Analyzing the implementation process of the agricultural export contracts at viet delta industrial company limited

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING INDUSTRIAL MANAGEMENT ANALYZING THE IMPLEMENTATION PROCESS OF THE AGRICULTURAL EXPORT CONTRACTS AT VIET DELTA INDUSTRIAL COMPANY LIMITED SUPERVISOR: MBA VO THI XUAN HANH STUDENT: LE HO KIM YEN SKL 0 Ho Chi Minh City, 2021 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF HIGH QUALITY TRAINING GRADUATE THESIS ANALYZING THE IMPLEMENTATION PROCESS OF THE AGRICULTURAL EXPORT CONTRACTS AT VIET DELTA INDUSTRIAL COMPANY LIMITED Student’s name : Le Ho Kim Yen Student code : 17124139 Grade : 2017 Major : Industrial Management Instructor : M.A Vo Thi Xuan Hanh Ho Chi Minh - 2020 Supervisor: M.A Vo Thi Xuan Hanh SUPERVISOR -Ho Chi Minh,…………………………… Supervisor i Supervisor: M.A Vo Thi Xuan Hanh REVIEWER -Ho Chi Minh,……………………………… Reviewer ii Supervisor: M.A Vo Thi Xuan Hanh ACKNOWLEDGEMENT The time I spent in Viet DELTA Company as an intern from April to October 2020 was a memorable one for me as it was rich in experience sharing and helped me discover my potential I have had so many rich experiences and opportunities that I personally believe will forever shape and influence my professional life while fostering personal growth and development During the period of my internship work, I have received generous help from many quarters, which I like to put on record here with deep gratitude and great pleasure First and foremost, I am grateful to my supervisor in the university Ph.D Vo Thi Xuan Hanh She allowed me to freely encroach upon her precious time right from the beginning of this research work until completing my internship Her guidance, encouragement, and suggestions provided me the necessary insight into the research problem and paved the way for the meaningful ending of the work in a short duration I would probably fail to complete the work appropriately without her constant support and valuable advice from time-to-time Besides that, I want to take this opportunity to say thanks to the board of directors and the whole staff of Viet DELTA Industrial Company Limited has created good conditions for me to practice at the company They have helped me not only expand knowledge but also acquaint with the practical Moreover, I am encouraged to seek success in the future Another special thank goes to Exported Department 2, Ms Ngoc, trained me during two months of internship They have always taken care of me to inspire their heavy workload and give me moral support With my limited knowledge and experience, my internship report cannot avoid shortcomings Therefore, I hope to receive the most objective feedback and evaluation iii Supervisor: M.A Vo Thi Xuan Hanh of the company's instructor and staff These valuable ideas will be a premise for me to develop myself, improve mistakes, and learn more knowledge and experience to apply to future jobs in the best way and most effective Sincerely, Le Ho Kim Yen Ho Chi Minh October 2020 iv Supervisor: M.A Vo Thi Xuan Hanh LIST OF ABBREVIATIONS ABBREVIATIONS ENGLISH NAME ASEAN Association of Southeast Asian Nations B/L Bill of Lading B2B Business to Business C/O Certificate of Origin CFR Cost and Freight CFS Container Freight Station CIF Cost, Insurance and Freight CIP Carriage and Insurance Paid To DHL Dalsey, Hillblom and Lynn Company ECUS5 Electronic customs declaration software version EU Europe Union FCL Full Container Load FOB Free on Board v Supervisor: M.A Vo Thi Xuan Hanh HS Harmonized Commodity Description and Coding System ICD Inland Container Depot INCOTERMS International Commercial Terms KCS Knowledge Centered Support L/C Letter of Credit LCL Less Container Load SEO Search Engine Optimization T/T Telegraphic Transfer UCP VNACCS VDELTA Co., Ltd The Uniform Customs and Practice for Documentary Credits Vietnam Automated Cargo and Port Consolidated System Viet Delta Industrial Company Limited vi Supervisor: M.A Vo Thi Xuan Hanh LIST OF TABLES Table 1.1 General information of Viet Delta Company Table 1.2 Scope of activities of company Table 1.3 Business results of Viet Delta Company in 2017-2018 12 Table 1.4 Comparison table of the business growth rate of Viet Delta Company through targets in the period of 2017-2018 13 Table 1.5 Business results for the first months of 2019 14 Table 3.1 Export turnover of Viet Delta’s goods in the period of 2017-2018 44 Table 3.2 Quality inspection results in Certificate of Analysis 55 Table 4.1 The number of the Company's bulk purchase orders 65 Table 4.2 The storage costs estimate 66 vii Supervisor: M.A Vo Thi Xuan Hanh LIST OF FIGURES Figure 1.1 Logo of Viet Delta Company Figure 1.2 The current popularity products at Viet Delta Figure 1.3 Organizational structure of Viet Delta Company Figure 1.4 Business results of Viet Delta Company in 2017-2018 12 Figure 1.5 Business results for the first months of 2019 15 Figure 3.1 Export turnover of Viet Delta’s goods in the period of 2017-2018 45 Figure 3.2 A post selling the Company’s Desiccated Coconut on the Alibaba website 46 Figure 3.3 Process diagram of organizing the implementation of agricultural export contracts at Viet Delta Company 48 Figure 3.4 Commercial Invoice of Desiccated Coconut Contract in Viet Delta Company 51 Figure 3.5 Product label 53 Figure 3.6 Product packaging 54 Figure 3.7 The interpretation of trade terms FOB Incoterm 2010 56 Figure 3.8 Electronic customs declaration software ECUS5-VNACCS 57 Figure 4.1 Inventory classification 67 Figure 4.2 Goods receipt process 67 Figure 4.3 Goods issue process 68 viii Supervisor: M.A Vo Thi Xuan Hanh visit and listen to the difficulties and advantages of employees to timely support and motivate employees, limit the situation where employees encounter deadlock and frustration have to leave work The Company must have good remuneration policies, good remuneration, and good promotion mechanisms to encourage employees, the company should make efforts to improve the branding of the company further, increase investment facilities for staff to perform well the job A company with good operating conditions also contributes to retaining employees and attracting talent During the company's operation, the company has organized a compact, flexible, and flexible organizational structure in line with the dynamics of the market economy However, the downside is that all import and export business activities are concentrated in the import and export department, so the staff of this department has to many jobs, including things that are not in line with their professional capabilities, so it is effective Work is not high In the coming time, the company should plan to arrange and separate the Marketing department from the sales department and establish a separate department specializing in the following activities: Market research, establishment and monitoring of distribution channels, conducting promotional activities, and sales promotion Regarding the organization of labor: For an enterprise doing import and export business in the conditions of a fierce competition market mechanism, it requires employees to have professional qualifications, experience, and ability business Therefore, a requirement for the company is to improve the quality of its staff constantly, the company should conduct the following activities:  Have a plan to train staff in terms of professional expertise in foreign trade activities, improve their English skills by encouraging them to attend long-term classes  The company needs to send its staff and employees to take short-term classes organized by foreign experts on international trade negotiation transactions  Have a regime of reward and punishment reasonable, following the contribution of each person In addition, the company is also interested in a team of young employees 71 Supervisor: M.A Vo Thi Xuan Hanh CONCLUSION VIET DELTA Industry Co., Ltd is still a small-scale company, yet not strong enough Still, the company is always trying to learn a lot from industry change CEO Pham Anh Thu has many years of experience in the import and export market, promising to lead the company and raise the Viet Delta brand to the national level And the export business brings excellent potentials in terms of revenue and profit for the industry It brings economic benefits to the country, recognizing that Viet Delta Industry Co., Ltd sees export activities as critical And mostly, desiccated coconut is one of the necessary agricultural export products of the company International trade is growing, with the trend of globalization Import and export is a very important stage in today's globalized trade Moreover, mainly exporting agricultural products In the context of a dynamic, constantly changing, and competitive world economy on a fierce port day, the company will face many difficulties and challenges Although newly established for 17 years, operating in the import and export industry, VIET DELTA Industry Co., Ltd has taken advantage and applied the right strategies and policies The company is increasingly affirming its position in the delivery market In my essay, I studied the organizational structure of the apparatus, the process of implementing agricultural export contracts at the company and drew the following conclusions: The organizational structure of the company is not too cumbersome It is very flexible to help the company's operation process smoothly and efficiently The import and export process is clear Every issue necessary for exporting a shipment is detailed in each step With this process, the company will not spend much time guiding new employees in exporting goods, thereby significantly saving training costs for the company Production as well as import and export revenue in 2019 tend to increase compared to 2018 It is the result of a serious, effective working process of all employees of the company The proposed solutions will help improve the process, shorten lead time, and address the risks of shortage of goods and other related risks that businesses have ignored before 72 Supervisor: M.A Vo Thi Xuan Hanh REFERENCES Nguyễn Thị Kim Cúc (2015), Situation And Solutions For Industrial Management At Pharusa Vietnam Joint Stock Company, Thang Long University Jonas Malfliet, P r (2011), Incoterms 2010 and the mode of transport: how to choose the Belgium: Ghent University Lê Tiến Đạt Vũ Trọng Nghĩa (2020), Export activities of Vietnamese agricultural products, Industry and Trade Magazine Trần Hồng Ngân (2006), Thanh tốn quốc tế Nguyễn Hữu Khải, Vũ Thị Hiền, Đào Ngọc Tiến (n.d.) Quản lý hoạt động xuất nhập NXB Thống Kê Nguyen Thi Nhan (2020), Phân tích tình hình giao nhận hàng hố nhập đường biển Công ty TNHH DV GNHH Thời Gian, Baria Vungtau University Pinnells, J R (1999), Export sales contracts Nguyễn Đức Quỳnh (2017), Opportunities and challenges for Vietnamese agricultural products in Financial magazine SONGANHLOGS (2019), Quy Trình Nhập Khẩu Hàng Hóa – Đường Biển & Hàng Không Retrieved from Song Ánh Logistics: https://songanhlogs.com/quy-trinhnhap-khau-hang-hoa.html Võ Thanh Thu (2005), Incoterms 2000 hỏi đáp Incoterms Ho Chi Minh City : Nhà xuất thống kê Võ Thanh Thu (2005), Giáo trình Quan hệ kinh tế quốc tế NXB Thống kê Trần Bích Thủy (2020), Opportunities And Challenges For The Export Of Vietnam'S Agricultural Products To The Eu Market In 2020-2025 Lê Văn Trọng (2016), Some solutions to improve economical effects of the container freight forwarding effects of Joint Venture Company MSCVIETNAM Tạp chí Khoa học cơng nghệ giao thông vận tải, VOL 18 Vu Huu Tuu (2006), Technical professinal foreign trade tracsactions National Economics University Viet Delta Industrial Co., L (2020), About us and service Retrieved from http://vdelta.com.vn 73 Supervisor: M.A Vo Thi Xuan Hanh Viet Delta Industrial Company (2013), E-commerce application and finding customers for export Viet Delta Industrial Company (2016-2018), Financial Statements Report Viet Delta Industrial Company (2018), Personal Structure Viet Delta Industrial Company (the first months of 2019), Financial Statements Report Vietnam Commercial Law (2005) 74 Supervisor: M.A Vo Thi Xuan Hanh APPENDICES Appendix Sales Contract Appendix Commercial Invoice Appendix Packing List Appendix Certificate of Fumigation Appendix Bill of Lading Appendix Certificate of Analysis Appendix Health Certificate Appendix Phytosanitary Certificate Appendix Certificate of Origin 75 Supervisor: M.A Vo Thi Xuan Hanh FBFB Appendix Sales Contract 76 Supervisor: M.A Vo Thi Xuan Hanh Appendix Commercial Invoice 77 Supervisor: M.A Vo Thi Xuan Hanh Appendix Packing List 78 Supervisor: M.A Vo Thi Xuan Hanh Appendix Certificate of Fumigation 79 Supervisor: M.A Vo Thi Xuan Hanh Appendix Bill of Lading 80 Supervisor: M.A Vo Thi Xuan Hanh Appendix Certificate of Analysis 81 Supervisor: M.A Vo Thi Xuan Hanh Appendix Health Certificate 82 Supervisor: M.A Vo Thi Xuan Hanh Appendix Phytosanitary Certificate 83 Supervisor: M.A Vo Thi Xuan Hanh Appendix Certificate of Origin 84 S K L 0