VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION PROFESSIONAL INTERNSHIP REPORT YEAR 2019 2020 Process of organizing and implementing of import LCL s.
VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION PROFESSIONAL INTERNSHIP REPORT YEAR 2019-2020 Process of organizing and implementing of import LCL shipments at Velox Global Logistics Viet Nam Instructing Lecturer: To Diep, MBA Student’s name: LE PHAN MINH ANH Student’s ID: 718H0241 Major: International Business Academic Year Code: 2019-2020 ACKNOWLEDGEMENTS During my time studying at Ton Duc Thang University, under the enthusiastic teaching of teachers, I have accumulated a lot of valuable knowledge about my major in Import and Export to apply into real work I would like to thank my instructor, Mr To Diep, for taking the time to help and guide me deeply so I can successfully complete this internship report I would like to thank the teachers of the business administration department in general and Dr Pham Thi Ngan in particular for providing students with a learning environment with the best conditions, I am supported with valuable lessons and knowledge from experienced masters, doctors and especially highly specialized, devoted of all teachers in the department I am extremely grateful to be a student at Ton Duc Thang School In addition, I would like to sincerely thank the leadership of Velox Global Logistics Viet Nam Company Limited., Ms Tran Thu Ha for welcoming me to practice at the company and always create favorable conditions for me to practice as well as complete this internship report I would like to thank all of the employees in Velox Global Logistics Viet Nam Company Limited in general and especially in the accounting and importexport departments in particular in the past time who have always been interested in helping, guiding and trusting me to have the opportunity to interact with the actual job at the company Due to the limited internship time and the limited amount of specialized knowledge, making certain mistakes is hard to avoid, so I look forward to receiving the comments from teachers and students so that I can improve the following reports in the future EVALUATION OF INSTRUCTING LECTURER Student’s name: Lê Phan Minh Anh Student’s ID: 718H0241 Class: 18H70601 Academic Year Code: 2018 – 2022 The attitude of learning: Good (observance of regulations, performance of work): The form of presentation of the Professional Internship Report: Good (length, layout, aesthetics, rational) The content of the Professional Internship Report: Fair (style, description, analysis, evaluation, annex, table) (Rating: Good; Fair; Average; Poor) Ho Chi Minh City, August 09th, 2020 Instructing Lecturer INTRODUCTION Reasons for the selected topic: Logistics services in Vietnam began to develop in the 1990s based on freight forwarding and logistics services Currently, the country has about 3,000 enterprises providing logistics services (compared to 700 before 2005) such as freight forwarding services, warehousing, loading, and unloading, transport agents, forwarding agents, and services logistics mainly concentrated in the city area Ho Chi Minh City and Hanoi Logistics services in Vietnam are about 20-22 billion USD per year, accounting for 20.9% of the country's GDP The average growth rate of the logistics service industry in recent years has been from 16 - 20% per year According to World Bank rankings, Vietnam currently ranks 64/160 countries in terms of logistics development and 4th in ASEAN after Singapore, Malaysia, and Thailand With an annual growth rate of 16% to 20%, this is one of the fastest growing and most stable service industries in Vietnam in recent years I see there are opportunities as well as potential in the logistics industry in Vietnam has developed stronger than ever This is also the main field of activity of Velox Global Logistics Viet Nam Company Limited, so I decided to get onto the subject: "Process organizing and implementing of import LCL shipments at Velox Global Logistics Viet Nam” Table of Contents CHAPTER 1: OVERVIEW OF THE COMPANY FOR INTERNSHIP 1.1 Introduction about Velox Global Logistics Viet Nam Company Limited 1.1 General information about Velox Global Logistics Viet Nam Company Limited 1.2 History of Establishment and Development 1.3 Functions, tasks, and fields of business activities of the company 1.3.1 Functions and tasks 1.3.2 Business activities of the company 1.4 Organizational structure of the company .9 1.4.1 Organizational structure and management structure .9 1.4.2 Functions and duties of the departments in the company 10 1.5 Analyzing the Personnel structure of the Company 1.5.1 Analyzing the Personnel situation of the Company 11 CHAPTER 2: PROCESS OF ORGANIZING AND IMPLEMENTING OF IMPORT LCL SHIPMENTS AT VELOX GLOBAL LOGISTICS VIET NAM 18 2.1 Process of organizing and implementing of import LCL shipments at Velox Global Logistics Viet Nam .19 2.2 Interpret the delivery process: 20 2.2.2 Receive the documents from the exporting agent 20 2.2.3 Check the set of documents 20 2.2.4 Check the vessel’s arrival date and the deadline of E-manifest declaration and declare E-Manifest 21 2.2.5 Send email to the customer with the documents to declare customs .22 2.2.6 Receive Arrival Notice and Delivery Order from Master Loader 23 2.2.7 Send Arrival Notice to the consignee .23 2.2.8 Send D/O of the Master Loader and D/O of the company to the consignee 24 2.3 Evaluation of the process .24 CHAPTER 3: RECOMMENDATIONS AND SOLUTIONS 24 3.1 Solution to improve the process of organizing and implementing of import and export at Velox Global Logistics Viet Nam Company Limited 24 3.1.1 Procedures for checking documents 25 3.1.2 Assignment of work 25 3.1.4 Developing the working capacity of sales staff: 25 CONCLUSION 26 REFFERENCE 27 CHAPTER 1: OVERVIEW OF THE COMPANY FOR INTERNSHIP 1.1 Introduction about Velox Global Logistics Viet Nam Company Limited 1.1 General information about Velox Global Logistics Viet Nam Company Limited Velox Global Logistics Viet Nam Company Limited was established on March 3, 2019 under the business registration certificate No 0315478209 of the Department of Planning and Investment of Ho Chi Minh City Name: Velox Global Logistics Viet Nam Company Limited Legal representative and Director: Part Joon Mo Address: 20/1 Nguyen Truong To, Ward 12, district 4, Ho Chi Minh city Tel: +84-28-2253-8250~1 (EXT: 105) Fax: +84-28-2253-8260 Email: hochiminh@vql-vina.com Charter capital: 900.000.000 VND Logo: Figure Logo of Velox Global Logistics Vietnam Company 1.2 History of Establishment and Development On March 3rd, 2018 Velox Global Logistics Viet Nam Company was established by Mr Park Joon Mo, legal representative and director, with a charter of capital of 900,000,000 VND Velox Global Logistics Viet Nam Company is a legal entity, has full military rights and obligations, is solely responsible for all business activities within the charter capital managed by the company From the start, the company was run as a business with a small scale with employees After years, the company has a team of experienced, dedicated and courteous employees up to 15 Although the company has been through many obstacles, faced experienced competitors in logistics field, it still retains the trust of many customers, give them the best of their services 1.3 Functions, tasks, and fields of business activities of the company 1.3.1 Functions and tasks The company is operated in the field of reputable logistics with the purpose of providing diverse information about the services related to the transport industry including transport, forwarding, import and export It always ensures the full implementation of the government's policies, well fulfill the company's tax obligations and periodic reporting The company is providing services of forwarding and transporting international import and export goods by sea (FCL, LCL, and consolidation shipment), air, and road and customs declaration service 1.3.2 Business activities of the company The company operates as an international and domestic freight forwarding agent to countries around the world - Besides, the company performs import and export forwarding contracts according - to the customer's trust Providing freight forwarding services for export or import by sea or air at the - request of customers Customs declaration and clearance services for import and export companies Provide consulting services guidebook, select carriers Acting as an agent for foreign shipping lines and shipping lines and working in service of foreign seagoing ships entering Vietnamese ports During the operation of the company, they always attach great importance to quality to the customers with modern facilities and equipment, accompanied by competent and experienced staffs As a customer-savvy company, they always give customers the best option that fits their schedule and products VELOX is a company Non-Vessel Operating Common Carrier (NVOCC) These are shipping lines that are familiar partners of the company: KMTC line, Namsung, Pan Ocean, CMA-CGM, Heung- A-line, CK line 1.4 Organizational structure of the company 1.4.1 Organizational structure and management structure INCOME STATEMENT 25,000 19,573 20,000 15,017 15,000 11,228 9,327 10,000 4430.4 5,000 2686.6 2018 Revenue Cost Profit after Tax 2019 YEAR 2018 2019 1/2020 – 7/2020 Total Revenue 15,017 19,573 4,976 Total Cost 9,327 11,228 3721 Profit before Tax 5,690 8,345 1255 Current corporate 3,003.4 3,914.6 995.2 Profit after Tax 2,686.6 4,430.4 259.8 Profit Margin (%) 17.9 22.6 5.22 income tax expense Table 1.3 Income Statement of Velox Global logistics Viet Nam Company Limited from 2018 to 2020 Growth Value Growth Rate (%) Total Revenue 4556 30.33 Total Cost 1901 20.38 Total Profit after Tax 1743.8 64.9 Profit Margin 4.7 26.26 Table Growth rate in the period 2018-2019 As you can see from the graph, sales have increased considerably in 2018 and 2019 Profit after tax in 2019 increased by 64.9% compared to 2018 Revenue from business operations over the years 2018,2019 respectively increased Revenue in 2019 grew by 30.33% compared to 2018 In parallel with the efforts to promote service business to increase revenue, Velox company also constantly upgraded its facilities, improving the qualifications of the staff Specifically, total costs increased in the period 2018-2019, increased by 20.38% in 2019 compared to 2018 In general, although the economy is in a difficult period and the company was just established in a short time, but the company's revenue has grown in a positive direction, which shows a great potential in the field of import-export logistics of the company CHAPTER 2: PROCESS OF ORGANIZING AND IMPLEMENTING OF IMPORT LCL SHIPMENTS AT VELOX GLOBAL LOGISTICS VIET NAM VELOX Global Logistics Viet Nam Company Limited is a forwarding company mainly operating with the form of reputable agent With a shipment of Gia Phu Fashion Garment Company Limited, VELOX Global Logistics Viet Nam Company Limited is entrusted to import the shipment Gia Phu Company is a regular customer of Velox company, due to the good Velox company style shown in the successful delivery of many import and export shipments of Gia Phu Therefore, Gia Phu has assigned the responsibility to import this shipment Accordingly, Velox provides their service to Gia Phu, Velox company undertakes to perform this service to receive service charges 2.1 Process of organizing and implementing of import LCL shipments at Velox Global Logistics Viet Nam Figure 2.1 Process of organizing and implementing of import LCL shipments at Velox Global Logistics Viet Nam 2.2 Interpret the delivery process: 2.2.1 Making contract: The company accepts to import shipment of Gia Phu company from agent of exporting country The company successfully negotiated and signed a contract with Gia Phu In the name of Gia Phu company, Velox will the procedures to receive goods for Gia Phu Company 2.2.2 Receive the documents from the exporting agent After the contract was signed, the exporting agent will send the email with the documents to Velox Company Import department will receive and check related documents In case there are some missing or incorrect information on the documents, document staff will contact the exporting agent to fix and supplement the information on the documents in the shortest time Velox Global Logistics Viet Nam Company receives set of documents from the exporting agent, Well Freight Line Company Limited including: - House Bill of Lading Master Bill of Lading Commercial Invoice Packing List 2.2.3 Check the set of documents After receiving the full set of documents from exporting agent, Velox company personnel in charge of this shipment are responsible for checking the documents before making customs declaration All information on the documents must match specially Bill of Lading Therefore, the document staff must check the information meticulously, accurately, and consistently to save the company’s time and money If there is an error on the document, the employee must notify the agent to timely correct it Check Commercial Invoice o Invoice number o Invoice date o Order number o Total sale amount o Currency o Payment instructions Check Packing List o Shipper and consignee name, address, contact details o Measurements and total Net Weight and Gross Weight of cargo o Detailed list of how goods are packaged and number of packages Check Master Bill of Lading and House Bill of Lading o Shipper, including full company name, address, and contact information o Consignee, including full company name, address, and contact information o Notify details, including full company name, address, and contact information o B/L Number o Vessel Name and Voyage Reference Number o Port of Loading and Port of Discharge o Place of Delivery o Container Number and Seal Number o The piece count, package type, and commodity description o The weight and volume o Total piece count, weight, and volume o HS Code, Payment Terms o Any additional information that must be shown on the B/L After checking all the information on the set of documents, the employee must send an email to the shipping lines to notify that every information is correct 2.2.4 Check the vessel’s arrival date and the deadline of E-manifest declaration and declare E-Manifest About 3-4 days before the ship arrives, the shipping line company will send an email to Velox company to notify the deadline for E-manifest declaration The document staff will have to declare E-manifest before the deadline The staff will sign-up to the account of Velox Company on Vietnam National Single Window to declare E-manifest Figure Vietnam Customs Manifest Template (Source: https://songanhlogs.com) 2.2.5 Send email to the customer with the documents to declare customs The document staff of Velox Company will send email to the consignee with the essential documents for them to declare customs includes - House Bill of Lading Master Bill of Lading Commercial Invoice Packing List 2.2.6 Receive Arrival Notice and Delivery Order from Master Loader About to days before the vessel arrives, the Master Loader will send a notice of arrival with the cost of local charge in Vietnam The document staff of the company will have to check the Arrival Notice includes Port of Discharge, Place of Delivery, Time of arrival Then the company will pay the local charge On Arrival Notice, the costs will be: - D/O charge Container Freight Station Charge Terminal Handling Charge (THC) Container Imbalance Charge LSS Charge On the day the vessel arrives, the Master Loader will send Velox Company the Delivery Order 2.2.7 Send Arrival Notice to the consignee After receiving the Arrival Notice and Delivery Order, Velox Company will issue the company’s Arrival Notice and send it to the consignee On Arrival Notice, it includes these costs: - D/O charge Container Freight Station Charge Terminal Handling Charge (THC) Container Imbalance Charge LSS Charge Handling Charge After all the relevant procedures have been completed, the document proceeds to hand over the necessary documents to the customer The company will receive the local charges service fees from customers based on the signed contract 2.2.8 Send D/O of the Master Loader and D/O of the company to the consignee After receiving all the costs and service fees from the consignee, Velox Company will send them D/O of the Master Loader and D/O of the company Until this step, the process of organizing and implementing of import LCL shipments at Velox Global Logistics Viet Nam Limited will finish After this step, the consignee will their remain duty to receive the shipments at CFS warehouse 2.3 Evaluation of the process Strengths: - Most of the staff of the Import - Export department have high professional skills and have many years of experience in large companies So, the job is done - smoothly, avoid errors and quickly handle unexpected situations Documents related to the import shipment are provided fully and quickly by - partners Taking advantage of the company's customer is a familiar partner, it has removed some unnecessary steps, shortened delivery time, did not stagnate capital, helped increase profits in quick capital recovery Weaknesses: - As a newly established company, the company still does not have enough funds to - invest in modern equipment for the job Currently, errors in customs documents make the process slower than expected because it takes about working day for the company to correct, sign and stamp documents CHAPTER 3: RECOMMENDATIONS AND SOLUTIONS 3.1 Solution to improve the process of organizing and implementing of import and export at Velox Global Logistics Viet Nam Company Limited After a period of internship at the Company that comes with the knowledges I have received, I would like to offer some solutions, hoping to contribute to improve the efficiency of forwarding processes of the company's services 3.1.1 Procedures for checking documents Two people should check and cross-compare to help reduce errors in the inspection After the staff in charge completes the preparation of documents, the manager should take the time to check the consistency of the documents 3.1.2 Assignment of work The company should have a clear assignment in the work of each level and each individual to avoid overlapping work In addition, when signing the contract, it is also clear to the customer that the customer's contract delivery staff and the contact information for both sides can easily communicate with each other when problems occur 3.1.3 Solution for investment and development of capital The company is small and has a small charter capital The situation of client companies has been appropriating capital There are times when the company is in a shortage of capital to pay the freight, the costs of paying for customers that interrupt the process So that - The company should raise capital from other sources such as issuing bonds The company should transform into a joint stock company to issue shares to raise capital 3.1.4 Developing the working capacity of sales staff: Employee must always equip with knowledges, learn, and exchange experiences At the same time, take advantage of the time to supplement foreign language capital, take classes on understanding customer psychology, the ability to speak in public to have in-depth knowledge about the types of services that the company provides The company should have a policy of recruiting and remunerating capable and assigned employees in accordance with the capacity and passion of each employee to promote their own strengths to bring the highest work efficiency Regularly organize short-term professional training courses for employees, send employees on business to learn knowledge and improve experience 3.1.5.Promote customer support services: In a fiercely competitive environment today, in order to be able to stand firmly in the market, the Company not only having a suitable price strategy but also adds the most attractive customer support services to not only keep retain old customers and attract new potential customers, even from other competitors Therefore, the company should open a department specializing in researching the needs of customers and supporting and advising customers when necessary 3.2 Recommendations for Government Agency The government should step up the development of trade associations so that importexport enterprises and forwarding companies could have more chances to meet and cooperate in business, creating conditions for forwarding companies to introduce their services with import-export businesses It is necessary to announce an increase or decrease in petrol price in advance of a certain time so that businesses can flexibly adjust the service price to suit each situation to minimize losses for the forwarder in cost Establish organizations or associations to unify processes and regulations between ports, sub-departments, and border gates in order to avoid negativity and confuse businesses in forwarding work due to different regulations between home agencies country This will facilitate goods clearance activities for businesses CONCLUSION Export and import activities play an important role in the economy It allows to make the most of domestic resources and to actively participate in international specialization and division of labor At the same time, through this activity, we can access advanced technology, science, and technology, contributing to accelerating the process of industrialization and modernization of the country, the integration process between our country and other regional countries sector and the world Velox Global Logistics Company Limited was founded in the context of a country transformation and integration The company has constantly improved itself in all areas from business activities to organizational structure The proof for the company's success is its growth and expansion of the scale of its operations The company has achieved certain achievements, bringing profits to improve the lives of employees in the company, contributing to increasing government budget revenue, contributing to the construction renovation of our country For myself, my internship at the company gave me a real opportunity to get in touch with my work and specific working environment, I have learned a lot of knowledge from reality, shorten the distance from theory to reality However, the report cannot avoid certain shortcomings due to limited qualifications as well as practical experience We hope to receive all comments and comments from teachers and brothers and sisters in the company Sincere thanks to the enthusiastic attention and support of the employees in Velox Global Logistics Company Limited and the dedicated guidance of Mr To Diep for me to complete this report REFFERENCE PGS Vũ Hữu Tửu (2006), Giáo trình Kỹ thuật nghiệp vụ giao dịch ngoại thương, NXB Đại Học Kinh Tế Quốc Dân GS TS NGƯT Đặng Đình Đào, Dịch Vụ Logistics Ở Việt Nam Trong Tiến Trình Hội Nhập Quốc Tế, NXB Dân Trí Data from the Velox Global Logistics Viet Nam Company Limited’s departments ... 4430.4 5,000 26 86.6 20 18 Revenue Cost Profit after Tax 20 19 YEAR 20 18 20 19 1 /20 20 – 7 /20 20 Total Revenue 15,017 19,573 4,976 Total Cost 9, 327 11 ,22 8 3 721 Profit before Tax 5,690 8,345 125 5 Current... Nam .19 2. 2 Interpret the delivery process: 20 2. 2 .2 Receive the documents from the exporting agent 20 2. 2.3 Check the set of documents 20 2. 2.4 Check the vessel’s... representative and Director: Part Joon Mo Address: 20 /1 Nguyen Truong To, Ward 12, district 4, Ho Chi Minh city Tel: +84 -28 -22 53- 825 0~1 (EXT: 105) Fax: +84 -28 -22 53- 826 0 Email: hochiminh@vql-vina.com Charter