FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ENGLISH INTERNSHIP REPORT Machinery Import Activities At Ocean Development Joint Stock Company Student Bui Thi Phuong Ly Student ID 1037012073 Class 10B2 S[.]
FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ENGLISH - INTERNSHIP REPORT Machinery Import Activities At Ocean Development Joint Stock Company Student Student ID Class Supervisor : Bui Thi Phuong Ly : 1037012073 : 10B2 : Le Thi Huyen (MA) Ha Noi, October, 2014 TABLE OF CONTENTS ACKNOWLEDGEMENTS INTRODUCTION CHAPTER I: AN OVERVIEW OF OCEAN DEVELOPMENT JOINT STOCK COMPANY .4 1.Establishment and development: 2.Organizational structure .5 2.1 Board of Directors .5 2.2 Sales department .5 2.3 Marketing department .6 2.4 Accounts department 2.5 Technical department 2.6 Import department .7 3.Main business fields and achivements CHAPTER II: MACHINERY IMPORT ACTIVITIES AT OCEAN DEVELOPMENT JOINTSTOCK COMPANY 1.Importance of import activities 2.Factors affecting import activities 2.1.Objective factors 2.2.Subjective factors 2.3.Banking and financial system 10 2.4.Transportation system 10 2.5.Domestic and foreign market 10 2.6.Communication system 10 3.Current situation of machinery import activities at Ocean development joint stock company .11 3.1.Main imports .11 3.2.Main customers 11 3.3.Main suppliers 11 4.Implementation of import plans .12 5.Import turnover 14 I.Development orientation of Ocean Development Join Stock Company 16 1.Opportunities and challengess in new context of Vietnam’s economy 16 1.1.Opportunities .16 1.2.Challengese .16 2.Strengths and Weaknesses of Ocean development joint stock company 17 2.1.Strengths 17 2.2.Weaknesses 18 3.Ocean development joint stock company’s development orientation to 2020 18 3.1.General orientation 19 3.2.Economic development targets 19 II.Proposals for improving machinery import activities at Ocean development joint stock company 20 1.Create more diverse sources of imports 20 2.Reduce the cost of imported goods: 20 3.Develop human resources: 21 4.Upgrading IT system 22 5.Bettering the working conditions & the capabilities of the staff 22 6.Mobilizing and capital .22 7.Sepreading, enhancing image ang pestigate of the company 23 CONCLUSION .24 REFERENCES 25 LISTS OF TABLE Figure 1.1: Organizational structure Figure 2.1: Import percentage by markets (2008) 12 Figure 2.2: Implementation of import plan (2008 – 20010) 13 Figure 2.3: Import turnover (2008-2010) 14 Table 2.1: Import value by products .11 Table 2.2: Import value by markets (2008) .12 Table 2.3: Implementation of import plans: (2008-2010) .13 Table 2.4: Import turnover (2008 - 2010) .14 ACKNOWLEDGEMENTS For much of efforts during the time when I took my graduate trainee at Ocean Development Joint Stock Company, the success of the report depends on the helps and encouragements from all people around me, this 2014 internship report has been completed on time First of all, I sincerely thank teachers of the Faculty of Business English at Foreign Trade University (FTU), especially Mrs Le Thi Huyen for her enthusiastic guidance throughout the writing of this field stydy report Second, I would also like to express my gratitude to Ocean Development JSC’staff who have helped me to complete this report Finally, I cannot fully express my gratitude to all the people whose direct and inderect support helped me complete my report in time Ha noi, October , 2014 Student Bui Thi Phuong Ly INTRODUCTION The intership program of FTU aims at providing students with an opportunity to acquire deeper understanding as well as first hand experiences in the workplace This was a precious opportunity for me to gain an insight into the work at Ocean Development JSC Nowadays, globalization is a general trend Not a single nation can be prosperous with closure policies since international trade plays the key role in promoting domestic economic integration into the world economy Vietnam become the official member of WTO International trade can also help a country develop it comparative advantages, taking advantage of potential capital Moreover, The amount of trading with foreign companies has got a sharp increase, and the volume of imported and exported goods and services has also increased considerably Therefore, international trade can also help a country develop it comparative advantages, taking advantage of potential capital, technology, science and advanced management skills from outside, as well as maintain and develop national culture, acquiring the quintessence of human culture Imports help domestic consumers to have a diversity of products at lower prices Also for the entire economy, imports increase the efficiency of production and enable it to concentrate on producing those goods which it has competitive advantages, increasing labor productivity through imported equipment, technical science, and modern production methods With the trend to strengthen international cooperation, the Vietnamese government has allowed various business types, including state-owned enterprises, joint- ventures, business cooperation and private sector to participate in import and export business So, improving the efficiency of import-export business in general and import business inparticular is extremely important Like other commercial enterprises, Ocean Development JSC is also very interested in improving its import business performance During her internship at the company, the writer has tried to study how the company does business and decided to choose the topic "Machinery import activities at Ocean development joint stock company: Situation and suggestions" for her field stydy report This report was finished with the aim to study the status and ability to perform business activities on international trade of a medium company, to understand the process of importation and how to use available resources to achieve the highest efficiency The report includes the following sections: Introduction Chapter I: An overview of Ocean development joint stock company Chapter II: Machinery import activities at Ocean development joint stock company Chapter III: Sugesstions to improve machinery import activities at Ocean development joint stock company Conclusion References Because of the short practice time and limited knowledge, this report should have some inevitable errors The writer would like to receive comments from readers in order to improve her report CHAPTER I: AN OVERVIEW OF OCEAN DEVELOPMENT JOINT STOCK COMPANY Establishment and development: Company name: Công ty cổ phần phát triển Đại Dương Trade name: Ocean development joint stock company Add: No 15.03 - The VP Plaschem Building - 562 Nguyen Van Cu Road – Long Bien District – Ha Noi Tell: 043 715 3115 – 043 717 1818 Web: daiduongjsc.vn Ocean development joint stock company (Ocean development.Jsc) was set up from a store specializing in trading mechanical equipment in Hanoi After a period of operation, realizing the potential market for mechanical goods in Vietnam, and the limitations of a familly business, the store owner decided to set up a limited liability company called Ocean development joint stock company Ocean development JSC was officialy established in March 2008 with the initial capital of 100,000,000,000 VND Its headquarters were then at No 15.03 - The VP Plaschem Building - 562 Nguyen Van Cu Road – Long Bien – Ha Noi During its operation, the company has tried to expand the market in Hanoi while increasing the ability to grasp and manager new markets by opening branches in various provinces Initially the company’s major sources of import were from Russia and Eastern Europe However it has now transferred to sourcing goods from Taiwan and China because of their good quality and competitive prices With the expanding market, the company has diversified its lines of business Its initial major business items included hydraulic presses, broaching machines, compressors, welding machines and lathe Currently, the company's products range from handheld machines for small operation such as welding machines, drilling machines, to the machines for production and business processes of large factories such as drilling machines and two-stone grinding machines Experiencing the rises and falls of the country's economy, especially the serious economic crisis wordwide in 2008, like other companies, Ocean development JSC, faces with more and more difficulties but its brand has won market acceptance, customer trust and reputation Futhermore, along with the efforts of the entire management and employees in the company, Ocean development JSC has overcome the difficulties, maintaining growth and exceeding the targets set The company's motto is: "prestige accompaning brand” Ocean development JSC brand is developing and will surely grow with the growth of the national economy Organizational structure Ocean development JSC’s organizational structure is reflected in the following figure (figure 1.1) Figure 1.1: Organizational structure Board of Directors Sales department Marketing department Accounts department Technical department Import department (Arcording to administrative offices synthesis of Ocean development JSC) 2.1 Board of Directors The directors are responsible for general planning and strategic direction for the entire company; they are also responsible for all activities of the company, ensuring profitability, growth and development of the entire company, achieving the objectives of the company on sales growth, profit, personnel development and others 2.2 Sales department The salesforce is responsible for sales, services provision through direct transactions with customers in the areas assigned On the basis of the overall business plan given by the directors each year, the sales department will work out plans and specific methods of implementation, distribution, and revenue goals that each salesperson must complete The sales department must carry out all necessary market activities to win customers (mainly dealers, shops, mechanical plants), to sign contracts, and to take care of customers, commodity distribution and other related activities The results of the sales department operation are reported monthly to the directors, which will be the basis for business planning and import plan for the folowing years 2.3 Marketing department This deparment’s function is to determine the market demand for each type of products in quantity, quality, distribution methods, etc The marketing department's quarterly report on market will be the basis for the directors to make plans for importing goods or business plan, and orientation for the marketing department on market approach accordingly The department also implements programs to build and promote the company’s brand such as promotion, advertising and customer conferences For some goods that the company is a sole distributor in Vietnam for a short time (about 3-5 years), the construction of brand names plays an important role in the busines activities of the company 2.4 Accounts department The duties of this department are to advise the directors on corporate finance, making sure it is in line with the State policies on business, financing, investment, and management so as to effectively use all sources for business development Moreover, This department is responsible for analyzing financial targets, making report at the end of each fiancial term 2.5 Technical department The technical deparment is in change of installing machinery and intructing customers on how to operate them, repairing the machines when customers request It also organizes professional training, and coordinates with the sales department to train workers for the implementation of projects market, customers, partners, Therefore, enterprises should establish their own sections which expert in collecting and handling information Current situation of machinery import activities at Ocean development joint stock company 3.1 Main imports Currently Ocean Development Joint Stock Company specializes in the field of electrical machinery, which has great potential in Vietnam's market because we are in the process of industrialization and modernization Industrial economy is a target we are aiming at Machinery import business has generated income for the company Table 2.1 gives information about import value of its main imported products Table 2.1: Import value by products Product Percentage of total imports value (%) Hydraulic presses 2.0 Broaching machines 3.5 Compressors 2.6 Welding machines CNC and lathe 3.7 (Source: Import Department) 3.2 Main customers Our country is in the process of industrialization - modernization so industry is developing fast Industrrial enterprises are Ocean development.JSC’s customers With a country - wide network of distribution agents, Ocean development.JSC aims to meet the demand for mechanical machines across the country The main targeted customers are heavy industry companies, and factories operating in the field of metal processing 3.3 Main suppliers The company's foreign partners are mostly manufacturing plants with which, the company has been doing business for a long time, such as ARSENAL Group 11 (EU); Rostselmash, Kamas, Irkut, Mikron (Russia); Annn Yang, China Jiangsu, Nanton Donghai, Shanghai (China); etc Table 2.2 and figure 2.1 below show the company’s import value by markets in 2008 Table 2.2: Import value by markets (2008) Market Import value Percentage (US) (%) EU 180,223 1.8 Russia 220,225 2.2 Kamas 270,523 2.7 China 130,000 1.3 Tawain 200,000 (Source: Import Department) Figure 2.1: Import percentage by markets (2008) Import percentage by markets 1.8 1.3 2.2 EU Russia Kamas China Tawain 2.7 Implementation of import plans Since its foundation, Ocean.JSC has always met or exceeded its import plans (see table 2.3 and figure 2.2 below) 12 Table 2.3: Implementation of import plans: (2008-2010) Year Plan Implementation Plan (BillionVND) (Billion VND) Implementation (%) 2008 2,300 2,354 102 2009 2,800 2,846 105 2010 3,500 3,845 110 (Source: Import Department) Figure 2.2: Implementation of import plan (2008 – 20010) 4500 4000 3500 3000 Plan 2500 Implement 2000 1500 1000 500 2008 2009 2010 (Source: Import Department) In recent years, the company has imported more than the projected figure In the early months of 2008, the company’s turnover from imports was quite high, exceeding plan by 10%, but in late 2008 due to economic crisis, its import turnover was down, but still 2% higher than the proposed plan In 2009, although it was still affected by the crisis, with the efforts of all staff, its import turnover exceeded import plan and in 2010, the company achieved an increase of 10% in import value Generally, in all the three years from 2008 to 2010, import turnover always excessded plan 13 Import turnover Import business is the main operation of Ocean development JSC The import turnover of the company is increasing over years This is the result of expanding business sectors and business relations with foreign partners The import turnover of the company between 2008 to 2010 is shown in table 2.4 and figure 2.3 Table 2.4: Import turnover (2008 - 2010) Increase, decrease against previous year Import turnover Year (Billion VND) Value (Billion VND) Percentarge ( % ) 2008 2,354 _ _ 2009 2,846 492 12 2010 3,845 999 14 (Source: Import Department) Figure 2.3: Import turnover (2008-2010) 4500 4000 3500 3000 2500 2000 1500 1000 500 Import turnover (Million VND) Import turnover (Million VND) 2008 2009 2010 (Source: Import Department) 14 Import turnover of Ocean.JSC has always tended to increase in recent years: the total import turnover reached 2,354 million VND in 2008, 2,846 million VND in 2009, up by 492 million VND (12% up compared with 2008), 3,845 billion in 2010, up by 999 million (equivalent to 14% increase compared with 2009) In general, growth in imports was relatively stable, achieving an average growth of about 12% per year In 2010 alone, the increase of import turnover was higher than other years due to the expansion of business sectors and an increase in the number of new foreign partners 15 CHAPTER III: DEVELOPMENT ORIENTATION AND PROPOSAL FOR IMPROVING MACHINERY IMPORT ACTIVITIES AT OCEAN DEVELOPMENTJOIN STOCK COMPANY I Development orientation of Ocean Development Join Stock Company Opportunities and challengess in new context of Vietnam’s economy 1.1 Opportunities Looking at these recent years, Ocean development joint stock company has enjoyed a great deal of opportunities from dramatic development created by Vietnam further economic growth, political stability, and better approach to integrate international financial market thanks to Vietnam accession in the WTO on 7th November 2006 In the context of integration age, ocean development joint stock company will have more chances to open its import machinery domestically and overseas, so Hanoi Branch also can widen its customer network It could coordinate with other interprises of developing and emerging countries in WTO to ask for their supports in business cooperation The staffs can quickly catch up with new technique and apply new methods of payment in the world with better business practices The company also can equip its office with more high-technology tools to facilitate its procedures 1.2 Challengese Besides the above opportunities, Ocean development joint stock company is facing a few of challenges at present when many great changes are happening in the world capital market Firstly, from the 2008s, a strong penetration wave into Vietnam economy market by foreign direct investment versus the bloom of local commercial enterprises will create fiercer competition in the economy at that time There are more than three foreign direct invetstors in Vietnam (such as Japan, China, South Korea), and they are also trying everyday to perfect their service quality to gain international prestige and appeal to more citizens’ trust in their operations 16 ... of Ocean development joint stock company Chapter II: Machinery import activities at Ocean development joint stock company Chapter III: Sugesstions to improve machinery import activities at Ocean. .. and handling information Current situation of machinery import activities at Ocean development joint stock company 3.1 Main imports Currently Ocean Development Joint Stock Company? ? specializes... CHAPTER II: MACHINERY IMPORT ACTIVITIES AT OCEAN DEVELOPMENT JOINTSTOCK COMPANY Importance of import activities Nowadays, importing plays an important role in business activites of the company Import