(Luận văn) the current situation of steel import activities of hong nam mechanical join stock company

INTRODUCTION Background In the XXI century, the international economic integration trend has been taking place at a rapid rate in the ASEAN region as well as worldwide Countries all over the world have a strong connection with each other in various aspects, especially in economics and trade After than more 30 years of international economic integration, Viet Nam lu recognized the importance of the import-export industry and the mechanical an va industry for the country’s development On the path of industrialization and n modernization of the country, the Government identified the mechanical gh tn to industry as the backbone for Vietnam’s economic development Therefore, the Government has supported and created favorable conditions for domestic ie p mechanical enterprises to concentrate on producing mechanical products that w serve the processing industry; agriculture, forestry and fishery Although steel d oa nl is one of the main raw materials for the mechanical industry’s production, an lu domestic steel produced, cannot meet the demand of Vietnamese mechanical enterprises Besides, the domestic steel industry has not been able to produce va ul nf specific types of steel for the mechanical industry with reasonable prices and oi lm good quality such as alloy steel, hot rolled steel plates, cold-rolled steel plates, … that are important materials used for mechanical manufacturing Therefore, z at nh steel imports play an important role in the development of the domestic mechanical industry z @ gm The Chinese steel market is one of best choices for Vietnamese mechanical l enterprises because of abundant steel supply, diverse types of steel as well as m co reasonable prices However, there are a lots of steel markets such as Taiwan, an Lu Russia, Singapore, … that also provide the types of steel with high quality and good prices Therefore, Vietnamese mechanical companies have to research ac th n va carefully to find out the suitable market for their company, which helps the si companies cut down raw material costs and also focus investment on the high technology machineries to produce high-quality mechanical products In the context of Vietnam’s global integration, Hong Nam Mechanical Joint Stock Company recognized both opportunities and challenges of importing steel from different markets Hong Nam Mechanical Joint Stock Company is known as the first company capable of designing and manufacturing mechanical products for different types of industries across the country Therefore, the company always need to lu an import large quantities of steel for production After an internship in General n va Sales Department, Hong Nam Mechanical Joint Stock Company, along with situation, I chose the topic: “The current situation of steel import activities gh tn to the school’s knowledge to learn more about the company’s steel import p ie of Hong Nam Mechanical Join Stock Company.” for internship report nl w The purpose of the internship report is to analyze the company’s steel oa imports activities to find out achieved aspects and also limited problems in the d company’s imports Thereby, there are some proposed solutions to enhance the lu Research objectives oi lm ul nf va an efficiency of the company’s steel imports activities - Research question: How is the current situation of steel import activities of z at nh Hong Nam Mechanical Join Stock Company? - General objective: Analyzing the current situation to find solutions z l · Analyzing key information of the company gm @ - Specific objectives: an Lu company in order to find out limited problems m co · Researching the steel import activities from different markets of the n va ac th si · From results, propose suitable solutions to enhance the steel import activities of the company Research object The object of research is the steel import activities of Hong Nam Joint Stock Company Research Scope - Time limited: 2017 – 2019 lu an - Venue limited: Vietnam n va Research method gh tn to - Data collection: the data gathered by discussing informally with Hong Nam p ie Mechanical Joint Stock Company personnel (Primary data) and the data nl w collected from internal documents of the company (Secondary data) oa - Data Analysis: Base on two data sources (Primary data and Secondary data) d to research and find out problems an lu nf va Research Structure oi lm ul The internship report structure except for introduction, conclusion, contents and references, has been divided to chapters: z at nh CHAPTER INTRODUCTION TO HONG NAM MECHANICAL JOINT STOCK COMPANY z gm @ CHAPTER THE CURRENT SITUATION OF THE STEEL IMPORT m co l ACTIVITIES OF THE COMPANY CHAPTER RECOMMENDATIONS AND SOLUTIONS an Lu n va ac th si CHAPTER INTRODUCTION TO HONG NAM MECHANICAL JOINT STOCK COMPANY 1.1 Establishment and development process Hong Nam Mechanical Joint Stock Company is a state-owned enterprise established on November 4, 1971 under the Decision No 2445/ CLCV of the Ministry of Mechanics and Metallurgy (now the Ministry of Industry) In December 2003, the company was equitized according to Decision No 238/ 2003/ QD-BCN of the Ministry of Industry lu an n va p ie gh tn to d oa nl w lu va an Figure 1.1 Logo of Hong Nam Mechanical Joint Stock Company · oi lm COMPANY ul nf · Company’s name: HONGNAM MECHANICAL JOINT STOCK · Tax ID: 0101495214 z at nh Abbreviated company’s name: HOMECO z · Address: No.45, Lane 294 Linh Lam St., Hoang Mai Dis., Ha Noi, Viet @ gm Nam · Fax: (+84) 243 644 6605 · Website: www.cokhihongnam.com.vn an Lu · Email: homecocrane@gmail.com m co l · Telephone: (+84) 243 644 6606 n va ac th si Hong Nam Mechanical Joint Stock Company (HOMECO) is known as one of the first Vietnam enterprises that can design, manufacture and supply transport lifting equipment such as crane, gate crane, conveyor belt, screw, elevators, hoists, … At the same time, the company also manufacture unique mechanical products for different types of industries in Vietnam like installing steel structures for warehouse frame, scaffolding, and other mechanical products The company has the infrastructure including factories, auxiliary areas with lu an high standards to manufacture lifting equipment, mechanical process and steel n va structure Besides, the company is equipped with state of the art equipment such grinding machines, planers of all kinds, high frequency furnaces, automatic gh tn to as lathes, horizontal boring machines, internal – external high precision circular p ie steel plates cutting, US automatic welding machine, DC welding machine, w mechanical testing machine for fabrication materials, steel structure oa nl oscilloscope, detector check the quality of welds, pneumatic sandblasting d machine, modern paint praying system, theodolite, … with Vietnamese va an lu standards TCVN4244-2005 nf After equitization, the company has brought the ISO 9001-2008 quality oi lm ul management system into the manufacturing process, which helps the company improve management ability Also, the company has a team of specialized z at nh technical staffs with high qualifications Over the past 40 years, the company has been constantly growing, always z gm @ successfully fulfilling its assigned tasks and also have been awarded many Labor Medals, the certificates of merit from Ministry of Industry m co l 1.2 Branch Offices of Hong Nam Mechanical Joint Stock Company an Lu HOMECO currently has branches nationwide · HOMECO Ho Chi Minh Branch (Tax ID: 0101495214-005) n va ac th si · HOMECO Bac Ninh (Tax ID: 0101495214-001) · General Service Center – HOMECO Branch (Tax ID: 0101495214-004) · Ha Noi Crane Mechanical Factory – HOMECO Branch (Tax ID: 0101495214-003) · Lifting Equipment Factory – HOMECO Branch (Tax ID: 0101494214002) 1.3 Business activities of HOMECO 1.3.1 Business activities lu an - Manufacture of lifting and handling equipment n va civil construction ie gh tn to - Installation of industrial equipment systems in the construction industry and p - Design, manufacture, repair and installation of lifting equipment, non- standard equipment and equipment for construction industry and civil w d oa nl construction an lu 1.3.2 Products and Services va - Lifting equipment: suspension bridge crane, single girder bridge crane, double - Conveyor oi lm ul nf girder bridge crane, container gantry crane, car winch, grabbing crane z at nh - Hydro-mechanical equipment: valve gate of hydraulic engineering constructions z @ - Smart parking: smart car garage, smart multi-story garage gm - Mechanical process service: burning tower crane m co l - Solar power panels an Lu - Repair and maintenance services n va ac th si 1.4 Management organization of HOMECO Director lu Deputy Business Development Director an Deputy Technical Director Branch Offices n va HOMECO Ho Chi Minh Branch p ie gh tn to Production & Purchasing & Technical Import-Export Department Department Sales & Marketing Department Accounting Department d oa nl w Ha Noi Factory lu Bac Ninh Factory oi lm ul nf va an Administration Department General Service Center z at nh z l gm @ m co Figure 1.2 The scheme of HOMECO's management organization an Lu (Source: HOMECO’s Internal Documents) n va ac th si 1.4.1 Board of Directors Board of Directors include three members: General Director, Deputy Business Development Director and Deputy Technical Director a, General Director Mr Le Van Quynh Main responsibilities lu - Making policies and strategic objectives of the company an n va - Be responsible for the foreign affairs of the company - Deciding financial indicators, signing payment orders, issuing payment orders ie gh tn to - Signing directly economic contracts p and checks oa nl w - Deciding on salaries and allowances (if any) for employees in the company d - Appointing, dismissing and removing manager positions in the company lu va an - Monitoring all activities of company’s departments Mrs Phan Thi Tuoi z at nh Main responsibilities oi lm ul nf b, Deputy Business Development Director - Monitoring all activities of departments (Sales & Marketing Department, z gm @ Accounting Department, Administration Department and Purchasing & Import-Export Department) l m co - Planning, budgeting for marketing activities for each quarter of each year to an Lu advise General Director - Advising for General Director on the management of capital in the company n va ac th si - Checking the financial statement made by the Accounting Department - Signing economic contracts as authorized by General Director and approving a number of documents related to production activities in the company as authorized by Director - Developing policies such as wages, social policies and other policies for employees c, Deputy Technical Director lu an Mr Nguyen Dinh Quang va n Main responsibilities gh tn to - Monitoring all activities of departments (Production & Technical Department, p ie Purchasing & Import-Export Department) nl w - Be responsibilities for manufacturing activities oa - Annually, building recruitment plans, training and managing human resources d to meet requirements of production an lu - Managing the quality of mechanical products nf va oi lm ul - Supervising and approving the purchase materials for production activities 1.4.2 Sales & Marketing Department z Numbers of employees: 10 z at nh Manager: Mrs Nguyen Thi Lien @ l gm Main responsibilities manufacture and business of the company m co - Researching and developing the domestic and foreign markets to expand the an Lu - Doing marketing activities and also making marketing campaign for ac th n va company si - Cooperating with Production & Technical Department to providing the specific information of company’s mechanical products - Taking care of customers and solving customers’ requirements (if any) - Researching the company’s products and comparing with other companies 1.4.3 Accounting Department Manager: Mrs Nguyen Thi Lan Phuong lu Numbers of employees: an n va Main responsibilities flow, budgets and forecasting, management of taxes, management of company gh tn to - Taking responsibility for important tasks: management of company’s cash p ie investment, financial reporting and analysis - Supporting Purchasing & Import-Export Department to pay sales contracts nl w d oa using L/C or T/T an lu 1.4.4 Administration Department oi lm Main responsibilities ul Number of employees: nf va Manager: Mrs Nguyen Thi Thuy z at nh - Arranging appointments and scheduling important events of company z - Storing and maintaining employees’ personal records gm @ l - Making monthly expenses reports submit to financial – accounting m co department an Lu - Storing and printing documents of company when there are important events or meetings n va ac th 10 si Using electronic customs declaration software (ECUS5 – VNACCS) to make customs declaration lu an n va p ie gh tn to w d oa nl Figure 2.4 ECUS5 – VNACCS software nf va an lu (Source: Synthesis of the author) steps: oi lm ul The opening electronic customs declaration process includes the following z at nh · Declaration of import information (IDA): When fully filling the indicators on IDA screen (133 indicators), the customs declaration staff sends to z gm @ VNACCS system which will automatically issue the number, export the criteria related to tax rates, names and also automatically calculating the l m co criteria related to value and tax After that, VNACCS system responds to the customs declaration staff at the declaration registration screen (IDC) an Lu · Registration of import declaration (IDC) After receiving the declaration ac th 23 n va registration screen (IDC), the customs declaration staff checks declared si information and the information automatically is exported and calculated by system If the information is confirmed correctly, it sends to the system to register the declaration · Checking conditions for declaration registration: Before allowing the registration declaration, the system will automatically check enterprise listings which enterprise are not eligible for registration If the set of documents is valid, enterprise will register a customs declaration · Checking through channels: When customs declaration has been registered, lu an the system automatically checks cargoes through channels: green channel, n va yellow channel and red channel actual cargoes gh tn to - Green channel (level 1): Exempt from checking detailed documents and p ie - Yellow channel (level 2): Checking detailed documents and exempt from checking actual cargoes oa nl w - Red channel (level 3): Checking detailed documents and actual cargoes d Tax Procedures lu va an After the declaration is divided, the tax amount will be displayed on the ul nf declaration whether it is green, red, or yellow down into specific sections: oi lm This tax amount is displayed on the first page of the declaration and is broken z at nh - Import Tax z gm @ - VAT This is the basis for paying the exact amount of tax an Lu v Receiving goods at the port m co l - Total tax payable ac th 24 n va - Having receipt of goods, documents of receipt and original bill of lading D/O si - Paying warehouse rental, handling fees and get a receipt - Sending delivery orders to the ship management office at the port to sign for confirmation and locate the goods at the port - Sending a delivery order to the logistics department for delivery 2.2.1.4 Liquidation Implementation department: Deputy Technical Director or Manager of Purchasing & Import-Export Department lu an - Liquidate contracts on time: After receiving the goods, if the shipment status va n is completely normal, the contract will end when full payment for the shipment gh tn to - Liquidate contracts ahead of time: p ie Case 1: Both parties fulfill their obligations ahead of the time limit specified in nl w the contract d oa Case 2: Due to one of two parties cancel the contract an lu In some other cases: lack of goods, unqualified goods, after the two parties agree and complete the compensation procedure, the contract ends oi lm ul nf va 2.1.3 Market structure Import markets play an important and decisive role to import efficiency of z at nh enterprises Thus, the choice of import market has always been put on top The partners of the company from: Russia, China, Taiwan z m co l gm @ an Lu n va ac th 25 si 20% 40% China Taiwan Russia 40% lu an n va tn to Figure 2.5 The import market structure of the company ie gh (Source: Purchasing & Import-Export Department) p nl w As can see from the pie chart, the company focusing on importing steel in oa three main markets: China (40%), Taiwan (40%) and Russia (20%) The reason d why China and Taiwan are the best choices of the company is that steel industry lu ul nf price va an in these two countries is very developed, good steel quality and reasonable oi lm Table 2.1 The steel import partners of HOMECO Market Fosun International China z at nh Partners z @ China Beijing Shougang Co., Ltd China m co Taiwan an Lu Chun Yuan Steel l China Steel gm Baoshan Iron & Steel Co., Ltd Taiwan n va ac th 26 si Magnitogorsk Iron &Steel Russia (Source: Purchasing & Import-Export Department) It is clearly seen from the table, almost partners of the company are from China and Taiwan 2.1.4 The result of steel import activities 2.1.4.1 The steel import turnover and import market of the company Table 2.2 The steel import turnover of HOMECO from 2017-2019 lu an (Unit: billion VND) va n Year 2017 Percentage gh tn to Indicators Value 2018 Value 2019 Percentage (%) Value (%) Percentage (%) 39.4 14,4 28.6 19,2 30.8 14,4 36.4 19,2 38.1 24 38.5 9,6 24.2 16,8 33.3 19,2 30.7 d 100 50,4 100 62,4 100 p 15,6 ie China (Source: Purchasing & Import-Export Department) oi lm ul nf va an value 39,6 lu Total oa Russia nl w Taiwan As can be seen from the table, HOMECO witnessed an increase in the steel z at nh import turnover over the periods of years In 2017, the import turnover was 39,6 billion VND and still increased to 50,4 billion VND in 2018 Until 2019, z this trend also remained and the import turnover stood 62,4 billion VND @ gm Most of the company’s import markets were volatile because in the steel l import process, the company has to select the supply sources that meet the m co requirements of the company The company’s partners are mainly from China, an Lu Taiwan and Russia From 2017 and earlier, China was the company’s main partner with 15,6 billion VND (accounted for above 39% of the company’s n va ac th 27 si total steel import turnover) However, Taiwan exceeded any other kinds in importing steel with 19,2 billion VND in 2018 and 24 billion VND in 2019 China market: This is the steel import market of the company accounting for a high proportion In 2017, the steel import turnover accounted 39.4% and tended to decrease in 2018 (with 14.4%), then slightly increased to 30.8% in 2019 Although the percentage of the steel import turnover from China was not stable, Chinese market is still preferred choice of the company with high quality and reasonable prices lu an Taiwan market: This is the steel import market having dramatic growth In va n 2017, the percentage of import turnover was 36.4% and increased until 2019 is a potential steel import market of company because the quality of steel is ie gh tn to with 38.5% which was the highest ranking in importing steel Taiwan market p always stable and transportation costs are lower than other markets nl w Russia market: There was an increase in the steel import turnover over the d oa period of years In 2017, the figure for the steel import turnover was 24.2% an lu and had tendency to increase until 2019 (with 30.7%) Although this market increased gradually over the years, transportation costs were higher than others oi lm ul nf va market 2.1.4.2 The types of imported steel z at nh HOMECO imports the main types of imported steel that used for manufacturing specific mechanical products of the company including: hot z gm @ rolled steel, cold rolled steel, alloy steel, plate steel m co l Table 2.3 The types of HOMECO's imported steel from 2017 – 2019 (Unit: billion VND) Indicators 2017 2018 2019 an Lu Year Value Percentage Value Percentage Value Percentage n va ac th 28 si (%) (%) (%) Total value 39,6 100 50,4 100 62,4 100 Cold rolled 3,96 10 8,064 16 6,24 10 11,88 30 10,08 20 12,48 20 Alloy steel 9,9 25 14,112 28 18,72 30 Plate steel 13,36 35 18,144 36 24,96 40 steel Hot rolled steel lu an (Source: Purchasing & Import-Export Department) n va This table demonstrates the value and the percentage of the kinds of there was a rise in the steel import turnover of types of imported steel because gh tn to imported steel in the periods of years It is clearly seen from the table that p ie the company has expended its manufacturing scale nl w In almost types of imported steel, the value of plate steel import turnover oa took the highest position and the percentage of plate steel import also was the d leading ranking Specifically, in 2017, the value of plate import turnover stood lu va an at 13,36 billion VND (accounted for 35% of total import turnover percentage) nf The value of plate steel import turnover in 2018 and 2019 were 18,144 billion oi lm ul VND and 24,96 billion VND respectively The second ranking belongs to alloy steel In 2017, company imported alloy steel with the value of import turnover z at nh was 9,9 billion VND (accounted for 25% of total steel import turnover percentage) After that, there was an dramatic increase in the value of alloy z @ steel import turnover in 2018 (with 14,112 billion VND) and in 2019 (with l gm 18,72 billion VND) The reason is that the company changed products strategies and concentrated on mechanical products which used more alloy steel m co such as: solar power panels, conveyors Hot rolled steel was not changes over an Lu the years In 2017, the value of hot rolled steel import turnover was 11,88 billion VND (accounted for 30% total steel import turnover) However, from n va ac th 29 si 2018 to 2019, the percentage of hot rolled steel import turnover remained at 20% that means the value of hot rolled steel import turnover was 10,08 billion VND in 2018 and 12,42 billion VND in 2019 Finally, cold rolled steel has the lowest value and percentage of steel import turnover over the years 2.2 Assessing the steel import activities of the company 2.2.1 The achievements of steel import activities In recent years, steel import activities of the company have provided a large source of materials for the mechanical production of the company Although lu an the world steel market is always volatile and steel prices fluctuate erratically, va the company always imports good quality steel at reasonable prices Therefore, n following expected results ie gh tn to the company's steel import activities in recent years have achieved the p Firstly, the steel import process is handled quickly One of the most nl w outstanding reason is that departments of the company have close links with oa each other to handle the contents of the contract In addition, staffs of the d company have solid professional qualifications to handle any unexpected va an lu situations ul nf Secondly, direct import helps the company take the initiative in steel import oi lm activities and supply raw materials for the company's production z at nh Thirdly, diversifying payment method of the company Thanks to the flexible use of different payment methods such as L/C, T/T in different cases, z the company has reduced the risk of international payments gm @ Last but not least, using electronic customs declaration software instead of l traditional customs declaration Therefore, the company has saved time to m co complete import procedures and also reduced the staff travel costs an Lu n va ac th 30 si 2.2.2 The limitations of steel import activities Firstly, in recent years, the company has focused on traditional markets such as China, Taiwan, Russia that have long been associated with the company The main reason is that the Purchasing & Import-Export Department has not invested much in researching other potential markets, which leads to the omission of many potential partners Secondly, in contract negotiation, the company always chooses CIF price as import price, which makes the company sometimes have to import steel at lu an high price va n Thirdly, almost contracts are signed by mail and fax, so in case of delay in goods due to ineffective compensation negotiations p ie gh tn to delivery is the partner's fault, the company often negotiates to lower the cost of d oa nl w oi lm ul nf va an lu z at nh z m co l gm @ an Lu n va ac th 31 si CHAPTER RECOMMENDATIONS AND SOLUTIONS 3.1 The development orientation of steel import activities for HOMECO's manufacture in the next years The company realized that importing equipment for manufacture, in general, and steel materials in particular plays an important role in expanding production scale and developing the company's competitiveness Therefore, the company bases on its business development goals and the fluctuations of the domestic and world steel market to make specific steel import plans lu an In the next years, besides maintaining the products that have been the va company's strengths such as lifting equipment, the company will expand the n solar panels, smart car parks, In addition, the company will develop a new gh tn to scale of production of potential and high-demand products of the company like p ie line of mechanical products for agricultural production and food processing w such as agricultural drying equipment, crushing and mixing equipment, oa nl harvesting equipment, etc Therefore, the demand for steel imports in the next d years will increase and the demand for importing some new types of steel lu va an such as steel sheets, box steel for new product lines also increases ul nf In the next years, the company will actively invest in researching steel oi lm import markets In addition, to maintaining traditional partners from China, Taiwan and Russia, the company will seek new partners in other potential z at nh markets to diversify its import channels The import turnover of steel and some new steel will increase in the near future The company's expected steel import z gm @ turnover in 2021 is 100 billion VND l 3.2 The solutions to improve the company's steel import activities m co 3.2.1 Focusing on market research - The department of company implements this solution: Purchasing & Import- an Lu Export Department n va ac th 32 si - The essential tasks: Establishing a wide range of supplier relationships is very important to create a stable and quality source of goods of the company Therefore, Purchasing & Import-Export Department concentrates on research markets of different aspects such as carefully researching information on the economic political - legal environment of the countries in order to create a basis for the contract negotiations, to predict the fluctuations of the steel supply market; establishing extensive relationships with suppliers in each country of their lu an customers, regularly updating information on the production capacity, scale n va and supply capacity of each supplier markets with good quality steel, stable and less volatile prices such as Japan ie gh tn to Besides, this department make plans to promote exploration of a number of p and Korea Finding partners in the ASEAN region is also a good option to take nl w advantage of transportation costs d oa 3.2.2 Import steel at FOB price instead of CIF price an lu - The department of the company implements this solution: Purchasing & Import-Export Department and Deputy Technical Director nf va oi lm ul Importing steel at FOB price brings a lot of benefits for the company The first benefit is that if the company use L/C payment method to pay the cargoes, z at nh enterprises pay less to open L/C instead of having to deposit 100% of the value of the imported consignment when the company purchases goods at CIF price z @ Another benefit is that importing steel at FOB price, when the goods arrive at l gm the import port, enterprise must pay the freight so the enterprise will not have to accumulate capital, or pay the bank interest for the freight, which helps the m co company reduce the cost of imported goods an Lu ac th 33 n va - The essential tasks: si Purchasing & Import-Export Department needs to study carefully the price of steel from the markets when importing to Vietnam with the FOB price Then, calculate the price of the goods after adding the import fees to consider comparing imports with CIF or FOB in the case that it is beneficial for the company 3.3.3 Check the content of the contract and negotiate additional terms if necessary - The department of company implements this solution: Purchasing & Import- lu an Export Department and Deputy Technical Director va n - The essential tasks: to gh tn As mentioned in the restrictions on the company's steel imports, to ensure ie the interests of the company when the goods are delayed is due to the partner's p fault, it is necessary to add a provision on fines The penalty term can be: “The nl w Seller must pay the penalty of 2% of the contract value for each delay week but d oa not over 5% of the contract value.” lu an 3.3 The recommendations for the steel import activities of the company nf va 3.3.1 Human Resources recommendation oi lm ul Training and enhancing human resources Human resources are the most important factor in the formation and z at nh development of the company because if the human resources develop well, the company will create skilled staff To train the professional staff, responsible in z gm @ the work requires the management board must the following: l - From the beginning of the selection of employees to the company, the m co employees to be recruited must have a certain level depending on the hob position requires employees to have sense of responsibility, the ability to an Lu communicate n va ac th 34 si - In the process of working the company must always create conditions for employees to work the most comfortable environment, giving a creative environment - The management of the company must be aware of the employees, provide opportunities for improvement as well as reasonable incentives to encourage motivated employees to work Staffing needs to pay attention to the factors that shape the quality and lu professionalism of the staff because the right person is the right job to create a an love of work and passion in the workplace, resulting in high productivity va n Focus on the development of young human resources by they have the gh tn to advantage of access to new knowledge, capable of sensitivity… p ie 3.3.2 Legal recommendation w Updating the steel import policy, import tariff of Vietnam's steel products and oa nl the various trade agreements that Vietnam has participated in d Import policies and import-export tariff of Vietnam change from time to time lu va an so iron importing enterprises need a clear understanding, to avoid unnecessary ul nf risks occurring in the process of steel imports oi lm Since integration, Vietnam has joined many trade agreements to facilitate import and export activities Trade agreements are gradually helping z at nh Vietnamese businesses liberalize trade globally Therefore, a deep understanding of the content of trade agreements gives the company an z gm @ overview of the policies and preferences of the countries for Vietnam Since then, it is one of the important bases for choosing steel supply partners for the l m co company an Lu 3.3.3 Strategy recommendation Researching business strategies and developing products clearly in stages n va ac th 35 si Business strategy plays a very important role in the existence and development of every business The right business strategy will create a good direction for businesses, the business strategy can be considered as a guide to guide businesses in the right direction The production strategy creates the basis for businesses to proactively develop production directions suitable to the economic context on the basis of taking advantage of opportunities, avoiding risks and promoting enterprises' advantages in business In the coming years, the mechanical engineering industry in Vietnam will focus lu an on developing product groups for agriculture such as agricultural drying n va equipment, food blending equipment, tractor engines, etc Therefore, the manufacturing agricultural mechanical products to serve a large amount of gh tn to company needs to change its production and business strategy focusing on p ie demand in the future This strategy leads to a large demand for steel materials w in the company, so the company needs to have a plan to import specific steel oa nl for production d Thanks to a clear production and business strategy in the ongoing context, lu oi lm ul nf va an businesses can go in the right direction and thrive in the future z at nh z m co l gm @ an Lu n va ac th 36 si CONCLUSION The current trend of globalization has occurred strongly and countries all over the world has not developed without integrating with this trend International trade is indispensable, trade exchange between countries and economic sectors is expanding Hong Nam Mechanical Joint Stock Company is a mechanical manufacturing company but engaged in international trade activities with the import of steel to serve its mechanical production The chapters of the internship report gave an overview of steel import lu an activities of Hong Nam Mechanical Joint Stock Company from its operational n va situation to proposing solutions to improve its steel import activities Steel mechanical products to domestic industries in recent years have had gh tn to import activities of the company serving mechanical production, supplying p ie encouraging results However, the company also has some problems in steel nl w import activities that need to be overcome and improved oa Although the internship time at Hong Nam Mechanical Joint Stock d Company is not long, I have learned a lot of practical knowledge about the lu va an activities of importing goods in general and steel materials in particular I know nf the research topic is limited, but I hope that my internship report can provide near future oi lm ul some useful solutions to improve the company's steel import activities in the z at nh z m co l gm @ an Lu n va ac th 37 si