(Luận văn HV chính sách và phát triển) solution for the completion of logistics support services at logistics sao viet company limited

ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE GRADUATION THESIS Topic: “"Solution for the completion of Logistics support services at Logistics Sao Viet Company Limited” Supervisor: Mr Nguyen The Vinh Student: Nguyen Phuong Dung Student ID: 5073106006 Grade: International economic LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENTS After years of studying and practicing at the Academy of Policy and Development, I have received the enthusiastic guidance and teaching from lecturers, especially lecturers from International School of Economics and Finance in term of theoretical and practical knowledge And during my internship at Vietnam Logistics Sao Viet company limited, I had the opportunity to apply the knowledge in school to work in the company, and at the same time, I also learned a lot of practical experience from senior employees With my own efforts, I have completed my internship report From these results, I would like to sincerely thank Firstly, I would like to express my appreciation to all lecturers of Academy of Policy and Development who taught me a lot of valuable knowledge and created favorable conditions for me to take my internship In addition, I would like to express my sincere gratitude to my supervisor, PhD Nguyen The Vinh, who gave me useful guidance and advice that help me to finish my internship as well as complete my report It was a pleasure working with her Finally, I am thoroughly grateful to Mrs Nguyen Thi Chuyen, the Director of Business Development Division, Vietnam Logistics Sao Viet Company limited She not only offered me an opportunity to complete my internship course, get information about the company but also gave me professional guidance and insightful comments that considerably help me gain a lot of experience in analyzing and evaluating the potential and risk of stocks and derivatives Due to the limited knowledge, it is unavoidable to make mistakes in interpretation and presentation I am look forward to receiving your comments and suggestions so that the internship report will achieve better results LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENT LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ACRONYMS LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES AND PICTURES LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com PREFACE After more than 30 years of implementing the renovation process, the Vietnamese economy has gained many remarkable achievements In the political report of the National Party Congress of the 12th Party, the Communist Party of Vietnam made comments and assessments “Overall, over 30 years of innovation, our country has achieved tremendous achievements and historical significance on the path of building socialism and protecting the socialist country” With great contributions, we recognize from the government in the opening of the national economy, deeper and wider integration into the world economy This is a strategic work that takes a very important role Which in particular the position of export is irreplaceable Exports from domestic individuals and private economic organizations constitute a potential internal force to bring the country to sustainable development In order for import-export goods to be exchanged smoothly, the means of transport have a huge role The shipping process includes systems that support goods from delivery to the destination, ensuring adequate supply of the requirements of the process of buying-selling at the lowest cost through the method of freight forwarding, air, road… Nowadays, Vietnam is in the process of global integration, opening the economy Integration into the world economy has generated and significantly increased the volume of goods traded domestically and abroad, so freight logistics play an important role and becoming an indispensable stage in the process of import and export However, this means that Vietnam must compete with foreign Logistics enterprises with financial strengths, experience and a professional business network across the globe In fact 70% of revenues are currently falling into the pockets of foreign businesses In Vietnam, there are thousands of businesses in the domestic Logistics service but currently only grasp about 10% of the market Therefore, reducing foreign dependencies and aiming to export Logistic services is the goal to be achieved in Vietnam, thereby enhancing the position in the International Business Network To achieve that goal, the investment in development to enhance LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com competitiveness for every Vietnamese company is the necessary job to best meet the needs of customers Understanding the situation, the Vietnam Logistics Sao Viet Company Limited has become one of the contributing enterprises to support Vietnam's delivery network with considerable recognition However, to be able to reach further in the harsh competitive environment, it is necessary to have practical, more responsive solutions that can reach the market and drive business After a 2-month internship here, I had a certain amount of experience and understanding with the desire to contribute a small part to the development of the company, I chose the topic "Solution for the completion of Logistics support services at Logistics Sao Viet Company Limited" LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: OVERVIEW OF LOGISTIC SERVICES 1.1 Overview of Logistics 1.1.1 The definition of Logistics Logistics is one of the few most difficult terms to translate, like the word "marketing" and even other languages Because the meaning of the word is so broad, no word can convey its significance Logistics have concepts derived from military demands in providing for themselves during the movement of the troop from the base zone to the frontline During the ancient Greek period, the Roman Empire and the Byzantine Empire, there were officers with the label "logistikas" who were responsible for financial matters as well as supply and distribution In the military, logistics is managed by experts to know how and when to move resources to the locations they need In military science, maintaining supply while disrupting an enemy's supply is a critical element of military strategy Logistics has a business-related concept derived from the years 1950 This is mainly due to the increase in supply, transportation in a globalization world that requires specialists in the field In business, logistics can understand the focus of both internal and external forces including the cycle process from the manufacturer to the end consumer The main function of logistics includes management of transportation, warehousing and organizational activities as well as planning for such activities The logistics manager combines the combined knowledge of each function and coordinates the resources within the organization to operate In the 1970s and 1980s, logistics service companies became more and more popular with the Just in time model Which was invented by the Japanese In the 1990s, logistics has marked in the commercial market through the application of QR models (Quick Respone) and ECR (Efficient Consumer Respone) to meet consumer performance According to the United Nations Economic and Social Council (ECOSOC), the development of Logistics in recent years has been divided into three phases LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com In addition, Vietnam also has plans to build and upgrade airports to meet the growing needs of the civil aviation market, besides a sanitary airport system for international airports Airports have been upgraded to modern terminals, runways - as well as modern equipment to serve the needs of transporting domestic and foreign customers Up to now, the runway network has been expanded to countries around the world, including transit routes and direct flights with increasing frequency of exploitation A series of projects are in the urgent rush of completing and upgrading Vietnam's railway infrastructure These projects are aimed at meeting the needs of transport, contributing to solving the problem of goods and passengers circulation across the country Therefore, it can be seen that with the upgraded and newly built transportation infrastructure system in the future, Sao Viet Import and Export Services Co., Ltd will have the opportunity to expand the network of transportation supply support throughout Vietnam, thereby providing customers with higher quality services The legal system of the home country The State's policy of encouraging export also significantly increases the volume of exports, as well as facilitates and makes it easier to clear customs and clearance of goods The period of 2020-2025 will be a time of innovation for the whole import-export industry in general and the import-export support service industry in particular when the Vietnam-EU Free Trade Agreement (EVFTA) officially takes place validity Accordingly, the EU will eliminate import duties on about 85.6% of tariff lines, equivalent to 70.3% of Vietnam's exports to the EU After 07 years from the date of entry into force of the Agreement, the EU will eliminate import duties on 99.2% of tariff lines, equivalent to 99.7% of Vietnam's exports For the remaining 0.3% of exports, the EU commits to giving Vietnam tariff quotas with import duties within the quota of 0% LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Thus the new context, taking the pressure of competition is the driving force for innovation and development EVFTA will certainly bring opportunities for businesses to actively respond to changes in the business environment brought about by the process of international economic integration through the development and adjustment of business plans for the period middle and long-term segments to promote the flow of goods into the EU market 2.3.4 Challenges Fierce competitive environment Currently, logistics service companies as well as supporting agencies and shipping agents in Vietnam are constantly increasing in number, developing in size and perfecting in quality, which is truly a big challenge in competing for a new company that has not been in operation for a long time like Sao Viet Import Export Service Co., Ltd Lack of highly specialised human resources For companies in general and with Sao Viet in particular, finding human resources is not easy Quantity but has not been trained and highly specialised Existing human resources are trained from different schools with a general knowledge of foreign trade and transportation Besides, the volume of the business model as well as import and export support activities is also limited, the child force involved in policy planning is very modest In a nutshell, the challenge for Logistics Sao Viet Co., LTD In the import and export support services market in Vietnam is no less, but the opportunity to be able to develop this service is much more than that It is important for the company to seize the opportunity to develop and face the challenge, to know the challenges of opportunities, take the opportunity to motivation to achieve the highest quality of efficiency The SWOT matrix table below summarizes the content that needs your business's attention, thereby making practical solutions to improve the quality of service LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 2.3.5 SWOT Matrix Table 3.1 SWOT matrix of Logistics Sao Viet CO., LTD SWOT Matrix Strengths (S) Image and reputation in the market Dynamic human resources, enthusiasm Initial market expansion Weaknesses (W) The service lacks cohesion The network system has not been expanded Marketing activities have not yet been focused Service quality has not been focused on investment The quality of staff working in logistics is weak Restrictions from the market Opportunities (O) Vietnam's economy is developing Infrastructure is built for investment, upgrading Legal system Threats (T) Highly competitive environment Lack of specialized human resources SO strategy Market expansion Strategy Development strategy towards improving the quality of service ST strategy Build a highly skilled staff WO Strategy Developing ecommerce network Associating with domestic and foreign enterprises WT Strategy Enhancing marketing activities LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CONCLUSION OF CHAPTER Looking at Vietnam's position on the world logistics map, we can see that Logistics services in Vietnam are currently developing faster and faster, gradually integrating with the global economy However, the main source of profits from business activities in this area goes to foreign enterprises and companies Vietnamese businesses with traditional forwarding activities, without a clear development investment orientation as well as facing with significant competition The Logistics Sao Viet Co., Ltd is also one of the Vietnamese enterprises that has outstanding financial constraints, has not developed a system of branch agents as well as weak professional staff Especially, the issue of applying information technology to Logistics service business has not been focused on In the future, Logistics Sao Viet Co., Ltd, in particular, and companies participating in Logistics services in general need to have appropriate and timely adjustments to be able to continue developing the domestic market into the world LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 3: COMPLETE BUSINESS SOLUTIONS LOGISTICS SERVICES OF LOGISTICS SAOVIET COMPANY LIMITED 3.1 Objectives – basis for solution proposals 3.1.1 Solution Proposal Objectives Building strategic Solutions for Sao Viet Import-Export Service Co., LTD In order to improve operations supporting Logistic service in the coming time Providing a number of specific solutions to build a base and platform to apply in the business of Logistics operations at the company Proposing a number of petitions to the State and relevant organizational departments to facilitate the development of business activities of the general Logistics companies and Sao Viet Import and Export Services Co., LTD in particular Having a combination of internal power generation and the use of foreign forces to develop in order to build a solid position in the market 3.1.2 Basis for proposing a solution In the current trend of globalizing the economy, global logistics is an inevitable development Therefore, companies also need to be headquartered in many domestic and foreign markets to serve the needs of customers Vietnam has a favorable geographical position and is located in a dynamic and rapidly developing economic region The revolution in information technology has profoundly changed the face of many industries including Logistics, thanks to the advances in information technology that brought Logistics to a new step In the transport sector, competition is getting fiercer and profit margins are declining, so the trend of transportation companies is to bypass intermediaries to come directly to customers LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 3.2.1 Orientation of company development In order to improve the business of the company in the next time need some objectives and directions as follows: - Developing a business strategy, which emphasizes the goal of diversizing the types of Logistics services while improving the quality of service on the basis of thorough extraction of the strengths available in the market Expanding the immediate logistics market in some provinces to highlight the key Logistics industry then towards markets such as Korea, China, Hong Kong - Building, implementing business operation mechanism, price mechanism, commissions create leverage to promote business, strengthen management of cost savings, improve service quality and competitiveness in the market to attract new customers, maintain customers who have been using the services at the company - Creating a close coordination relationship between departments within the company, between the company and the airline partners, dealers, partners in the industry 3.2.2 Solutions 3.2.2.1 Solutions to diversify service type and improve the quality of Logistics services The provision of one or more services in the Logistics chain cannot fully satisfy the customer's demand To increase the competitiveness of the company in the market of diversification of the service type is very necessary The development of expanding the types of services helps the company to meet the diverse needs of customers, thereby improving market share, limiting the duration of the operation in particular activities, while creating regular and long-term relationships with customers In addition to the delivery method of import and export of raw containers and odd goods by sea, air or road as the present The company needs to develop the LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com transportation of delivery services to Door to door, Door to C/Y, C/Y to C/Y with competitive rates We can understand a service that meets the needs of customers, making customers satisfied is quality In freight logistics operations, the quality of the service gives customers the trust, peace of mind that their goods are being safe and to the correct destination To that, first of all the company's delivery must meet the basic requirements of the profession It is fast, safe at the lowest possible cost For things, the company should build a number of quantitative indicators such as time to complete reasonable work and a number of attribute criteria to monitor the results of services, customer reviews With the type of delivery of goods import and export by sea, service quality sometimes performed in very small things, such as for the special goods such as hang containers need to require high sanitary conditions, the company should also choose the containers satisfying clean, good In order to have very strict technical requirements in shipping, loading and unloading, packing and preserving, the company should invest in the tool of goods, delivery staff are the ones who the goods or directing the goods must pay special attention to the extra effort This will not only help reduce the cost of outsourcing of the company but also improve the quality of service provided to customers In addition, creating good services is to advise customers on the competitive situation in the market, the situation of foreign trade and international law Providing customers with information about import and export partners, giving advice on the terms of the foreign trade contract, explaining the complex terms so that the client is not misunderstanding, which leads to controversy when a dispute occurs 3.2.2.2 Solutions for the development of inland Logistics and joint ventures with foreign Logistics companies It is a service activity, but the Logistics industry requires very high conditions to be LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com organized and implemented This does not require any capital investment but is also required to apply modern technology For Vietnamese and small logistics companies such as Logistics Sao Viet Co., LTD need to venture together, specialising in the strengths of each company to more comprehensive in Logistics operation Logistics Sao Viet CO., LTD is a domesticated domestic logistics company that needs to be associated with international logistics company with global network to send goods The state also allows to diversify the types of ownership in the Logistics industry Therefore it is possible to form a company in the form of shares or joint venture company by which the partners can be strong companies of different segments in the chain of Logistics Every company will invest in development, strengthening its strengths to provide a perfect chain of Logistics As a logistics company working as an agent for big domestic and foreign logistic companies, for further development in the next year, the company needs to have a plan to study, study the experience in a way, actively design domestic Logistics operations in conjunction with their international Logistics , using the information technology of large companies When there has been a business and accumulation of capital, investment in upgrading modern information technology, with a stable amount of customers, the company can have more powerful Logistics activities for their own 3.2.2.3 Solutions to apply information technology to Logistics activities The problem of applying information technology has no stranger in all types of business services in this era First of all to be able to apply information technology to Logistics Operation, the Logistics Sao Viet Limited company should invest in purchasing more full equipment for employees in the company Followed by the investment in applying modern information technology in accordance with the level of Vietnam at present, step by step applying innovative technology in the world The company also focuses on software technology suitable to the conditions in Vietnam in Logistics services From building an internal information system to each functional part of the company, the company can create a standard database as well as LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com a platform for Logistics information system The connection of internal information to the outside by using the Internet is the right method for the Logistics Sao Viet Limited company in the present moment The convenience of using the Internet with Logistics activities is increasingly pronounced, therefore, the investment of using the company's Website effectively is the need to as soon as possible because this is not too much problem but only the investment has not been paid properly The company should also receive information from the carrier Tracing and Tracking system in its database when the goods are delivered to the vessel until the goods are assigned to the dealer, continuing to update the information from the dealer's website until the goods are delivered to the recipient To achieve these things the logistics Sao Viet Co., LTD can choose to build an IT department in its company or affiliated with a Vietnamese software company 3.2.2.4 Solutions to promote marketing activities Trade Promotion Solutions In the competitive situation, the marketing must be considered as the top priority in international service business Trade promotion for a service business includes the following principal activities: Advertising and customer relations activities which are important as customer care policy Advertising measures are an important activity, ads are used to maintain the company's image, highlight an item, service or event, promotional policies, discounts or customer support The appropriate and powerful advertising policy can improve the situation dramatically Besides, it is necessary to establish relationships with representative offices and foreign economic organizations in other provinces Harnessing the commercial information, building good relations with the business and economic organization, exploiting information on trade contracts, investment in Vietnam to exploit the demand for transportation LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com However, the most preferred form is that the employees of the company go to the import and export units to build relations by quotation, persuasive customers This form lies in the strategic promotion of customer care Not only is it frequent to meet customers to learn about the needs and demands of customers for the services of the company, the exchanges also help the two parties to understand and trust each other In addition, the company may adopt several methods such as allowing customers to enjoy satisfactory commissions, with large customers who have stable goods for the benefit rate Market Expansion Solutions In the situation of a fierce competition on the market of logistics today, want to survive and develop, the Logistics Sao Viet Co., LTD needs to expand the logistics market This is an effective measure for achieving profit goals, strengthening goals, strengthening position and safety goals As the market has been expanded, even if a certain market area fluctuated, there will not be a serious impact on the operation of the whole company However, the expansion of the market in the present moment is not an easy job, because each market has the characteristics of social-economic, the law of the customer This has a huge impact on the business environment, the social consumer psychology, which has greatly influenced the penetration and expansion of the market of enterprises abroad Therefore, to expand the market, the company must conduct an intensifying the research of key regional markets in the country as well as foreign countries have nothing different than the markets that the company has and is operating In fact, the main market of Sao Viet Import Export Service Co., Ltd is the North and some countries in Asia such as Korea, China But the biggest export market of Vietnam is the US, Japan, EU the company has not solved much So first of all, the company needs to expand the market in width, which means the company needs to expand the market in terms of geographical scope, width of space With solutions to LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com enhance website advertising or in magazines specializing in import and export Especially, building a company's website with full of service information is also an effective solution So far there are many potential markets in the country and abroad that the company has not been able to exploit At the same time the company also needs to expand the market in depth These are active markets that will attract more customers, strengthen long-term relationships with traditional customers with the quality of service and by expanding their scope of services 3.2.2.5 Building, training and developing human resources We all know that people are the center of all activities, an organization that wants to be strong must have talented people to go with it In order for logistics Sao Viet Co., Ltd to develop for a long time, the company needs to constantly improve the level of its workforce Firstly, professional qualifications, the company's role in training its workforce is undeniable The company needs to regularly organize courses on foreign trade operations, international payment operations, customer communication, more legal training and especially need training to improve foreign language communication skills for all employees in the company Right from the recruitment stage, the company needs seriously and objectively to select young, talented and enthusiastic employees There is a new way to facilitate the later stages of training Every year, the company should organize professional competitions, especially foreign languages, so that all employees must learn by themselves, not neglecting to cultivate and enrich their level of knowledge Besides, raising awareness for employees is also very important, contributing to help the company improve work efficiency That is the sense of responsibility, creative thinking at work, a sense of thrift, preserving the company's assets, facilities and technical facilities To raise the awareness of all employees in the company, there should be a number of things such as: giving strict rules, clear reward and punishment policies to encourage the spirit of self-discipline, good treatment for bright people ants LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com improve their work The employment policy must be for the right people for the right jobs 3.3 Recommendations to the state First of all, related to the legal aspect is the issue of licensing for companies operating in the field of logistics Need to implement the licensing regime more closely to facilitate monitoring the quality of Logistics activities, considering the financial, physical - technical facilities, operational experience, professional qualifications of the team employees avoid the case of massive development like today When there are so many weak companies in the market, they create an environment of unfair competition The consideration of licensing conditions in Logistics activities will contribute to promote Vietnamese forwarders to develop in the right direction in this activity Customs procedures need to be improved in order to create favorable conditions for import and export activities, and import and export regulations need to reach a high consensus between the customs authorities and relevant agencies to avoid conflicts content of the text Customs laws need to have regulations as the basis for implementing customs procedure reform in the direction of simplifying customs documentation, publicizing and facilitating customs declaration, and customs service regulations , conditions for hagf release for each type of import and export goods, rights and obligations of customs procedures, resolving complaints arising quickly, shortening the time of goods release In summary, in Logistics activities, it is necessary to ensure the smooth stages in the process of transporting import and export goods The right timing factor is very important for the logistics operation process Therefore, improving customs procedures to reduce the shortest time and standardization in customs declaration is one of the important factors in the design of Logistics chain There should be regulations and policies to win the right to transport logistics LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com companies in Vietnam Currently, the government has no mechanism in place to support Vietnamese freight forwarders to gain transportation rights for import and export goods Countries such as the US, EU, Japan, etc are countries with strong economic development, but the government still applies supportive measures so that enterprises can choose commercial conditions to allow the use of epidemic types domestic insurance, transportation services, etc The measures that governments support are institutionalized by law forcing businesses to use government funding, ODA projects, and use the government budget , state-owned enterprises have to hire means of transport and services provided by domestic investors INCONCLUTION Logistics plays an increasingly important role in the current period, and this is also a period with many advantages for businesses operating in the field of import-export business and related industries It can be seen that Sao Viet Import-Export Services Co., Ltd has been developing steadily in the market, although there are still many limitations and difficulties, besides the company also takes advantage of opportunities to expand the scope of supply activities in domestic and foreign markets In the coming time, the market of enterprises in general and Vietnam's logistics market in particular will be expanded and attract more foreign investors This will cause an inevitable level of fierce competition between domestic and foreign businesses Therefore, it is required that the companies providing logistics support services have prepared plans to be able to compete and develop Learning and acquiring experiences from domestic and foreign companies in the same industry is also an important factor to be able to improve the quality of its services, meet more and more scale But better quality for market demand LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com REFERENCES Logistics Sao Viet Co., Ltd, Business Report of 2017 Logistics Sao Viet Co., Ltd, Business Report of 2018 Logistics Sao Viet Co., Ltd, Business Report of 2019 Stock title MB (2019), 2019 macroeconomic forecast Ngo Thu Hien (2013), Solutions to improve Logistics services at Honest Trading- Service Joint Stock Company by 2015, Hanoi Commercial Law, 2005 Vietnam Maritime Law, 2005 Vietnam Customs Law, 2001 Dr Vu Thi Thanh Nhan (2014), Developing Logistic service business activities for Vietnamese freight forwarders in the South of Vietnam market 10 World Bank Report 2016 - 2018 www.worldbank.org LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ... SITUATION OF BUSINESS OF VIET NAM LOGISTICS SAO VIET COMPANY LIMITED 2.1 Overview 2.1.1 Introduction of the Vietnam Logistics Sao Viet Company Limited International name: VIET NAM LOGISTICS SAO VIET COMPANY. .. development of the company, I chose the topic "Solution for the completion of Logistics support services at Logistics Sao Viet Company Limited" LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com... chain of services related to the delivery and transport of goods The logistics service is the stage of high-level development of the Logistics service on the basis of using the achievements of information