(Luận văn) internationnal payment, a case study of freight forwarding and logistics companies in vietnam

ng MINISTRY OF EDUCATION AND TRAINING hi ep UNIVERSITY OF ECONOMICS HOCHIMINH CITY w n lo ad ju y th yi pl HUỲNH NGỌC MINH THƯ n ua al n va ll fu oi m INTERNATIONAL PAYMENT: A CASE STUDY OF FREIGHT FORWARDING AND LOGISTICS COMPANIES IN VIETNAM at nh z z k jm ht vb om l.c gm n a Lu MASTER’S THESIS IN BANKING n va y te re ac th HOCHIMINH CITY, 2010 ng MINISTRY OF EDUCATION AND TRAINING hi ep UNIVERSITY OF ECONOMICS HOCHIMINH CITY w n lo ad ju y th yi pl Huỳnh Ngọc Minh Thư n ua al n va ll fu INTERNATIONAL PAYMENT: A case study of Freight Forwarding and Logistics Companies in Vietnam oi m at nh z z k jm ht vb MASTER’S THESIS om l.c gm In Banking n a Lu Ology code: 60.31.12 y te re As Pro Dr Lê Thành Lân n va Supervisor ac th Hochiminh City, 2010 ng hi Preface ep w Firstly, I would like to express my deepest appreciation to my Sponsor, Dr Le n lo Thanh Lan, for his precious guidance, comments and suggestions ad y th ju This paper is one of the last compulsory elements of Banking program at the yi University of Economics Hochiminh City The objective of this subject is to find pl al out the new appropriate mode of international payment that is more suitable and n ua convenient to import and export enterprises in Vietnam, especially for small and va medium ones This is accomplished via a survey and literature research I hope it n can be applied to a practical situation ll fu m oi I would like to assure that the research of “International Payment: A case study of nh freight forwarding and logistics companies in Vietnam” was carried out by me at z under instruction of As Pro Dr Le Thanh Lan All figures illustrated in this paper z k jm ht vb are honest, accurate and quoted from a reliable source om Huynh Ngoc Minh Thu l.c October 2010, gm Ho Chi Minh City, n a Lu n va y te re ac th ĐIỂM MỚI CỦA ĐỀ TÀI ng hi ep Luận văn với đề tài: “International Payment: A case study of Forwarding w n and Logistics Companies in Vietnam” tác giả Huỳnh Ngọc Minh Thư, lo ad Người hướng dẫn khoa học: PGS TS Lê Thành Lân, giới thiệu dịch vụ ju y th tóan quốc tế theo phương thức C.A.D C.O.D công ty giao nhận ngoại thương đảm nhiệm, dành cho đơn đặt hàng lẻ, số lượng ít, yi pl giá trị khơng cao, gắn với dịch vụ giao hàng tận nhà thông dụng al n ua doanh nghiệp Dịch vụ cịn mẻ Việt Nam lại khơng xa n va lạ nước ngòai Việc ứng dụng phưong thức toán Việt ll fu Nam thuận tiện an toàn hơn, tiết kiệm chi phí, thời gian, giúp oi m nâng cao hiệu hoạt động xuất nhập giao nhận ngoại at ngân hàng thương mại nh thương, đồng thời nối dài dịch vụ tóan quốc tế ngòai trụ sở z z k jm ht vb om l.c gm n a Lu n va y te re ac th ng hi TABLE OF CONTENTS ep Preface Table of contents w n List of firgure lo ad List of tables .9 ju y th Abbreviation 10 Chapter 1: Introduction 11 yi pl 1.1 Introduction .11 ua al 1.2 Research background 11 n 1.3 Problem statement 13 va n 1.4 Research objective 13 ll fu 1.5 Scope and methodology of the study 13 oi m 1.5.1 Scope of the study 13 nh 1.5.2 Research method 14 at 1.6 Structure of the study 14 z z Chapter 2: Literature Review 16 vb ht 2.1 Introduction 16 k jm 2.2 COD/CAD in international payment 16 gm 2.2.1 Payment process .17 2.2.2 Condition for CAD/COD application 19 om l.c 2.2.3 Advantages and disadvantages of CAD/COD 2.3 Forwarding and logistics companies 21 a Lu 2.3.1 Definition 21 n 2.3.3 Functions .24 y te re 2.4 Conclusion 27 n va 2.3.2 Characteristics 22 ac th Chapter 3: Methodology 28 ng 3.1 Introduction .28 hi ep 3.2 Business research .28 3.3 Research design 29 w 3.4 Pilot test .30 n lo 3.5 Main survey 31 ad 3.6 Conclusion 32 y th ju Chapter 4: Settling CAD/COD via forwarding and logistics companies 33 yi 4.1 Introduction .33 pl al 4.2 Forwarding and logistics in international payment, in reality .33 n ua 4.3 Encroaching of forwarding and logistics companies in international va payment 35 n 4.4 Undertaking CAD via forwarding and logistics companies 36 fu ll 4.4.1 Procedure for settling CAD via freight forwarders 36 m oi 4.4.1.1 Payment process 36 nh 4.4.1.2 Document required 38 at z 4.4.1.3 Conditions to apply 39 z logistics vb 4.4.2 Advantages of undertaking CAD via forwarding and jm ht companies 39 k 4.4.2.1 Advantages to the Importer 39 gm 4.4.2.2 Advantages to the Exporter 40 logistics l.c 4.4.3 Significances of applying CAD via forwarding and om companies 40 a Lu 4.4.3.1 Time savings 41 n 4.4.3.2 The cargo situation has been well checked and monitored .41 ac freight forwarders .43 th 4.4.4 Role of commercial banks in CAD/COD once being settled via y 4.4.3.5 Avoiding risk in payment .43 te re 4.4.3.4 More choice for import export customers 42 n va 4.4.3.3 Eliminating fraudulent shipping documents 42 ng 4.4.4.1 Currency exchange .44 hi ep 4.4.4.2 Overseas money transfers 44 4.5 Customer’s behaviors towards settling payment via freight forwarders 44 w 4.5.1 What local Import Export companies say? .45 n lo 4.5.1.1 Difficulties in settling payment via the banks and forwwarder’s ad workarounds 49 ju y th 4.5.1.2 How much convenient they feel? 50 yi 4.5.1.3 Opinions about time saving 50 pl al 4.5.1.4 Ideas regarding collection fees 51 n ua 4.5.1.5 Point of views in terms of maximum of goods 50 va 4.5.2 What local International Forwarding and Logistics companies say?51 n 4.5.2.1 Background for local forwarding and logistics staffs in fu ll international payment .51 m oi 4.5.2.2 Experiences of local staffs in international payment 51 nh 4.5.2.3 Interest and willingness to participate in international payment.52 at z 4.6 Petition to the authorities 52 z vb 4.6.1 Solution for forwarding and logistics companies 52 jm ht 4.6.1.1 Training and employing 52 k 4.6.1.2 Expanding network 54 gm 4.6.1.3 Upgrading the IT system 55 l.c 4.6.1.4 Advising customer to diversify foreign currencies in settling om payment to reduce the dollarization effect 56 a Lu 4.6.2 Petition to the government .58 n 4.6.2.1 Allow this new method of payments 58 ac 4.6.3.2 Being accustomed to new methods of payment 60 th 4.6.3.1 Publishing enterprises black list .59 y 4.6.3 Petition to the Customs Division 59 te re open system 58 n va 4.6.2.2 Public companies main achievements and their problems in an ng 4.6.4 Petition to the State Bank of Vietnam 59 hi ep 4.6.5 Petition to the Commercial Banks .60 4.6.6 Market sharing with Post Offices and express services .61 w 4.6.6.1 Nature of goods .61 n lo 4.6.6.2 Size of goods 62 ad 4.6.6.3 Value of goods .62 y th ju 4.7 Conclusion 62 yi Chapter 5: Conclusion and imlication 63 pl al 5.1 Introduction .63 n ua 5.2 Conclusion of the study 63 va 5.3 Implication of the study 64 n 5.4 Limitation and recommendations for further research 65 fu ll Appendix 67 m oi Reference 90 at nh z z k jm ht vb om l.c gm n a Lu n va y te re ac th ng hi LIST OF FIGURE ep w Figure 2.1 CAD/COD payment process .17 n lo Figure 4.1: Payment process of undertaking CAD via forwarding and logistics ad companies .36 ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re ac th ng hi LIST OF TABLES ep w Table 4.1: Respondents’ profiles in partern 45 n lo Table 4.2 Respondents’ profiles in pfrequency of using CAD/COD 45 ad Table 4.3 KMO and Bartlett’s test .46 y th Table 4.4 Cronbach Alpha Test 47 ju yi Table 4.5 Coefficients 48 pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re ac th 85 ng - Original Message - hi ep From: Thu Pax/SGN To: 'elley' w n Sent: Wednesday, June 17, 2009 4:59 PM lo ad Subject: Regulation in int'l payment ju y th yi Hi Elley, pl n ua al Good day to you ! n va ll fu Could you us some favour ? oi m nh at One of our customer ,who will have an export cargo to your country, wonders if you can collect the value of goods from buyer on their behalf and transfer the amount to Vietnam or not, if yes, how about the & max value allowed in your country, dear? (It looks like CAD Cash against payment, but being settled via forwarder in stead of the bank) z z k jm ht vb Many thks and look forward to hearing from you om l.c Thu / Pax SGN gm Brgds, n a Lu n va y te re ac th 86 ng From: Voellmin, Peter [p.voellmin@gondrand.ch] Sent: Wednesday, June 17, 2009 4:15 PM To: Thu Pax/SGN Subject: Regulation in int'l payment hi ep Dear Thu w n Michael does not work at Basel anymore He got transfered to New York lo ad No problem for us to collect money, but invoice should be with us in advance Then we should know all costs and ask for a 3% commision ( Minimum US$ 50.00 ) Goods only to be forwarded after our okay ju y th Best regards - Peter yi pl n ua al From: Thu Pax/SGN [mailto:minh.thu@paxglobalcargo.com] Sent: Wednesday, June 17, 2009 9:26 AM To: Auf der Maur, Michael Subject: Regulation in int'l payment n va ll fu Dear Michael, oi m at nh Good day to you ! z z Could you us some favour ? jm ht vb k One of our customer ,who will have an export cargo to your country, wonders if you can collect the value of goods from buyer on their behalf and transfer the amount to Vietnam or not, if yes, how about the & max value allowed in your country, dear? (It looks like CAD , Cash against payment, but being settled via forwarder in stead of the bank) om l.c gm n a Lu Many thks and look forward to hearing from you n y te re Thu / Pax SGN va Brgds, ac th 87 ng From: tina-l-mtc [tina-lin@makotrans.com.tw] Sent: Wednesday, June 17, 2009 2:39 PM To: Thu Pax/SGN; frank-lin@makotrans.com.tw Subject: Re: Regulation in int'l payment hi ep Dear Thu, w n lo Thanks for e-mail ad y th We can collect freight or value amount for you ju Actually if we transfer this amount by T/T back to your account, there is no max value allowed yi pl n ua al Waiting for your comments n va Thanks & Best Regards, Tina Lin ll fu Mako Transport Co., Ltd 11F-7, No 155, Sec 1, Keelung Rd.,Taipei Taiwan Tel: 886-2-2528-7272 ext 362 Fax: 886-2-2528-7373 E-mail : tina-lin@makotrans.com.tw Website : www.makotrans.com.tw oi m at nh z z k jm ht vb - Original Message From: Thu Pax/SGN To: frank-lin@makotrans.com.tw Sent: Wednesday, June 17, 2009 3:19 PM Subject: Regulation in int'l payment Good day to you ! om l.c gm Dear Mr Frank Lin, n a Lu n va Could you us some favour ? y te re ac th One of our customer ,who will have an export cargo to your country, wonders if you can collect the value of goods from buyer on their behalf and transfer the amount to Vietnam or not, if yes, how about the & max value allowed in your country, dear? (It looks like CAD , Cash against payment, but being settled via forwarder in stead of the bank) 88 ng hi ep Many thks and look forward to hearing from you w n Brgds, lo ad Thu / Pax SGN ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re ac th 89 ng From: HTNS SINGAPORE [sin@htns.com] Sent: Wednesday, September 08, 2010 1:45 PM To: thu@htns.com Cc: 'sin' Subject: RE: Regulation in Int'l Payment hi ep w n Dear Thu, lo ad ju y th Good day! This is Andy Kim from HTNS Singapore It’s glad to contact with you yi pl Yes, but could you send me a details for this shipment? I would like to know if you have a value of goods and more details Once get your answer then we’ll discuss it with our person in charge n ua al n va And, regarding the tariff in Singapore (Goods and Services Tax) ll fu Goods and Services Tax (GST) is a tax charged on the importation of goods into Singapore oi m GST on imports is levied at 7% of the commercial invoice value at nh Should you require any further enquiries, please not hesitate to contact us z k jm ht vb B Regards / Andy Kim z Thank you om l.c n a Lu Dear Mr Andy Kim, gm From: Thu SGN [mailto:thu@htns.com] Sent: Wednesday, September 08, 2010 12:25 PM To: sin@htns.com Subject: Regulation in Int'l Payment n va y te re Good day to you !!! ac th Could you us some favour ? 90 ng hi ep w n One of our customer ,who will have an export cargo to your country, wonders if you can collect the value of goods from buyer on their behalf and transfer the amount to Vietnam or not, if yes, how about the & max value allowed in your country as well as collection fees tariff? (It looks like CAD , Cash against payment, but being settled via forwarder in stead of the bank) Pls let us have some idea to get back to clients with thks lo ad y th Many thks and look forward to hearing from you ju yi pl n Thu / HTNS SGN ua al Brgds, n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re ac th 91 ng From: mayuree [mayuree@transaircargo.com] Sent: Wednesday, June 17, 2009 5:45 PM To: minh.thu@paxglobalcargo.com Cc: 'saowaros'; import@transaircargo.com Subject: RE: Regulation in international payment hi ep w n Good afternoon Thu lo ad Pax SGN ju y th yi Normally we concern only the air freight , if the shipment is pl ua al concern to the collect the value of goods and send back to the shipper n our account must arrange lot of paper support to the government n va fu Your can send the shipment and specify on your HAWB that ll m oi We have to hold the shipment until your instruction to release the goods nh in that case our staff will hold the documents in our hand and at z wait for your instruction after you shipper receive the money from consignee z k jm ht vb an advise you to confirm us to release the documents n va y te re Email : mayuree@transaircargo.com n Fax ( 662 ) 6514667 -8 a Lu Tel ( 662 ) 6509040 -9 Ext 408 om TRANS AIR CARGO CO.,LTD l.c Mayuree Lilitpunnavong gm Thanks & Best regards, ac th From: saowaros [mailto:saowaros@transaircargo.com] Sent: Wednesday, June 17, 2009 11:24 AM 92 ng To: 'Thu Pax/SGN'; mayuree@transaircargo.com Subject: RE: Regulation in international payment hi ep w Dear Thu, n lo ad Please kindly discuss with our Import Manager / Ms.Mayuree ju y th yi pl n ua al n va ll fu Best regards, Saowaros oi m at nh z From: Thu Pax/SGN [mailto:minh.thu@paxglobalcargo.com] Sent: Wednesday, June 17, 2009 10:32 AM To: 'Saowaros' Subject: Regulation in international payment z k jm ht vb om Good day to you ! l.c gm Hi Saowaros, n a Lu Could you us some favour ? n va y te re One of our customer ,who will have an export cargo to your country, ac transfer the amount to Vietnam or not, if yes, how about the & max value allowed th wonders if you can collect the value of goods from buyer on their behalf and 93 ng in your country, dear? (It looks like CAD , Cash against payment, hi ep but being settled via forwarder in stead of the bank) w n Many thks and look forward to hearing from you lo ad y th Brgds, ju yi Thu / Pax SGN pl n ua al va NOD32 4160 (20090616) Information n fu ll This message was checked by NOD32 antivirus system http://www.eset.com oi m at nh NOD32 4160 (20090616) Information z z k jm ht vb This message was checked by NOD32 antivirus system http://www.eset.com om l.c gm n a Lu n va y te re ac th 94 ng From: sherry@paxglobalcargo.com.cn Sent: Wednesday, June 17, 2009 1:39 PM To: yunmi; Thu Pax/SGN Cc: itoh@paxglobalcargo.com.cn; Subject: Re: Regulation in international payment hi ep w Dear Thu: n lo ad In accordance with the provisions of Foreign Exchange of China, we can only payment freight charge,can't collect & payment trade goods charge,hope you can understand what I mean,tks! ju y th yi Tks & B'rfds! pl ua al Sherry n - Original Message From: yunmi To: Thu Pax/SGN Cc: itoh@paxglobalcargo.com.cn ; sherry@paxglobalcargo.com.cn ; jinlong@paxglobalcargo.com.cn ; jinying@paxglobalcargo.com.cn ; Sent: Wednesday, June 17, 2009 11:39 AM Subject: Re: Regulation in international payment n va ll fu oi m at nh Dear Thu z This is not something we can decide, Our account department manager Ms Sherry can decide whether we can or not z vb jm ht C.c : Sherry k Pls see below Ms Thu's request, let her know whether we can it or not Thanks om l.c gm n n va y te re - Original Message From: Thu Pax/SGN To: 'yunmi' Cc: itoh@paxglobalcargo.com.cn Sent: Wednesday, June 17, 2009 11:28 AM Subject: Regulation in international payment a Lu Best Regards Yunmi CC: Rebecca, ac th Hi Yunmi, 95 ng hi ep Good day to you ! w n Could you us some favour ? lo ad y th ju One of our customer ,who will have an export cargo to your country, wonders if you can collect the value of goods from buyer on their behalf and transfer the amount to Vietnam or not, if yes, how about the & max value allowed in your country, dear? (It looks like CAD , Cash against payment, but being settled via forwarder in stead of the bank) yi pl ua al n Many thks and look forward to hearing from you n va ll fu Brgds, oi m Thu / Pax SGN at nh z z k jm ht vb om l.c gm n a Lu n va y te re ac th 96 ng From: Irfan Haider [pyramid1@cyber.net.pk] Sent: Thursday, June 18, 2009 3:37 AM To: Thu Pax/SGN Cc: pyrAMID1@cyber.net.pk; v.President@grouppyramids.com Subject: Regulation in int'l payment hi ep w Dear Thu, n lo We can collect Ocean Freight from the conee here and remitt the money as Ocean Freight Freight Payment Not Goods Value ad y th ju if this is Goods Value then "No" we can not "NOT" send money on accounts of Goods Value as we will have show our State Bank of Pakistan the purpose/reason of transaction Our Core Business is Int'l transportation we can only collect ocean freight and send over to you or your customers yi pl n ua al Our bank limit is US$8,000/Eight Thousand US Dollars We can not send more than US$8,000 one time Yes more money can be transfered after one week of remittance US$8,000/Eight Thousand US Dollars But remember this should be only Ocean Freight Payment against following shipment not NOT goods value payment va n One Transaction Bank Fee is US$50/Per Transaction ll fu m oi By the way what is place of origin and how much is the volume of business Per week???pls advise Also advise name of Commodity pls ??? z z k jm ht vb om l.c gm n a Lu n va y te re ac th B/Rdgs Irfan Haider Vice President / C.O.O Pyramid Pakistan (Div of Pyramid Transportation Group ) Suite # 1108, 11th Floor Uni Plaza , I.I Chundrigar Road, Karachi-74200, Pakistan U.K cell # 00447011176312 PABX : (9221) 2415182, 83 (Ext 802) Direct : (9221) 2411705 / 2411942 Hotline: (9221) 7011170 U.S.A Tel# 1-718-535-7000 Fax: 92-21-2415184 Efax# 1-866-363-2194 mobile: 92-300-9267266 email: pyramid1@cyber.net.pk v.president@grouppyramids.com Web site: www.pyramid-transgroup.com www.pyramidpakistan.com.pk at nh Pls comment 97 ng "The Newly Designed Website Of Pyramid Transportation Group: www.pyramidtransgroup.com hi ep w n - Original Message From: Thu Pax/SGN To: pyramid1@cyber.net.pk Sent: Wednesday, June 17, 2009 12:13 AM Subject: Regulation in int'l payment lo ad Dear Mr Irfan Haider, ju y th yi Good day to you ! pl ua al n Could you us some favour ? n va fu ll One of our customer ,who will have an export cargo to your country, wonders if you can collect the value of goods from buyer on their behalf and transfer the amount to Vietnam or not, if yes, how about the & max value allowed in your country, dear? (It looks like CAD , Cash against payment, but being settled via forwarder in stead of the bank) oi m at nh z z Many thks and look forward to hearing from you k om l.c gm Thu / Pax SGN jm ht vb Brgds, n a Lu n va y te re ac th 98 ng hi REFERENCE ep In English R.N.Bose, CAD/COD pros and cons, Institute of Banking Studies, Calcutta, w n West Bengaal, India lo ad DHL Global Forwarding website: http://www.dhl-dgf.com/legal.html y th Jörg Heiser, Good Circulation, Frieze Magazine, (Issue 90, April 2005) ju yi Business Monitor International Ltd, Mermaid house, Ouddle Dock, pl ua al London EC4V 3DS UK, (2009), Vietnam Freight Transport Report 2009 Supply Chain Management Institute, Logistics in the Modern World n va Zoser, Cash Against Documents & EX-Works?, Export Blueprint (November st, n ll fu 2009) oi m at nh In Vietnamese z Duong Quang Duy, Logistics Vietnam -Hướng cho 10 năm tới, k jm ht vb Lê Văn Huy, SPSS guidance, 2009, z Viet Forward (23/03/2010) túng, Báo Lao Động (28/07/2010) l.c gm Bích Liên, Thị trường Logistics Việt Nam: “Ơng lớn” nước ngồi thao a Lu VN Express (10/07/2009) om Song Linh - Phương Trang, Ngân hàng sợ bán đôla cho doanh nghiệp, n Bùi Ngọc Loan, Chú trọng đào tạo nguồn nhân lực logistics, Vietnam ac th Trần Hoàng Ngân, Thanh Tóan Quốc Tế, NXB Thống Kê 2001 y (01/10/2009) te re Nhật Minh, Nguồn đôla dồi khó mua, VNExpress n va Logistics Review (20/08/2009), 99 ng Nguyễn Duy Nghĩa, Thời thách thức phát triển xuất hi ep dịch vụ Việt Nam sau gia nhập WTO, Tạp chí Cộng Sản (Số 17/137 năm 2007), w n Hồ Thanh Tùng, Giáo trình Thanh tốn Quốc tế, (04/09/2008) lo ad 10 Phịng phân tích Cơng Ty Chứng Khóan Chợ Lớn, Logistics Việt Nam - ju y th Tiềm lớn, khai thác nhỏ, Sài Gịn Giải Phóng (14/05/2010) yi 11 Website Bưu điện Thành Phố Hồ Chí Minh pl ua al 12 Website Ngân hàng Á Châu n 13 Website Ngân hàng HUD n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re ac th