OUTLINE EXPORTATION FROM VIETNAM TO LOS ANGELES, USA

VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION OUTLINE EXPORTATION FROM VIETNAM TO LOS ANGELES, USA Mentor: Student: Miss Vuong Thi Tram Tran Tuong Minh Luong Tieu Vy Nguyen Yen Vy Ho Trong Nam Huynh Thanh Thao Le Thi Kim Yen Nguyen Ngoc Thao Nguyen Dang Khoa Ngo Thanh Nhu 10 Dam Dinh Hoang HO CHI MINH CITY, DECEMBER 2022 LIST OF TABLES 0 - 720H0545 720H1636 720H1637 720H1563 720H1605 720H0670 720H1606 720H0522 - 720H1581 - 720H1539 Table 1: List of achievements of Kuehne+Negal Table 2: Top main export/import products from/to Vietnam in the first months of 2022 (Source: General Statistics Office) Table 3: FCL Sea - quotation of Kuehne+Negal in December Table 4: FCL Air - quotation of Kuehne+Negal in December Table 5: Sea local charge Table 6: Air local charge 0 LIST OF PICTURES Picture 1: Logo of Kuehne+Nagel Picture 2: Logo of Peek Kids Picture 3: Sailing schedule of HPL Picture 4: Sailing schedule of ONE Picture 5: Sailing schedule of CMA Picture 6: Flight schedule of Korean Airline Picture 7: Flight schedule of China Airline Picture 8: Invoice Picture 9: Packing list Picture 10: Bill of lading Picture 11: Talon Picture 12: Airway bill Picture 13: Air Cargo Advance Screening (ACAS) Picture 14: Ocean cargo manifest form Picture 15: Vietnam Customs Manifest Declaration Template Picture 16: ACE manifest Picture 17: Showing results after declaration Picture 18: ISF form Picture 19: Air cargo manifest Picture 20: Homepage of Air manifest system Picture 21: Filling information page of Air manifest system Picture 22: Result page of Air manifest system 0 Table of Contents CHAPTER I: OVERVIEW OF KUEHNE NAGEL VIETNAM General information Service Achievements .6 Existing Customers – Peek Kids Requirements from Peek Kids CHAPTER II: VIETNAM SITUATION Overview of the infrastructure 1.1 Sea Ports 1.2 Airports 1.3 Warehouses .9 1.4 Main import/export products to/from Vietnam .9 1.5 Main Sea carriers operating in Vietnam 10 1.6 Main airlines operating in Vietnam .11 Market in Vietnam 12 2.1 General actual situation 12 2.2 Factors affecting the sea-market 12 2.3 Factors affecting the air-market 13 CHAPTER III: SOLUTION .15 Suggest a solution .15 FCL Quotation and shipping schedule 16 2.1 FCL Quotation and sailing schedule of Sea way 16 2.2 FCL Quotation and flight schedule of Air way .18 Local charge .20 Documents and Manifest 21 4.1 Documents 21 4.2 Manifest 29 REFERENCE .42 0 CHAPTER I: OVERVIEW OF KUEHNE NAGEL VIETNAM General information Kuehne & Nagel is a global transportation and logistics company founded by Kuehne and Friedrich Nagel in 1890 in Germany It operates through the following segments: Sea Freight, Airfreight, Overland, and Contract Logistics With over 82,000 employees at more than 1,300 locations in over 100 countries, Kuehne & Nagel is the largest sea freight forwarder globally and holds the number-two spot in air freight At present, Kuehne+Nagel is headquartered in Switzerland, with a presence all over the world Picture 1: Logo of Kuehne+Nagel In 1994, Kuehne & Nagel officially launched in Vietnam During more than 25 years in Vietnam, Kuehne+Nagel has built a team of leading local and international logistics experts with a deep understanding of the Vietnamese market and in-depth industry knowledge With more than 600 logistics professionals in 10 locations across Vietnam, Kuehne & Nagel has become the country's leading logistics company + Address: Floor 11, Vincom Center, No 72 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City + Phone: 028 3828 2200 + Email: info.hochiminhcity@kuehne-nagel.com + Website: http://kuehne-nagel.com 0 Service Over the last 130 years, Kuehne+Nagel has evolved from a traditional shipping company to a global logistics partner that offers highly specialized solutions for major industries worldwide Kuehne+Nagel is engaged in the provision of Sea Freight and Airfreight Forwarding, Contract Logistics, as well as Overland Businesses that focus on providing IT-based logistics solutions Moreover, the company provides logistics solutions and services related to supply chain 4PL, warehousing, retail, and distribution Achievements During its operation, Kuehne+Nagel Vietnam has continuously developed and achieved many proud achievements 2017 Lenovo’s 2016 “Logistics Excellence Award” 2018 Wins in the category Transport & Logistics at Supply Chain Finance Awards 2021 & 2022 Award “Best Companies To Work For In Asia” by HR Asia 2022 Ranking 396th in The Fortune Global 500 list Table 1: List of achievements of Kuehne+Negal Existing Customers – Peek Kids 0 Peek Kids designs unique clothing for the little ones in comfort and style Peek Kids are passionate about building on the Peek Kids values they have stood for since our founding in 2006 At Peek Kids, they love creating fun clothes in comfortable shapes for kids to play in When designing each piece of clothing, they lead with their hearts, act seriously funny, mix in nostalgia for the magic that is childhood, and care for the world and everything that is part of it Picture 2: Logo of Peek Kids Address: Mamiye Brothers, Inc 1385 Broadway, 18th floor in New York, N.Y 10018 Mail: customerservice@peekkids.com Website: https://peekkids.com/ Requirements from Peek Kids Peek Kids Company found a forwarder to move their shipment for both sea and air transportation from Binh Duong Province, Vietnam to Los Angeles, USA, under INCOTERM FOB (HCM ports) Their products are clothes for children The cargo's ready date is on Thursday weekly and estimated at 4.000kg, 18cbm/week/factory, 40x50x70cm Therefore, our company - Kuehne+Nagel is offered to provide quotations for both means of transport, by sea and by air for Peek 0 CHAPTER II: VIETNAM SITUATION Overview of the infrastructure 1.1 Sea Ports Vietnam is located right next to the South China Sea - a particularly important trade chain on the world maritime map Vietnam also owns 3,260km of long coastline, many deep-water bays, close to international maritime routes Currently, the country has 49 seaports (in 166 ports) distributed throughout from Northside to Southside The Northern seaport area of Vietnam is connected with Northeast Asian countries such as China, Japan, Korea, and Hong Kong Moreover, Vietnam's seaport area has a position to connect Asian countries on international transport routes to other continents After nearly 20 years of implementing seaport development plans, Vietnam has formed a complete seaport system from North to South with 45 seaports, divided into groups of ports Port infrastructure in some areas such as Cai Mep - Thi Vai, Lach Huyen is capable of receiving mother ships with a large tonnage of 100-200 thousand tons, contributing to turning Vietnamese seaports into an important link in the global supply chain (Vietnam Maritime Administration, 2020) Currently, Ho Chi Minh City owns many seaports, notably Cat Lai port, Vietnam International Container Terminal (VICT), and Saigon Premier Container Terminal (SPCT), etc Besides, traffic connection is also a "bottleneck" for seaport development Most of the roads connecting to ports in areas such as Hai Phong, Ba Ria - Vung Tau, and Ho Chi Minh City are not commensurate with the seaport's capacity Although the ports of Lach Huyen, and Cai Mep - Thi Vai are planned as gateway ports and international transshipment ports, there is no railway connection and weak waterway connection, leading to goods being traded mainly by road On foot, the roads leading to the port are often congested 1.2 Airports Currently, Vietnam owns 22 civil airports, including 12 international airports and 10 domestic airports Although they are civil airports, these airports all have a section dedicated to military flight operations for use in special cases Among international airports in Vietnam, there are important airports: Noi Bai (Hanoi), Da Nang (Da 0 Nang), Tan Son Nhat (Ho Chi Minh City), Van Don (Quang Ninh) and Phu Quoc (Kien Giang) Tan Son Nhat International Airport is located at Truong Sa Street, Ward 2, Tan Binh District, Ho Chi Minh City This is the largest international airport in Vietnam in terms of area, terminal capacity as well as the number of passengers and goods Tan Son Nhat airport meets 4E standard and is a level civilian airport with the ability to receive aircraft such as B747, A350, A321, B787, B77 and other similar aircraft Every day, on average, there are about 700 flights taking off and landing at this airport, during peak times, the number of flights can be up to 900 flights/day In which, Noi Bai and Tan Son Nhat gateway airports are seriously overloaded Although these two airports are currently being tried to optimize, the capacity of these two airports has exceeded the design 1.3 Warehouses Currently, the demand for warehousing is still on a strong upward trend despite the fluctuations of the economy The reason is that manufacturing enterprises are stepping up their operations, on the other hand, warehouse rent is also forecasted to grow at an average rate of about 1.5% to 4% per year According to a report of the Ministry of Industry and Trade, the warehouse system in Vietnam is unevenly distributed More than 70% of the warehouse area is distributed in the southern economic centers Moreover, the logistics market in the southern region is considered to be more vibrant thanks to the system of highways and more deeply connected seaports and ports Shortage of warehouses is mainly due to the fact that industrial land is currently still occupied with high rental rates because the current rental demand is still increasing strongly Accordingly, the land for lease in industrial zones is scarcer 1.4 Main import/export products to/from Vietnam Generally, in the first months of 2022, the total export value reached US$217.34 billion, up 16.6%, equivalent to an increase of US$30.92 billion over the same period last year In which, there are many commodity groups that keep a good growth rate such as machinery, equipment, tools and spare parts; Cell phones and accessories… 0 Top Exports Export Value (the first months of 2022) Phones US$33.9 billion Electronic goods/Computers US$31.7 billion Machinery US$25.5 billion Textiles US$22.2 billion Footwear US$14.0 billion Top Imports Import Value (the first months of 2022) Electronic goods/Computers US$50.1 billion Machinery US$26.6 billion Phones US$12.0 billion Fabrics US$9.1 billion Steels US$8.0 billion Table 2: Top main export/import products from/to Vietnam in the first months of 2022 (Source: General Statistics Office) 1.5 Main Sea carriers operating in Vietnam Vietnam currently has about 10 container shipping lines, Vietnam's container fleet is small in number and tonnage, so most of them only handle domestic routes and some have intra -Asia routes Therefore, the increased exploitation of new routes by shipping lines in Vietnam and Asian countries also creates competition with domestic shipping companies According to the Vietnam Maritime Administration, there are currently about 34 foreign container shipping lines operating in Vietnam, including all the largest shipping lines in the world such as Maersk, MSC, COSCO, Evergreen, OOCL, etc Meanwhile, Vietnam has 10 container shipping lines, operating mainly in the domestic market Foreign shipping lines operating in Vietnam have representatives in Vietnam in the form of enterprises, with 100% foreign capital These representatives will act on behalf of the shipping line to carry out business activities in Vietnam and act as contract agents 0 2.2.2 Flight schedule 0 Picture 6: Flight schedule of Korean Airline Picture 7: Flight schedule of China Airline 0 2.2.3 Cut-off time The cut-off time of the airway is that: for passenger aircraft, it is hours before the flight time and hours for cargo aircraft Most cargo flights from VietNam to Los Angeles go through transit so depending on where the hub is, the goods will be transited there For instance: KE via INC, CI via TPE, JL via NRT and NH via HND Local charge Local charges are extra costs incurred by the shipping line or forwarder at the ports of loading and port of discharge in forwarding transportation Both the shipper and the consignee are required to pay this fee for a shipment There are a few main local fees, such as listed below: T.H.C (Terminal Handling Charge): Costs of handling the container at the port premises EBS (An emergency bunker surcharge): Is an extra fee the shipping company adds to counter fuel price variations CFS (Container Freight Station fee):is the expenses collected for import and export activities of goods at CFS warehouses The purpose of the LSS fee is to compensate for LSS (Low Sulfur surcharge): using low sulfur fuel CIC (Container Imbalance Charge): A fee that the carrier charges the shipper to cover the expenses associated with moving a significant quantity of empty containers from one location to another AMS (Automated Manifest System): Developed by U.S Customs to gather shipment details, such as the cargo, the details, the departure and arrival times, and the release information between ship carriers B/L fee: An expense for issuing a Bill of Lading The Kuehne Nagel service fee for LCL shipments to the USA is listed below Table 5: Sea local Services THC EBS CFS RR B/L FEE Unit W/M CBM W/M CBM SET 0 PRICE(USD) 6.00 5.00 8.00 20.00 10.00 charge Service +45 +100 +300 +500 +1000 AWS(HAWB) 5.00 5.00 5.00 5.00 5.00 AWB(SET) 5.00 5.00 3.00 2.00 2.00 X’RAY(KGS) 0.017 0.017 0.017 0.017 0.017 TCS(KGS) AT COST AT COST AT COST AT COST AT COST Table 6: Air local charge Documents and Manifest 4.1 Documents 4.1.1 Documents for Sea When transporting goods from Vietnam to the US, the most basic documents will include: Invoice Packing List Bill of lading 0 0 Picture 8: Invoice Picture 9: Packing list 0 Picture 10: Bill of lading 4.1.2 Document for Air Invoice Packing List Talon Airway Bill 0 Shipper’s Letter of Instruction Air Cargo Advance Screening (ACAS) 0 Picture 11: Talon 0 Picture 22: Result page of Air manifest system 0 REFERENCE Kuehne + Nagel About Us Restricted November 06, 2022 from https://vn.kuehne-nagel.com/en/company/about Phaata Logistics Marketplace, 2021 Kuehne Nagel Việt Nam vinh danh Nơi làm việc tốt Châu Á 2021 - khu vực Việt Nam HR Asia Restricted November 06, 2022 from https://phaata.com/thi-truong-logistics/kuehne-nagelviet-nam-duoc-vinh-danh-noi-lam-viec-tot-nhat-chau-a-2021-khu-vuc-viet-namboi-hr-asia-1037.html Kuehne + Nagel Supply Chain Finance Awards 2018: Kuehne + Nagel wins in the category Transport & Logistics Restricted November 06, 2022 from https://newsroom.kuehne-nagel.com/supply-chain-finance-awards-2018kuehne nagel-wins-in-the-category-transport logistics/ Kuehne + Nagel Kuehne + Nagel wins Lenovo’s 2016 “Logistics Excellence Award'' Restricted November 06, 2022 from https://newsroom.kuehnenagel.com/kuehne nagel-wins-lenovos-2016-logistics-excellence-award/ Kuehne + Nagel Kuehne+Nagel in the Fortune Global 500 List Restricted November 06, 2022 from https://newsroom.kuehne-nagel.com/kuehnenagel-inthe-fortune-global-500-list/ Peekkids Official About us Restricted November 06, 2022 from https://peekkids.com/pages/about-us General Statistics Office June 11,2022 Developing Vietnam’s seaport system to meet international integration Retrieved September 28, 2022 from https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2021/06/phat-trien-hethong-cang-bien-viet-nam-dap-ung-xu-the-hoi-nhap-quoc-te/ Ke Cong Nghiep VNT October 26, 2022 Situation and solutions for the warehouse system in Vietnam Retrieved September 28, 2022 from https://kecongnghiep.vn/thuc-trang-he-thong-kho-bai-o-viet nam/#Dac_diem_cua_he_thong_kho_bai_o_Viet_Nam Thu Nguyen & Kyssa Mah March 18, 2022 An Introduction to Vietnam’s Import and Export Industries Retrieved September 28, 2022 from 0 https://www.vietnam-briefing.com/news/introduction-vietnams-export-importindustries.html/ 10 General Statistics Office September 20, 2022 Exports and imports value by months of 2022 Retrieved September 28, 2022 from https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2022/03/so-lieu-xuat-nhapkhau-cac-thang-nam-2022/ 11 Ho An June 10, 2022 How is the international container fleet doing? Retrieved September 28, 2022 from https://amp.baogiaothong.vn/doi-tau-container-quocte-dang-hoat-dong-nhu-the-nao-d555418.html 12 Tuoi Tre News January 28,2022 The war between Russia and Ukraine: Preventing negative impacts on Vietnam's economy Retrieved October 15, 2022 from https://tuoitre.vn/cuoc-chien-nga-ukraine-ngan-tac-dong-tieu-cuc-toi-kinhte-viet-nam-20220228081015907.htm 13 Thoi Bao Tai Chinh September 13, 2022 Sea freight rates decreased by 4060% compared to the beginning of the year Retrieved October 15, 2022 from https://thoibaotaichinhvietnam.vn/gia-cuoc-van-tai-bien-giam-40-60-so-voi-daunam-112617.html 14 Cuoc Hang Air August 15, 2022 SHIPPING GOODS BY AIR FROM US (USA) TO VIETNAM Retrieved November 11, 2022 from http://cuochangair.com/van-chuyen-quoc-te-air-freight/van-chuyen-hang-hoabang-duong-hang-khongvan-chuyen-hang-hoa-bang-duong-hang-khong-tu-myusa-ve-viet-nam.html 15 Dennis Grady Erion Hormoviti, Ascent July 7, 2022 Sea and air freight in 2022: A look back and forecast Retrieved November 11, 2022 from https://vlr.vn/van-tai-hang-hoa-duong-bien-va-duong-hang-khong-nam-2022nhin-lai-va-du-bao-7878.html 16 Vietnambiz March 21, 2019 How long will air logistics continue to 'run the momentum' Retrieved November 11, 2022 from https://vietnambiz.vn/logisticshang-khong-con-chay-da-den-bao-gio-20190321164756925.htm 17 Nguyen Nga Airlines of Vietnam Retrieved November 11, 2022 from https://www.bestprice.vn/blog/san-ve-may-bay-2/cac-hang-may-bay-hang-hangkhong-cua-viet-nam_5-2897.html 0 18 Korean airlines Schedule transit from SGN to LAX Retrieved December 04, 2022 from https://cargo.koreanair.com/en/daily-schedule 19 China airlines Schedule transit from SGN to LAX Retrieved December 04, 2022 from https://cargo.china-airlines.com/ccnetv2/content/home/index.aspx 20 MSC shipping line MSC shipping schedule Retrieved December 13,2022 from https://www.msc.com/en/search-a-schedule 21 HPL shipping line HPL shipping schedule Retrieved December 13,2022 from https://www.hapag-lloyd.com/en/online-business/schedule/interactiveschedule/interactive-schedule-solution.html 22 ONE shipping line ONE shipping schedule Retrieved December 13,2022 from https://ecomm.one-line.com/one-ecom/schedule/point-to-point-schedule 23 SONGANHLOGS (2018), Manifest Là Gì? Hướng Dẫn Khai Chỉnh Sửa EManifest Retrieved September 30, 2022 from https://songanhlogs.com/manifest-la-gi.html 24 Federal Maritime Commission, About the Federal Maritime Commission Retrieved September 30, 2022 from https://www.fmc.gov/about-the-fmc/ 25 TTLinvest, Quy định hàng hóa xuất Mỹ (Hoa Kỳ) Retrieved September 30, 2022 from https://mlc-ttl.com/quy-dinh-ve-hang-hoa-xuat-di-myhoa-ky/? 26 U.S CUSTOMS AND BORDER PROTECTION (2022) Air Cargo Advance Screening (ACAS) Retrieved December 12, 2022, from Air Cargo Advance Screening (ACAS) | U.S Customs and Border Protection (cbp.gov) 27 GOLDTRANS (2018) Quy trình hàng xuất Air TCS Retrieved December 12, 2022, from Quy trình hàng xuất Air TCS Hồ Chí Minh (cập nhật) (dichvuhaiquan.com.vn) 28 Magaya, Automated Manifest System, retrieved November 20th, 2022 from https://www.magaya.com/automated-manifest-system/ 29 GeTS, Increasing Reliability And Timeliness Of ACE Air Data Transmission, retrieved November 20th, 2022 from https://globaletrade.services/products/aceair 0 30 GeTS, Filing Required Air Manifest Documentation Electronically To Mexico Customs, retrieved November 20th, 2022 from https://globaletrade.services/products/air-manifest 0 ... receiving mother ships with a large tonnage of 100-200 thousand tons, contributing to turning Vietnamese seaports into an important link in the global supply chain (Vietnam Maritime Administration,... far away, leading to increasing the cost and time of transportation So, this issue affects declining imports to Vietnam from the USA Instead, Vietnam is reducing shipments from the U.S and European... Main import/export products to /from Vietnam .9 1.5 Main Sea carriers operating in Vietnam 10 1.6 Main airlines operating in Vietnam .11 Market in Vietnam 12 2.1 General