technology from Britain, Russia, Taiwan, Japan to improve quality and diversify the goods
Table 5.Markets of Vietnamese green tea
(Source: The Vietnam National Tea – Joint Stock Corporation)
Historically, our primary market was focused on Russia and Eastern Europe However, due to unstable market conditions exacerbated by the global economic crisis, we experienced a loss of approximately 30 markets In 2008, our exports of green tea dwindled to just 100,000 tons, generating around 60 million dollars in revenue.
In response to market challenges, the Vietnamese Tea Association (VITAS) implemented several strategic actions, including breeding and financial support for market surveys They established the Viet Anh Joint Stock Company in London to export green tea, achieving notable success in markets such as Britain, Germany, and Iraq Additionally, VITAS conducted market surveys in India, China, and Russia As a result, from 2006 to 2011, Vietnam exported approximately 800,000 tons of green tea, generating around 400 million dollars in revenue by the first quarter of 2012.
2 Output and export turnover of tea at Batimex
The situation of the company's tea exports in recent years has many encouraging signs and the following table can show that
Table 6.Output and export turnover of tea at Batimex
Year Output (ton) Turnover (USD)
(Source: Batimex Import-Export turnover report from 2009-2011)
The company's tea export turnover has significantly increased due to a stable consumption source, with green tea being exported to regions like the Middle East and traditional markets including Pakistan and Afghanistan.
In 2010, the company's tea production reduced significantly to 75 tons The reason is that the world economic crisis had affected the European market
In 2011, Batimex had new markets lead to high turnover and tea export production
The output of tea exports reached 512 tons increasing in 6.82 times compared to 2010 and 4.54 times compared to 2009
Turnover increased by 6.5 times compared to 2010 and increased by 4.9 times compared to 2009
The company's tea products underwent significant transformation due to the high effectiveness of tea contracts, leading to impressive outcomes from research and market investment.
In 2012, the company's tea market was relatively stable and the familiar markets remained Tea export volume gained 1,200 tons increasing in 2.3 times compared to 2011 and increasing in 2.5 times in turnover
In 2013, the company reestablished its contract with Pakistan, a traditional partner, after a previous interruption This partnership led to a production output of 1,565 tons of tea, with an export value exceeding $3,322,300 These significant achievements highlight the company's dedication and success during a time of international economic integration.
3 Status of export tea market at of Batimex
The company has successfully exported green tea to various countries worldwide, with India, Taiwan, China, Pakistan, Iran, and Russia being its primary importers Additionally, the company is actively exploring other markets to expand its marketing efforts For a detailed overview, please refer to the table below.
Table 7.Market of export tea of Batimex
(Source: Batimex Import-Export turnover report from 2009-2013)
The table shows that the share of the market is unstable To approach the market effectively, the company classified tea export markets of into two basic types
- China, Pakistan and Iran are the traditional markets of the company in the previous year These countries consume a large proportion of the company's tea exports
The economic crisis of 2008 severely impacted the company's tea market, leading to significant challenges However, as the global economy gradually recovered, the company's tea exports saw a marked improvement Consequently, the company successfully exported over 3,000 tons of tea, which accounted for approximately 91% of its total export turnover.
Countries with high tea consumption are characterized by a preference for green tea and a more relaxed lifestyle Despite lower living standards and less stringent regulations on product quality and food safety, companies can effectively compete in these markets by implementing a strategic pricing approach.
- In many years ago, the company had a good reputation and acquaintance with customers in these markets
In summary, with the advantages mentioned above we can expect more and more in those markets in the near future
The company has conducted thorough research to identify viable markets, recognizing the significance of both current and future opportunities Key markets identified include the US, Iraq, and several European countries In its market development project, the company evaluates the strengths and weaknesses of competitors entering these new markets.
The growing popularity of green tea in large markets like the United States presents significant advantages, particularly due to substantial populations and a high percentage of green tea consumers In California, the Vietnamese community, which numbers nearly 3 million, contributes to this trend, while the Chinese community maintains a traditional habit of consuming green tea as a staple beverage in their daily lives.
In these markets, consumers have higher incomes in the world Relationship between us and the countries are improving and gaining many priorities from their Governments
Batimex faces challenges in the market due to its limited activities and stringent food safety requirements In contrast, Chinese competitors have established a strong presence early on, securing their position in the green tea sector.
OBJECTIVES AND ASSIGNED WORK
Objectives
An internship is an opportunity for me to get new experiences in professional environment Before the internship, I had many goals for myself:
My internship serves as a crucial bridge between my education and future career, effectively narrowing the gap between academic knowledge and the realities of the business world It allows me to gain valuable experience before graduation, enhancing my readiness for professional challenges.
I can learn about how a business works on both a large-scale and on a day-to- day basis and apply the knowledge learned about import-export business in the enterprise
In six weeks, I should know how to behave and integrate into the working environment at Batimex An internship is a place to start building my professional network and new relationship
I strive to represent myself in a professional and business-like manner, complete the task and the work assigned.
Assigned work
As an assistant in the Business Department focused on export tea, my initial week was dedicated to thoroughly understanding the company and its operations I reviewed key documents detailing the history, establishment, and development of Thai Nguyen Import-Export Joint Stock Company, as well as its business regulations and workplace discipline This comprehensive study provided me with valuable insights into the company's culture and values.
Next week, I will be responsible for photographing, printing, and gathering essential documents, including the commercial invoice, certificate of origin, health certificate, and packing list These documents are crucial components of the contract I studied during my university education.
In the third week of my research, I focused on analyzing our partners by compiling data on their tea imports and the sources provided by Batimex This allowed me to identify our major partners and the quantity of tea they purchase from suppliers.
During the fourth week, I engaged in foreign trade activities by emailing customers to inquire about their preferred types of tea—black, yellow, or green—along with the specifications and quantities required This marked my initial contact with an international partner, and I received valuable guidance from my colleagues Additionally, I reviewed previous contracts to enhance my understanding of contract formulation.
In the past two weeks, I have been working on preparing the Bill of Lading (B/L) and Packing List Key elements of the B/L include the delivery date, on-board notation, port of departure, port of destination, and the carrier details.
The invoice packing list includes essential details such as the document number 06A/2015/BAT-ZB, the vessel UNI-MPLE, and the B/L number EGLV 236500070028 The shipment is loaded at Hai Phong Port, Vietnam, for transportation to Bandar Abbas, Iran It consists of 512 bags, each weighing a net of 38 KGS, packed in PE, Kraft, and 2PP materials The total net weight of the shipment is 19.456 MT, while the gross weight is 19.789 MT All goods are consolidated in a 40-foot container (FCL), identified by Container/Seal No: BMOU 5454570/ EMCAXK 6424.
The past two weeks have been crucial for my personal and professional development, as I acquired valuable skills and knowledge in a real-world enterprise setting This internship allowed me to draw comparisons between the theoretical concepts learned at university and their practical applications in the workplace As a result, I have gained significant insights and competencies that will benefit my future career.
ACHIEVEMENTS FROM INTERNSHIP
Knowledge improvement
After observing and studying the operation in Batimex, my theories are improved Many subjects I have studied at my university appeared in real business
In the realm of foreign trade, I possess the expertise to efficiently prepare essential export documents, including the bill of lading, packing list, certificate of origin, and commercial invoice Additionally, I have a thorough understanding of Incoterms 2010 and the procedures involved in signing international trade contracts, ensuring a smooth and compliant export process.
Human Resource Management (HRM) is crucial for every organization, as it encompasses key activities such as attracting talent, training employees, and fostering their development and retention At Batimex, I observed managers effectively overseeing their teams, highlighting the importance of strong HRM practices in enhancing workforce performance and organizational success.
Vietnamese Laws: I understand and remember some Vietnamese laws related to international business
Taxes: I know function and role of taxes Moreover, I learn about how to apply tax for each partner.
Skills improvement
My internship has been invaluable in enhancing my teamwork skills, as it provided me with firsthand experience in collaborating with others This opportunity has significantly contributed to my development of interpersonal skills, allowing me to effectively engage and work within a team setting.
Besides, I improve my ability to work under pressure and to tight deadlines There was something I must study by myself and complete on time
Computer skill for Office collected through tying text and preparing documents
Finally, I have responsibilities for ensuring the principle of information and data security in my workplace.
Recommendation
After six weeks at Batimex, I gained valuable experience in a real business environment, allowing me to identify both the company's strengths and areas for improvement.
In the near future, the company should establish a skilled marketing team to effectively develop and implement strategies that prioritize customer needs By focusing on modern marketing perspectives, the company can enhance its advertising and promotional efforts to attract new customers and expand its market reach.
To enhance operational efficiency, the company must invest in upgrading its infrastructure, including high-performance computers for easier information access, expanding workspace, and modernizing printers and fax machines Additionally, it should focus on updating software and implementing a systematic approach to research and information management.
After completing a six-week internship at Thai Nguyen Import Export Joint Stock Company, I successfully gained valuable experience thanks to the dedicated support and guidance from my teacher, Ms Pham Huong Trang, and the staff at Batimex I am sincerely grateful to everyone who contributed to my internship journey and helped me finalize this report.
At last, I wish all of you a good health and success