Báo cáo thực tập Thai Nguyen Import Export Joint Stock Company BATIMEX

1 TABLE OF CONTENT Table of figure and table CHAPTER 1: OVERVIEW ABOUT BATIMEX I Business formation II Brief history III Function, Mission, and Core values Function Mission Core values IV Organizational structure Board of Management Board of Supervisors 10 Board of Directors 10 Chief Accountant 10 Other Departments 10 V Product and Market 11 Import-export and mineral mining 11 Labor export 12 Dealers of Honda 12 Manufacturing process and export tea 12 CHAPTER 2: REPORT ON BATIMEX’S BUSINESS OPERATION 13 I General business activities 13 BATIMEX’s turnover 13 Export and import business 14 Financial situation 17 II Tea export situation of Batimex 18 Market and price of Vietnamese green tea 18 Output and export turnover of tea at Batimex 20 Status of export tea market at of Batimex 21 CHAPTER 3: OBJECTIVES AND ASSIGNED WORK 24 I Objectives 24 II Assigned work 24 CHAPTER 4: ACHIEVEMENTS FROM INTERNSHIP 27 I Knowledge improvement 27 II Skills improvement 27 III Recommendation 28 CONCLUSION 29 Table of figure and table Figure1 Batimex Organization Structure .9 Figure Financial situation of Batimex from 2009-2013 18 Table 1.Turnover value from 2009-2013 13 Table 2.Export items of company from 2009-2013 .14 Table 3.Import items of company from 2009-2013 16 Table 4.Financial situation of Batimex from 2009-2013 17 Table 5.Markets of Vietnamese green tea 19 Table 6.Output and export turnover of tea at Batimex .21 Table 7.Market of export tea of Batimex .22 CHAPTER 1: OVERVIEW ABOUT BATIMEX I Business formation  Vietnamese name: Công ty cổ phần xuất nhập Thái Nguyên  English name: Thai Nguyen Import Export Joint Stock Company  Abbreviation: BATIMEX  General Director: Tran Thi Lan Huong  Address: No.25, Hoang Van Thu Str, Phan Dinh Phung Ward, Thai Nguyen Province  Phone number: 0280 3855 430 Fax: 0280 3855 763  Email: Batimex_tn@yahoo.com.vn  The legal basis of company: the company operates under the registration certificate of the enterprise JSC Business Code: 4600103290 The first registration date at March 31, 2005 Registration change 8th at August 27, 2012  Authorized capital: 43,200,000,000 VND  Total shares: 4,320,000 II Brief history - Batimex established in 1958, based on Thai Nguyen Foreign Trade Department - From establishing to 1990, the company’s mission was to buy and supply export products for the Ministry of Industry and Trade, but at the same time importing machinery, fertilizer 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 III Function, Mission, and Core values Function Batimex is a company that is doing business in multiple fields so it includes many functional groups Each functional group corresponds to a business area of the company o Wholesale of metals and metal ores o Wholesale foods such: as tea, fresh fruit, frozen seafood o Production and export of o Iron ore mining o Non ferrous metal mining (tin, tea (holding 27% revenue of company) iron, manganese, titanium, copper, zinc, kaolin, ) o Counseling agency, introduction o Dealer of Honda and labor brokers o Primary vocational training and technical training 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 The core values provide long-term trust and have tremendous influence on every decision of all the members in the business The system's core values are the driving force, the internal links nuclear company, companies associated with customers, partners and society in general o Effectiveness: Efficiency is a measure of the exact value of all manufacturing operations, business, investment and social activities of the company o Creative: Always respect and continue of traditional values but also constantly innovate in flexible thinking and action to create sustainable value for business and the community o Social responsibility: Connecting social responsibility in business is the longterm guideline of Batimex Together with the efficient operation of business, Batimex commits to contribute to the community through social activities, building prosperous and happy life for the community o Share: The interests of each member of the collective as well as previous responsibilities associated with all activities The company always consents, shares success for the development of enterprises and communities and the prosperity of the country o Reliable partner: Prestige in the business through the work results, good financial indicators and Batimex is ready to become your trusted partner: investors and trading partners IV Organizational structure Figure1 Batimex Organization Structure (Source: Batimex's Administration Department) Board of Management The entire Board of Management makes decisions on all matters of fundamental importance and in cases where Vietnamese law or otherwise mandatory prescribes a decision of the entire Board The rules of procedure of the Board of Management contain a list of topics and the full Board must deal with and resolve it 10 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 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 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 Departments Other department of Batimex involves Head of Department, Deputy Head of Department, Import and Export Department, Sales Department The main functions: o Perform actively market research and find partner for development o Expand gradually domestic and foreign markets Research and recommend the Board of Directors in the work-oriented and import-export business 16  Company locates in raw material area  Focusing on investing tea production line  Import business 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 Unit: Million USD Year Items 2009 2010 2011 2012 2013 Steel 3,668,000 4,500,000 2,500,000 3,223,000 4,300,000 1,200,355 1,555,600 1,023,000 800,788 1,000,355 billets Steel scraps Machinery 856,000 567,000 457,000 (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 The cause is that:  A scanty capital 17  Fluctuating price of these product  High risk  Focusing on domestic business and exporting agricultural product Financial situation Table 4.Financial situation of Batimex from 2009-2013 Unit: Billion VND 2009 2010 2011 2012 2013 Revenue 251,320 210,150 198,344 213,677 225,211 Export revenue 201,300 168,223 175,333 185,344 192,665 Profit before tax 3,012 2,900 3,555 4,653 6,786 Profit after tax 2,412 2,212 2,756 2,977 5,345 Average working 35,550 57,200 62,750 75,333 90,650 capital (Source: Accounting and Administration Department of Batimex) 18 Figure Financial situation of Batimex from 2009-2013 300,000 250,000 200,000 150,000 Revenue Export revenue 100,000 Average working capital 50,000 2009 2010 2011 2012 2013 Financial situation of company was quite stable Although revenue did not increase regularly because of the stiff competition and scarce of goods, Batimex transferred to the new products with less capital and they could bring high profit for the company That is reason profit after tax over the years has been creasing steadily II Tea export situation of Batimex Market and price of Vietnamese green tea The increasing in foreign trading and international commerce will open new direction for the development of economy of Viet Nam Export has become a significant part, and green tea export contributes a large part in it It helps much with the reconstructing of agriculture, providing many jobs and stabilizing lives for rural area population, which in turn will reduce poverty Thanks to it, a lot of 19 supporting industries like technical services, tea production and processing, transporting developed as well It also converts agriculture labor force, because this industry require a huge amount of workers, so many people will become production and processing worker 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 Algeria Bulgaria Iraq 13 Japan Taiwan Russia 10 Singapore 14 Turkey Bulgaria Czech 11 Israel 15 Libya India Cuba 12 Kazakhstan 16 Ukraine (Source: The Vietnam National Tea – Joint Stock Corporation) In the past, our market was mainly Russia and East of Europe However, because of the instable markets, especially in the World's economic crisis, we lost about 30 markets In 2008, we only exports 100000 tons of green tea, about 60 million dollars In that situation, the Vietnamese Tea Association (VITAS) quickly had some actions to response: breeding support, financial support to organize some market survey, establishing Viet Anh joint stock Company in London to export green tea to The Britain and has quite good results Viet Nam green tea has been to some of the market like Britain, German and Iraq VITAS had also surveyed India, China and Russia market and after years from 2006 to 2011, in first quarter of 2012 we exported about 800000 tons, about 400 million dollars 20 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) 2009 115 180 600 2010 75 135500 2011 512 900 675 2012 1200 256 000 2013 1565 322 300 (Source: Batimex Import-Export turnover report from 2009-2011) We can see tea export turnover of the company have increased greatly The reason is that company has a stable consumption source The company exported green tea to regions such as the Middle East and traditional markets are 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 21  The reason for this was to step transformation of the company's tea products, the effectiveness of tea contracts is relatively high Research and investment in market had the great results  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 already had a contract with the market that was a traditional partner of previous years after interrupting That was Pakistan Therefore, the production of the company reached to 1,565 tons, the export value of tea was more than $3,322,300 These achievements were remarkable, proved the efforts of the company during the period of international economic integration Status of export tea market at of Batimex Currently the company has exported green tea to several countries in the world The main importers of the company are India, Taiwan, China, Pakistan, Iran and Russia Some other markets are concerned and deploy the marketing For a specific looking, we can see in the following table Table 7.Market of export tea of Batimex Unit: Tons Country 2009 2010 2011 2012 2013 Taiwan - - 50 - - India - - 30 - - China 50 75 200 150 200 Pakistan - - 262 600 1000 22 Iran - - - 400 365 Russia 65 - - 50 - (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  Traditional market: - 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 - Because of the economic crisis in 2008, the company's tea market faced many difficulties After that, the world economy recovered slowly, the situation of the company's tea export improved significantly Thus, the company exported to those markets with high volume: more than 3,000 tons made up about 91% of turnover in the company's tea export - Those countries are large tea consumption markets in the world They are easy-going and find favor with green tea product Moreover, in those markets life standard of people is not very high as well as the stricture of product quality and safety in food hygiene Thus, company can compete in these markets with effective pricing strategy - 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  Potential market: Recognizing the importance in the general market and the future market, the company has researched and explored some of the market and identified a 23 number of feasible markets for the company such as the US, Iraq and some European countries In the project of market development, the company indicates the advantages and disadvantages of the companies participating in new market - Advantages: These markets have large populations and high percentage of green tea users Especially in the United States, there is Vietnamese community in California with nearly million people and the Chinese community has traditional habit that is used green tea as a main beverage in daily life 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 - Disadvantages: Batimex has few activities in here Besides, their requirement about food safety is very strict On the other hand, the Chinese competitors have been here very early and found a certain place for the green tea 24 CHAPTER 3: OBJECTIVES AND ASSIGNED WORK I 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 can help me provide a great transition between the education process and a career in the future or shorten the gap between university knowledge and real business environment, accumulate the necessary experience before graduating  I can learn about how a business works on both a large-scale and on a day-today 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 II Assigned work I am responsible for assisting export tea at Business Department In the first week, I spent almost of time to learn about company and read documents I read material about overview of Thai Nguyen Import-Export Joint Stock Company such as establishment, historical brief, development and business regulation and studied discipline Thus, I knew clearly about this company and its culture Next week, I was assigned tasks to photo, print and collect important documents such as commercial invoice, certificate of original, health certificate, packing list They are important items in the contract that I already studied at my university 25 After that, I started studying about our partners in the third week I entered the data about how many tea they imported and the tea sources of Batimex Thus, I could know who the large partners are and amount of tea company purchase from suppliers In the fourth week, I did something related to foreign trade I wrote and sent email to customers about what kind of tea (Black tea, yellow tea or green tea), specification, and the quantity they needed That was the first time I made the contact with foreign partner so my colleagues guided me kindly Besides, I read the old contracts and knew how to make a contract In the last two weeks, I started to prepare the Bill of lading (B/L) and Packing list I knew the most important things on B/L include date of delivery, on board notation, port of departure, port of destination and carrier Bellowing are main things in invoice packing list I made: o No 06A/2015/ BAT-ZB o Vessel: UNI-MPLE o B/L No: EGLV 236500070028 o Loading on board from: Hai Phong Port, Vietnam o For transportation to: Bandar Abbas, Iran o Packing: Net 38 KGS PER BAGS in PE + Kraft + 2PP o Number of bags: 512 o Net weight (MT): 19.456 o Gross weight (MT): 19.789 o The good is stuffed into 01x40’container FCL o Container/Seal No: BMOU 5454570/ EMCAXK 6424 26 The last two weeks were very important to me because I got many skills and knowledge in real enterprise Now, I can compare between theory at university and practical work From this internship, I gain great knowledge and skill for my job in the future 27 CHAPTER 4: ACHIEVEMENTS FROM INTERNSHIP Knowledge improvement I After observing and studying the operation in Batimex, my theories are improved Many subjects I have studied at my university appeared in real business  Technique of Foreign Trade: I can make the documents in the export business like Bill of lading, packing list, certificate of original, commercial invoice Besides, I know clearly about Incoterm 2010 and the process of signing international trade contracts  Human Resource Management: I observed the managers of Batimex control their staffs HRM is very important for each enterprise and it includes some activities such as attracting human resources, training staffs, developing and maintaining them  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 II Skills improvement The most important skill I got after internship is experience of teamwork I realize that my internship will allow me to gain experience of this first hand and develop my own teamwork and interpersonal skills 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 28 Finally, I have responsibilities for ensuring the principle of information and data security in my workplace III Recommendation After six weeks at Batimex, I had an opportunity to practice and observe a real business environment Thus, I see that company has many strong points but it also has something should be changed In the near future, the company should organize a good marketing staff to develop and implement marketing strategies effectively To make this work, the company must comply with the perspective of modern marketing; put the customer's needs on the top Effective marketing strategies include advertising, promotion to find new customers and expand market Moreover, the company should improve the condition of infrastructure such as invest and upgrade computers with large configurations to be able to access information more convenient, expand the workspace; upgrade printer, fax as well as software and research information and update process a scientific manner 29 CONCLUSION After six weeks of training process at Thai Nguyen Import Export, Join Stock Company, I finished my internship successfully with the whole-hearted help and careful guidance of my teacher Ms Pham Huong Trang and all officer staffs of Batimex Once again, I would like to thank all people who support and create favorable condition for me to complete my internship and this report At last, I wish all of you a good health and success Thank you very much! 30 References  CÔNG TY CỔ PHẦN XUẤT NHẬP KHẨU THÁI NGUYÊN – [Online] Available at: http://batimex.com.vn/gioi-thieu/gioi-thieu-chung-1 [Accessed Oct, 2012]  What is B/L? – [Online] Available at http://www.businessdictionary.com/definition/bill-of-lading-B-L.html [Accessed Nov, 2015]  Thomas E.Johnson and Donna L.Bade 4th Export/Import procedures and documentation American Management Association ... English name: Thai Nguyen Import Export Joint Stock Company  Abbreviation: BATIMEX  General Director: Tran Thi Lan Huong  Address: No.25, Hoang Van Thu Str, Phan Dinh Phung Ward, Thai Nguyen Province... of the company in accordance with the provisions of the current law V Product and Market Thai Nguyen Import - Export Joint Stock Company (Batimex) is the first enterprise in the field of import. .. export tea at Business Department In the first week, I spent almost of time to learn about company and read documents I read material about overview of Thai Nguyen Import- Export Joint Stock Company