Background of the study
In the current period, the trend of integration and globalization of the world economy is becoming more and more popular and strong, in order to assert its position, businesses need to find suitable business strategies It is necessary to pay attention to goods import and export activities, a measure of the results of the integration and development process in the interdependence relationship between countries.
In recent years, Vietnam's emergency export field has achieved many remarkable achievements In this success, it is impossible not to mention the small but significant contribution of electronic components, accounting for over 15.11% of the country's total export turnover.
Along with the signing of bilateral trade agreements, Vietnam's participation in the WTO, trade relations with other countries have turned to a new page However, besides the advantages, there are also many difficulties and challenges that require the competition and efforts of businesses.
T.T.T.I Da Nang Co., Ltd is a company that has not really grown up in the international market but has many advantages in terms of export Because the company has a lot of experience in exporting electronic components to foreign markets such as Taiwan, China, Japan In addition, the company also has many advantages in terms of cheap labor cost and raw materials are mainly imported, so the quality is good In today's integration period, the company wants to promote the export of electronic components to foreign markets, so the company needs to improve the process of exporting electronic components.
Aware of that importance, after the internship at T.T.T.I DA NANG CO., LTD, learned about practice at the company, combined with the knowledge learned at school, I chose the topic " THE PROCESS OF EXPORTING
ELECTRONIC COMPONENTS OF T.T.T.I DA NANG CO., LTD.” for this thesis.
Statement of the problem
This study aims to find out some loopholes in the process of exporting electronic components of Nang company in order to improve the export process of the company
Specifically analyzing the actual export activities of implementing the process by identifying the factors that the company has to face through the process of exporting electronic components to foreign markets:
B The Company’s Actual Export Procedures
Results of the analysis will be the basis for proposing solutions to solve the problems in the process.
Scope of the study
This study covers particularly the export processing of the T.T.T.I Da Nang co., Ltd Export research has focused on various aspects of the steps in the process of exporting electronic components at T.T.T.I Da Nang Co., Ltd.Complete the company's export process to countries in the world such asTaiwan, China, and Japan… More specifically, many studies have recognized the importance of processes for exports These analyses focus on specific aspects of the electronic components export process, the operational steps of the process have been used to explain the electronic component export process atT.T.T.I Co., Ltd in Da Nang for export.
Research structure
This study is arranged in the structure outlined below:
Chapter 1: Literature Review And Theoretical
Chapter 2: Analysis Of Company's Current Business Condition/Status Chapter 3: Research Methodology
Chapter 4: Presentation, Analysis And Interpretation Of Data
Chapter 5: Summary Of Findings, Coclusion And Recommendations
LITERATURE REVIEW AND THEORETICAL
Export
The concept of export has appeared for a long time and is an indispensable component in the economic field of any country, including ours In the current period of globalization, countries are increasingly dependent and have mutual economic interests, so when the exchange of goods between countries is beneficial, countries paied attention and expand this activity.
According to the provisions of Article 28 of the Commercial Law 2005 on export and import of goods, specifically as follows: “Export of goods is the act of goods being brought out of the Vietnamese territory or into a special area located in the territory of Vietnam Vietnamese territory is considered a separate customs area according to the provisions of law” Thereby, it can be seen that export activities take place in all economic fields from exporting goods to exporting services, in many different forms but all to bring benefits to businesses as well as to the country.
Export also plays an important role in the world economy Here are some of the roles of export for the world economy:
Promoting economic growth Export contributes to global economic growth by increasing trade flows between countries, promoting competition, and stimulating investment and production.
Creating employment opportunities Export-oriented industries can create employment opportunities in countries around the world, particularly in developing countries where labor costs are often lower.
Reducing poverty Export can help reduce poverty by providing opportunities for income generation and improving access to global markets for small and medium-sized enterprises (SMEs) in developing countries.
Promoting global cooperation Export can promote cooperation between countries and foster international relations by creating interdependence and promoting mutual economic benefits.
Facilitating technology transfer Export can facilitate the transfer of technology and knowledge between countries, particularly from advanced economies to developing countries.
Supporting sustainable development Export can support sustainable development by promoting the use of environmentally friendly technologies and production methods, and by providing opportunities for SMEs to engage in sustainable production and trade.
Improving consumer choice Export can improve consumer choice by offering a wider variety of products and services, including those that may not be available domestically.
Overall, export plays a significant role in the world economy by promoting economic growth, creating employment opportunities, reducing poverty, promoting global cooperation, facilitating technology transfer, supporting sustainable development, and improving consumer choice.
Export plays a vital role in the national economy of a country Here are some of the roles of export for the national economy:
Export creates an important capital source To satisfy import demand and accumulate production development To serve the cause of industrialization and modernization of the country, a large capital is required to import machinery.equipment, modern technology Foreign currency capital is mainly from the following sources: export, foreign investment, loans, aid, revenue from tourism activities, services with foreign currency revenue, labor export Of which export is the most important source of capital to satisfy the import demand of essential means of production for the industrialization of the country.
Generating foreign exchange Export allows a country to earn foreign exchange, which can be used to finance imports, pay off external debts, and invest in development projects.
Creating jobs Export-oriented industries often require a large workforce, which can create employment opportunities and contribute to the development of the labor market.
Increasing economic growth Export can stimulate economic growth by increasing the demand for domestically produced goods and services, leading to an expansion of production and investment.
Diversifying market Export can help a country diversify its markets and reduce its dependence on a single market, reducing the risks associated with economic shocks or changes in trading conditions.
Enhancing competitiveness Export can encourage domestic firms to improve their competitiveness, as they have to meet the international quality standards and price competition.
Encouraging innovation Export-oriented industries often require advanced technology and production methods, which can encourage firms to innovate and invest in research and development.
Improving the balance of payments Export can improve a country's balance of payments by reducing its trade deficit and increasing its trade surplus.
Overall, export plays a significant role in the national economy of a country by generating foreign exchange, creating jobs, increasing economic growth, diversifying markets, enhancing competitiveness, encouraging innovation, and improving the balance of payments.
For businesses, the important goal is to make a profit for the business The activity of exporting products and goods to the world market plays a very important role for businesses, helping them to achieve their goals, which is to generate profits for them
Diversifying markets Export allows businesses to diversify their customer base and reduce their dependence on a single market, which can reduce the risks associated with economic shocks or changes in trading conditions.
Increasing revenue Export can increase a business's revenue by opening up new markets and increasing sales volumes.
Achieving economies of scale Export-oriented businesses can achieve economies of scale by producing goods in larger quantities and reducing per- unit production costs.
Improving competitiveness Export can improve a business's competitiveness by providing access to new technologies, production methods, and markets.
Enhancing brand reputation Export can enhance a business's brand reputation by demonstrating its ability to compete in global markets and meet the needs of customers around the world.
Encouraging innovation Export-oriented businesses are often required to adapt to the needs and preferences of customers in different markets, which can encourage innovation and the development of new products and services.
Creating employment opportunities Export-oriented businesses often require a larger workforce, which can create employment opportunities and contribute to the development of the labor market.
Overall, export plays a significant role for businesses by diversifying markets, increasing revenue, achieving economies of scale, improving competitiveness, enhancing brand reputation, encouraging innovation, and creating employment opportunities.
Therefore, export activities play a very big role for the country in general and export enterprises in particular At the same time, exports will increase the source of foreign currency for the country, contributing to the balance of international payments, making the economy stable and constantly developing.
According to the experts of LEC, the most complete and detailed summary of the process of exporting goods The process of exporting goods includes many steps and is closely related to each other The following is the general process of exporting goods of companies.
The first step in the process of exporting goods is also the most important. This is the decisive step to the company's profitability They conduct negotiations with customers and finally conclude a foreign trade contract for the export of the shipment.
1.1.3.2 Apply for an export license
In the case of companies that do not have an export license The application for an export license must be carried out in the form of a single-use application for many times.
1.1.3.3 Make a booking and get an empty container
If the shipment is sold on CIF terms, the company must contact the shipping line or FWD to find the best vessel price for the shipment of the shipment And in the case of selling on FOB terms The company will not need to contact the booking ship that consignee is the one to book.
The process of taking empty containers at the port: Go to the port to exchange for booking confirmation at the port deal after issuing CIF and having a booking This work helps confirm with the shipping line that it has agreed to take the container and seal When exporting by FOB, the Company will receive a transport confirmation and exchange it for a booking, then do the same with CIF
1.1.3.4 Prepare shipment and check out shipment
After the customer agrees on the proform invoice The company plans to produce goods to ensure the quantity and quality as promised in the contract.
Electronic components
According to Santosh Das (2022) Electronic components are electronic devices or parts usually packaged in a discrete form with two or more connecting leads or metallic pads These devices are intended to be connected together, usually by soldering to a Printed Circuit Board (PCB), to create an electronic circuit with a particular function (for example an amplifier, radio receiver, oscillator, wireless).
Some of the Basic Electronic Components are: resistor, capacitor, transistor, diode, operational amplifier, resistor array, logic gate etc.
1.2.2 Types of the electronic components
These are of 2 types: Passive and active components Both these types of components can be either through-tole or SMD.
Passive electronic component this is a component that cannot provide energy for itself They are not capable of emitting energy into the connected circuits passive electronic components also cannot rely on a power source if there is no source connecting the ac circuits Therefore, passive electronic devices cannot increase the strength of a signal normally, electronic components usually have 2 connectors It is an electrical component that does not generate energy but instead dissipates, stores and/or releases energy Typical types of passive electronic component are resistors, capacitors, diodes, inductors.
Active electronic component this component relies on an energy source, capable of injecting electricity into an electrical circuit These components are parts of a circuit that rely on an external power source to control or modify electrical signals Typical types of active electronic components are transistors,integrated circuits or ics, logic gates.
ANALYSIS OF COMPANY'S CURRENT BUSINESS CONDITION/STATUS
Profile of the company T.T.T.I
2.1.1 The process of formation and development of the company
Name of the company T.T.T.I Da Nang Co., Ltd
T.T.T.I is taken from the first letter of the following subjects:
Company Todai (Malaysia) Sdn Bhd., headquartered at: 1-1 to 1-3 Jalan Taruka, Larkin Industrial Estate, Larkin, Johor Bahru, Johor Malaysia;
Todai Electric Ltd., headquartered at: 3-48-6 Sendagi, Bunkyo-ku, Tokyo,
Towa Denki Co., Ltd., headquartered at: 2-13-8, Shibashi, Minato-ku,
Company I -MAG Electronics Co., Ltd, located at: 3F, No.9, Lane768, Sec.4 Pa The Road, Nan-kang 115, Taipei, Taiwan;
Address Lot 31, Da Nang Industrial Park, An Hai Bac Ward, Son Tra
T.T.T.I Da Nang Co., Ltd has an abundant labor force with 300 employees, of which 20 people are directly engaged in business ơ, and 280 people in direct production It has been formed and developed since 2004 until now the company has gradually grown in all aspects The company always exceeds all plans set out, improves output as well as profits, increases incomes, and improves the lives of employees.
The main export markets are Korea, China, Thailand and Japan.
The main import markets are Taiwan, Thailand, Malaysia and Japan.
Figure 2.1 Illustration of the T.T.T.I Da Nang Co., Ltd
2.1.2 Functions, mission business and Oriented development of the company
T.T.T.I Da Nang Co., Ltd The company's main line of business is
"Manufacturing electronic components" such as: demagnetizing coils, short wave transformers, high frequency coils
Strictly abide by the laws and policies of the State , carry out business activities in accordance with the law and signed contracts with business partners. Fully carry out economic activities , build and develop facilities to increase operational capacity and ensure credibility with customers
Train employees to meet production and business requirements, fully implement policies on salary, social insurance, labor safety, etc.
2.1.2.3 Oriented development of the company a Development direction of the company.
In the coming time, T.T.T.I Co., Ltd will strive to overcome difficulties and overcome weaknesses in the past time to help the company develop further, complete the tasks and plans set out The development direction of the company has been clearly defined in the annual general meeting
Enhance competitiveness by prestige, quality of goods and services; Apply information technology to improve work efficiency
Maintain market stability, partners and patrons Focus on expanding markets in some African and Latin American countries
Participating in trade shows to introduce products and promote brands. Issuing a performance evaluation system to review sales-marketing Transform yourself and look for more new markets
Freight forwarding agency services at home and abroad enjoy logistics services, business cooperation with business partners who can be strong and reputable in the market.
Continue to develop multimodal transport routes, transport by sea, by air and by road The company strives to become an agent of many airlines.
Establish a good reputation and relationship with ships and airlines to be able to take advantage of the time when there is a lot of cargo and can get you to compete.
Improve the professional ability of many members through training courses organized by the company
All of the foregoing is of course aimed at the future goal that the company will develop both in breadth and depth in the field of exporting electronic components as well as exporting goods to new markets. b Orientation for export activities
Exporting is the most important task of the company, in addition to potential foreign markets, the company will focus on domestic fairs To step up trade promotion activities to expand the market and focus on directing the export of agricultural products and handicrafts To ensure stable, sustainable, comprehensive and continuous development, the company builds and develops for the next phase:
* Program to create a source of goods:
Consolidate and expand the export product supply system Step by step invest in infrastructure, machinery and equipment in the purchasing,transportation and preservation of goods to create initiative and ensure good supply of goods for customers Diversify export with good quality and reasonable price to enhance competitiveness.
Focusing on exporting to markets where the company has good competitiveness to develop and expand that market, constantly conquering markets with high requirements for our country's goods such as the US and
EU Expanding markets to Africa, Latin America.
2.1.3 Organization of management at the company
The company has 3 levels of management:
Grassroots level: Parts, workshops and warehouses of enterprises
Diagram 2.1 Organization chart of the company's T.T.T.I Da Nang
(Source: Profile of T.T.T.I Da Nang Company Limited).
Director Japanese, not often at the company Authorize again to the factory manager in Da Nang.
Factory manager A person authorized to run the company's business activities, to run the company in accordance with the law and the company's charter The director is responsible for reporting the results of operations and the general situation of the company to competent state agencies, protecting the interests, and taking responsibility before the law for all activities of the company.
Production department administratively independent production in the enterprise, production, and business activities are usually practiced through workshops.
In charge of human resources such as recruitment, and labor arrangement Manage and distribute the salary fund to the production team, to the employees, and take care of the staff's lives.
In addition, there is also the function of opening books, collecting documents and data to record arising transactions in the company, and quickly processing and providing information to the management in a timely and accurate manner Securing capital for production activities of the company. Advise the director on financial accounting, management, and effective use of capital In addition, the accounting department is also responsible for controlling sales debt.
Technical department Managing, implementing, and inspecting engineering and construction work to ensure progress, safety, quality, volume, and economic efficiency throughout the Company; Managing, using, repairing, and purchasing equipment and machinery for production and business activities throughout the Company.
Planning Department Analyze, synthesize, and make a draft of the operation plan in accordance with the orientation and policy of the enterprise and organization in each period Planning for purchasing and importing and exporting goods.
Import and export department Negotiate with partners to develop products, draft, translate, and control content of transaction information, internal and external in English Signing contracts, developing import plans, drafting agreements, and foreign trade contracts, and managing the work of import- export staff Manage, supervise, and deploy the work of receiving orders, and making delivery procedures Be responsible to the Director for the execution of export customers' orders to ensure on schedule, with the right products, in accordance with regulations and laws.
Purchasing department Planning to purchase raw materials and supply suitable materials for outsourcing activities Managing and operating staff purchasing and supplying raw materials to perform professional work. Proposing and implementing purchase requests for raw materials to meet production activities on the basis of approved reductions quickly, proactively, and effectively.
Warehousing Perform import and export procedures Check minimum
Warehousing, perform warehouse order procedures, and ensure the standard of goods in stock Strictly comply with fire prevention and safety regulations in the warehouse.
Quality control department make a quality control plan and ensure that the quality of the output product meets the requirements and quality standards as prescribed by the enterprise.
The company’s export activities
T.T.T.I Company specializes in processing and assembling electronic components and equipment The company often exports some raw materials from markets such as China, Korea, Japan, etc to meet for production line, including:
DC Magnetising coils ranging from min 6” Diameter to 20” diameter and also custom-designed coils as per specification It demagnetizes the pipe prior to automatic welding, ensuring less weld zone defects and faster welding.
Shortwave transformers machines with short-wave frequencies that are used to treat a number of diseases in physical therapy It has the effect of erecting edema, and curing diseases of the joints and nerves.
Electronic filters of all kinds The machine has an audio noise filter, inverter filter, audio noise filter, computer, camera, and power filter.
Electronic components discrete electronic devices or parts, many connecting conductors or metal gaskets These devices aim to connect with each other to create electronic circuits.
Regarding imports, the company specializes in manufacturing, processing and exporting electronic components, inductors, degaussing coils, filters, short- wave transformers, high-frequency coils, tape slits, plate assembly electronic printing.
Each year, the company produces outsourcing, specific electronic items as follows:
Name items Average over a year demagnetized coil 8 000 pieces
Electronic filters of all kinds 10 000 filters
Shortwave transformer 6 000 pieces electronic components 48 00 pieces
Tables 2.3 Export products of the company
(Source: T.T.T.I Public Production Department) 2.2.1.3 Export Clients
The main market of the company's products is China, Japan, Korea, Taiwan, etc The company's products are carefully produced, so the quality of the company's products is always appreciated in the market The company is always looking for new domestic and foreign partners to expand the market and develop the company's business.
In addition, the company still exploits the domestic market, but it is quite small, although the quality of the company's products is quite high, little is known to domestic consumers because the company only produces according to orders from foreign companies The company's main consumption markets are countries such as China, Japan, Korea, Taiwan Along with long-term customers, the company is always looking for new domestic and foreign partners to open expand the market and develop the company's business activities Below are some of the regular customers ordering and some of the products they have been buying at the company.
REDWING CW Company (China) demagnetized coil
Electronic filter electronic components ELEMATEC Company (China) Electronic filter
Tape slit JFE Company (Thailand) Electronic filter electronic components
TDK Company (Korea) Short wave transformer
Electronic filters of all kinds demagnetized coil SẸNJU Company (Japan) Electronic filters of all kinds
Table 2.4 Some longtime customers of T.T.T.I Da Nang company
(Source: Purchasing Department – T.T.T.I Da Nang Company)
The Company’s Actual Export Procedures
2.3.1 The process of exporting electronic components of the company
The process of exporting components of the company is summarized in the following diagram:
Diagram 2.2 Flow chart of the company's process exporting electronic components
2.3.1.1 The process of exporting electronic components by sea
Customers are the most important element of how a business works They influence the success or failure of the company Finding customers is also an important step in the process of exporting electronic components T.T.T.I Co., Ltd divides holy customers into 2 groups for easy search: a Old customers
This customer list is located in the company's database They are fixed customers and they are current customers and they are also potential customers in the future. b New customer:
Search for this customer group through websites or web sites This step is usually delegated to the sales department They search the list, gmail of customers r direct contact to negotiate and find their needs
Search by market research The company's main customers are Korea, China, Thailand and Japan In this step, the responsible department will contact the embassies of the countries to get market information, find out and also in that market as well as propose cooperation, send free samples, greet project goods… to promote sales.
The company and the customer will agree, discuss and discuss directly about goods, prices, transaction conditions, payment methods through specific: Firstly, the company will provide the company's price and conditions.
Secondly, make an offer on signing a contract: In this section, specify the product name, specification, quality, volume, model, packaging, price, delivery term, payment conditions and associated services.
Finally, agree and confirm the two parties after reaching an agreement on the trading conditions
Step 3 Transaction and contract signing
The company's contract signing can also be a direct meeting or indirect negotiation through telegrams.
The main transaction method of the company is to deal directly with customers, the company directly offers to negotiate the terms of the contract via talex, fax and especially via the internet until reach an agreement between the two parties to sign the contract The signing can be via fax, over the internet. The main form of contract to export electronic components of the company under CIF delivery terms is as follows:
Price: both parties are negotiated and clearly defined when signing the contract
Cost of checking goods on board: paid by customer
Insurance: It is the responsibility of the customer and the company to jointly purchase insurance for the goods
The cost of quality inspection, quantity of goods is responsible for T.T.T.I company.
The fumigation for export goods shall be carried out on board the vessel after the completion of the loading at the expense of the company But the expenses for the crew ashore during the disinfection period, including the cost of meals, accommodation and travel at the hotel, are paid by both parties.
Loading Terms: Before loading, the master shall request the inspection authority at the port of loading to inspect the hold and hold and issue a certificate that the holds are clean and dry, free of harmful agents and suitable for loading suitable for the carriage of goods That time does not count towards queuing time.
Step 4 Apply for an export license
Electronic components come in many varieties depending on the application There are specific pressure codes and pressure codes according to parts and components according to the machine The company provides enough information based on HS code chapters 84 and 85 in Law No 54/2014/QH13 to determine the details of the code.
After determining each type of export product of the company according to regulations, with each type of license according to a certain quantity in the contract The company brings the export contract and license to the Da Nang Department of Industry and Trade or the Ministry of Industry and Trade to record in the export monitoring book.
Step 5 Prepare to pack and sign the goods
In this step, there are three main stages: concentrated collection into export shipments, packaging and marking of export codes In order to form an export shipment, the warehouse department must perform the consolidation stage to ensure that the quantity and quality of the goods meet the requirements of the contract, then pack and sign the goods After that, it is transferred to the control department - Conducts a very thorough control to ensure that the goods are not damaged or reduced in quality during transportation, on the other hand, to ensure convenience for delivery and guidance methods and techniques of preserving, transporting and unloading goods This step takes a lot of time, so it takes a lot of labor to do it
Step 6 Rent a means of transport
After the goods are well packed, the next step is to hire a means of transport Depending on the volume of goods, delivery conditions and according to the signed contract, the parties will be responsible for who is the one to hire the means of transport.
Condition delivery Transport hirer Bao Steel Co., Ltd
(China) Core FOB T.T.T.I Co., Ltd
(Korea) Core FCA T.T.T.I Co., Ltd
(China) Bobbin CIF DMEGC Co., Ltd
(China) Copper CIF FUJIFINE Co., Ltd
(Thailand) Copper CIP Hitachi Co., Ltd
(China) Copper CIF Towa Denki Co., Ltd
Table 2.5 Responsibilities of the customer and the company T.T.T.I.
(Source: Import-Export Department- T.T.T.I Company)
Based on the terms of delivery and the agreement of the parties, who is responsible for renting the means of transport For example, BAO STEEL company delivers goods under FOB terms, the party responsible for hiring transportation is T.T.T.I company, some suppliers such as Chang Sung, Silicon deliver goods under FCA terms, according to the terms In this Incoterms, the seller (T.T.T.I Company) will be responsible for renting the means of transport for the shipment And some suppliers deliver goods under CIF or CIP terms, the customer will be the transport hirer. a In case the customer is the hirer of the means of transport
In March 202 3, T.T.T.I company exported more than 1 ton of copper wire to FUJIFINE (China), after the company sent the order, this supplier arranged and sent a certificate of this shipment to FUJIFINE On the side of the company, the shipment will be delivered under CIF terms, which means that the customer will hire a means of transport for this shipment to China, and the rental of domestic means of transport at Da Nang port, T.T.T.I company will be responsible. b In case T.T.T.I company is the hirer of means of transport
A specific case is as follows, in January 2023 T.T.T.I company exported 16 sets of chemicals to SILICON (Japan) However, this is a material that is urgently needed to meet production needs, but the cost of this substance is high, the loss is large, so the customer requires the company to deliver by air But the cost of shipping by air is quite high, so SILICON requires delivery according to FCA terms, all shipping costs must be paid by T.T.T.I only T.T.T.I company accepts to hire a delivery vehicle, the company contacts the carrier This is a point the company needs to keep in mind whether this type of part can be arranged by sea to save on shipping costs Or, the company should find some new suppliers, whose geographical location is more convenient in transporting goods Some transport units that the company regularly hires to transport shipments such as:
Duong Minh International Freight Forwarding Co., Ltd: This is one of the reputable units, has affirmed its name in the field of freight forwarding and important national and international customs procedures TT TI Company hiredDuong Minh transport company to transport the goods from Da Nang to Ho ChiMinh City, and then to Japan.
General assessment of the company's export process
From the actual research on the implementation of the export process of electronic components of T.T.T.I Co., Ltd., combined with the theoretical study on the export process of goods The comparison between practice and theory shows that the company has completed the export process of electronic components and achieved the export target, meeting the set requirements of customers The company's export process of electronic components has also met the requirements of preparing goods as stipulated in the contract, organizing delivery to the carrier quickly, making a full and valid set of payment documents deadline, fast transfer to the bank to recover the goods This is a very thorough and thoughtful preparation for export activities.
2.5 Prominent problem in the process of exporting electronic components.
Besides, the process also has limitations that need to be recognized and perfected to improve the efficiency of the company's export such as at the transaction gate and contract period, preparing documents, preparing goods .
Trading and signing export contracts is a very important opening stage in export activities This is a condition for the company to prepare domestic goods and then export Therefore, by all means, the exporter and importer must agree and fully understand all the terms of the agreement between the two parties to avoid problems when exporting as well as the following issues This But the company uses the main transaction method is to deal directly with familiar customers, the company directly negotiates the terms of the contract via telex,fax, phone and especially via the internet Until an agreement is reached between the two parties to sign the contract.
The signing can be via fax, over the internet Thus, compared with theory, this is also one of the usual forms of negotiation These methods bring insignificant advantages, besides the purpose that we need to achieve when trading and signing contracts, most of them are limited such as: not presenting all ideas, expensive On the other hand, electronic communication is an oral exchange, there is nothing as evidence for the agreements and decisions in the exchange Thus, this is a factor that can easily become a cause of disputes in the export of goods if there are problems with catching fish during and after export. The company's main customers are transnational companies, companies in countries such as Taiwan, China, Japan Therefore, there are employees who know foreign languages in every department Although the company has assigned qualified staff to perform transactions and sign contracts, in general, there are still many difficulties in foreign languages This is a major limitation of personnel performing this password.
Moreover, this is also the main cause of problems in delivering goods to customers because not fully understanding customer requirements leads to loss of customers, which can also cause disputes later on greatly affect competitive advantage Therefore, the company needs to have the most effective method of transaction, negotiation and contract signing, both saving time and ensuring the quality of this gate In addition, it is necessary to have a training plan to improve the capacity of staff performing contract transactions or to have a plan to recruit personnel to undertake this specialty It is necessary to train a staff strong enough to adapt to the requirements, be ahead of the customer, understand what they want and what we need to do.
Currently, the company does not have a specialized department to prepare and process documents and this department is only part-time, so the experience and professionalism are not high, as a result, when receiving notifications about them, they only care about the documents problem like what is the L/C value?
Is it right? Has it been passed? and considers that the review of all documents is the responsibility of the bank and the customer.
In addition, the company believes too much in the role of the letter of credit as a tool to receive payment without understanding its basic principle of
"conditional receipt", leading to neglect in the inspection terms and conditions of this letter of credit, resulting in documentation that does not reference the requirements of the L/C Therefore, the company has to be timely to make corrections, which is the cause of delay in payment for export goods The business process of transactions by L/C at the company is not careful, leading to unclear reading and interpretation of L/C, irresponsible professional department, leading to spelling, typographical and printing errors Carelessness is a common thinking that still exists with the old logic that "one party only needs to open the L/C and the other party ships the goods" without regard to the accuracy of the L/C right away Besides, because there is no specialized department, the foreign language ability of the receiving department to carry out the L/C check is not high, so it can easily lead to ineffective LC checking resulting in the seller's failure to carefully check the terms and conditions of the L/C resulting in a failure to carefully examine the difficult requirements of the L/C Therefore, the Company will incur costs that can be very large and take a lot of time and effort to fulfill the requirements of the L/C.
Even though the L/C payment method has been made, the payment is still based on the goodwill of the buyer in the performance of the contract As mentioned, the form of payment by L/C is based on the transaction of written documents and the bank must carefully check the accuracy of the documents bit by bit and even from the payment smallest errors Therefore, although the company has delivered the goods in full, in the right quantity and quality, but because of small errors in the documents, the company has not been accepted for payment When the importer is not willing, intentionally does not want to perform the contract, they can rely on even a very small error of the documents to demand a discount, prolonging the time to appropriate the company's capital, even refuse to pay Therefore, although the Bank opening the L/C has committed to make the payment of documentary credit, an important factor to ensure the safety of international payment is trust and goodwill between the company and the customer Need to learn more about customer information The reputation of that company and their size and way of doing business.
In addition to the above problems, the company also has problems in the operation process:
The company's warehouse is not large enough, in addition, the infrastructure needs to be high to ensure quality when transporting imported and exported goods.
The company's still-loaded vehicles are not fully equipped and must be outsourced when the workload is too large.
The process of exporting electronic components at the company faces many difficulties in terms of contract procedures for exporting components. Many small contracts, unable to perform many contracts at the same time because of limited human resources Also for this reason, it is difficult for the company to expand relationships with other potential partners But the unnecessary error in the contract implementation process also has part of the reason because the import-export staff has to do many jobs at the same time. The implementation of many small contracts leads to costly transportation insurance and time and effort for export license and customs procedures.
Over the years, the company has also had successes, but there are also shortcomings that need to be overcome in order to improve the efficiency of exporting electronic components With the advantage of a one-member limited liability company operating in the field of domestic and international freight forwarding services and acting as a shipping agent, the company has extensive experience in the matter of chartering ships for service for its export activities.Therefore, the company can have reasonable costs in terms of freight rates,choose reputable professional shipping lines to ensure that exported goods are transported safely The company also has extensive experience in international research and selection of trading partners Although there are still shortcomings in the implementation of the process, in general, the company also completes the export of goods quickly, meeting the requirements of customers In order to improve the efficiency in exporting goods, the company also needs to overcome the shortcomings in such stages as negotiating and signing contracts, preparing documents, and other objective factors affecting the quality of goods direction.
RESEARCH METHODOLOGY
Research design
Shrutika Sirisilla, (2023) stressed that descriptive research is a powerful tool used by scientists and researchers to gather information about a particular group or phenomenon This paper aims to identify factors that may cause problems when operating the export process of electronic components of T.T.T.I
Da Nang Co., Ltd Particularly finding out the weakness and threats Through this, the researcher been able to collect empirical data as evidence in determining the problem the company faced when exporting electronic components.
T.T.T.I Co., Ltd is located in the industrial zone of Da Nang city, where many companies process and export goods This survey aims to fully exploit objectivity In addition, combined with interviews with the employees at the company in departments related to the export process to exploit the difficult points in the operation process Interviewees: Employees of export-related departments (Import and export department, purchasing department, Warehousing, Production department) the researcher meeted with each staff member to ask about available questions.
The researcher conducted an interview for the needed primary data with the employees involved in the export export transactions during lunch break so employees can feel free to answer questions The interview questions are aimed to collect information related to the process of exporting electronic components at the company Questions that may help the researcher find out the weakness and threaths of the present export processing transactions and the practice that are considered as strengths and opportunities Several secondary data also be gathered like the export forms and documents that are on file in the company that also served as bases for suggestions about their process, awareness of export contracting and operational issues, and possible strategies that can be applied to improve export processes company's exports.
PRESENTATION, ANALYSIS AND INTERPRETATION
A SWOT analysis of the export activities of the T.T.T.I Da Nang Co., Ltd
The company's products and services on exporting electronic components are of high quality and meet international standards.
The company's headquarters is located in Da Nang industrial park, so many close relationships have been established.
In terms of price, the price is competitive compared with similar products and services in overseas markets.
Regarding the labor force, the
Company has an abundant labor source (especially a lot of part-time employees) There are long-term employees who have experience at the company since its inception
Cost-competitive, Da Nang has low labor and production costs In addition, Exported Electronic
Components can offer competitive prices compared to other products.
Raw materials imported from abroad, Depend on some major suppliers or distributors in foreign markets When transporting to the country, it is easy to delay, leading to not producing in time to export on time In addition, the company's transportation vehicles are not fully equipped and have to be outsourced when the workload is too large, leading to high transportation costs. The company was established in
2004, the facilities are increasingly degraded It is only maintained twice a year Narrow warehouse space affects production and export processes as well as employees and means of transport.
The company was established in
2004, the facilities are increasingly degraded It is only maintained twice a year Narrow warehouse space affects production and export processes as well as employees and means of transport.
The company does not have a dedicated handling unit to protect electronic components during transportation.
These days, Demand for electronic components is increasing in emerging markets with growing technology industries Increasing use of digital and e-commerce platforms for international trade.
The legal framework is increasingly synchronized, creating favorable conditions for fair competition to help improve competitiveness and integrate deeply with the international community In addition, our country is the 150th member of the WTO, the Vietnam-
EU Free Trade Agreement (FTA) is an opportunity to expand the export market of developed domestic products.
Since the parent company is overseas, there is potential to expand product supply Providing customized components or partnering for joint product development can lead to long-term business relationships.
Intense Competition, the electronic component industry of Vietnam is highly competitive, with numerous manufacturers and suppliers across the globe Competing with established players and new entrants can pose a threat to the company
Drawing lessons from the Covid
19 pandemic, the Company may also be at risk of supply chain disruption due to natural disasters, global pandemics, or other unexpected events.
The deep international integration will make competition more and more fierce, strong competition from more experienced companies.
Every year, our country in general and foreign countries in particular have changes in regulations or legal requirements for the export of electronic components In addition, the advantages of cheap labor and abundant raw materials are gradually disappearing.
With long-term experience in exporting electronic components, the company has long-term customers the company has strengths compared to other companies in Da Nang market and also other companies.
Especially the parent company has a close relationship with suppliers or distributors in foreign markets.
On the side of Da Nang City, every year, the City People's
Committee organizes dialogue conferences to listen to and answer the company's questions about export policies as well as easily access the incentives that the company has to offer city and state government for export.
The main export markets are Korea, China, Thailand and Japan resulting in limited language skills. Employees rarely go to foreign countries, lack of understanding of the underlying culture when communicating with suppliers and distributors in foreign markets, target markets Professional staff in export are few, lack of experience in international trade and regulations in the export process There are no specific departments that are prone to errors in the licensing process
On the side of Da Nang, it is restructuring investment fields, selecting investment projects that use high technology to create great added value, so few investors can meet it.
Vietnam has entered into various free trade agreements (FTAs), such as the
Partnership (CPTPP) and the EU-
(EVFTA) These agreements provide favorable market access and reduce trade barriers, creating opportunities
Vietnam has entered into various free trade agreements (FTAs), such as the
Partnership (CPTPP) and the EU-
(EVFTA) These agreements provide preferential market access and reduce
Since the main markets are foreign, there is a high risk of economic instability or political instability in these markets When there are currency fluctuations that can affect export prices and company profits.
The deep international integration will make competition more and more fierce, with strong competition from more experienced companies.
Trade Barriers and Tariffs,Every year, our country in general and foreign countries, in particular,have changes in regulations or legal requirements for the export of electronic components In addition,the advantages of cheap labor and trade barriers, creating opportunities for exporting electronic components abundant raw materials are fighting disappearing.
Supply Chain Disruptions, the company to potential disruptions, such as natural disasters, Diseases, affordable, or logistic challenges. Disease
The company has many years of experience, so it complies with the law, Proper documentation ensures compliance with international trade regulations, customs, and legal obligations, reducing the risk of penalties, delays, and negotiating.
The export documents well- prepared export documents facilitate clarity between exporters, importers, and various stakeholders involved
Accurate and complete export documentation helps mitigate the risk of financial loss.
Regarding the company's export- related paperwork, the Company does not have a specific department that specializes in these documents that are prone to errors in the licensing process In addition, when there are errors, there is no department This is why no one is responsible.
Raw materials for production are imported from abroad Therefore, when producing finished products for export, there are many complicated licensing procedures required.
Facilitating access to new markets by meeting the specific import requirements of target countries.
Expanding into new markets can open up opportunities for the company's increased sales and business growth
Well-prepared and efficient document management can provide a competitive advantage by enabling faster customs clearance, on-time delivery, and enhanced customer satisfaction.
Changing Regulations, Export regulations and documentation requirements can change frequently, posing challenges for the Company in general and export-related departments in particular to stay updated and compliant with evolving trade laws Failure to adapt to new regulations can result in shipment delays, penalties, or even legal consequences
Language and Cultural Barriers, Language barriers and cultural differences can create challenges in understanding and complying with documentation requirements in foreign markets.
A SWOT analysis of the process of exporting electronic components of
The steps the basis for signing a contract of the company researching the international market, and choosing a trading partner to make a business plan are the initial jobs, helping the company determine the exact needs of the customer, and choosing a reasonable and effective export market results, predict the trend of market fluctuations, opportunities, and challenges that the company will encounter when exporting goods to that market, identify a reliable and reputable trading partner, and predict the results of business, thereby controlling export activities strictly, avoiding problems later in the business process of the company
Rent a means of transport to export goods is a strong point of the company. Because the company also operates in the field of domestic and international freight forwarding services and as a shipping agent, the company has extensive experience in chartering ships for export activities of the company Therefore, the company can have reasonable costs in terms of freight rates, choose reputable professional shipping lines to ensure the goods are transported safely. According to the company's experience of chartering ships, it is preferable to hire ships from domestic shipping lines, then to reputable foreign shipping lines because with experience as a shipping agent for large shipping lines, the company can easily choose the most optimal shipping line, this is a bittersweet point of view.
Delivery export and payment procedures are the steps the Company takes quickly and efficiently Because the company also operates in the field of freight forwarding services, the initiative in transporting and delivering goods for export is done very quickly, professionally and efficiently Once the exported goods have been shipped to the port and the customs formalities are completed,the company hires workers to load the goods onto the ship and pay them In order to deliver goods to the ship, the company prepares a freight register, masters the time of loading, arranges the means of bringing goods to the port and loading the goods onto the ship Therefore, export goods are transported on time, delivered on time according to customer requirements After delivery, the company receives the mate's receipt, the bill of lading, the certificates of quality, quantity, and phytosanitary certificate All of these words are transferred to the company and quickly made a set of payment documents This ensures that the payment process goes smoothly in terms of procedures, ensures on time the validity of the L/C, and ensures quick capital recovery without the company's capital.
In the step of Transaction and contract signing, the Company uses the main transaction method which is direct transactions with familiar customers, the company directly offers to negotiate the terms of the contract via telex, fax, and telephone phone and especially over the internet until an agreement is reached between the two parties to sign the contract The signing can be via fax, or over the Internet Thus, compared with theory, this is also one of the usual forms of negotiation These methods bring insignificant advantages, besides the purpose that we need to achieve when transacting and signing contracts, most of them are limited such as: not presenting all ideas, expensive On the other hand,electronic communication is an oral exchange, there is nothing as evidence for the agreements and decisions in the exchange Thus, this factor is very easy to become the cause of disputes in the export of goods if there are problems about problems during and after export Although the company has assigned qualified staff to perform transactions and sign contracts, in general, there are still many difficulties in foreign languages This is a major limitation of the personnel performing this stage Moreover, It is also the main cause of problems in delivering goods to customers because not fully understanding customer requirements leads to loss of customers, which can also cause disputes later Apply for license export, the company does not have a specialized department to prepare and process L/C documents and this department is only part-time, so the experience and professionalism is not high, but as a result, when receiving a notice of L/C /C they only care about issues like how much is the L/C value? Is it right? and considers that L/C review is the responsibility of the bank In addition, the company believes too much in the role of L/C as a tool to receive payment without understanding a basic principle of L/C that is
"conditional receipt of money", leading to neglecting the work Check the terms and conditions of the L/C As a result, the document does not refer to the requirements of the L/C Therefore, the company has to spend time to make corrections, which is the cause of delay in payment for export goods The business process of transactions by L/C at the company is not careful, leading to unclear reading and interpretation of L/C, irresponsible professional department, leading to typos, typographical and printing errors Carelessness is a common thinking that still exists with the old logic that "one party only needs to open the L/C and the other party ships the goods" without caring about the accuracy of the L/C as soon as the L/C arrives receive Besides, the foreign language ability of the department performing L/C inspection is not high So, it easily leads to ineffective L/C checking.
Prepare, Pack and code sign the goods, the company's raw materials are imported from abroad If there is a problem with the import of raw materials, leading to the production process, it will not be on time to meet the goods according to the customer's order In addition, the company does not have a department that specializes in the preparation of goods, but also a department that specializes in packaging.
In addition to the above problems in the above export process, the company also has problems in the operation process:
The company's warehouse is not large enough, in addition, the infrastructure needs to be high to ensure quality when transporting imported and exported goods.
The company's still-loaded vehicles are not fully equipped and must be outsourced when the workload is too large.
The process of exporting electronic components at the company faces many difficulties in terms of contract procedures for exporting components. Many small contracts, unable to perform many contracts at the same time because of limited human resources Also for this reason, it is difficult for the company to expand relationships with other potential partners But the unnecessary error in the contract implementation process also has part of the reason because the import-export staff has to do many jobs at the same time. The implementation of many small contracts leads to expensive transportation insurance and time and effort for export license and customs procedures.
Over the years, the company has also had successes, but there are also shortcomings that need to be overcome in order to improve the efficiency of exporting electronic components With the advantage of a one-member limited liability company operating in the field of domestic and international freight forwarding services and acting as a shipping agent, the company has extensive experience in the matter of chartering ships for service for its export activities. Therefore, the company can have reasonable costs in terms of freight rates, choose reputable professional shipping lines to ensure that exported goods are safely transported The company also has extensive experience in international research and selection of trading partners Although there are still shortcomings in the implementation of the process, in general, the company also completes the export of goods quickly, meeting the requirements of customers In order to improve the efficiency in exporting goods, the company also needs to overcome the shortcomings in such contracts as negotiating and signing, preparing documents, and other objective factors affecting the quality of goods direction.
With the advantage of experience, the Company has a clear flowchart of the export process of electronic components Incorporating a long-standing parent company abroad, Having expertise in technology There may be opportunities to export these specialized products to markets that require cutting-edge technology This can position the business as one of the leaders in the industry and attract customers seeking innovative solutions.
OEM and Manufacturing Partnerships: The parent company helps the Company Partnering with original equipment manufacturers (OEMs) or other manufacturers in target markets can provide opportunities for exporting electronic components as part of integrated solutions or finished products. Collaborating with these partners can help access their established distribution channels and customer base.
The threats of this process greatly affect the operation of the company and the export process When exporting, the company needs regulatory compliance: Exporting electronic components requires compliance with various international regulations and standards These may include safety regulations, environmental requirements, product labeling, and certification processes Non-compliance can lead to legal issues, product recalls, reputational damage, and barriers to market entry.
Economic and Political Instability, exporting to countries with volatile economies or political environments can pose risks During the contract signing process, when the currency changes, it may affect the contract value, affecting the revenue.
Or when there is an epidemic or natural disaster, in some cases it may be necessary to stop the operation of the company's export process It leads to not being on time during signing, leading to compensation or cancellation.
Analysis problems faced by the T.T.T.I Da Nang Co., Ltd in the process
4.3.1 Problems of the export activities of the T.T.T.I Da Nang Co., Ltd
Based on the SWOT of the Exported Products, the company is facing several problems:
Dependency on Major Suppliers and Distributors, this dependency can lead to delays in transporting the materials, resulting in production delays and the inability to export products on time.
Transportation Challenges and High Costs, the company's transportation vehicles are not fully equipped, leading to the need for outsourcing when the workload is high This results in higher transportation costs Additionally, delays in transportation can further impact production and export schedules.
Degraded Facilities and Limited Warehouse Space, are increasingly degraded and only maintained twice a year The narrow warehouse space affects production and export processes.
Lack of Dedicated Handling Unit and Changing Regulations and Legal Requirements, every year, both the company's home country and foreign countries may introduce changes in regulations or legal requirements for exporting electronic components.
Based on the SWOT of the Export Clients, the company is facing several problems:
Limited Language Skills and Cultural Understanding, the employees have limited language skills This lack of understanding of the underlying culture can result in communication challenges and potential misunderstandings.
Lack of Experienced Staff in International Trade, the company has a shortage of professional staff with experience in international trade and knowledge of regulations in the export process
Economic and Political Instability in Main Export Markets, fluctuations in these markets can impact export prices and company profits, posing risks to business operations.
Intense Competition and Trade Barriers, trade barriers and tariffs, along with changing regulations and legal requirements, add to the complexity and challenges of exporting.
Based on the SWOT of the Export Documents, the company is facing several problems:
Lack of Specialized Department and Language and Cultural Barriers, the company lacks a specific department increases the likelihood of errors in the licensing process There is no designated department or individual responsible for resolving errors in export-related paperwork leading to potential complications and delays Cultural and Language differences can create challenges in understanding and complying with documentation requirements in foreign markets.
Complicated Licensing Procedures, as the company imports raw materials for production from abroad, there are numerous complex licensing procedures involved in the production of finished products for export These procedures can be time-consuming
Changing Regulations, export regulations and documentation requirements can change frequently, posing challenges for the company and its export-related departments to stay updated and compliant.
4.3.2 Problems of the process of exporting electronic components of the T.T.T.I Da Nang Co., Ltd
Based on the SWOT of the process of exporting electronic components, the company is facing several problems:
Limitations of Communication Methods and Language Barrier, the current methods of communication (telex, fax, phone, and internet) used for negotiation and contract signing have limitations, such as not presenting all ideas and lacking evidence for agreements and decisions, which can lead to disputes.
Lack of Specialized Applying for Export Licenses, the company lacks a dedicated department for preparing and processing export-related documents,including letters of credit (L/C) The part-time nature of the department hinders professionalism and experience in handling L/C requirements.
Goods Preparation, Packaging, and Coding, problems with importing raw materials can lead to production delays, affecting the timely delivery of customer orders.
Inadequate Warehouse Space and Infrastructure: The company's warehouse is not large enough, and infrastructure deficiencies
Insufficient and Outsourced Vehicles: The company's own transportation vehicles are not fully equipped, and outsourcing is required for large workloads, leading to higher transportation costs.
Limited Human Resources and Small Contracts: Limited human resources restrict the company's ability to handle multiple contracts simultaneously,impacting relationships with potential partners The implementation of many small contracts results in expensive transportation insurance and increased effort for export licenses and customs procedures.
I Da Nang Co., Ltd
RECOMMENDATIONS 5.1 The Proposes solution to solve problems of T.T.T.I Da Nang company
5.1.1 The proposes solution to solve problems of the export activities
To address the problems of the export activities is facing, the following solutions can be considered:
Diversify Suppliers and Distributors: Reduce dependency on major suppliers and distributors by establishing relationships with additional reliable suppliers This will help mitigate the risk of delays in material transportation and ensure a more stable supply chain.
Improve Transportation Infrastructure and Invest in upgrading: ensure they are fully equipped and capable of handling the workload efficiently Explore options for expanding warehouse space or optimizing existing space to accommodate increased inventory and improve logistics efficiency.
Establish a Dedicated Handling Unit: This will help ensure proper handling procedures and minimize the risk of damage during transit Continuous professional development: invest in training programs to enhance employees' language proficiency, negotiation skills, and cultural understanding This will facilitate better communication with customers and minimize misunderstandings during contract negotiations and customer interactions.
Explore Technology Solutions: Consider implementing advanced technologies such as supply chain management systems, document management software, and communication platforms to streamline processes, improve documentation accuracy, and enhance overall efficiency in the export process.Stay Updated on Regulations: Allocate resources to closely monitor and adapt to changes in regulations and legal requirements for exporting electronic components Establish a dedicated team or assign personnel responsible for staying informed about regulatory updates and ensuring compliance with all relevant laws.
SUMMARY OF FINDINGS, COCLUSION AND RECOMMENDATIONS
The Proposes solution to solve problems of T.T.T.I Da Nang company 58
5.1.1 The proposes solution to solve problems of the export activities
To address the problems of the export activities is facing, the following solutions can be considered:
Diversify Suppliers and Distributors: Reduce dependency on major suppliers and distributors by establishing relationships with additional reliable suppliers This will help mitigate the risk of delays in material transportation and ensure a more stable supply chain.
Improve Transportation Infrastructure and Invest in upgrading: ensure they are fully equipped and capable of handling the workload efficiently Explore options for expanding warehouse space or optimizing existing space to accommodate increased inventory and improve logistics efficiency.
Establish a Dedicated Handling Unit: This will help ensure proper handling procedures and minimize the risk of damage during transit Continuous professional development: invest in training programs to enhance employees' language proficiency, negotiation skills, and cultural understanding This will facilitate better communication with customers and minimize misunderstandings during contract negotiations and customer interactions.
Explore Technology Solutions: Consider implementing advanced technologies such as supply chain management systems, document management software, and communication platforms to streamline processes, improve documentation accuracy, and enhance overall efficiency in the export process.Stay Updated on Regulations: Allocate resources to closely monitor and adapt to changes in regulations and legal requirements for exporting electronic components Establish a dedicated team or assign personnel responsible for staying informed about regulatory updates and ensuring compliance with all relevant laws.
By implementing these solutions, the company can reduce dependency risks, improve transportation efficiency, optimize facilities, comply with changing regulations, and enhance overall productivity and effectiveness in exporting electronic components.
5.1.2 The proposes solution to solve problems export clients
To address the problems export clients faced by the company based on the SWOT analysis, the following solutions can be implemented:
Language and Cultural Understanding: Provide language training programs for employees to improve their language skills, particularly in the languages of the main export markets Conduct cultural sensitivity training to enhance employees' understanding of different cultural norms and business practices. Experienced Staff in International Trade: Recruit and hire experienced professionals with expertise in international trade and knowledge of export regulations.
Intense Competition and Trade Barriers: Conduct regular market research to identify market trends, competitive landscape, and trade barriers Engage with industry associations and trade organizations to stay updated on changing regulations and requirements Collaborate with government agencies to advocate for favorable trade policies and to address trade barriers.
Overall, investing in employee training, recruiting experienced professionals, diversifying export markets, and staying informed about market trends and regulations can help the company overcome the challenges posed by limited language skills, cultural understanding, economic and political instability, and intense competition in the export process.
5.1.3 The proposes solution to solve problems of the proposes solution to solve problems
To address the problems faced by the company in the process of exporting electronic components, the following proposed solutions can be considered:
Communication Methods and Language Barrier: Invest in modern communication technologies: Explore more efficient and reliable communication channels such as email, video conferencing, and online collaboration tools to improve communication with customers and ensure all ideas are presented clearly Provide language and cultural training to employees involved in negotiation, contract signing, and customer communication to overcome language barriers and improve understanding of customer requirements.
Applying for Export Licenses: Establish a dedicated department: Create a specialized department responsible for preparing and processing export-related documents Hire experienced professionals or provide training to enhance expertise in handling licensing procedures.
Goods Preparation, Packaging, and Coding: Strengthen supply chain management: Improve coordination with suppliers to ensure timely and reliable delivery of raw materials Establish backup suppliers or alternative sourcing options to mitigate the risk of production delays.
Warehouse expansion and infrastructure improvement: Evaluate the current warehouse space and identify opportunities for expansion or optimization Invest in necessary infrastructure upgrades to ensure efficient storage and handling of goods.
Upgrading transportation vehicles: Consider investing in fully equipped transportation vehicles to reduce reliance on outsourcing and control transportation costs Ensure vehicles are properly maintained to minimize disruptions in the transportation process.
Resource optimization and partnership development: Explore collaborations and partnerships with reliable logistics providers or freight forwarders to supplement limited human resources This will enable the company to handle multiple contracts simultaneously and reduce the burden of transportation insurance and export license procedures.
By implementing these proposed solutions, the company can overcome the challenges it faces in the process of exporting electronic components This will lead to improved communication, streamlined licensing procedures,efficient goods preparation and packaging, and enhanced operational capabilities Ultimately, the company will be able to enhance its competitiveness and expand its export activities.
Make recommendations to agencies and the state
5.2.1 Make recommendations to the customs authority.
Customs authorities need to create favorable conditions for companies when participating in export activities Especially in the process of customs clearance, inspection and supervision of goods creates a smoothness for the procedure so that the staff carrying out the customs declaration stage is easier to complete customs procedures for exported goods .
The customs industry itself needs to regularly sue the entire management machine so that in each stage there is no overlap to avoid negative impacts that adversely affect the import and export business of organizations The customs sector needs to invest in modern equipment with advanced technology in each of its operations to improve operational efficiency.
The State has preferential policies, encouraging units to participate in export business because this is the source of capital accumulation and the foundation for the industrialization and modernization of the country The State needs to regularly check and monitor the activities of the customs sector in general and the customs sub-departments in particular in order to correct erroneous activities and strengthen the responsibility of the customs sector with an important function of management major trading hub of the country TheState often promulgates policies together with functional agencies such as the government to participate in amending the customs law to make this code more and more complete Especially in the current situation of the South China Sea,our state needs to have reasonable policies to agree on dialogue betweenVietnam and China in order to preserve peace, but also resolutely protect the country's territorial integrity The State also needs to have policies and measures to protect and create favorable conditions for cargo ships to circulate at sea On the other hand, the state implements measures to prevent and punish bad actors who take advantage of the situation in the East Sea to sabotage and benefit themselves, and influence the country's political and economic activities.
From the process of theoretical research on all stages to export goods, combined with the actual study of the implementation of the process at T.T.T.I
Da Nang company, comparing reality and theory, we draw some shortcomings. as well as the good points of implementing the company's electronic components export process Combining the above studies with the company's development orientation in the future, I would like to propose solutions to overcome the shortcomings in order to improve the company's export process.
At the same time, it also aims to accomplish the goals according to the development orientation of the company In addition, the state and customs authorities also need to have policies and measures to facilitate the quick export of goods.
In the current globalization trend, Vietnam's efforts on the path of economic integration with the region and the world are the right direction to successfully implement the process of industrialization, modernization, contribute to the renewal of the country In that trend, international trade activities are the foundation for the diversity and bustle of global economic relationships Occupying an important position in international trade, exports play an increasingly important role in the economic development of not only each country but also all countries participating in the world market Therefore, for many years, Vietnam has constantly improved and promoted the development of commodity exports Therefore, it is very necessary to complete the process of exporting goods With a long time in the process of establishing T.T.T.I Da Nang Co., Ltd., there have been many successes, besides having the same problems, there are also existing problems in the export of electronic components that need to be overcome to improve and improve the quality of products improve economic efficiency for the company, and also contribute to the success of the country in exporting, making the country richer and stronger. Export business is an area of activity being developed by the company. Therefore, perfecting the export process is a task set for the whole company. Along with the provisions of the Customs Law, the export of goods of the company is always renewed to suit the changes of the market in general and changes in state policies in particular (especially the innovation of the market). of the Customs Law) Completing the process of exporting goods is important for money making companies to create applicability in practice This Vite is really necessary and urgent in the current period However, in the current situation of the East Sea, our state needs to have reasonable policies for dialogue between Vietnam and other countries in the export market The State also has policies and measures to let ships return and create conditions for ships to transport goods through large and safe seas On the other hand, the state has taken measures to prevent and reinstate bad cities that take advantage of the border situation to sabotage and benefit themselves This is a very heroic issue that affects the economic activities of our country.
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Scope: ask employees who work in the export process.
Part 1 Could you briefly introduce yourself?
What department are you working in?
What position are you working in? How long experience do you have in the position you are working for?
1 Can you briefly describe the work you are doing? What is the main task at your job?
2 What is your general assessment of the process of exporting components?
3 In your opinion, in the company's export process, what is the most important step? Why?
4 What is the most difficult situation in the working process in the department you have ever encountered? How do you solve that difficult problem?
5 Do the difficulties in the process of exporting components affect your working process? What do you need to improve on at this point? Do you have a plan to improve these points?
6.Do you know the total number of personnel in the company's export process? What do you think of it? Do you need to recruit more staff for this department?
7 What are the difficulties in finding new customers and retaining old customers?
8 What are the advantages and disadvantages in the process of exporting electronic component by the company's means?
In your opinion, which step in the flow chart of exporting electronic components of the company needs to be overcome? Why?
9 In your opinion, which step in the flow chart of the company's export of electronic components needs to be overcome? Why?
10 If there is an error in the customs declaration, how to fix the error?