Báo cáo thực tập tốt nghiệp chuyên ngành kinh tế đối ngoại tên đề tài key aspects of the business of nam kim steel joint stock company

BỘ KẾ HOẠCH VÀ ĐẦU TƯ BỘ GIÁO DỤC VÀ ĐÀO TẠO HỌC VIỆN CHÍNH SÁCH VÀ PHÁT TRIỂN CAO NGÂN HƯỜNG BÁO CÁO THỰC TẬP TỐT NGHIỆP CHUYÊN NGÀNH: KINH TẾ ĐỐI NGOẠI TÊN ĐỀ TÀI: “KEY ASPECTS OF THE BUSINESS OF NAM KIM STEEL JOINT STOCK COMPANY” Hà Nội, năm 2022 BỘ KẾ HOẠCH VÀ ĐẦU TƯ BỘ GIÁO DỤC VÀ ĐÀO TẠO HỌC VIỆN CHÍNH SÁCH VÀ PHÁT TRIỂN BÁO CÁO THỰC TẬP TỐT NGHIỆP Giáo viên hướng dẫn: TS Lưu Minh Đức Sinh viên thực hiện: Cao Ngân Hường Mã sinh viên: 5093106352 Lớp: CLC 9.2 Hà Nội, năm 2022 Contents CHAPTER I INTRODUCTION ABOUT NAM KIM STEEL JOINT STOCK COMPANY .4 1.1 Basic information of the company .4 1.2 Establishment and development process 1.3 Nam Kim’s main product lines 1.4 Vision, mission and core values 1.4.1 Vision 1.4.2 Mission 1.4.3 Core values 10 1.5 Organization structure 11 1.6 Overview of the business situation of Nam Kim Steel JSC in the period of 2019-2021 13 1.7 Future orientations of developing Nam Kim Steel JSC 14 CHAPTER II KEY ASPECTS OF THE BUSINESS OF NAM KIM STEEL JSC 16 2.1 Steel market .16 2.1.1 Domestic market 16 2.1.2 Exporting market 17 2.1.3 Market shares of Vietnamese steel companies 19 2.2 Nam Kim's production process 21 2.2.1 Testing input materials 21 2.2.2 Cleaning 22 2.2.3 NOF stage (Non-Oxidizing Furnaces) 22 2.2.4 Cold rolling process .22 2.2.5 Steel treatment 23 2.2.6 Plating process .23 2.2.7 Finished products and storage 25 2.3 Quality of logistics services at Nam Kim steel JSC 26 2.3.1 Ordering procedures 26 2.3.2 Information quality 28 2.3.3 Order accuracy and order quality 29 2.3.4 Order condition 30 2.3.5 Timeliness .31 2.3.6 Order discrepancy handling 31 2.4 Marketing activities of Nam Kim Steel JSC 32 2.4.1 Product 32 2.4.2 Price 33 2.4.3 Place 34 2.4.4 Promotion .36 CHAPTER III ASSESSMENT & SOLUTION RECOMMENDATIONS TO DEVELOP SERVICES AT NAM KIM STEEL JSC 38 3.1 Assessment of the company situation .38 3.1.1 Advantages 38 3.1.2 Disadvantages and reasons 39 3.2 Solution recommendations 40 3.2.1 For production activities 40 3.2.2 For logistics services 40 3.2.3 For marketing activities .41 CONCLUSION 42 REFERENCES 43 TABLE OF FIGURES Figure 1: Nam Kim’s Functional Organization .11 Figure 2: Nam Kim Steel's export market .18 Figure 3: Market share of galvanized steel sheet in Vietnam 2021 .20 Figure 4: Market share of steel pipe in Vietnam 2021 20 Figure 5: Nam Kim’s export process 27 Figure 6: Sample Bill of Lading of Nam Kim 28 LIST OF ABBREVIATION ABBREVIATION EXPANSION AS ASTM CRC CCTPP Australian Standard American Society for Testing and Materials Cold Rolled Coil Comprehensive and Progressive Agreement for EVFTA EN FTA HVAC HRC IEC ISO JIS JSC NOF RCEP Trans-Pacific Partnership European-Vietnam Free Trade Agreement European Norm Free Trade Agreement Heating, Ventilating and Air Conditioning Hot Rolled Coil International Electrotechnical Commission International Organization for Standardization Japan Industrial Standard Joint Stock Company Non-Oxidizing Furnaces Regional Comprehensive Economic Partnership ACKNOWLEDGEMENT As my internship report is completed, I would like to express my gratitude to all the individuals and organizations who provided me the opportunities and guidances throughout the process of doing this internship report First and foremost, I would like to thank my academic supervisor PhD Luu Minh Duc for providing me all the necessary help and guiding me to start and complete this report I am also thankful for his patience and enthusiasm that he has shown during this time In addition, many thanks also go to all the I.S.E.F teachers for imparting valuable knowledge to me during the time at the APD Thanks to the guidance and teaching of the teachers, my research topic can be completed well Because of my limited knowledge in the process of completing this report, it is inevitable that I may make mistakes so I hope to receive suggestions from the teachers CHAPTER I INTRODUCTION ABOUT NAM KIM STEEL JOINT STOCK COMPANY 1.1 Basic information of the company Company name: Nam Kim Steel Joint Stock Company (HOSE: NKG) Company Abbreviation: NAKISCO Headquarters: D2 street, Dong An Industrial Park, Thu Dau Mot city, Binh Duong Province, Vietnam Tel: +84 27 43 748 848 Fax: +84 27 43 48 868 Website: www.tonnamkim.com Established in 2002, Nam Kim Steel JSC is a leading enterprise specializing in manufacturing galvanized steel sheets in Vietnam, Ton Nam Kim is always a pioneer in technological investment to provide products with the best quality standards to domestic and international customers Currently, Nam Kim’s products are trusted nationwide and exported to more than 50 countries around the world Nam Kim uses modern technological equipment of the world's leading corporations in the steel industry including SMS (Germany), Drever (Belgium) Steel material sources are selected from famous large corporations such as Nippon Steel (Japan), Hyundai Steel (Korea), CSC (Taiwan), Formosa (Vietnam) Besides, Nam Kim also invested in 100% new coil processing and processing lines at Nam Kim Steel Factory with the most advanced technology lines from developed countries in the world This is a strategic business activity to meet the increasingly diverse needs of the market Nam Kim coil processing line allows cutting steel with high accuracy At all stages of production, products must go through strict quality control processes Therefore, Nam Kim has achieved the world's most stringent quality standards such as JIS (Japan), AS (Australia), ASTM (USA) and EN (Europe), ISO 9001, and ISO 14001 1.2 Establishment and development process Nam Kim Steel JSC was officially established on December 23, 2002, certificated by Binh Duong Department of Planning and Investment The head office is located in Binh Duong Province with an area of more than 43,000 square meters Nam Kim's field of activity is the production and distribution of cold steel sheets (55% aluminum zinc alloy coated steel sheets), galvanized steel sheets, color coated steel sheets and industrial steel products Nam Kim steel products serve industrial - civil construction, handicraft industries, interior decoration, electromechanical manufacturing, precision mechanics and metal stamping products In 2011, Nam Kim Steel Joint Stock Company was listed on the Ho Chi Minh Stock Exchange with the stock code NKG In 2012, the factory No.1 started operation, located in Dong An industrial park, Binh Duong province, covering an area of more than 65,000 square meters The closed production process with production lines including pickling, cold rolling, thick galvanizing, cold galvanizing and color plating has a total capacity of over 350,000 tons/year, providing a great competitive advantage in the company's long-term development goals In 2016, the factory No.2 started its operation, located in Vinh Loc industrial park, Long An province This factory helps to raise the total capacity to million tons of products/ year 2.3.4 Order condition Safe distribution of goods is the goal of Nam Kim Steel JSC If the condition of the goods is not good or damaged due to transportation and handling, there may be additional costs of compensation or refund of the damaged goods On the other hand, it reduces customer satisfaction due to time consuming to complain and resolve these errors The goods is preserved in well-ventilated warehouses before being packed in containers Packing method: because steel sheet has the characteristic of occupying a large area in the container, so it is rolled into a circle and not piled on top of each other One container (full container load) can hold about corrugated iron rolls (each roll is about - tons depending on the type of item) After packing the corrugated iron into the container, the staff in charge of packing is responsible for taking pictures of the container, the number of seals, the damaged container foundation (in case of damage), etc., as evidence for future complaints 30 After checking the quality at the factory, the company is responsible for transporting containers from the warehouse to the seaport for export goods or delivering directly to the warehouse of domestic goods For export goods, the company will carry out export procedures such as packing goods, preparing documents, transferring goods to the port, doing customs procedures, delivering containers of good to the vessel 2.3.5 Timeliness At present, the market is fiercely competitive and the delivery pressure is increasing, so quick response and timely order processing are the key factors that determine the quality of customer service The process is carried out in sequence: after receiving and confirming the order based on production capacity, the sales staff transfers it to the planning department The production planning department sets up the production plan and focuses on the production according to the plan, ensuring that the goods are delivered to the warehouse before a.m on the day of the delivery request and the delivery department is responsible for delivering the goods with the necessary documents Logistics staff is responsible for tracking, arranging delivery plans until the job is completed, in charge of making plans between departments and coordinating the activities of the transport fleet to ensure fast and safe delivery, on-time delivery to customers 2.3.6 Order discrepancy handling Handling wrong orders involves collecting complaints and suggestions from customers to answer, adjust and provide the most suitable solution for customers to improve customer satisfaction with the company After receiving customer complaints, the customer service department sends feedback to other relevant departments If the goods have quality problems, 31 the complaint will be transferred to the quality department or if the goods have problems with the delivery schedule, the company will contact the delivery department In case there is no stock, feedback will go to the production planning department The time to resolve customer complaints is different for each type of error Complaint resolution activities involve many different departments and the resolution needs to be connected between departments for quick complaint handling 2.4 Marketing activities of Nam Kim Steel JSC Marketing activities have a great impact on the competitiveness of businesses, it directly determines sales, market share and contributes to the creation of a brand for the business Activities related to providing information to customers to buy products or motivating them to buy products of the company such as advertising, communication activities, promotions, sales policies, pricing policies, distribution channels to drive customers to use products and services Nam Kim is still quite limited in terms of marketing activities, so the Nam Kim's brand is still unknown to many consumers, especially in the Northern market Most sales promotion activities are carried out by sales staff, and the expenditures used for marketing activities are still limited This is a weakness in creating a competitive advantage of the company compared to competitors in the industry such as Hoa Phat Group, Hoa Sen Group, Ton Dong A corporation 2.4.1 Product Nam Kim branded building materials products have been confirmed in terms of quality for the domestic market To affirm that the steel produced by Nam Kim company is always of high and stable quality, the products are always strictly controlled by the ISO 9001-2008 Quality Management System and a modern laboratory with test equipment according to European standards 32 ISO/IEC However, compared to competitors such as Hoa Sen, Hoa Phat, Nam Kim is still weaker in terms of market research and development activities Because these competitors have nationwide retail branches and sell directly to consumers, they can quickly grasp customer needs from price to product quality and consumer tastes They also actively build a free telephone exchange to advise and answer customers, receive requests for goods quality and price While Nam Kim pays little attention to consumer access, the reception of information is slower than that of its competitors For foreign markets, the main export products of Nam Kim are galvanized steel sheet, CRC, color coated steel sheet, galvanized steel pipe in accordance with the great demand of main export markets such as Indonesia , Malaysia, Thailand, Myanmar Over the years, Nam Kim has focused on investing innovating - applying advanced modern production technologies of Europe and Japan to meet the requirements of markets requiring high quality such as the US and Europe At the same time, Nam Kim is oriented to continue developing, receiving export shipments to new markets such as Africa, the Middle East, and the Caribbean countries Regarding technical requirements, Nam Kim researches external factors such as environment and climate in importing countries to calculate and ensure requirements such as elastic limit, durability, elongation 2.4.2 Price Because of choosing indirect distribution channel, Nam Kim has saved its human and financial resources, taking advantage of agents in developing markets, increasing outputs and market share thereby promoting Nam Kim's brand to consumers at a reasonable cost Currently, with reasonable prices, quality to meet market requirements, Nam Kim galvanized steel pipes are being trusted by many customers The above advantage is reflected in the Company's sales volume and revenue continuously increasing in recent years 33 Nam Kim implements many flexible pricing policies applicable to different customers The company builds a pricing policy based on the consumption of goods for each customer to encourage them to buy products in large volumes In addition, Nam Kim flexibly combines with the bonus policy according to the cumulative output each month, so the price is very flexible This is a strong point that helps the company improve its competitive advantage over competitors in the market Nam Kim also uses a payment discount policy for customers, encouraging early payment to receive preferential prices, thereby helping the company recover debts early 2.4.3 Place For the domestic market, Nam Kim chooses an indirect distribution channel, the company distributes products to distribution agents, through centralized warehouses mainly in the South and one warehouse in Hanoi This is also the way that Nam Kim saves financial resources and utilizes the power of intermediaries to reach consumers The above branches only 34 perform the function of being a total distribution warehouse for commercial customers, not performing the retail function for end-consumers Therefore, in terms of business location and delivery locations, Nam Kim has less advantages than competitors in the industry The leading advantage in term of location is Hoa Sen Group, which has a system of branches that performs wholesale and retail distribution functions, spreading across 63 provinces and cities Up to now, Hoa Sen Group has nearly 60 provincial branches and more than 400 affiliated stores, so it has the most favorable business location, creating the best conditions for customers to make transactions with the company However, Nam Kim has a large number of wholesalers as long-term and loyal partners, so the company also has certain advantages in distributing goods to consumers For export market, Asean is currently Nam Kim's main market Nam Kim's decision to choose Southeast Asia to promote export business is completely reasonable Firstly, being located in the Asean region, Vietnam is enjoyed preferential treatment from the Asean Free Trade Area Agreement (AFTA) on tariff reduction and elimination Secondly, due to the typical characteristics of cold corrugated iron products, which are very suitable for the weather conditions of the Asean region, the demand for these product lines in this area is large Third, Asean is a market that is not too fastidious and requires high technical standards of goods, with consumer tastes quite similar to Vietnam, so Nam Kim's products can easily meet the importing standards Besides, the geographical proximity to each other helps the company reduce costs, transporting time, and risks, leading to more reasonable product prices In recent years, Nam Kim has expanded its market to Europe, America, Africa, etc These are areas with high requirements for technical regulations for export products For these markets, the company strives to meet rigorous technical standards to thrive in these markets 35 2.4.4 Promotion As mentioned above, the company is still limited in accessing the media, social activities, etc in order to advertise, build brands and reach potential customers Nam Kim is still quite modest in communication and public relations activities The company has only participated in low-cost advertising channels such as magazines, signboards, some outdoor advertising panels and a few TV advertising channels Those large advertising campaigns of the company up to present were renting advertising screens in the first round of an oversea football tournaments in 2017 and sponsoring the Miss Vietnam 2018 program 36 Regarding communication activities, Hoa Sen Group Joint Stock Company is the leading enterprise in marketing activities, followed by Hoa Phat Group and Ton Dong A corporation These businesses invest a lot in marketing activities such as supporting the Covid-19 epidemic prevention fund, sponsoring television programs and events to support the poor, flood-affected people, etc Therefore, these brands are known by many consumers and have significant influence in the market 37 CHAPTER III ASSESSMENT & SOLUTION RECOMMENDATIONS TO DEVELOP SERVICES AT NAM KIM STEEL JSC 3.1 Assessment of the company situation 3.1.1 Advantages In today competitive market, Nam Kim still achieves a good growth rate, develops and creates trust for domestic and foreign customers Here are some of the company's strengths:  Most of the steel materials are selected from reputable large corporations such as Nippon Steel (Japan), Hyundai Steel (Korea), CSC (Taiwan), Formosa (Vietnam) Input quality control activities are closely monitored, so the quality of steel is highly appreciated by consumers, meeting domestic and export quality standards  Nam Kim is one of the companies with a large scale of iron and steel production in Vietnam with advanced modern production technology of Europe and Japan and product quality that complies with the world's leading standards Nam Kim's production system is managed according to ISO 9001 - 14001 standard with a strict quality management process Products are manufactured according to standards’ Japan and was granted the JIS-3320 certificate by the Bureau of Quality Certification for galvanized steel products that meet the strict standards of the importing countries Thereby helping the Company create an advantage in product quality while the steel industry requires high standards, meeting market requirements in terms of aesthetics and durability In 2019, the company put into operation a cold plating line with a capacity of 150,000 tons a year, a color coating line with a capacity of 120,000 tons, and a cold rolling line of 200,000 tons The zinc steel pipe factory 38 in Long An with a capacity of 200,000 tons has also been operated, bringing the total output of galvanized steel to 1.2 million tons a year  Regarding logistics services, the quality of the company's procedures is evaluated flexibly because the company has many different order receiving channels, customers can place orders easily at the company The company's sales staff are experienced, build good relationships with domestic and international customers, and always serve customers thoughtfully Besides, the company is always looking for business cooperation with new partners to expand long-term cooperation  In addition, flexible sales policy and competitive prices are also an advantage of Nam kim compared to competitors 3.1.2 Disadvantages and reasons In spite of the above advantages, Nam Kim also has the following limitations:  First, Nam Kim's input steel materials are mainly imported from abroad, so import contracts must be paid in foreign currencies Therefore, exchange rate fluctuations will be a risk affecting the price of imported materials, thereby affecting the company's profit  Second, if we use the 4P’s model (including factors of product, price, promotion and sales channel) for analysis, it is clear that Nam Kim's limitation is currently in the last stage Due to the lack of financial strength compared to other competitors such as Hoa Sen and Hoa Phat Group, Nam Kim has not made a big investment in the retail network, instead, Nam Kim depends entirely on agents In addition, this also contributes to making Nam Kim's gross profit margin not as good as its big competitors 39  Third, for the domestic steel industry, Nam Kim steel brand awareness is still low compared to its competitors such as Hoa Phat Group and Hoa Sen Group These corporations have nationwide coverage while the Nam Kim brand is only famous in the southern region The reason is that the distribution channel has not been developed in these two areas and Nam Kim has not focused on investing in marketing activities to improve its brand awareness 3.2 Solution recommendations 3.2.1 For production activities  For input materials, the company needs to plan to reserve the necessary amount of raw materials for the production process In addition, it is possible to negotiate and sign contracts with partners to keep the price of raw materials stable  Training courses will improve employees' awareness of the ERP model, help them coordinate information flows to improve business processes, and better meet customer needs Through the training course, employees will be fully trained with knowledge and skills to actively implement activities during the operation of the ERP system  Leveraging the capacity of the production line to reduce costs, product depreciation, improve labor productivity, reduce operating costs for businesses and reduce product costs In addition, maintenance of machinery and equipment must be performed well to ensure continuous operation, reduce downtime due to damage, and increase machine life 3.2.2 For logistics services  Employees must always keep in touch with customers regularly and collect their opinions about the quality of services and products that the 40 Company provides Since then, the Company promotes the advantages and limits the disadvantages to improve the quality of its products and services  Establishing relationships with shipping service providers to be able to support customers in the best way about shipping solutions with the best cost, meeting the competitiveness in the market 3.2.3 For marketing activities The company needs to invest costs for community relations programs such as programs aimed at serving the public, supporting the poor, participating in charity activities, developing education, sponsoring entertainment programs and participating in forums specialized in steel sheets Those are activities that are of great interest to many people that will resonate in the market, create trust in the public, and support the enterprise's goal of capturing market share To strengthen marketing activities, the company must first focus on marketing resources Currently, human resources in marketing activities are still quite limited, so The company needs to develop this resource, improve the quantity and quality of marketing human resources to support sales activities more effectively and meet the development requirements of the business Next step is to strengthen communication activities and relationships towards construction contractors, iron and steel entrepreneurs to bring Nam Kim's products to consumers through this customer The company should invest more costs to develop communication channels and relationships towards these customers, increase product introduction so that they trust to become long-term distribution partners Strengthen relationships with construction contractors, construction designers so that they can choose Nam Kim galvanized steel pipes during the construction process and work items This is a potential market for strong consumption of galvanized steel pipe products 41 CONCLUSION It can be seen that the period of 2019-2021 is a period of strong development for Nam Kim with many remarkable successes in the domestic and international markets However, the reality shows that there are still some disadvantages that need to be discussed to find solutions to solve these problems With regards to the main research purposes of the topic " Key aspects of the business of Nam Kim Steel Joint Stock Company” the report has completed the following tasks: - Providing an overview of the current situation of the domestic and international steel market - Analyzing and evaluating key aspects of Nam Kim's business including production, logistics and marketing strategies - Proposing solutions based on existing limitations of Nam Kim Steel JSC Once again, sincerely thanks to Dr Luu Minh Duc for helping me complete this report 42 REFERENCES Nam Kim Steel Joint Stock Company, Annual Report 2019, 2020, 2021 Vietnam Steel Association (VSA), Tình hình thị trường thép Việt Nam tháng 11/2021 11 tháng đầu năm 2021 Vietnam Steel Association (VSA), Hội thảo Thị trường Thép Việt Nam Công tác hoạt động Hiệp hội Thép Việt Nam năm 2021- Triển vọng năm 2022 Vietnam Steel Association (VSA), Tổng quan thị trường thép toàn cầu – tháng 5/2021 Vietcombank Securities, Steel Industry Report 2021 Website: - http://vsi.gov.vn - http://vsa.com.vn/ - https://tonnamkim.com - http://www.bsc.com.vn - https://vtv.vn/kinh-te.htm https://www.vdsc.com.vn - https://moit.gov.vn/thong-ke/bao-cao-tong-hop 43 44