(Luận văn HV chính sách và phát triển) solutions to improve the import activities of van bao industrial company

1 PREFACE Foreign trade activities contribute significantly to the growth of the economy, Vietnam over the past years However, our foreign minister's balance has so far been largely unbalanced, having to regularly trade deficit means that import value is greater than export value This is not necessarily a bad influence on the economy For our country in the early stages of opening the economy, the economy gradually shifted from subsidized mechanisms to a market economy of inadequate facilities, poverty, backward science and technology Import is a solution to overcome these shortcomings, creating a breakthrough that will gradually lead the country's manufacturing industry to catch up with other countries in the region and the world, as a stepping stone to create a premise for exporting goods Chemical service in the future The actual business of importing goods companies in Vietnam now is not really effective as desired There are many problems stemming from enterprises and the state that need to be solved in time Realizing the role of import activities, during my internship at Van Bao Industrial Company , I chose the topic: "Solutions to improve the import activities of Van Bao Industrial Company " with knowledge The knowledge and understanding are still limited, but I would also like to give my opinion in the hope that the company's import activities will be improved, operate effectively and achieve its goals LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER I A NUMBER OF THEORETICAL ISSUES ON IMPORT AND EXPORT ACTIVITIES I CONCEPTS AND ROLE OF IMPORT ACTIVITIES Concepts International trade is one of the main forms of international business activities It is the activity of buying and selling and exchanging goods and services across a country's borders It consists of two basic parts constituting import and export These two departments have a close complementary relationship thanks to the smooth coordination between them that international trade opens up new opportunities for all businesses and consumers around the world Consumers have a greater choice of goods and services in addition to being an important factor in creating jobs in many countries In which, import is understood as the process of goods, services of foreign organizations purchased by a country to serve the process of production, consumption or re-export in order to make profit The role of import activities In order to successfully implement the policy of globalization integration , on the one hand, it is necessary to know how to bring into full play the domestic potential and advantages, to take advantage of all external resources to improve the competitiveness of the Vietnamese enterprises and commodity economy Men, on the other hand it is also very important is the completion of measures to manage the import of goods to meet the requirements of domestic WTO This shows that the role of importing goods is very important for the development of a country, which is reflected in the following basic points: First, thanks to the import activity, domestic consumers have a greater choice for goods and services, it complements the demand gaps due to domestic production which is not able to produce from that meet the needs of the domestic market, improve the living standards of the people, diversify commodities in categories Secondly, imports will break the domestic monopoly situation, most imported goods are often highly competitive in terms of product quality, designs, prices so domestic manufacturers want to survive Therefore, it is necessary to seek all measures to improve product quality, lower prices to increase competitiveness with imported goods, from which the monopoly status is eliminated and the main beneficiary is the domestic consumer Imports also serve as a bridge between the domestic economy and the world economy, especially in Vietnam during the period of international economic LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com integration It is one of the effective tools to help us eliminate the selfsufficient economy towards a market economy Thirdly, imports help countries improve the level of science and technology and advanced technology of industrial countries in the world Because imports often occur in underdeveloped countries with low levels of science and technology, inability to produce goods with a high content of gray matter, or because of an obsolete level of machinery and equipment should produce at a high cost Before that situation, they had to import Through the import of modern machinery and equipment, technical innovations are transferred between countries so that the least developed countries can keep up with the advanced technology level in the world, contributing to the operation domestic production development Fourthly, import boosts export activities Through the import of modern machinery and equipment, the raw materials are low cost These factors play an important role in improving product quality, lowering production costs, thereby increasing the competitive advantage not only in the domestic market but also affecting the export market Especially for underdeveloped countries with cheap labor costs like Vietnam , this is a great advantage Fifth, importing it promotes a country's faster economic development Because imports will make the competition environment fierce, economic entities must always innovate and improve themselves to stand firm in the market In the process of competition, weak entities will be excluded from the game, only strong subjects applying advanced technology will survive this, leading to the development of society Sixthly, through the import of economic entities among the countries, they have the opportunity to exchange and learn from each other's experiences, facilitating the process of division of labor and international economic cooperation at the same time take advantage of each nation's comparative advantage Since each country has a comparative advantage, its import operation facilitates both parties on the basis of mutually beneficial cooperation Seventh, importing it meets the increasing needs of domestic consumers, contributing to the process of domestic production and consumption occurs regularly and stably because there is not always the domestic market Also provide the inputs that meet the domestic production going on For example, Vietnam has to import billet, so there will be no stagnant imports On the other hand, domestic demand is increasing so imports will overcome the imbalance between supply and demand in the country In short, import activities play an important role in a country's economic development Through the import activities of international economic LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com cooperation has been increasingly expanded, contributing to increasing labor productivity, the level of labor division is increasing, people's lives are improved materially and spiritually This is evident in the poor and developing countries typically Vietnam Nam We have actively carried out import activities to serve the process of industrialization and modernization of the country; promoting agricultural mechanization, promoting irrigation, biochemistry, serving agro-forestry and aquatic product processing industry in order to improve export quality Promote the establishment of the electronic assembly industry, garment industry creating high value products Forms of import Direct import is a fairly common form of import for businesses but due to the increasing level of development, due to the impact of business conditions and environmental conditions, businesses have created many import activities to suit the capabilities of the business Each enterprise, depending on its own conditions, selects the appropriate form Here are some forms of imports, but now Vietnam is often applied 3.1 Direct import Direct import is an independent activity of the company When conducting this import method, enterprises must research on domestic and foreign markets by themselves, calculate costs and ensure profitable import business Comply with national and international law policies In the form of direct import between two parties (the importer and the exporter), the axis of direct transactions with each other, the sale and purchase are not tied together In which the importing party must: - Must be legally responsible for all activities, must conduct market research, bear all transaction costs, delivery, warehousing, advertising costs, consumption costs of goods and value added tax - Importing enterprises are directly allowed to calculate import quotas and when selling imported goods, they will be accounted into turnover and subject to value added tax - To enter into a contract, the two parties often have to go through a process of negotiation and negotiation on transaction conditions - The risk of this import is usually higher than other imports but the profit is higher 3.2 Import consignment Entrusted import is the import that has to go through an intermediary The intermediary receiving the entrustment of the enterprise shall conduct transactions and negotiate with the importing partner to carry LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com out import procedures at the request of the mandator Entrusted import has the following main characteristics: The consignee does not have to invest capital, does not have to apply for a quota, does not have to research this job market The authorized party only represents the principal to find and transact with the foreign partner, sign a contract and carry out the procedures for importing goods, on behalf of the mandator to lodge a complaint or claim against a foreign party Foreign cooperation when there is a breach of contract causing damage The benefit that the principal has from the principal is the fee Usually, the entrusted enterprise is entitled to a remuneration of 0.5% to 1.5% of the total contract value and must pay income tax on this revenue when importing the entrusted enterprise Only import-export turnover, not the turnover and payment of value added tax The use of intermediaries helps businesses reduce the level of risk because intermediaries often understand the market, laws and local practices Therefore they have the ability to promote trade to avoid risk to the dealer On the other hand, thong intermediaries have certain facilities, so when using them, the consignor must invest directly abroad However, when using the trust business they were divided profit, losing direct contact with the market 3.3 Parallel import Parallel import refers to the commercial activity associated with the welding of goods containing the protected industrial property object , the parallel import is understood as an importer without any connection with the owner of the Industrial Property subject , conducting the act of importing a certain goods containing the above mentioned Industrial Property object provided by a licensed distributor or owner of the Industrial Property object Thus, a kind of goods containing objects of Industrial Property will be at least two different houses offered on a market, and only one of the distributors are agreeing that the owners object Public Property now on the implementation of commercial practices, for those industrial property there Features of parallel imports: - Industrial owners and importers have no connection - At least two distributors supply in a designated market owner of industrial property - Directly related to two important areas of modern trade: free trade and protection of industrial property rights Parallel imports appear a conflict of interest among stakeholders Due to a parallel import act, the party having the right to the Industrial Property object has not been able to fully exploit his / her rights to the LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Industrial Property subject But parallel imports offer a very practical benefit to the market: Encouraging freedom of competition, so allowing parallel imports or not will lead to the possibility of a force to choose between protecting the original principles of freedom of competition and protection of Industrial Property rights This is an array of modern trade, facing this problem, each country has its own opinion In general, parallel imports are flexibly addressed in different countries 3.4 Import convection Convection import is a mode of goods exchange transaction, in which import is closely linked to export Payment is not made in cash but on goods of equivalent value for exchange or also called import under barter method This type of import has the following characteristics: - In each contract, there are mutual binding conditions that make the importer also an exporter - Equilibrium conditions must be balanced in terms of items, prices, balance in terms of total value of goods delivered to each other and balance in terms of delivery - The importer simultaneously gains interest from two activities: importing and exporting this benefits both sides - In the process of exchanging goods and services, the two parties must uniformly stipulate the use of a single currency as a common par value for the exchange process 3.5 Import re-export Re-import is the purchase of goods from abroad, but the purpose is not for domestic consumption but for export to a third country to collect a larger amount of foreign currency This item is unprocessed in its own country and exported directly to a third country Thus, re-export activities always attract three countries: exporting countries, re-exporting countries and importing countries Features of re-export activities: - The re-exporting trader must sign two import contracts and one export contract not subject to import and export tax - Goods can be transported directly from the exporting country to the importing country but the re-exporting country receives money from the importing country and makes payment to the exporting country - In terms of payment, many re-export contracts stipulate the use of a letter of credit on the back Doing business in this form requires the sensitivity of the market situation and the price, accuracy and coherence in the contract of sale 3.6 Import processing LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Processing import means an import in which the importing party imports raw materials or semi-finished products of the processing party for processing out finished products, re-delivers them to the processing party and receives remuneration Features of this form: - Importing activities associated with production activities - mutually beneficial: outsourcing parties help them take advantage of cheap raw materials and processing from the processing country For the processing party to help create jobs in the country, receive new technological equipment - The processor takes all costs and risks of the processing - This activity about payment method one can apply many payment methods such as: collection, payment by letter of credit Above we consider some basic import forms In which direct import is the most popular and oldest activity Undergoing many changes of society, import activities have been created in order to meet those changing needs Which form to apply depends on the conditions and qualifications as well as the capacity of each business and each country Facing that situation, every country and every international organization has given its opinion Because this is a sensitive issue regarding each country's trade, not all countries have a clear, consistent view In general, import problems are handled flexibly in different countries Factors affecting import activities Trade activities in general and import activities in particular are affected by many different factors such as: economy, politics, cultural and social laws, etc These factors will have a positive or positive influence Negative to business performance In general, we can divide the group influencing import activities as subjective and objective groups 4.1 Subjective factors Subjective factors can be corrected by the enterprise itself, it is the enterprise itself These factors have a positive or negative impact on business activities, import activities depend on many factors such as capital, human resources, policy development, on trade infrastructure structure, on the circulation distribution channel, production and business activities and on business organization Enterprises need to assess their ability to set appropriate goals to achieve and ways to achieve that goal A strategic plan is established and developed for all activities of enterprises in general and import activities in particular The organizational structure is the basis to ensure effective business and production activities The coordination between parts will take place smoothly LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com if the organizational structure is reasonable In which the human factor plays an important role in the success or failure of a business A staff of highly qualified professional disciplines, with extensive experience in import and export activities helps businesses avoid many shortcomings in the process of conducting import procedures, anticipating the situation beforehand changes in the import-export market to draw up appropriate import and export policies and measures A good distribution channel system will help businesses save costs, fast and timely consumption of goods to customers This affects the import situation of the business Because when the consumption of goods is strong, the production will be expanded so that the demand for import for production and consumption is better For any business to conduct business requires capital Capital that businesses have in many ways: equity capital, contributed capital and loans or reinvestment profits The size of production and business is more or less dependent on the capital that the enterprise has; it is the basis to ensure the solvency of the imported goods Trade infrastructure ensures goods retain their quality If businesses have good commercial infrastructure and will help businesses avoid damage, risks will occur for goods such as collapse, the impact of the natural environment 4.2 The objective factors Objective factors greatly affect the business operations of the business It does not depend on the subjective will of the business, which forces the enterprise to find a way to adapt or adhere to rules and regulations Basic objective factors include the following: * Factors related to the political environment: The impact of the legal system, the system of government policy tools, the governance mechanism of the government An enterprise engaging in international business activities is subject to the national legal system and the international law to regulate its business behavior All legal documents clearly indicate what goods businesses are allowed to trade in? Prohibit trading in goods? Quality of goods to ensure what? Is it controlled or not? The system of policy tools of the state has a significant impact on the import and export activities of businesses The numerous policy instruments include common policy instruments for the entire national economy and specific sector-specific policies The typical policies are: financial policy, income policy, monetary policy, import and export policies, market development policies All of these policies are related to promoting or LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com limiting import and export activities of enterprises, therefore, they force enterprises to take into account when making decisions on import and export The governance mechanism of the state also has a great impact on the business activities of enterprises The governance mechanism of the government will directly relate to the effectiveness of laws and economic policy If a government is strong, operating well and standards will encourage legitimate business If not well controlled import and export activities, it will be disoriented, such as quantity, time, price Imported goods are not well operated, can make the domestic market fluctuate and make it difficult for business * Competitive rivalry Enterprises conducting business face many domestic and foreign competitors Along with the growth of domestic production, the gap between enterprises is narrowing, many products and sectors of high quality are able to meet domestic consumption demand and domestic goods have the ability to replace imported goods Facing this situation, enterprises must consider the growth of domestic production in order to consider whether the ability to import such categories of goods really competes with domestic goods Not all imported goods can compete with domestic products All of the above factors reflect the country's growing internal economic resources * Economic environment The previous economic environment is reflected in the general economic growth in terms of economic structure and regional demand That situation creates market attractiveness for different markets Actual imports of firms may be affected by many domestic and international factors When the economy is in a crisis period, rising inflation and tax rates will force businesses to be hesitant when making import decisions because it will affect the output will increase the price of products negatively affecting competitiveness The situation will be the opposite when the economy returns to the period of recovery and growth * Natural environment The natural environment consists of a system of natural elements that affect many aspects of the input resources needed for business and production activists The shortage of raw materials, the increase in energy costs is becoming more serious, requiring manufacturers to focus on using alternative sources of raw materials Industrial wastes, solid wastes and non-recycled wastes are a difficult problem for production and business activities Along with strict regulations on environmental protection requires businesses to seek input from other countries that affect the import activities of businesses * Technical and technological environment LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 10 The technical and technological environment includes factors that influence new technologies, product creation and market opportunities, it is the most important factor that creates opportunities and threatens businesses Competition for new technology not only allows companies to win globally, but also changes the nature of competition Because it has a strong impact on production costs, labor productivity, affecting specific measures of trade activities in general and imports in particular Entrepreneurs must understand and understand the nature of changes in the technical technology environment and the many different ways each new technology can serve the company's production requirements be alert for possible possibilities * Banking and financial system The banking and financial system is growing strongly on a global scale, it deeply interferes with the import activities of enterprises that dominate this activity It is the basis for the enterprises to conduct production and business; providing capital for businesses, ensuring the solvency for businesses to take place smoothly and quickly, creating favorable conditions for businesses to seize business opportunities in addition with a strong enough financial banking system Increase the reputation of the business with the customers II CONTENTS OF IMPORT Market research The market concept can be viewed from many different angles, words with different definitions From the standpoint of economics, the market is the aggregate of supply and demand for a given commodity in a specific time and space According to this definition, the basic assumption is that the total supply and demand for a commodity in the market move according to its own rules and regulate the market through the law of supply and demand If from the perspective of managing a business, the market concept must be close to the economic actors participating in the market such as buyers, sellers, distributors With their specific behaviors So comparing the above two concepts, the above concept is theoretical and the concept from the perspective of the business does not always follow the rigid rule based on the theory because the behavior of the buyer and seller impact psychological factors and trading conditions So from an enterprise perspective, "the market is a collection of potential customers of the enterprise" From the above concept, we can give the concept of an enterprise's international market "the enterprise's international market is a collection of potential foreign customers of that enterprise" According to this concept, the quantity and structure of demand of foreign customers for the products of enterprises as well as the fluctuation of these factors over space and time are LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 32 - Preparing goods: Ensuring compliance with the contract, delivered on time - Packing slip: must be made into a number of copies, including copy for immediate delivery in the package, the other copy to enclose documents for the buyer and for customs declaration if necessary - Quality certificate - Complete procedures and apply for export permits - Customs clearance to apply for permission to load goods onto the ship - Loading and unloading of goods to the ship at the first port according to the transport contract - Do all procedures to identify payment for goods in accordance with the provisions of the L / C opening contract * Buyer: The buyer has the following obligations: - Carry out the procedures to apply for an import permit - Procedures for opening L / C - After opening L / C, urge the supplier to notify the situation of goods delivery and ship information - Chartering (if the contractual agreement of this obligation belongs to the buyer) - Buy insurance - Carry out customs declaration procedures at the request of the state - Receiving goods: Can directly receive goods or receive goods through the port Particularly for Van Bao Industrial Company receiving goods through the port - Check the goods - Make a payment Above is the import process of Van Bao Industrial Company This process is conducted quite closely and methodically, each stage is clearly meticulously researched by the management team in accordance with the provisions of the international contract It also shows that the import and export business of the company is getting better and better III EVALUATION OF THE COMPANY'S IMPORT ACTIVITIES IN THE PAST YEARS Every year, Van Bao Industrial Company summarizes and evaluates production activities in general and export activities in particular On that basis, to assess and comment on the achieved and not yet achieved points to overcome and propose solutions to overcome difficulties and further improve the import and export activities of the company in the following years: Advantages - Thanks to import activities, the company has overcome the shortage of input materials for the production process, while the domestic raw materials LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 33 cannot meet the demand It can be said that thanks to the import, raw materials were added promptly to create conditions for the production process to be carried out on schedule and timely handed over to customers - Machines and equipment are being improved more and more modernly, thereby producing high-quality products that meet customer requirements, creating competitiveness in the market not only in terms of quality but because of cost reduction due to saving on materials Therefore the reputation of the business is increasing - The company not only imports a number of traditional markets but is increasingly expanding to find more suppliers, so the supply is quite diverse and suitable to the capabilities of the business and the needs of consumers The more you serve - Thanks to the prestige with domestic credit institutions along with reasonable foreign exchange management to facilitate the payment of goods to take place conveniently and quickly, on time required by customers - Most transactions with customers take place in the indirect form such as: telephone, email, so the transaction cost through which reduces significantly compared to direct transactions like the previous company applied during the subsidy period - Enterprises with active support from the government in seeking information about partners and foreign markets are favorable conditions for the company - Staff in the company with professionally trained, professional, fluent in foreign languages Difficulties and shortcomings In addition to the results from the import and export activities that the company has achieved during the difficult time that the company is facing, there are still many shortcomings such as: - Due to the extensive business activities, the company needs a large amount of capital every year to maintain production and expand the business scope The interest burden is a big problem for the company Every year, businesses pay a large amount of bank interest rates, which increases the company's cost On the other hand, the company needs a certain amount of foreign currency to trade and the unstable exchange rate makes it difficult for businesses to import goods The company mainly pays in dollars but in Last year the dollar was always volatile and unstable On the other hand the domestic banks have simultaneously increased rate Jumbo t from the interest rate is 6.87% and popularity 9.61 % / year inched up to % to % / year Increasing bank interest rates mean increasing production costs and increasing product costs will be pushed up Unstable bank interest rates make it difficult to calculate the stability of a project or their business LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 34 - Marketing activities increasingly popular in business administration of enterprises This method of management is not only limited to the domestic market but also applied to business in the international market For Van Bao Industrial Company , although the annual revenue is relatively large, the marketing department is still young , the main marketing activity is still supported by the Project and Construction department Therefore, marketing activities have not been focused yet so ineffective activities Above are the advantages that Van Bao Industrial Company has achieved in the course of its business activities In addition to the achieved business results, there are still many difficulties that hinder their business activities To operate more effectively, the company must find the cause and find solutions to existing shortcomings Cause Causes affecting the company's production and business activities include objective and subjective reasons * Subjective reasons: - Enterprises are having difficulty in expanding company capital in many fields Currently businesses are in need of capital, so it is difficult to find new sources of goods - The current market research has not been paid enough attention, the company has not seen the role of marketing activities clearly - Although the staff qualified and proficient professionals, fluent in foreign languages but are inexperienced, not know the laws of the partner is not only the state of the Company's separate Industry Van Bao said Particularly, it is also for Vietnamese enterprises today - Regarding the import form: enterprises mainly apply the direct import method, not yet diversify the import method Although this type of import increases in revenue, its costs are high and the level of risk increases the import costs such as transportation, construction of facilities for import activities - The cause comes from the organizational structure of the corporate governance structure The management apparatus of the enterprise is established according to the linear management model (single line) The use of this model restricts the use of qualified employees, does not promote the active creativity of subordinates * Objective reasons - Unstable prices of imported goods make it difficult for enterprises to conduct business projects, especially the rising import costs and long customs clearance time, which increase the cost of goods and services of construction works work stalled, plans disrupted LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 35 - Lack of management mechanism of import and export goods still has many gaps, creating favorable conditions for rampant smuggled goods with low quality and cheap goods, causing damage to official import goods of the company in particular and domestic companies - Administrative procedures are still cumbersome, especially complicated customs procedures through many stages, causing waste of time and stagnation of capital, which takes business opportunities - The company faces many domestic competitors issued by the government to allow enterprises with legal status to import and export CHAPTER III: A NUMBER OF SOLUTIONS TO PERFECT THE IMPORT OF GOODS ACTIVITIES OF VAN BAO INDUSTRIAL COMPANY I DEVELOPMENT ORIENTATION OF THE COMPANY IN THE COMING TIME - The above results are achieved by the efforts of the whole company and the leadership of the company's management With the achievements, the company does not satisfy itself, it does not stop there In the future, the company will continue to expand the scale of production and business, further improving the lives of employees with more preferential regimes so that they wholeheartedly devote themselves to the company In order to achieve the desired results in the coming time, the company has the following goals and objectives: Regarding business capital sources The company is always active in all production and business activities In recent years the amount of capital of the company has increased significantly, which increases the production efficiency of the company It is expected that in the coming years, the company needs to increase capital to invest in expanding production and business The capital needed for the next three years from 2021 to 2023 each year needs capital is shown in the following table: The reason for bank loans is expected to increase over the years is because the company needs capital to expand production and expand its business The company needs capital to invest in production activities in order to achieve the set goals, in which most of the invested capital increases the quantity as LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 36 well as the quality of products and imports of raw materials to serve the restoration works service for fire safety assurance process Regarding import norms In order to complete the set plan for the company in the coming time with the assurance of a stable input supply, serving the projects to meet the scheduled schedule The company has set a target plan to import goods from 2020 to 2023 as follows: In addition to continuing to expand the search for foreign supply markets, businesses also try to find domestic sources that can replace foreign suppliers But with competitive prices but still ensure input quality to meet the production situation Situation of payment to the State budget Along with the implementation of production and business, the Company is always interested in employment and the lives of officials and employees Thereby creating conditions for stable workers to stick with the Company, unite to contribute to the implementation of the plan Besides, the Company tries to increase the budget along with the expansion of production and business scale to fulfill the set targets Regarding product quality: The factor that ensures businesses can compete effectively is price on product quality, well aware of this, on the one hand, the enterprise seeks to reduce costs by effectively using labor resources in the Company , finding and negotiating reputable sources and competitive prices, improving product quality thereby building credibility in the hearts of customers to enhance the image of the Company Market activities and relationships with customers Wanting production and business effectively does not only improve product quality , product cost A business that wants to succeed in an enterprise needs to a good job of market work and maintain its regular customer base One of the tools of market work is to devise an appropriate marketing strategy that aims to adequately address the relationship between the business and its customers For customers who consume products and services of the Company, it is necessary to have an adequate customer care policy such as product warranty, timely remedy of problems caused by product errors in order to increase the comedy index customer satisfaction This is very important in building the reputation of the business and enticing potential customers LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 37 II BASIC SOLUTIONS FOR COMPLETION OF TRANSACTIONS IMPORT COMPANY INDUSTRY VAN BAO In the course of production and business activities, Van Bao Industrial Company has achieved successes Besides, there are still many and many obstacles hindering the reduction of the business performance of the Company On the basis of analyzing these difficulties, on the one hand, the enterprise finds its own solution on the one hand and solves recommendations to the governing body of the State in which the main protagonist is Cong ty On the enterprise side: * Capital is one of the important factors for the Company to conduct business operations and expand reinvestment Capital sources that Van Bao Industrial Company has mainly borrowed from credit institutions, capital raised from shareholders For import-export activities, a certain amount of foreign currency is required to pay for transactions previously dealing with customers that are mainly due before payment can be converted into payment currencies without the foreign reserve fund This makes payment difficult and due to fluctuations in exchange rates, the Company sometimes has to use a larger amount of foreign currency than necessary To overcome this situation, the Company has set up a foreign currency reserve fund to ensure payment of import and export goods on the basis of scientific calculations of exchange rate fluctuations * For officials and employees in the Company is always properly concerned with high preferential regimes to encourage creative workers to create a healthy working atmosphere in the Company The company uses a reward policy, annually organizing officials and employees to travel For young staff, the Company always encourages creativity and creates working conditions in an equally competitive environment to show its capabilities There is a need to renew the thinking and working style for employees in the Company, education to raise awareness and discipline for young employees * Currently, the marketing department is still weak and not independent because the Company has not yet fully believed in the effectiveness of the marketing activities compared to other activities Although the budget for marketing activities has increased over the years, compared with other production and business companies with strong financial potential, this budget is still modest As of 2018 , funding for marketing activities accounts for about 2% of revenue Currently, marketing activities are mainly conducted by the Project and Construction Department Rooms Room Project and Construction undertook the majority of the work from the stage of sourcing products imported to be sold So there is no time to specialize in marketing LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 38 Today, no business that has embarked on a business does not associate its business with the market Because only in the market mechanism can businesses hope to survive Being aware of this, in order to overcome the shortcomings in the intended marketing activities in the coming time, the Company will separate the detailed responsibility between the two marketing departments and the Project and Construction Department to operate more in depth market research Expand the output market and seek input markets to ensure efficient and stable production and business activities Each company, when conducting its marketing activities, must determine the funding that it spends When calculating funding for marketing activities, the Company often calculates the cost effectiveness that corresponds to the financial situation of the Company or not All these issues The Company proceeds in a specific way in order to set out a reasonable budget for its marketing activities At Van Bao Industrial Company , an annual deduction of 2-3% of revenue is devoted to marketing and trade promotion activities As follows: * Develop and select appropriate business strategies The formulation and selection of business strategy must be based on many factors In which the main factor belongs to the business itself The building strategy must first be based on the goals of the business The objective may be to focus on a certain segment of the market where the enterprise can dominate and be able to compete in that segment Or the goal may be to simultaneously satisfy different market segments with different categories of goods In addition to the goals of the business, you need to consider your limited financial capacity and base on other competitors to build a strategy to ensure success for the Company In normal marketing, businesses apply two types of strategies: + Concentration strategy: for this type of strategy, there are outstanding advantages compared to other strategies; It only focuses on satisfying the needs of customers in certain market segments so the resources are not scattered, spread, specialized production and consumerization of products to achieve a high level, It is also easier to manage that market On the other hand, the competitive advantage in that market is also higher due to the concentrated resources But the downside of this strategy is limited flexibility, higher risk because it only works in some markets that are difficult to cope with market fluctuations + Distributed strategy: with this strategy, the company operates its business in many different markets The advantages of the strategy are high flexibility and limited risks The downside is that due to the penetration of LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 39 many markets, the resources are fragmented so it is much more difficult to penetrate deeply into the management activities It is thought that Van Bao Industrial Company now applies a combination of both strategies to business activities to meet the needs of the Company, so the company focuses on production and business, the field is considered export strengths as well as import markets * Continue to improve trade promotion tools The tools that the Company is applying are: direct offers, sales promotions and indirect offers + Direct sales: is the most important tool in the Company's trade promotion, which is the direct contact of the Company's employees with customers Whether the sales increase or not depends primarily on the level of knowledge of this sales team Recognizing the role of direct offers, the Company has focused on recruiting and training professional skills for employees Currently, the Company has a team of employees with good professional experience as well as knowledge about the company's business operations Their mission is to answer questions and advise customers on products and services of the Company + Sales promotion: Van Bao Industrial Company uses many types of sales promotion such as advertising at affiliated agencies, using other types of advertising + Indirect offer: the products of Van Bao Industrial Company are guaranteed and have a special after-sales regime The problems are promptly solved, free shipping is installed to the foot of the construction site in the warranty habit, so it creates goodwill and reputation in the hearts of customers Besides, the company also participates in social activities such as sponsoring humanitarian programs * Improve the import business Currently not only for Industry Van Bao, most businesses for export and import stages still have restrictions The Van Bao Industrial Limited Company is filled with young staff who have professional qualifications v emplacements basic training, but the experience has not been long Therefore, for the import operation to be effective in addition to improving the professional skills for the Company's employees, it is necessary to improve the import operation The stages in the process must be clearly based on specific scientific research + Price calculation and conversion: foreign trade must be conducted on the basis of international prices To Learn international prices we have to refer to the price formed in the exchanges , the international auction center But in many cases the calculated values not match the conditions and circumstances of the transactions Therefore it must be attributed to appropriate conditions LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 40 The quote may: Norms about the same unit of measurement The quote is about the same currency Regulation of the same delivery facility conditions Citation in terms of time Regulations on credit conditions + Import contract: The preparation of import contracts and import contracts in particular and foreign trade contracts in general is very complex, requiring people directly involved in drafting to have a level of knowledge such as: business situation, markets, national laws The content of the contract is very complex, involving many issues: many objects are goods, the subject is insurance, freight leasing so the strict content of the terms is very necessary to limit the risks that may damage the business + Chartering: chartering is based on basic bases Terms of contract Characteristics of goods sold Transport conditions Chartering requires professional experience, information on the state of the charter market and expertise in charter conditions + Payment conditions: businesses can choose many different payment methods such as reciprocal letter of credit, bank controlled documents depending on the reputation of the trading enterprise that the Company has You can choose the appropriate trading method At present, the most common and safe method is to open L / C * Diversifying import methods, in order to diversify risks and reduce risks for enterprises, so diversify import forms At present, Van Bao Industrial Company imports mainly by direct mode This form contains many risks but it is more profitable than other forms In addition to the current import method , Van Bao Industry should apply such forms as: entrusted import, joint venture import on the basis of researching and analyzing the advantages and disadvantages of each method Conformity with the actual situation of the business On the State side The State should support and create conditions for domestic companies to import and export activities such as information support, financial support, market search for the Company * Improving the management measures for importing goods - Regarding tariffs: In the current State regulations on taxes on imported goods, we have three types of tax rates: special preferential tax rates, LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 41 preferential tax rates and ordinary tax rates We can supplement cases of foreign goods being dumped, receiving export subsidies into our country and discriminating on import tax on Vietnamese goods There are already provisions on the application of tariff quotas However, all of the above taxes are calculated as a percentage of the import turnover and in order to limit fraud, a minimum price must be set so that the minimum price is deemed inappropriate Currently, the average import tariff of Vietnam is over 16%, which is higher than many countries in the region so we not want us to continue to cut import tariffs according to international commitments So how to reduce the interest rate has just abolished the tax measures that are inappropriate but still meet the requirements of protection of domestic production and the issues raised To implement the Company, it is required to propose to the State the following measures: + Research on the use of absolute or synthetic tax on a number of imported goods currently applying the minimum tax rate in tax calculation Absolute tax is prescribed for each type of item Combined tax is the tax including the taxes already applied so it becomes an applicable international practice in Vietnam + Expanding goods items with common tariff quotas According to the Decision No 91/2003 / QD-TT of the Prime Minister on the pilot application of Circular No 09/2003 / TT-BTM, the regulations on expanding the scope of goods items subject to tariff quotas are Need to continue expanding the scope of goods subject to import quotas The tax rate within the quota may be equal to the preferential rate, but the out-of-quota tax rate is at the peak tax rates applied by countries + Reduce import tax in general but can increase tax benefits and domestic costs for goods that not encourage consumption For example, motorcycles and cars with less than 12 seats can still reduce import tax on complete cars and assembled parts but must increase excise tax, be subject to VAT, and increase or supplement the registration fee, registration fee, circulation fee, tax and environmental fee, so that the State's revenue does not decrease but still conforms to the international system + Supplementing seasonal taxes + Detailing the import tax type clearly and transparently assessing the status of arbitrary application of tax due to the use of no or unclear tariffs Early research to apply the automatic tax exemption regime to replace the current discrete tax exemption * Regarding non-tax measures: According to international commitments, non-tax measures must be gradually removed or transferred to tariff measures However, appropriate measures are still applied and measures that are not banned by the WTO, countries still apply, Vietnam LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 42 can study and apply With the go Score that need renovation and improvement measures mainly the following: + To concretize the list of items of imported pawns and gather a legal document on goods banned from import Currently, the general regulations and the list of prohibited goods are designed separately according to the management requirements of each industry or field leading to management gaps The list of goods to be imported into Vietnam are not yet clear, specific and detailed should not collect woes for the management bodies for enterprises to present the Executive with the existence above requires the adjust and supplement and gather in a legal document to better apply management requirements and check implementation + Urgently building and perfecting technical barriers Within the framework of the WTO Agreement on technical barriers to trade allows member countries to apply appropriate measures to protect human life, animals and plants and the environment These measures are issued in the form of regulations or technical standards In our country, there are many laws to control the quality of goods such as these regulations, which are either outdated or missing Of the 5,600 national standards, only 1,200 harmonize with the international standard Particularly in the harmonization program of ASEAN standards, Vietnam only accepts 56 out of 59 standards Therefore, it is necessary to accelerate the construction and recognition of standard conformity The quickest and best way is to consult the EU system of regulations and standards as the basis and their regulations have been recognized by many countries + Developing measures to manage imported goods based on environmental regulations in international agreements on environment related to trade At the same time, due to the limited facilities and equipment at many Vietnamese border gates, it does not meet the requirements of quality inspection or has not been tested to enter the domestic market Therefore, to contribute to preventing this situation and to restrict the shortcomings in the import process when it is necessary to study and formulate border gate regulations for certain goods - Regarding the organization of implementation: From the above proposals, there is a lot of content to be implemented right now To meet the practical requirements, a number of deploying tasks should be proposed to the State agencies: + Need to focus human resources and intelligence to review the entire system of legal documents to have early plans to build, supplement and complete + In the immediate need to innovate and improve the management bodies Make- t cargo imports and exports, is currently proposed under h u Mr LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 43 C Matt customs office is e newcomers perform specialized inspection at the border , excluding items related e ến security, defense and quarantine , to advise and assist leaders of businesses about the issues involved Consolidating competition management to be able to deal with unfair competition acts related to product quality issues, etc * The State should encourage the orientation to enhance the application of information technology in enterprises Today, before the 4.0 technology wave, information technology plays an important role for businesses in the process of international economic integration, deciding businesses to develop and apply information technology news of the country Information technology that helps businesses to seize business opportunities is an important force nowadays, the application of information technology in Vietnamese enterprises is still quite weak To remove inadequacies, there must be regulations and solutions to promote the application of information technology - First: it is necessary to have a long-term and specific planning strategy for each period in terms of resources, material resources and human resources on the application of information technology to each type of enterprises and each enterprise associated with the strategy development of each industry and especially with the country's information technology development strategy - Second: It is necessary to create a favorable legal environment, mechanisms, policies and promotion policies in accordance with the specific characteristics of each information technology field, one step at a time to promote enterprises to apply and deploying the advantages of information technology - Thirdly: It is necessary to take effective measures and programs to encourage and raise awareness and practical benefits of information technology in the operation of enterprises - Fourth: It is necessary to have measures to attract domestic investment and participation of overseas Vietnamese overseas for information technology application projects in enterprises This is an important measure to build a large capital source, mobilize high quality and experienced human resources for projects that have specific characteristics of information technology Application of information technology is becoming increasingly necessary and important for the development of every business as well as for the development of the whole society Information technology will motivate Vietnamese enterprises to get closer to the business level of domestic and regional enterprises and the world, especially in the context of increasing international economic integration near the LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 44 * The State needs to take measures to stabilize the market such as building institutions and policies for market development, commercial infrastructure, establishing circulation and distribution channels, and using large State Corporations market stabilization tool In which, the main tool is enterprises play the main role to stabilize the market The factors of production organization, circulation organization, market control, taxation have an effect on supply-demand relation And the financial control factor affects the money-goods relationship, thereby affecting the supply-demand relationship In which circle one is the institutional system, policies, development orientation of the management agency affecting business behavior Thereby affecting the supply-demand relationship in the second round, the seamless circle is the State Corporation, implying that this force plays a vital role in stabilizing the market for key commodities Within the interval, businesses are encouraged to expand their business networks, participate in stabilizing the market in general * Must be proactive, constantly innovating trade promotion methods Thinking about trade promotion is one of the major changes in social awareness The fact that there have been 51 trade promotion units throughout the country, although the level of models and impacts are different but this is the first time in our history of trade promotion activities However, from the practice of trade promotion over the past few years, there are a number of issues that need to be addressed The first is implementation issues, the three subjects conducting trade promotion are central state agencies, localities and enterprises, in which enterprises play a key role Secondly, the task of the central State agency is to perform well the tasks: the State management demonstrates the elaboration of legal documents to manage trade promotion activities, the central State agency weak in both legal framework and inspection, control and management In addition to management, the central State agency must also provide large information related to trade promotion and identify key and focal strategies for goods as well as locations and places need to promote trade, orient the central state agencies to be responsible for organizing large and inter-sectoral and interlocal trade promotion activities, such as encouraging joint trade promotion , promoting investment, promoting tourism, integrating with cultural activities to create exciting exciting activities to enlist business partners in training human resources for both management and business systems Enterprises on the local state agencies' responsibility should be responsible for: - Firstly, disseminate and guide the implementation of the State's regulations, especially inspection on management, providing information and LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 45 specific directions for each item according to the local characteristics, the strengths of local as well as familiar local markets Organize local trade promotion activities, specific training for businesses In trade promotion activities, there is a need to increase the activeness at each level, each branch and especially every enterprise It is necessary to identify key markets and commodities to organize trade promotion in a methodical manner, with major markets: the US, EU, Japan and China In terms of items, there are two approaches or options available to create new details and improve product quality, and two are to select new items that need to be recommended and encouraged Methods of trade promotion need to be more diversified It is necessary to seek more through practical experience of initiatives that create many effects such as initiatives combining trade promotion with investment promotion, tourism promotion and cultural activities Foreign promotion has received much attention but domestic promotion has not been adequately paid attention Our promotion work in the country is only concerned with stopping at fairs, but these fairs are evaluated more by the fair than by the fair and are not professional The Vietnam Trade Promotion Agency needs to have a thorough introduction to this concept to improve the professionalism in trade promotion activities for localities and businesses, especially remote ones If in trade promotion, it should be spent for this activity Finally, the most decisive is the human resources involved in trade promotion activities This is a necessary decision phase to recount The Department of Trade Promotion needs to give a proper part of the State budget for human resource training In the national key trade promotion program, a significant part of human resource training must be set aside Above are some recommendations of the Company to the governing bodies of the State The State needs solutions to enable domestic companies to conduct effective import-export business, creating a level playing field for businesses and a healthy competitive environment to promote development of domestic enterprises capable of competing before the stage of economic integration The administrative procedures need to be further improved to create favorable conditions for businesses to conduct business smoothly while saving time to catch up with business opportunities and saving costs, especially in import and export activities The State only partially supports it, and it is important for companies to mobilize on their own LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 46 CONCLUDE For every business, when participating in import activities, they want to achieve the highest benefits and profits However, in order to achieve that, Van Bao Industrial Company as well as other businesses need to monitor and analyze the external and internal impacts to the targets in import business activities That improves business efficiency and maximizes profits Throughout its history of establishment and development, Van Bao Industrial Company has achieved a lot of success in its business activities, including the completion of its import activities The company's import activities in recent years have yielded many encouraging results, sustaining through many big fluctuations in the domestic and foreign markets, with countless difficulties and challenges Every year, the company always fulfills its obligation to pay to the State budget, pay taxes on time, ensure the income and life of employees, and contribute to the process of industrialization and modernization of the country However, besides the achievements, the company still has certain limitations in its import activities Therefore, the company needs to recognize and apply solutions to help boost the efficiency of its import activities LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ... NUMBER OF SOLUTIONS TO PERFECT THE IMPORT OF GOODS ACTIVITIES OF VAN BAO INDUSTRIAL COMPANY I DEVELOPMENT ORIENTATION OF THE COMPANY IN THE COMING TIME - The above results are achieved by the efforts... hydropower, infrastructure The process of organizing import activities of Van Bao Industrial Company The import process of Van Bao Industrial Company is done through the following steps: 2.1 Market... deeply into the management activities It is thought that Van Bao Industrial Company now applies a combination of both strategies to business activities to meet the needs of the Company, so the company