(Luận văn tốt nghiệp) improving air freight service for medical equipment import at airseaglobal vietnam joint stock company

Theoretical basis for import and export goods delivery by air

Overview of import and export freight forwarding activities

1.1.1 Some definitions and classification of freight forwarding services

Exporting goods involves organized sales by economic organizations to foreign countries, aimed at generating profits, enhancing production, and improving living standards This business activity not only boosts individual enterprise income but also contributes to the overall economy Conversely, commodity importation is an international trade process based on currency exchange principles, characterized by complex trade relations that involve diverse nationalities, large markets, and significant intermediary transactions Both import and export activities are essential for developing production and business life, requiring compliance with international and local customs regulations at border crossings.

Delivery 2 : Freight forwarding are activities in the circulation and distribution stage, an important stage connecting production and consumption, the two main sides of the social reproduction cycle Freight forwarders perform the function of bringing products from the place of production to the place of consumption, completing the second side of the distribution and physical circulation, when the first side is the commercial procedure has formed Forwarding is associated with and parallel with the transportation process Through forwarding, transportation operations are carried out Collection of goods, transportation, loading and unloading, storage, transmission, packaging, procedures, documents With such broad content, there are many definitions of forwarding and forwarding: According

1 http://hoixuatnhapkhau.com/xuat-nhap-khau-la-gi-nhung-dieu-can-biet-ve-xuat-nhap-khau/

2 https://goldensealogistics.com/van-chuyen-hang-hoa-la-gi-vai-tro-vi-tri-cua-van-chuyen.html h

According to the rules established by the Federation of International Freight Forwarders Associations (FIATA), a forwarding service encompasses a wide range of activities associated with the transportation, consolidation, storage, handling, packaging, and distribution of goods This definition also includes consulting services linked to these activities, such as customs, financial, insurance, payment, income, and documentation services related to the goods.

Freight forwarding is a commercial activity defined under Commercial Law 2005, where service providers organize transportation, storage, and related services to deliver goods to recipients as authorized by shippers, carriers, or other forwarders The export of goods involves taking items out of Vietnam or into designated special customs areas within the country, while import refers to bringing goods into Vietnam from abroad or from these special areas Essentially, freight forwarding encompasses all tasks associated with transporting goods from the point of shipment (Consolidator) to the final destination (Consignee).

1.1.1.2 The necessity of forwarding activities in import and export of goods

Freight forwarding is crucial for the successful completion of the import-export process, highlighting the significance of delivery services This analysis focuses on two key aspects: the role of forwarders and their responsibilities in the import and export of goods As international economic development progresses, forwarders assume multiple roles, including carriers, consolidators, agents, and customs brokers, thereby facilitating efficient logistics and trade operations.

The growth of production is closely linked to advancements in circulation and trade, with transportation and freight forwarding playing a crucial role In both national and global economies, air transport holds significant importance.

3 https://fiata.com/news/2021/rules-and-procedures-for-stronger-fiata-regions.html

4 http://vcci-ip.com/wp-content/uploads/2017/06/commercial_law_year_of_2005.pdf h

Air transport serves as a vital artery for economic growth, significantly impacting development Although relatively young—approximately a century old—it has experienced remarkable advancements, particularly after World War II, driven by scientific and technological progress In recent years, the sector has seen rapid growth, especially in the Asia-Pacific region, fueled by the increasing demands of modern civilization.

Air transport, exemplified by Boeing's 70-ton B747-300 aircraft capable of speeds up to 11,000 km/h, plays a crucial role in the establishment and expansion of economic zones, fostering global development Despite representing only 1% of total goods transported, air freight accounts for 20% of the value in international trade This mode of transport thrives in economically developed regions with robust infrastructure Currently, airport clusters are predominantly located in North America, Europe, and Northeast Asia, with significant growth observed in Asia-Pacific countries Additionally, nearly every country is developing its own airport clusters, contributing to continuous growth in the sector.

Air freight is a highly competitive transportation method in logistics, utilizing aircraft to transport goods efficiently Goods are meticulously packed and loaded onto specialized cargo planes or the cargo holds of passenger aircraft As the global economy and international trade continue to grow, air freight has gained popularity and dominance While it is less common than sea transport due to limitations on the types, volume, and size of goods, it remains a crucial option for international shipping.

5 https://www.freightwaves.com/news/flashback-friday-the-history-of-air-freight

6 https://airspeed.ph/blog/popular-types-freight-forwarding-services/ h

7 attractive and potential market because of its very fast and safe delivery speed This form of transportation brings a lot of advantages, but there are still many disadvantages:

Pros: Airmail makes it easy to ship goods abroad The problem of collision is also rare because the accident rate is very low, ensuring the safety of goods better

While this transportation method is highly effective for personal goods, it is primarily suitable for simple and lightweight items Options for bulky goods are limited due to high transportation costs, and the volume of goods that can be transported is restricted Additionally, customs procedures can be complex and time-consuming, making the process more challenging.

Sea transport is a vital method of freight transportation that utilizes boats and cranes, along with essential infrastructure like seaports and transshipment ports This mode of transport is ideal for regions with accessible waters and docking facilities, facilitating both domestic and international shipping Due to the large size and capacity of shipping vessels, sea transport is predominantly employed in the import and export industry to efficiently move substantial quantities of goods.

Sea freight is an efficient option for transporting long-term goods, particularly for international shipments It offers more accessible and open transport routes compared to road transport, allowing for the movement of large volumes and sizes of cargo Additionally, the cost of sea freight is generally lower than that of road transport, making it a preferred choice in cities with seaports.

Shipping goods by sea has its drawbacks, including the limitation that deliveries must dock at ports and rely on road transport to reach their final destination Additionally, maritime operations can lead to slower shipping times, heavily influenced by weather conditions Furthermore, goods can be susceptible to damage from incidents occurring on the ship during transit.

Road transport is the most widely used and favored mode of transportation, encompassing various vehicles like cars, trucks, and trailers It primarily facilitates the movement of goods on domestic routes, connecting provinces and localities efficiently.

Road transport, primarily utilizing motorbikes and trucks, offers significant flexibility in goods transportation, allowing for adaptable scheduling based on mutual agreement between parties This method enables the selection of preferred vehicles, quantities, and routes, contributing to cost and labor savings However, it's important to note that long-distance transportation may lead to additional expenses.

Professional process of forwarding and receiving goods imported by air

1.2.1 The process of receiving imported goods by air

The process of receiving imported goods by air is shown in the diagram below: h

Figure 1 1: Import and export freight forwarding process Step 1: Buyer and seller sign foreign trade contract

To initiate the import process, it's essential to negotiate and sign a sales contract between the shippers, which serves as a formal agreement on the purchase and sale of the shipment This contract must encompass detailed terms that reflect the actual needs of both parties, including warranties and complaint procedures, to safeguard their interests Failing to include these critical elements could lead to challenges in resolving issues related to poor quality goods or disputes, leaving the buyer without a solid foundation for addressing concerns with the seller.

Step 2: The shipper signs a service contract with the forwarder

After finalizing a foreign trade contract, either the seller or buyer will engage a shipping company to facilitate door-to-door delivery This shipping company may be a carrier, freight forwarder, or air agent (GSA) authorized by the airline to manage cargo operations It is essential that the contract of carriage between the shipper and forwarder includes specific information to ensure compliance and efficiency in the shipping process.

• Description of goods: type, weight, quantity, volume

• Departure airport name, arrival airport name

Buyer and seller sign foreign trade contract

The goods owner signs a service contract with the forwarder

The forwarder receives the papers and documents

Pick up at the airport

Delivery to the recipient's warehouse h

Step 3: The forwarder receives the papers and documents

After signing the service contract, the seller or the buyer will send documents related to the shipment to the forwarder including:

• Certificate of Origin (Certificate of Origin)

• Letter of introduction, authorization of the consignee

• For medical equipment goods will need to add:

+ Receipt sheet for announcement of standards for class A medical equipment (for class A goods))

+ Import license (for goods of class B, C or D in the list of circular 30/2015/TT-BYT) Along with that, the airline will send:

• Air waybill (Master bill) when the goods are about to be loaded on the plane

• Arrival Notice when the goods are about to arrive at the airport of import

Step 4: Do import customs procedures

Along with the above documents, the forwarder will carry out customs procedures for export goods When doing customs procedures, the declarant performs the following basic steps: h

Figure 1 2: Steps to do customs procedures

When handling customs procedures, forwarders must submit a customs declaration using the designated form Historically, these declarations were completed by hand on pre-printed forms; however, most Sub-Departments have now transitioned to electronic customs declarations through specialized software.

After submitting the customs declaration, there will be 3 cases:

In this case, the enterprise complies with the state's laws on customs The enterprise is exempted from detailed inspection of documents and from detailed inspection of the enterprise's goods

Document officer declares and submits customs declaration

Customs physical inspection of goods

Tax payment and customs clearance h

Customs will review the documentation for the goods, and if everything is in order, they will proceed with the customs clearance process The forwarder is required to submit the necessary documents to customs for this procedure.

• Customs declaration (printed from software, no stamp required)

• Commercial invoice (signature, round seal + title)

• Other documents: Bill of lading, C/O, quality inspection paper (specialized inspection)

After completing the inspection of paper documents, the actual goods must undergo a thorough inspection, which is the most comprehensive and demanding process for both goods owners and customs officers Initially, customs procedures require a complete set of documents Once the customs authority reviews and approves the documentation, it is forwarded to the inspection team The customs clearance agent then registers the goods for inspection and proceeds to the port to manage unloading procedures in the designated inspection area, coordinating with customs officers for the inspection process Currently, inspections are conducted using either scanners or manual methods Upon completion, customs officers prepare an inspection record If everything is satisfactory, they finalize the procedures, allowing the customs clearance agent to print the customs declaration barcode This enables the agent to complete order changes and sign for customs supervision at the port, facilitating tax payment and the clearance of goods.

Step 5: Receive goods at the airport:

Once the goods have cleared customs, the forwarder presents the customs clearance declaration along with the recipient's authorization letter at the warehouse to collect the items It is essential to inspect the goods upon receipt to identify any damage or discrepancies.

17 breakage, they must make a record of identification, certified by the warehouse for future complaints

Step 6: Deliver the goods to the recipient's warehouse

As per the signed service contract, the forwarder is responsible for transporting goods from the airport to the recipient's warehouse Upon successful delivery, the forwarder completes the process by making the necessary payment and returning all shipment documents to the recipient, thus concluding the importation process.

1.2.2 Duties of agencies participating in import and export goods delivery

Sign a contract with the goods owner for loading, unloading, delivery, preservation, and storage of goods Handle the export delivery to the aircraft and receive imports, if authorized Maintain accurate accounting with the airline for the delivery and receipt of goods, ensuring all necessary documentation is in place to protect the interests of the goods owners Facilitate the delivery of imported goods to domestic owners on behalf of foreign goods owners, and manage loading, unloading, transportation, preservation, and storage within the port area.

As a responsible party, you must cover any loss of goods resulting from your actions during delivery, transportation, loading, and unloading If goods stored in the port's warehouse are damaged or lost, the port is liable for compensation only if there is valid documentation and cannot prove its lack of fault However, the port is not accountable for goods once they have left its warehouse, if the packaging and seals remain intact, or if damage arises from incorrect or unknown product codes, which may lead to loss or confusion.

Issuing bills of lading and delivery notices to recipients

Transport the goods to the right airport and on time as shown in the bill of lading Warehousing of goods upon arrival at the import airport h

1.2.2.3 Duties of shippers (exporters, importers or their trustees)

(i) Sign a forwarding and consignment contract with the port in case the goods pass through the port

Freight forwarding can be conducted with airlines when goods do not transit through a port, while for goods that do pass through a port, delivery is managed through the port.

(iii) Sign a contract for loading, unloading, transporting, preserving and storing goods with the airport

(iv) Provide the airport with cargo and flight information

(v) Provide necessary documents to the port for the port to deliver goods

(vi) Follow up the delivery process to solve arising problems

(vii) Prepare necessary documents in the delivery and receipt process to have a basis for complaints about related parties

(viii) Payment of port charges

Carrying out customs procedures, carrying out customs inspection, supervision and control for ships and imported and exported goods

Ensure compliance with the State's regulations on import and export, export tax and import tax

1.2.3 Documents in forwarding and receiving import and export goods by air

For both export and import goods, the following documents are required: Sales Contract and Customs Declaration

1.2.3.2 Documents used for export goods

A proforma invoice is a preliminary document provided by the seller to the buyer, outlining the details of a shipment before the goods are delivered This invoice serves as a commitment to provide the specified items and includes essential information such as pricing, quantities, and terms of sale, helping facilitate the transaction process.

A shipment confirmation document is essential for export customs clearance in certain countries, serving as a preliminary draft of the official commercial invoice This document provides crucial information for both buyers and sellers, detailing the shipment's type, model, quantity, unit price, total amount, and delivery conditions.

A Letter of Credit (L/C) is a financial instrument issued by a bank or financial intermediary that provides security for both buyers and sellers in a transaction It alleviates the buyer's concerns about making advance payments without receiving the goods as promised, while also protecting the seller from the risk of shipping products without guaranteed payment.

Insurance Certificate: Insurance document is issued by an insurance carrier for a shipment to create peace of mind for shippers when transporting goods

A Certificate of Origin (C/O) is an essential document that certifies the origin of goods produced in a specific country, issued by the relevant authority of the exporting nation This document facilitates importers in obtaining special tax benefits, such as preferential rates or tax reductions There are two primary types of C/O: "Non-preferential C/O," which verifies that a product originates from a specific country, and "Preferential C/O," which allows for reduced or tax-free access to markets that offer such advantages, including programs like Generalized System of Preferences (GSP), Commonwealth Preference Certificate (CPC), and Common Effective Preferential Tariff (CEPT).

Phytosanitary Certificate: Quarantine certificate is issued by the quarantine authority

(animal or plant) for the consignment to prevent the spread of disease between countries and territories

1.2.3.3 Documents used for imported goods

An authorization letter of introduction is a document issued by the buyer to the forwarder, granting the forwarder the authority to manage procedures related to the goods and to retrieve the items from the warehouse.

The criteria for evaluating the results of business activities of import and export freight

1.3.1.1 Revenue, Profit - Revenue growth rate

Revenue represents the total earnings generated from product sales, service provisions, financial operations, and other business activities In economic terms, it is calculated by multiplying the selling price by the output This metric enables businesses to assess their competitiveness against peers, providing insights into their production and operational effectiveness A higher turnover compared to competitors indicates strong and stable business performance Consequently, analyzing this criterion encourages enterprises to thoroughly investigate their competitors' markets, allowing them to identify the most suitable or strongest competitor in their industry.

In the evolving market landscape, businesses should focus on a 21-process structural model to evaluate their strengths and weaknesses This model simplifies calculations and highlights that strong enterprises typically hold significant market shares, leading to higher profitability Consequently, companies must strive to dominate these lucrative market segments while also gaining insights into their key competitors to enhance their strategic positioning.

Profit serves as the primary economic objective and is essential for the survival and growth of enterprises It is a comprehensive metric that captures the effectiveness of the entire production and business cycle, from identifying market demand to the execution of sales and services Additionally, profit reflects the competitive quality and quantity of a business in the marketplace.

A low indicator suggests intense market competition, necessitating that businesses enhance their competitiveness to boost profit margins Conversely, a high indicator reflects strong enterprise competitiveness, allowing companies to leverage their position while remaining vigilant against potential new entrants attracted by lucrative opportunities.

Revenue growth is a primary objective for businesses, measured as the percentage change in revenue over time This growth rate is influenced by the accumulation and investment in productive assets, including capital, labor, and facilities While saving and investment are crucial for growth, effective investment is essential to enhance revenue The growth rate indicates future business prospects and reflects fluctuations in sustainable growth, which reveal the stability and development level of the enterprise Ultimately, a company's sustainable revenue growth rate relies on both its revenue and profit growth rates.

Net revenue growth rate reflects the increase in net revenue of a business over time is high or low

Figure 1 3: Method of net sales growth rate

Analyzing the changes in net sales growth rates over time allows users to evaluate market stability, assess business conditions (whether favorable or facing challenges), determine the scale of operations (expansion or income), and identify overall business development trends.

Figure 1 4: Method of Profit growth rate

The profit growth rate indicates the increase in profits over time, serving as a key metric for assessing the quality of a company's business activities and cost management By analyzing this rate, stakeholders can gain insights into the current business status and overall performance of the enterprise.

Service quality is customer satisfaction when service providers meet customer needs Customer satisfaction with a service is determined through a comparison between h

23 the expected service and the service perceived by the customer Service quality is evaluated based on a number of criteria such as:

Tangible: is the company's facilities, equipment, employees, and means of transportation

Timeliness: ensuring that raw materials and goods are supplied in a timely manner

Flexibility: refers to the ability of the company to coordinate resources to meet the special requirements of customers

Level of safety and accuracy: the ability to ensure customer safety, expressed through physical, financial, and information security

Reliability level: is the trust and reputation of the service and the business to customers

Freight forwarding companies specializing in air transport maintain an Agent department to liaise with international agents, enabling precise lookup of shipping prices and ensuring balanced, timely deliveries that meet customer requirements These businesses establish agency relationships in various countries to enhance the efficiency and convenience of their delivery services, ultimately providing customers with high-quality and seamless logistics solutions.

Market share refers to the percentage of total sales that a specific business holds within a market, serving as a key indicator of market concentration among sellers Understanding a company's market share helps determine its competitive position, assess market saturation, and identify potential growth opportunities This insight enables businesses to make informed decisions about whether to pursue market dominance or consider withdrawing from the market To effectively evaluate their growth and market share, many companies utilize the Boston Matrix as a strategic tool.

1.3.1.4 The level and speed of business growth

To accurately evaluate an enterprise's development, it's essential to consider various factors that influence its growth rate based on its business type In Vietnam, large forwarding companies must implement a strict and disciplined working process for freight activities, which are organized into four main levels.

Level 1 forwarding agents primarily offer essential services requested by customers, including road transportation of goods, handling customs procedures on behalf of cargo owners, document preparation, and warehousing and delivery of goods.

Level 2 forwarding agents serve as consolidators by issuing home bills of lading These companies operate by employing exclusive agents at key ports to manage the withdrawal and packing of both import and export goods.

A Level 3 forwarding agent functions as a multimodal carrier, collaborating with foreign companies at the port of discharge These agents often establish sub-contracts to seamlessly coordinate the transportation of goods to their final destination, in accordance with the bill of lading.

✓ Level 4: this is a forwarding agent that becomes a logistics service provider This is the inevitable result of the integration process

Return on Assets (ROA) is a key financial metric that measures a company's profitability relative to its total assets This ratio indicates how efficiently a company utilizes its assets to generate profit, providing insights into its operational effectiveness Understanding ROA is essential for assessing a company's financial health and investment potential.

Return on Assets (ROA) measures how effectively a company utilizes its assets, with a higher ROA indicating better asset efficiency ROA can vary significantly among joint-stock companies, influenced by industry differences, making it essential to compare ROA within similar companies When evaluating ROA, it's important to consider multiple years—ideally three or more—rather than relying on a single year's data Investors should also take into account the interest rates on company debt; if a company's earnings from investments do not exceed its expenses, it signals potential trouble Conversely, a ROA that surpasses borrowing costs suggests the company is achieving favorable returns.

ROE (Return of Equity) - Return on equity is an indicator that measures the efficiency of the use of equity in a business

Factors affecting business activities of freight forwarding services by air

Human resources play a crucial role in enhancing production and business efficiency, significantly impacting the competitiveness of enterprises As a vital asset for the growth of both countries and businesses, a well-coordinated team of skilled professionals enables organizations to effectively achieve their objectives A dynamic and knowledgeable leadership team, characterized by experience and flexibility, can deliver not only immediate advantages but also long-term success for businesses.

Businesses can achieve increased revenue and profits while enhancing their corporate reputation by implementing innovative strategic ideas tailored to their growth and maturity These creative strategies will effectively address market changes and challenges.

Businesses engaged in air freight forwarding must possess the necessary facilities, equipment, and infrastructure to effectively deliver their services This includes having well-equipped offices, warehouses, transportation vehicles, and loading and unloading facilities, as well as adequate storage solutions for goods.

In today's logistics landscape, forwarding service companies must invest in modern infrastructure to efficiently handle the consolidation, loading, and unloading of goods, as well as conducting thorough inspections The rapid advancement of technology enables forwarders to manage business operations and customer information effectively through electronic data transmission systems Additionally, a well-developed road infrastructure ensures swift and safe transportation of goods to importers' warehouses The necessity of specialized machinery further emphasizes the importance of investing in modern equipment Therefore, infrastructure, equipment, and machinery are critical for businesses engaged in import and export freight forwarding services.

Investment capital is crucial for the efficiency of import and export freight forwarding, particularly in air freight Insufficient investment leads to outdated infrastructure and equipment, causing delays in the delivery process and negatively impacting operational performance Conversely, ample investment allows for modernization of facilities and machinery, resulting in faster and more efficient delivery, potentially exceeding a 100% yield However, forwarding service businesses often face financial constraints, making it essential to carefully assess and define investment needs within the forwarding process.

28 investment to get the most out of it Businesses can also consider outsourcing or linking with transporters in some cases to reduce delivery costs

Every business is influenced by its surrounding environment, which plays a crucial role in its development potential The success of an enterprise is not solely determined by its internal operations but is also significantly affected by external factors These external elements directly impact the business's policies and strategies, ultimately shaping its ability to grow and thrive in the market.

The economic environment plays a crucial role in shaping business strategies, presenting both opportunities and threats across various industries A thriving economy boosts demand and attracts domestic and foreign investments, intensifying competition among businesses Conversely, during economic downturns, reduced purchasing power leads to slower service delivery and declining profits, forcing companies to focus on customer retention amidst fierce market competition Ultimately, the economic landscape profoundly influences the competitive policies and decisions of enterprises.

When engaging in logistics services, it is crucial to adhere to international customs regulations, including Incoterms for the receipt of goods, guidelines for documentary credits, and cargo insurance during transportation, loading, unloading, and storage As a member of ASEAN, Vietnam's logistics services are influenced by these international standards, ensuring compliance and efficiency in global trade.

29 by regional agreements such as: 1999 GMS-CBT Agreement; Facilitation of goods in transit (1968); Agreement on multimodal transport framework SEEN 2005

Table 1 1: The legal system governing air freight forwarding and forwarding services in Vietnam

Decisions, Circulars and other documents

Law on Civil Aviation of Vietnam 2006;

Law amending the Civil Aviation Law

Decree 30/2013/ND-C on air transportation business and aviation activities

102/2015/ND-CP of the Government on management and operation of airports and airfields

Circular 81/2014/TT- BGTVT regulating air transportation and general aviation activities;

Decision 43/2017/QD-TTG on regulations on responsibilities for carrying out procedures for aircraft on exit, entry and transit through the national single window mechanism

Source: Law Library (author's own compilation) 1.4.2.3 Politics and law

Politics and law significantly influence the growth of international businesses, serving as the cornerstone for economic development A stable political and legal environment is essential for enterprises operating in both domestic and foreign markets, providing the necessary framework for successful business operations Consistent policies and robust legal structures are vital for fostering a thriving economy.

Thirty documents play a crucial role in shaping economic policies that directly impact business operations This is particularly significant in nations experiencing political instability, where international trade companies face heightened risks A stable political climate and clear legal frameworks foster a conducive environment for business growth In the realm of international logistics, especially air freight forwarding, these factors not only contribute to the development of the country but also enhance robust trade in goods.

Socio-cultural factors encompass the norms and values upheld by a specific society, influencing how individuals live, work, and consume goods and services Changes in these factors occur gradually, often as a result of broader macro influences, making their impact subtle and long-term Businesses must recognize that socio-cultural aspects, including morality, aesthetics, lifestyle, customs, and societal priorities, significantly shape their strategies and operations Understanding the socio-cultural environment is essential for effectively navigating business activities and aligning with the community's values and education levels.

The natural environment significantly impacts the air transportation of goods, often categorized as a force majeure event that can hinder delivery speed and quality Adverse weather conditions during air travel can compromise the quality of goods and lead to disputes between forwarders and importers Understanding the natural situation is crucial for avoiding issues and facilitating negotiations, ultimately supporting a smoother air freight forwarding process for both parties.

In the 4.0 era, digital transformation is crucial for business growth, significantly impacting international freight forwarding Previously reliant on manual labor, logistics faced inefficiencies and high costs However, advancements in technology have automated nearly all delivery processes, from loading and unloading to customs declarations, transitioning from paper to software Additionally, new eco-friendly fuel systems have minimized environmental damage, reducing air and noise pollution Modern aircraft manufacturing technologies have further enhanced efficiency, marking a significant advancement in air transport.

Analysis of the reality of delivery and receipt of imported medical equipment by air at

Current status of medical equipment delivery at Airseaglobal Joint Stock Company

2.1.1 Overview of Airseaglobal Joint Stock Company

- Company Mame: AIRSEАGLОBАL VIETNAM JOINT STOCK COMPANY

- Trading name: VIET NАM АIRSEАGLОBАL JОINT STОCK CОMРАNY

- Abbreviated Company Name: АIRSEАGLОBАL., JSC

- Type of company: Joint Stock Company

- Head office: А9/4 Center of Dia Chat Mine, Co Nhue 2 Ward, Bac Tu Liem

- Business Office: Р2412, Eurowindow Tower, 27 Tran Duy Hung, Trung Hoa Ward, Cau Giay District, Hanoi

+ Ho Chi Minh City Branch: 135/37/1 Nguyen Huu Canh, Ward 22, Binh Thanh District, Ho Chi Minh City

+ Hai Phong Branch: 226 Le Lai, May Chai Ward, Ngo Quyen District, Hai Phong City

+ Da Nang branch: Lot 39, Street 2, Da Nang Industrial Park, Son Tra District, Da Nang City

- Emai: info@airseaglobal.com.vn

- Website: httр://аirseаglоbаl.cоm.vn h

- Field of activity: is a business unit in the field of logistics

- Line of business: Other supporting service activities related to transportation

2.1.1.2 History of formation and development

Airseaglobal Vietnam Joint Stock Company, initially established as a Limited Company under Business Law, received its Business Registration Certificate After years of successful operation, the company transitioned to a Joint Stock Company on March 5, 2019 The growth of Airseaglobal can be categorized into three distinct phases.

Stage 1: The first period (2011-2012): When newly established, Airseaglobal Joint Stock Company operated with only 4 employees doing customs work and picking up goods at Noi Bai airport and delivering them to the car for transportation to the warehouse This is a difficult period because the Company has to face strong competitors in the general difficult period of the economy At this time, the company's main customers are small businesses located in Hanoi city

Stage 2: Adapting to the market (2013-2014): From the end of 2012 to early 2013,

Airseaglobal Joint Stock Company has broadened its operational reach and business scope across various provinces and cities nationwide To achieve its business objectives, the company is also increasing its workforce Currently, Airseaglobal serves several significant and promising clients, including Sumitomo Electric Interconnect Products Co., Ltd., Nam Ha Pharmaceutical Joint Stock Company, and Ricoh Vietnam Co., Ltd.

Stage 3: Development stage (2015- now): After 6 years of operation, the Company has finally found its own niche market, which contributes to reducing competitive pressure when there are many other large and small companies doing business in freight forwarding services Imported as Airseaglobal At the same time, during this period, the company also cooperates with many major transport agents around the world to help get good input freight rates to sell to customers At the beginning of 2018, Airseaglobal Joint Stock Company was officially a member of the World Cargo Alliance (WCA), which helps the company increase trust with customers, enhancing its position in the world, position of the company Currently, Airseaglobal ranks No 1 in customs declaration of medical equipment and in the Top 3 in customs declaration of air cargo entering Noi Bai

2.1.2 Organizational apparatus of the company: h

Figure 2 1: Organization chart of the company

The Board of Directors is responsible for making decisions that align with the Company's goals and interests, while also overseeing business operations, internal controls, and risk management In the event of any issues, board members convene to collaboratively determine the best course of action for the Company.

The Director serves as the legal representative of the company, overseeing essential documents like the business license, power of attorney, and contracts They are responsible for selecting business partners and facilitating collaborations, while also managing the company’s internal operations and daily activities as designated by the Board of Directors.

The Head of Department is responsible for directly managing their assigned department, overseeing planning and activity coordination They play a crucial role in recruiting potential employees and ensuring that new hires receive proper training to succeed in their roles.

The Agent department collaborates closely with international partners and agents, actively seeking new partnerships across various countries to expand options When a shipment is initiated, the Agent is tasked with evaluating the shipping costs from different carriers and negotiating prices to secure the most favorable rates.

The Operations (Ops) department plays a crucial role in managing goods by coordinating the receipt of shipments from warehouses, airports, and seaports, and delivering them to domestic shipping partners Additionally, Ops employees are responsible for navigating customs procedures to ensure smooth shipment processing.

The Documenting Department (Cus) is responsible for managing shipment documents before they are transferred to the field department Staff members in this department directly handle customs declarations, verify departure and arrival dates, and communicate any issues with shipment documents to Sales and Operations Airseaglobal's documentation department is organized into two specialized groups: maritime document staff and air document staff.

The Sales Department serves as the primary revenue generator for the company, focusing on acquiring and advising customers about its services This department plays a crucial role in keeping customers informed about incoming shipments and the latest government circulars and decrees By providing accurate and timely information, the Sales Department builds and maintains trust with customers, ensuring a strong and reliable relationship.

The accounting and human resources department is essential for managing a company's financial and personnel resources It focuses on monitoring revenue and expenditures, calculating profits, and ensuring accurate salary distribution Additionally, this department handles employee insurance payments and personal income tax deductions, while also managing corporate tax obligations.

36 to the state For customers, the department calculates the costs that the customer has to pay and urges the customer to pay

2.1.3 Business results of Airseaglobal Joint Stock Company

2.1.3.1 Revenue and profit in recent years:

Revenue and profit of Airseaglobal Joint Stock Company are shown in the following table:

Table 2 1: Revenue and profit in recent years of Airseaglobal Joint Stock Company

Figure 2 2: Chart comparing revenue and profit in recent years of Airseaglobal Joint

The company's business performance has shown consistent improvement over time, with 2020 revenue projected to surpass that of 2018-2019 By the end of 2020, total revenue reached approximately VND 11,059 billion, reflecting a 6.8% increase from the previous year and a 2.36% rise compared to the 2018-2019 period Profits have also steadily increased, rising by VND 2,843 billion from 2018 to 2019 and by VND 2,181 billion from 2019 to 2020.

Airseaglobal excels in importing medical equipment, with 80% of its revenue derived from medical products, of which 38% is generated through import procedures like classification, import license applications, and file uploads After a decade of development, Airseaglobal Joint Stock Company has established itself as a leader in import and export freight forwarding, particularly in customs declaration at Noi Bai The company’s ongoing commitment to improving service quality has led to a consistent increase in revenue and profit after tax in recent years.

Revenue Profit before tax Profit after tax h

Figure 2 3: Chart of the proportion of business sectors contributing to Airseaglobal's revenue in 2020

Airseaglobal's primary revenue source is air transport, accounting for 51.42% of its total revenue, which amounts to VND 92,974 billion The swift nature of air freight allows for quick shipments, making it a highly profitable service that the company prioritizes During the COVID-19 pandemic in 2020, the demand for air transport surged as large private and state-owned enterprises urgently required medical equipment imports to meet hospital bidding timelines, reinforcing air transport as their preferred logistics solution.

Besides, shipping services by sea also account for a significant part of the company's revenue with VND 43,973 billion, equivalent to 24.32% of total revenue in 2020 This

Sea transport Air freight Inland transport Customs procedures Other services h

39 service is mainly for shipments, having a large volume of goods and the owner of that shipment wants to save on shipping costs

Medical Equipment overview

2.2.1 Definition and classification of Medical Equipment Products

Medical Equipment is any device used for medical purposes Therefore, what distinguishes a medical device from an everyday device is its intended use Medical devices

Medical equipment plays a crucial role in enhancing patient care by assisting healthcare providers in diagnosing and treating illnesses, ultimately improving patients' quality of life The regulations governing medical equipment are outlined in Decree 36/2016/ND-CP, with amendments provided in Decree 169/2018/ND-CP.

Medical equipment means devices, instruments, materials, implants, reagents and in vitro calibrators, and software that simultaneously satisfy the following requirements:

Used individually or in combination with each other as specified by the owner of the medical device to serve humans for one or more of the following purposes:

• Diagnose, prevent, monitor, treat and alleviate illness or compensate for injury or injury;

• Examine, replace, correct or assist in anatomy and physiological processes;

• Disinfect medical equipment, including chemicals used in testing;

• Providing information for diagnosis, monitoring, and treatment through testing of specimens originating from the human body

Avoid utilizing pharmacological, immunological, or metabolic mechanisms within the human body; if employed, they should solely serve as supportive measures to fulfill the objectives outlined in this clause.

According to 169/2018/ND-CP, medical equipment will be classified into 4 categories depending on the level of risk that the device brings to the human body

• Class A: Low-risk medical devices Example: Medical masks, patient beds, bandages, etc

• Class B: These are medical devices with a moderate or low level of risk Examples: Infusion set (no needle), ultrasound machine transducer, laser therapy machine, etc h

• Class C: These are medical devices with a medium-high level of risk Examples: CRRT dialyzers (Devices for filtering blood and plasma), intravenous catheters, condoms, etc

• Class D: High-risk medical devices Examples: Pacemakers, Cerebral Vascular Holders, Stents, etc

The classification of medical equipment is governed by risk level guidelines, ensuring that devices are categorized based on their highest potential risk When a medical device can fall into multiple risk categories, it is classified according to the highest risk level identified Additionally, if a medical device is intended for use alongside another device, each must receive an individual risk assessment.

The classification of medical devices, particularly when used in combination with other devices or having multiple applications, should prioritize the most significant use The Minister of Health will provide detailed classifications to align with international treaties on medical device classification, particularly those of the Association of Southeast Asian Nations (ASEAN), which Vietnam is part of Only agencies and organizations holding practice certificates from the Ministry of Health and authorized for classification under Decree 169 may conduct this classification Furthermore, these classifications must be publicly accessible through the Ministry of Health's public service system at https://dmec.moh.gov.vn.

To identify if a product qualifies as a medical device, it is essential to refer to its ISO certification Specifically, ISO 13485:2016 is awarded to all certified medical equipment, ensuring compliance with industry standards.

The ISO 13485 standard applies to all organizations involved in the manufacturing and trading of medical equipment, regardless of their type, location, or size This includes facilities, companies, factories, and distributors that provide general medical services, such as medical gloves, sterilized medical products, needles, infusion lines, and feeding lines.

By adhering to the ISO 13485 standard, organizations can establish a safety management system that fosters a work environment focused on minimizing risks related to medical product safety This ensures the development of safe and effective products that meet both customer needs and legal requirements.

2.2.3 Some regulations when exporting and importing medical equipment

Guiding the rational and safe use of medical equipment is essential for both medical staff and users It is crucial that information regarding medical equipment is complete, objective, accurate, truthful, and easily understandable to avoid any misleading interpretations The Minister of Health is tasked with overseeing the organization of the information system related to medical equipment, ensuring that all relevant details are communicated effectively.

The owner of the free-sale registration number for a medical equipment establishment must provide essential information regarding the associated risks and proper usage of the medical equipment.

• Medical facilities are responsible for disseminating information about medical equipment within the facility;

• Medical officers and staff are responsible for providing information on the level of risk of using medical equipment of categories C, D to patients;

• The medical device management agency is responsible for disclosing information about medical equipment

• Organizations and individuals that provide information about medical equipment must be responsible for the information they provide

Before putting medical equipment on the market, medical equipment manufacturing or trading establishments must label medical equipment according to the following regulations: h

Medical equipment labeling in Vietnam must adhere to current legal regulations regarding product labels If imported medical equipment lacks sufficient information as specified in Clause 1, it is required to have an additional label in Vietnamese that includes the mandatory details, while retaining the original label of the product.

Thus, the label of medical equipment must include the following contents: (i)

The essential information for medical equipment includes the name and circulation number of the device, along with the name and address of the holder of the medical device registration number It is crucial to specify the origin of the equipment and clearly indicate the production and expiry dates, formatted as day/month/year or month/year Additionally, the batch or serial number must be provided Users should also have access to instructions for checking warranty facilities, as well as guidelines for using the medical equipment and technical documents for repair and maintenance.

Reality of forwarding activities at Airseaglobal Joint Stock Company

Service quality is crucial for customer satisfaction, especially when companies provide significant benefits For instance, while the company excels in air transportation of medical equipment and established sea freight services for raw materials, it is now focusing on developing retail shipping services Targeting small and medium enterprises allows the company to penetrate this market effectively By collaborating directly with partner shipping lines, the company consolidates small, irregular shipments into a single container for transport This approach not only saves costs but also reduces delivery times, offering substantial advantages to customers.

Focusing on improving service quality, the company's service quality has improved over the years and increased markedly This is a plus point of Airseaglobal in perfecting the freight forwarding process h

Table 2 4: The proportion of quality goods delivered by Airseaglobal Joint Stock

The company is committed to continuously improving service quality; however, coordination issues between business departments, customer service, and the documentation team need to be addressed For instance, when a shipment is loaded onto a plane, delays can occur if the voucher department is unreachable due to employee absence or if sales staff struggle to obtain pricing information from the head office As a result, customers perceive the company's service as slow, leading some to seek alternatives with other companies.

The company always focuses on offering the most competitive prices in the market, in order to attract customers but also ensure revenue for the company

Prices of some forwarding services of the company: The price of international shipping usually depends on the shipment to have a specific price Customs clearance price:

• Hanoi: 800,000 VND, in case of inspection, 200,000 VND more

• Hai Phong and Ho Chi Minh: 1,100,000 VND, additional 500,000 VND in case of inspection

Domestic shipping costs are relatively affordable, with prices starting at 450,000 VND for a 1.25-ton vehicle from the Noi Bai warehouse to Hanoi city center, excluding VAT and prohibited road fees In contrast, some companies charge between 500,000 VND and 600,000 VND for similar services Additionally, companies frequently adjust their pricing strategies to remain competitive within the industry, with fluctuations in both domestic and international shipping rates.

The company provides competitive sea freight rates to customers due to intense market competition For instance, shipping costs from Shanghai, China to Cat Lai port are structured as follows: $1 USD per CBM for shipments under 3 CBM, $5 USD per CBM for shipments between 3 and 5 CBM, and $10 USD per CBM for shipments ranging from 5 to 10 CBM.

Air freight service is a highly profitable transportation option, despite its higher costs compared to other modes due to aircraft expenses, fuel consumption, and limited capacity This service primarily handles high-value goods that require quick delivery, resulting in significant profit margins; for instance, companies can earn an average of $100 for every 100kg shipment (Vietnam National Corporation report, 2019) Additionally, air transport is associated with low risk, as dedicated staff monitor shipments closely, ensuring timely updates for customers and fostering their trust and confidence in the service.

The company specializes in comprehensive medical equipment import services, including classification, eligibility declaration production, and the facilitation of import and transportation permits To benefit clients utilizing multiple services, the company offers attractive package pricing, providing savings of 500,000 to 1,000,000.

2.3.3 The company's freight forwarding volume

Table 2 5: Freight forwarding volume of Airseaglobal Joint Stock Company from 2018 to 2020

The data indicates a consistent increase in the volume of goods delivered by the company over the years, with an average growth rate of 25.2% in delivery volume from 2018 to 2020 This surge in freight forwarding can be attributed to a growing market and rising demand, coupled with the company's commitment to enhancing service quality, attracting a larger customer base.

In the company's freight forwarding operations, imports significantly outweigh exports, with imported goods and services nearly double in proportion This trend reflects the nation's trade deficit and the company's strategic focus on import services The primary products delivered include medical equipment, cosmetics, functional foods, and machinery, with a particular emphasis on the delivery of medical equipment.

The company specializes in air freight forwarding, ensuring efficient delivery of goods to various warehouses in Noi Bai, including NTCS, ALS, and ACS warehouses, as well as express delivery facilities and Courier My Dinh.

2.3.4 The company's diversification of import and export freight forwarding services 2.3.4.1 The service of loading and unloading goods

Airseaglobal's loading and unloading services are primarily outsourced and lack development, relying on spontaneous methods For smaller shipments at airports like Noi Bai and Tan Son Nhat, the company utilizes direct cargo handling at the port and warehouse In contrast, larger shipments transported by sea at Hai Phong and Cat Lai ports often require outsourced loading and unloading services, which vary based on the type and condition of the goods Currently, Airseaglobal focuses on cargo handling during transit, providing comprehensive services for loading and unloading trucks and containers of all sizes.

The cargo handling service, while not directly profitable, is crucial for enhancing the overall efficiency of transportation services offered by the company By ensuring fast, organized, and time-efficient loading and unloading of goods, this service significantly contributes to reducing transportation time and minimizing associated costs, ultimately supporting a seamless customer experience.

Warehousing and storage services in Singapore remain underdeveloped, primarily relying on existing facilities at airports and seaports for customer goods Despite offering these services, companies have yet to gain control over this sector, remaining dependent on the policies and costs associated with these locations Consequently, this area is a weakness for the company, causing it to fall behind major competitors in the market.

Airseaglobal serves as a vital transportation agency, bridging the gap between shippers and carriers by acting on behalf of both parties The company is dedicated to safeguarding the rights and interests of its clients, ensuring compliance with their requests, and promptly informing them of any relevant events With a focus on professional customers, Airseaglobal collaborates with various carriers, including garages, shipping lines, and airlines, to offer comprehensive transportation and delivery services Additionally, the company excels in customs clearance, a key competitive advantage, addressing the challenges posed by complex and time-consuming administrative procedures.

50 responsible for customs clearance, customs clearance for import and export goods, especially for small and medium-sized companies

The company offers a range of additional services, including assistance with applying for specialized import and export licenses, such as import permits and quality announcements for medical equipment Moreover, it provides support and advice to clients on customs-related challenges, including post-clearance inspections, tax refunds, tax payments, and fines Consequently, the company has gained increasing trust from customers due to its high-quality services and professional expertise.

2.3.5 Factors affecting freight forwarding activities at Airseaglobal Joint Stock

2.3.5.1 Group of External business factors

Government policies play a crucial role in shaping freight forwarding activities, as favorable policies can enhance development while unfavorable ones can hinder it These political and legal factors extend beyond transportation and delivery, encompassing all regulations related to import and export activities The Vietnamese government has implemented numerous policies aimed at facilitating these activities, thereby generating a steady flow of goods for freight forwarding operations Key policies include initiatives that streamline import and export processes.

Analyzing and evaluating the process of receiving imported medical equipment from

2.4.1 Overview of medical equipment goods delivered by the company

In accordance with the 2020 import-export tariff, the medical equipment supplied by the company falls under the category of "Equipment and tools for medical, surgical, dental, or veterinary industries." This includes devices for recording click charts, electromedical equipment, and vision testing tools, identified by the specific item code.

The export tax for medical products is set at 0%, while the import tax is 5% To facilitate the import or export of these consignments, a Certificate of Free Sale (CFS) from the health ministry of the host country is typically required Due to complex procedures, certain items necessitate a license for export or import Since focusing on the import and export of medical products, the company primarily serves manufacturers, distributors, and contractors of medical equipment for hospitals and clinics.

The majority of medical equipment utilized in Vietnam is imported from European countries, Korea, and China Consequently, the company has prioritized establishing import routes from these regions to enhance its supply chain.

Table 2 13: The company main import routes

Country Port of departure Port of destination

Berlin-Schửnefeld International Airport (SXF)

Noi Bai International Airport (HAN) Tan Son Nhat International Airport (SGN)

Münster Osnabrück International Airport (MO)

Charles de Gaulle Airport (CDG)

Noi Bai International Airport (HAN) Tan Son Nhat International Airport (SGN)

Le Harve International Airport (LFOY)

Airport (HAN) Tan Son Nhat International Airport (SGN)

Noi Bai International Airport (HAN) Tan Son Nhat International Airport (SGN)

Noi Bai International Airport (HAN) Tan Son Nhat International Airport (SGN)

Chubu Centrair International Airport (NGO) h

Kansai International Airport (KIX) Tokyo International Airport (HDN) Osaka International Airport (OSA)

Noi Bai International Airport (HAN) Tan Son Nhat International Airport (SGN)

Shanghai Hongqiao International Airport (SHA)

Hangzhou Xiaoshan International Airport (HGH)

Table 2 14: Results of delivery of medical equipment shipments of the company in the past 3 years

The data indicates that the company consistently ships more Class A medical equipment than other product categories This trend is attributed to Class A goods being classified as the least dangerous, allowing any business with the appropriate registration to import and trade them In contrast, while Classes B, C, and D medical equipment can be imported with fewer restrictions than Class A, they do not require a declaration of eligibility, facilitating easier access for businesses.

To successfully enter the market or participate in tenders, businesses must submit a declaration of eligibility to trade Class B, C, and D medical equipment necessitate that employees possess professional qualifications, and the enterprise must adhere to factory or vehicle standards.

In 2019, medical equipment shipments experienced significant growth, which saw a slight decline in 2020 This shift can be attributed to a reduction in the import tax on medical equipment, which decreased from 10% to 5% starting in 2019 Additionally, certain items may benefit from VAT incentives if accompanied by a Certificate of Origin (C/O).

2.4.2 Process of delivery and receipt of imported medical equipment of the company

Figure 2 6: The process of delivery and receipt of medical equipment by air at

Airseaglobal Vietnam Joint Stock Company

(Source: Airseaglobal Operations Department) 2.4.2.1 Get documents

Once the Sales department finalizes the order for shipping the book, the customer submits a set of documents to the Sales department to obtain information regarding the declaration This documentation provided by the customer includes essential details necessary for the process.

• Business registration: Include company information, business code, company's representative

Get documents Check the set of documents

Do procedures to pick up goods

Pay and return original documents to customers h

A commercial invoice is a crucial document that details the shipment value from the customer to the shipper Essential elements of a basic commercial invoice include the shipper's information, invoice number, invoice date, product name (model), manufacturer, country of manufacture, quantity, weight, packaging details, and payment terms, typically under EXW or FOB conditions.

• Purchase and sale contract of the business: Shows shipper information, consignee, contract number, contract date, information of goods purchased and sold, payment conditions,

In international shipping, the agent from the exporting country either picks up the goods from the shipper's location under EXW terms or the shipper delivers the goods to the agent under FOB terms The airline then issues the original Airway Bill to Airseaglobal, which subsequently provides a supplementary House Bill to the importing company for verification Key details in the original bill of lading include essential shipment information.

• Shipper information: Company name, address, information, contact phone number (if any);

• Consignee information: Airseaglobal joint stock company name and company address;

• Bill of lading number, bill of lading issue date, flight information, flight date;

• Information about goods: Name of goods, number of weights, number of packages, number of pallets;

• Information about departure and arrival locations

• Consignee information: It will be the importer's information, company name, address and contact phone number (if any) that needs to be checked correctly to avoid correction during delivery;

• Sub-bill number, bill of lading date

After the parties confirm the accuracy of the original bill of lading and the supplementary bill of lading, the agent department of Airseaglobal Joint Stock Company h

The airline will receive the information from 64, make any necessary corrections, and then issue the official bill of lading to the agent for declaration preparation The Customs Department will then receive and print the documents to facilitate the declaration process.

2.4.2.2 Check the set of documents

❖ Carefully check the information on the documents

The documents of the shipment will be sent to the documents department staff to check the information and make the declaration For air shipments, key documents usually include:

Commercial contract (Sales contract): Contract number, contract date, payment method, payment conditions, description of goods,

Commercial Invoice: Exporter name, invoice number, invoice date, payment terms, invoice unit price, goods name, quantity of goods,

Details of PKL (Packing List): Weight, volume, weight, number of packages,

Air waybill AWB (Airway Bill): Bill of lading number, bill of lading date, flight name, flight date, loading location, unloading location,

Arrival Notice (AN): Information on the arrival notice includes the date of arrival, unloading location, expected customs clearance storage location code, weight, number of packages,

Some additional documents can be sent by guests such as: Certificate of Origin (Certificate of Origin), receipt slip, announcement slip, classification table of goods,

Check the conformity, information between documents if there is any mismatch, contact the customer to confirm again

❖ If the set of documents is missing or invalid, the Ops staff will notify Sales to complete the full set of documents to submit to the customs declaration

❖ Look up Harmonized System code for goods h

When introducing new products, it is essential to thoroughly research key information such as the product name, uses, properties, materials, and types to accurately determine the appropriate HS code.

For goods that have been made, do you still need to look up the current HS code for that item

❖ Make the customs declaration by electronic customs declaration software, based on the information on the documents sent by the customer

Carefully review the declaration, focusing on critical information that cannot be modified, including the exporter's name and address, customs office code, type code, weight, number of packages, bill of lading number, product name, port of loading, port of discharge, and HS code of the goods.

Send the proof-of-print declaration to the customer for verification, allowing them to review the information for any necessary corrections or additions If there are updates needed, ensure they are incorporated into the declaration.

❖ Transmit declaration and receive stream result

Once the clearance declaration is issued, the company promptly informs the customer about the tax amount, enabling them to pay or transfer the funds to the field department for customs submission and clearance procedures For long-term clients, accountants may advance the tax payment to facilitate the goods clearance process In contrast, new customers are required to pay the tax directly to the company or customs before clearance Additionally, the document officer provides the tax notice and the official classification declaration to the importing company.

The Operations department is responsible for preparing essential documents for customs clearance, including the customs declaration, commercial invoice, bill of lading, commercial contract, and notice of arrival of goods Additionally, they handle registrations for specialized inspections, certificates of origin (C/O), classification of medical equipment, and declarations of eligibility for trading in Class B, C, and D medical equipment, if applicable.

Solutions to improve the quality of air freight service for medical equipment import at

Orientation to develop the delivery service of medical equipment imported by air at

The company has established strategic goals aimed at enhancing business operations, boosting competitiveness, and strengthening brand identity, all of which are detailed in the annual business report and business plans.

Airseaglobal Company excels in providing stable aviation services and customs clearance, while significantly enhancing its air services for both import and export The company is committed to expanding its full-service logistics, prioritizing existing large clients and actively pursuing new potential customers Additionally, Airseaglobal invests in human resources and facilities to strengthen its operations With a keen focus on domestic logistics, the company leverages the growing potential of the domestic consumption market, positioning itself as a competitive provider of distribution services and product circulation.

To expand the market effectively, it's essential to build sustainable and close relationships with customers, fostering groups of potential long-term clients Targeting specific customer demographics will optimize engagement and maximize opportunities Strengthening partnerships with collaborators, joint ventures, and both domestic and international economic organizations is crucial Additionally, maintaining and developing existing relationships, signing direct contracts with airlines, and enhancing customer connections will support the growth of services for transporting import and export goods by air to and from Vietnam.

To enhance the brand Airseaglobal's presence both domestically and internationally, it is essential to implement robust brand-building programs This includes strengthening marketing initiatives and trade promotions while expanding the consumption network system Additionally, promoting freight forwarding activities will help alleviate competitive pressure in the local market, positioning Airseaglobal for greater success.

Sustainable development: Not only putting profits first, businesses must also be associated with social responsibility, ensuring that their activities comply with the law, social standards, public interests copper

Diversify product lines: Find sources of goods from large domestic import-export h

72 companies, foreign-invested companies in Vietnam …

Improve service quality: Strongly develop and improve the quality of customs declaration (especially complicated documents related to import and export activities) to attract more customers goods to this service

Perfecting commercial business services: Proceeding to import and export activities and import and export entrustment

Effective organization involves monitoring and capturing market information and domestic business conditions to make informed decisions regarding price adjustments and the implementation of price stabilization measures as directed by the Government.

The company is set to enhance customer experience by implementing Online Booking systems and expanding its service packages, particularly in customs services This initiative aims to offer more conveniences and options for clients Additionally, the company will broaden its offerings for specialized products, including registration services for quality control and compliance with telecommunications regulations.

Ministry of Industry and Trade) Information & Communication), service of applying for import license, registration for quality inspection for veterinary drug raw materials

According to the regulations set by the Department of Livestock Production under the Ministry of Agriculture and Rural Development, it is essential to register for quality inspection of products and goods that may pose safety risks, as outlined in the relevant Circular.

22/2018/TT-BLDTBXH (according to regulations of the Ministry of Labour, War

According to Decree 113/2017/ND-CP, certain services, including the declaration of chemicals and precursors for chemical goods, are required to be reported to the Ministry of Labor, Invalids, and Social Affairs.

Solutions to improve the process of delivery and receipt of medical equipment by air at

by air at Airseaglobal Vietnam Joint Stock Company

The delivery and receipt of import and export goods must be based on a legal basis such as international and Vietnamese legal norms such as international legal norms h

The article discusses the legal frameworks governing freight forwarding in Vietnam, including conventions on bills of lading and international goods sale and purchase contracts, aimed at protecting the interests of import and export owners It emphasizes the necessity for compliance with the Ministry of Health's circulars and decrees when importing medical equipment, highlighting the importance of adhering to regulatory standards in the logistics process.

3.2.2 Viewpoint and development orientation of Airseaglobal Joint Stock Company

As the number of import-export businesses rapidly increases, the challenges posed by inflation and economic instability are significantly impacting both forwarding companies and their customers To navigate these difficulties, Airseaglobal Joint Stock Company must closely monitor market trends and implement timely strategies To align with the broader economic development, the company should focus on enhancing its import-export services, aiming to boost revenue, expand market reach, and reduce receivables to ultimately improve profitability.

To ensure this, the company can commit to providing only services that guarantee the quality and needs of customers

Some business development orientations of the company:

Airseaglobal Joint Stock Company is committed to enhancing traditional services while leveraging its business advantages to maintain and expand market share in the agency sector The company aims to boost the productivity of transport and liner agents, ensuring competitiveness in a fiercely contested landscape of import-export forwarding Key focus areas include oil transshipment agency, logistics services, warehouse leasing, customs clearance, container ship operations, and container shell production.

To enhance marketing efforts both domestically and internationally, it is essential to foster strong relationships with partners, agents, entrustors, and owners of exported and imported goods This collaborative approach will help secure new contracts while ensuring a consistent direction and effective administration across all operations.

Airseaglobal Joint Stock Company focuses on 74 key areas within business and finance, emphasizing the importance of maintaining business autonomy while strategically expanding its market share The company aims to enhance investment efficiency by clearly defining the scope, fields, and markets assigned to each unit, ensuring a cohesive approach to growth and development.

To enhance competitiveness in the market, it is essential to implement more reasonable pricing strategies and attractive customer incentives By offering preferential policies, the company can not only draw in more customers but also build trust and loyalty among them.

During the low transportation demand season, companies should prioritize commercial brokerage to attract more customers rather than solely relying on business directories and import-export websites By identifying the differences between domestic and foreign trade needs, businesses can enhance their brokerage efforts Additionally, participating in domestic and international industry fairs can help connect supply and demand, facilitating valuable customer relationships and promoting trade opportunities.

To enhance the quality of service and strengthen professional skills, Airseaglobal Joint Stock Company is committed to investing in the training of its officials and employees, both domestically and internationally This strategic initiative aims to ensure sustainable growth and elevate the company's standing in the competitive freight forwarding market.

3.2.3 Solution to complete the process of delivery and receipt of medical equipment by air at Airseaglobal Vietnam Joint Stock Company

3.2.3.1 The company proactively takes measures to reduce costs for air freight forwarding activities

In Vietnam, pricing significantly impacts service utilization by enterprises, particularly in the medical product sector, which is experiencing substantial air imports This presents a lucrative market opportunity for businesses The forwarding service costs encompass labor, transportation, and customs clearance expenses Labor costs specifically refer to the payments made to staff assisting with customs processes To optimize efficiency, companies should consider restructuring their organizational framework strategically.

To enhance company growth, it is essential to clearly outline the functions, duties, and roles of each department Regular training and skill development are crucial for addressing workplace challenges and delivering prompt solutions Establishing a robust customer care system will significantly boost the company's brand presence and ensure that clients receive timely information, ultimately elevating the company's professionalism.

The company currently faces high transportation costs due to the absence of an air transport system and reliance on external transport companies for domestic logistics To mitigate these expenses, it is essential to cultivate strong relationships with agents, airlines, and carriers to negotiate favorable long-term transportation contracts Additionally, while customs clearance fees are fixed, additional costs can arise based on the company's relationship with customs authorities and the volume of goods Therefore, fostering connections with the General Department of Customs and the Ministry of Trade is crucial for expediting customs processes Furthermore, implementing preferential policies for new markets and customers will aid the company in securing future clientele.

3.2.3.2 The company needs to strengthen training and improve the qualifications, skills and experience for human resources

Human resources are a crucial asset for a company's strategic growth and operational capacity To enhance workforce quality and boost industry competitiveness, companies must implement targeted measures Experienced, dedicated, and responsible employees form the core of this workforce, necessitating ongoing skill development to meet evolving customer demands It is essential to establish a reward system for long-term employees with professional expertise to foster motivation Additionally, new employees should receive prioritized professional development through short-term training seminars, with periodic evaluations held every three months to ensure continuous improvement.

To enhance employee professional skills, companies should facilitate regular field visits that provide valuable experiential learning opportunities Management departments must possess both broad and deep knowledge, effectively utilizing human resources to foster employee creativity and enthusiasm Selecting talented and dedicated managers is crucial, as they should participate in advanced management training to ensure employees are consistently guided and supported.

To enhance the effectiveness of export businesses, it is essential to upgrade staff qualifications in international trade law and modern customer acquisition techniques This includes fostering skills necessary for contract negotiation and international market penetration Additionally, companies should prioritize activities that promote employee connection and create a comfortable working environment, ultimately leading to improved productivity and collaboration.

3.2.3.3 The company needs to take measures to increase capital

For a company to function effectively and efficiently, a reliable source of capital is essential Capital empowers businesses to engage proactively in investments and various operational activities Given that capital is finite, it is crucial for companies to cultivate strong relationships with domestic and international banks and credit institutions.

Several recommendations for state agencies

The Government should promptly establish a legal framework to ensure consistency and transparency in logistics regulations, fostering a favorable environment for the sector To align with international practices, domestic laws may need revisions to effectively govern logistics relations Additionally, it is essential to implement sub-law documents that support the Commercial Law, specifically regarding logistics services Addressing the unreasonable inconsistencies in management decentralization and licensing procedures across various ministries will facilitate the efficient movement of goods.

To enhance logistics service development, it is essential to refine land management policies and mechanisms, ensuring effective utilization of land resources This includes optimizing tax policies, capital sources, and interest rates to support the logistics sector Additionally, prioritizing administrative reforms, particularly in procedures related to logistics service operations, is crucial Furthermore, implementing targeted strategies to attract investment in logistics services will foster growth and innovation in the industry.

Vietnam's transportation infrastructure remains underdeveloped, encompassing railways, roads, airways, waterways, and sea routes This inadequacy has led to increased forwarding service costs, significantly impacting the overall development and efficiency of these services in the country.

To enhance logistics efficiency, it is essential to prioritize the development of transport infrastructure and ITC soft infrastructure, particularly within economic corridors This includes the synchronous advancement of various transport modes, with a focus on multimodal transport A comprehensive review and adjustment of the development strategy for the transport and information technology sectors should be implemented, emphasizing the construction of infrastructure that supports economic corridors and seaport clusters Strengthening the connectivity among transport modes will significantly contribute to the effective development of economic corridors and logistics activities.

The State must strategically invest in essential infrastructure such as ports, airports, inland customs clearance (ICD) facilities, roads, railways, waterways, warehouses, equipment, banking, and insurance This investment should follow a cohesive general plan to ensure effective interaction and support among these sectors Additionally, there is a pressing need to accelerate the development of sea transport and cargo handling vehicles to enhance overall logistics efficiency.

Investment in container handling must align with the development of road, railway, air, and inland waterway infrastructure Coordinated planning and cooperation among these transport sectors are essential for constructing traffic hubs, inland ports, and warehouses This approach will enhance the effective implementation of multimodal transport and logistics technologies throughout the transportation industry.

3.3.3 The Government promotes international trade activities and freight forwarding of import and export goods

The Government has taken measures to promote and support international trade activities

Completing the legal framework: Completing the legal framework for transporting goods from other countries through Vietnam to other countries and vice versa to ensure the trust of our customers

To enhance logistics efficiency, it is essential to expand and integrate multimodal transport, cross-border transport, and transit infrastructure This development will boost the competitiveness of Vietnamese shipping companies and promote investment in key transport corridors A collaborative approach between the government and enterprises is crucial for advancing infrastructure and technology improvements in the sector.

Improve customs clearance procedures for goods and vehicles at border gates: apply information technology in one-stop, one-stop procedures at most major border gates

Strengthening information on goods and means of transport across the border to help businesses have full and timely information in logistics activities

3.3.4 Build up an information technology database to serve the international freight forwarding community in Vietnam and import-export businesses

Digital software infrastructure is crucial for modern commerce, as tracking the movement of goods has become essential However, Vietnam's information system, particularly in the logistics sector, faces significant shortcomings Specialized logistics agency websites lack robustness and fail to adequately support businesses, with insufficient and outdated information that does not meet customer needs In some cases, foreign websites offer more comprehensive data than their Vietnamese counterparts.

Vietnam's logistics companies often focus solely on promoting their services without offering essential customer utilities, such as a Track and Trace system for shipment database searches To effectively connect the Vietnamese logistics community with import-export businesses, it is crucial to develop a modern information system backed by a robust database.

3.3.5 Training to improve the quality of human resources for the logistics industry

Vietnam requires a formal and systematic logistics and supply chain management major at universities to ensure sustainable and high-quality human resource development To achieve this long-term goal, the Ministry of Education and Training should enhance support for schools in launching industry-specific programs Comprehensive development of the logistics sector necessitates collaboration among various ministries, including the Ministry of Transport and the Ministry of Industry and Trade, to clearly define roles and responsibilities in the logistics development strategy Additionally, the Ministry of Transport must work closely with other ministries and localities to implement coordinated solutions for human resource development and foster international cooperation.

Ministries, departments, and branches must collaborate effectively with universities and businesses to establish a mutually beneficial relationship that ensures essential support A strong partnership between training institutions and companies is crucial for developing logistics personnel who possess both professional knowledge and practical experience.

To enhance collaboration, it is essential for VLA and vocational schools to establish memorandums of understanding focused on training, research and development, and internships for students This partnership should also include the construction of simulation practice rooms, allowing students to gain hands-on experience in managing real-world situations.

As international economic integration advances, Vietnamese goods are presented with significant opportunities to enter global markets, fostering stronger economic growth In this competitive landscape, efficient goods reception becomes crucial for the country's economic development Vietnamese businesses face intense rivalry from experienced competitors with substantial capital from major economies To enhance international freight forwarding services, collaboration among industry stakeholders, the government, and relevant agencies is essential.

Airseaglobal Vietnam Joint Stock Company faces significant fluctuations and challenges in maintaining its market position after nine years of operation While the company has achieved notable success, it remains modest compared to its well-known competitors To enhance its service delivery of medical equipment by air, it is crucial to leverage strengths and address weaknesses This includes embracing advanced technology and carefully analyzing customer feedback to develop optimal solutions Additionally, implementing competitive pricing strategies through negotiations with airlines and researching favorable routes is essential The company must also invest in infrastructure, including warehouses and specialized vehicles, to ensure the secure handling of goods Furthermore, improving the professional skills of employees is vital for overall success.

The essay addresses key challenges and offers recommendations to enhance the air delivery and logistics of medical equipment I would like to extend my sincere gratitude to my instructor, MA Doan Anh Tuan, as well as the managers and staff at Airseaglobal Vietnam Joint Stock Company, for their support in facilitating the completion of this thesis.

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