The problem statement
In the past 16 years, Vietnam's international trade has surged since the country opened up, significantly benefiting from its memberships in ASEAN, AFTA, and the WTO This growth has positioned Vietnam favorably in the global market, enhancing its foreign trade capabilities The production of goods in Vietnam is shaped by various factors, including natural resources, labor, machinery, and equipment, which leads to different production capacities across countries Consequently, manufacturers prioritize both domestic consumption and international demand, engaging in trade to exchange locally produced goods for millions of products they are unable to manufacture themselves.
In recent years, imports and exports have significantly boosted the Vietnamese economy, providing businesses with a vital source of profit for survival and growth Despite the challenges posed by the COVID-19 pandemic and global political instability, Vietnam's exports continued to thrive, resulting in a positive trade surplus.
In 2022, Vietnam achieved a historic milestone in trade, with total exports and imports reaching $732.5 billion, reflecting a 9.5% increase compared to 2021 This impressive growth highlights the significant efforts of Vietnamese enterprises and the effectiveness of trade promotion strategies.
The current landscape presents numerous opportunities alongside significant challenges for Vietnamese businesses Many enterprises face limitations in legal knowledge, international conventions, business experience, infrastructure, and financial resources, hindering their ability to engage in economic cooperation and trade with other countries To facilitate smooth export operations, it is crucial for companies to execute contracts efficiently Enhancing the contract execution process not only helps businesses navigate difficulties but also fosters market expansion and growth in today's highly competitive global market.
Vu has faced numerous difficulties in organizing the execution of the company's contracts, highlighting a significant shortcoming in the process Consequently, Ichosetheresearch has focused on the topic: "Solutions to Enhance the Execution Process of Down and Feather Export Contracts at Nam Vu Down - Feathers JSC."
Research objectives
• Study the theory of the process of performing the export contract of goods.
• Analyze the overviewofNam Vu Down - Feathers JSC.
• Analyze the process of performingthe down and featherexport contract at Nam
• Propose some solutions to improve the process of performing the down and featherexport contract at Nam Vu Down-Feathers JSC.
Research question
- What Incoterms does the companyusually use in export contracts?
- Which payment method does the company usually choose when exporting goods?
- Whatdifficultiesdo companiesoften face when performingthe export contract?
- If it is necessary to rent a means of transportation, which will the company choose to rentthe shipping line orthe forwardercompany?
Research gap
There have been no studies on the implementation of contracts to export feather products to the world.
There is no research related to theperformance of export contracts basedon the currentcontext and in-depth analysis of the following issues:
In 2022, escalating trade tensions among major nations and the outbreak of the Russia-Ukraine war have compelled countries to implement strategic policies to mitigate adverse effects while seizing potential opportunities.
Since the onset of the Covid-19 pandemic in early 2020, businesses have faced unprecedented challenges in operations, import, and export activities, significantly impacting the global economy The pandemic has disrupted supply chains, altered trade flows, and transformed commercial practices, compelling countries to adapt with innovative approaches To support economic growth, it is essential to implement flexible and effective policies that promote exports and reinforce their critical role in development.
Research methods XV 6 Research subjects XV 7 Research scope XV 8 The structure of the thesis
- Statistical method' Calculating and synthesizing data on down and feather export turnover and output atNam VuDown - FeathersJSC.
- Data collection method' Collecting information sources based on records, documents reports and businessperformance data of the company from 2020to 2022.
- Observation method' Observing activities in a purposefill, planned manner to collect data, and export progress inthe company.
The comparison method involves analyzing the company's down and feather export data over the years to assess growth rates This analysis provides valuable insights and recommendations for enhancing and expanding the export of down and feather products.
The research subject of the topic is the process of performing the export contract of down and feather productsat Nam Vu Down- Feathers JSC.
• Analyze the process ofperforming the exportcontract for down and feather products at Nam Vu Down - Feathers JSC.
• Information was collected from 2020 to 2022.
Except forthe sectionson abstract, list of tables, introduction, conclusion, table of contents, reference The thesis has 3 chapters:
❖ Chapter 1: Theoretical background on the process of performing export contracts of goods.
❖ Chapter 2: The actual situation of the process of performing the down and feather export contract atNam VuDown -Feathers JSC.
Chapter 3: Solutions to improve the process of performing the down and feather export contract atNam VuDown - Feathers JSC.
THEORETICAL BACKGROUND ON THE PROCESS OF
Overview of export
Exporting involves companies selling goods and services from one country to another, encompassing a range of products such as energy, natural resources, raw materials, and finished consumer items like electronics In Vietnam, the export of goods refers to the transfer of products out of the Socialist Republic of Vietnam or into designated special zones considered exclusive customs areas, as outlined in Article 28 of the Commercial Law of 2005.
Exports facilitate international trade and stimulate domestic economic activities by creating employment, production, and revenues Companies that export are typically exposedto a higher degree of financial risk.
Export activities generate significant revenue and profits for businesses by allowing them to sell goods in foreign markets, thus expanding their reach beyond national borders Additionally, engaging in international trade enhances the competitiveness of domestic enterprises, making it one of the key benefits of participating in the global marketplace.
Export activities play a crucial role in promoting both corporate and national brands, enhancing a country's external economic relations They contribute to the influx of foreign currency, which is vital for maintaining a positive balance of payments and increasing currency reserves This macroeconomic benefit is a primary reason why nations actively encourage exports.
The most common methods of exporting are indirect selling and direct selling.
The advantages ofdirect exportingaremorecontrol overtheexport process and a closer relationshipwith the customer in a foreign country This export way is more expensive than indirect exporting.
In somecases, the company may create an international department to keep an eye on alltheexports and imports That means more control over their product.
The sales representatives present the product to the potential buyer on behalf of the company They work ona commission basis and assume no risk or responsibility.
They operate on their behalf byintroducing others to foreignmarkets The company can control the final price and brand image.
Distributors purchase theproductfrom a company, that wants toexport, and resell it at aprofit The distributors providesupport and service forthe product.
A company may sell directly to foreign retailers These transactions are effective in countries thathave large retail chains.
> Direct sales to end-users
A company may sell its products directly to end customers in foreign countries The disadvantage isthatthe export company is responsible forshipping, payment collection, andproduct servicing.
The principal advantage of indirect exporting is that allows the companies to introduce their productsinto foreign markets withoutany responsibility or risk Thisway is perfect for small companies.
They find foreign firms that want to purchase our products Commission agents work as anintermediary between sellersand buyers.
Independent firns that act as an export department In conclusion, they manage small company exports.
These companies could act as an export department for producersor export the product forits account.
Export agents buy the goods from the producers and then they sell these productsin foreign markets wherethey assume all the risk.
Export contract of goods
1.2.1 The concept ofcontract for exporting goods
An export contract is a formal agreement between international traders, where the seller (exporter) commits to transferring ownership of specific goods to the buyer (importer), who is responsible for receiving the goods and making payment.
A contract is a legally enforceable agreement that allows both parties to seek court intervention to uphold their rights However, not all agreements qualify as contracts; for instance, a teenager's promise to return home by midnight is not legally binding, as it lacks enforceability The core element of a valid contract is the mutual intention of the parties to be legally bound by their commitments at the time of agreement.
A contract is a legal agreement that establishes specific rights and responsibilities between two parties within the realm of private law These rights and duties are uniquely defined by the involved parties and are applicable solely to them.
1.2.2 Thecharacteristics ofcontract for exporting goods
Commodities refer to consolidated products that are transferred across customs borders, which differ from mere geographical boundaries For instance, a sales contract between a manufacturing company and a non-exporting firm is legally classified as an export contract, even if the goods involved do not physically leave the country's borders.
The currencyof paymentwill be foreign currency.
Ittakes place between traders based in different countries.
Export contracts are often governed by many different sources of Law: National Law, International Law, international customs and practices, etc.
- Contracts for sale and purchase ofgoods may be expressed in verbal or written formor established by specific acts.
- For types of contracts for purchase and sale of goods, which, as provided for by law, must be made inwriting, such provisionsmust be complied with.
1.2.3 The main contents of the export contract of goods
The structure of the export contract consists of two mainparts, the general presentation and theterms of the contract.
❖ General presentation: These are the mandatory parts that any contract must have, otherwise the contract is worthless Includes:
- The namesand addresses of the partiesto the contract.
Main terms' These are the necessary and binding terms of a contract, withoutwhichthe contracthas no legal value.
Other terms: These areessential terms for a contract, but without it the contract is still legally valid.
- Force majeure acts of god
Appendix These are the technical specifications of the goods, the additions accompaniedin case ofmodificationof the contract andthe accompanying notes.
1.3 The process ofperforming the exportcontract of goods
Accordingto the Import-Export Management Textbook-Ph.D Doan Thi Ngoc Van & MBA Kim Ngoc Dat The process of performing export contracts of goods as follows:
Step 1: Ensure that export procedures are carried out in compliance with State regulations.
Obtaining an export license is a crucial legal requirement for executing export shipments, with procedures varying by country and time In Vietnam, the process has become progressively easier and more convenient over the years Currently, the export of goods is regulated by the Law on Foreign Trade Management, streamlining the licensing process for exporters.
On June 12, 2017, the National Assembly of the Socialist Republic of Vietnam approved No 5/2017/QH14 during its 3rd session of the XIVth term, which took effect on January 1, 2018 Chapter II of the Foreign Trade Management Law outlines the administrative measures and specific regulations governing export procedures.
In Vietnam, the process of obtaining a license has become much simpler and more convenient inrecenttimes.
Step 2: Complete the tasks associated with the initialpayment stage.
Payment is a crucial step in the process of implementing import-export contracts The tasks involved will vary depending onthe chosenpaymentmethod.
If paymentis made throughL/C, the seller must:
+ Remind buyers to request banks to open L/C in accordance with the agreement.
When making payments in CAD, sellers should remind buyers to establish a trust account as required After the account is set up, it's essential to contact the bank to verify payment conditions Buyers must ensure that the total amount is transferred promptly via TT prepaid Once the bank confirms the payment, sellers can proceed with the delivery.
If paying by TT in advance,remind the buyerto transfer the money in foil and ontime Wait forthe bank to say “YES”, then proceedwith the delivery.
As forother payment methods, such as TTpostpaid, ClenCollection, D/A, D/P, the seller must deliver the goods, and then can perform the work of the payment stage.
Step 3: Prepare goods for export
Manufacturers involved in export production must conduct thorough market research to create high-quality products that align with consumer preferences It is essential to ensure that finished goods undergo rigorous quality checks, are packaged securely, and are clearly labeled with appropriate symbols to comply with contract specifications This approach contributes to the development of sustainable supply chains.
Enterprises producing export goods but unable or unwilling to export directly can opt for export entrustment, as outlined in Articles 17 and 18 of Decree 12/CP.
To maximize opportunities in the import and export sector, businesses should strategically leverage diverse sources of export goods This includes purchasing goods based on contractual obligations, engaging in direct investment for export commodities, processing raw materials, and selling finished products Additionally, companies should focus on placing orders and facilitating goods exchanges to enhance their market presence.
Testing and quarantine procedures are implemented at both the facility and border gate levels, with facility inspections being crucial Border gate inspections serve to confirm the results obtained from facility assessments.
- The goods inspection process includes the following steps:
+ Submit application for appraisal including: Appraisal request form, Contract +contract accessories (if any), L/C and L/C amendment(if any)
+ The inspection agency conducts goodsinspection atthe sceneand analyzes samples atthe laboratory.
+ The inspection agency notifiesthe results and issues a temporarycertificate for carrying out customs procedures, (if required)
+ Checkthe hygieneof the cargo hold (exporting rice, agricultural products, etc.)
Effective supervision of the delivery process is essential at various stages, including the factory, warehouse, and field When goods necessitate disinfection, an official application must be submitted to the Fumigation Company under the Plant Quarantine Department Following the disinfection process, the owner will receive a certification confirming the completion of the procedure.
- Customs procedures (Customs Law, 2014): According to Article 21 of the Customs Law 2014,whencarrying outcustoms procedures, the customs declarant is responsible for:
+ Declare and submit customs declarations; Submit or present documents included in customs dossiers as prescribed inArticle 24 of this Law;
+ Bring goods and means of transportto theprescribed locationfor physical inspection of goods and means of transport;
+ Pay taxes and perform other financial obligations according to the provisions ofthe law on taxes, fees, charges and otherrelevant laws.
In export contracts where the seller is responsible for leasing a vehicle to transport goods under delivery terms such as CIF, CFR, CPT, CIP, DAP, DPU, or DDP, the exporter must arrange for the transport vehicle Conversely, if the contract specifies delivery within the exporting country, the importer is responsible for hiring a vehicle for the return transport, adhering to delivery terms like EXW, FCA, FAS, or FOB.
Depending onthe case, the exporterchooses one of the following modes of rental:
Liner shipping involves a predetermined route and schedule, primarily transporting dry goods in packaged form The carrier sets fixed charges, and contracts are not subject to negotiation, adhering strictly to the terms outlined in the shipowner's Bill of Lading While the train rental process is straightforward, it can be expensive.
+ Voyage charter: Freight frequentlyfills the vessels (90-95%) It's usually usedto transport large volumes of cereals, minerals, fertilizers
+ Both sides have to negotiate a rental agreement.
+ Usually use B/L under the voyage charter contract.
+Low fares, but complicated business, asking the landlord to be good and hold on to the relevant information.
A time charter involves renting a vessel from its owner for a specified duration, allowing the tenant to use the ship for transporting goods or for sub-leasing During this period, the vessel owner is responsible for transferring the rights of use to the tenant, ensuring that all operational aspects of the ship are managed effectively.
Factors affecting the process of performing contracts for exporting goods
Socio-cultural factors significantly impact the operations of businesses and their customers These influences can be analyzed from various angles based on specific research goals This article focuses on how these socio-cultural elements shape the characteristics and formation of a firm's consumption market.
Markets consist of real individuals whose spending reflects their needs, making the equation market = customers + their purchasing power Understanding this dynamic enables businesses to gain insights into their audience at various levels, from broad trends to specific preferences Consequently, companies can effectively recommend products and tailor their services to meet customer demands.
Understanding the identity and socio-cultural traits of large customer groups is essential, as these factors influence their opinions and product usage To enhance competitiveness, it is crucial to implement effective market segmentation and develop a tailored marketing strategy.
The current export performance of a business is influenced by various factors, which also have implications for future activities Therefore, enterprises must adhere to existing policies while simultaneously preparing strategic plans Vietnam's export incentive policies aim to enhance the suitability of products for international markets by leveraging the country's inherent potential.
Political factors play a crucial role in influencing the internationalization of business activities, as government policies can either facilitate or restrict market access By eliminating tariff and non-tariff barriers, governments can enhance market connectivity and promote export growth Conversely, political instability can impede economic development and foster a negative mindset among entrepreneurs.
The government's foreign trade policy evolves over time, presenting significant risks for export traders To navigate these challenges effectively, it is crucial for traders to understand the country's economic development strategy, as it provides insights into economic trends and potential state interventions.
The economic and technological environment significantly impacts enterprise operations, shaping how businesses leverage their potential and identify opportunities Fluctuations and changes in these factors can either expand or limit business prospects, often necessitating adjustments in goals and strategies to adapt to the evolving landscape.
The key factors of this environment and its impact onthe business oppoitunities of the business.
Current exchange rate: The exchange rate is the price of foreign currency in local currency or the relative value comparison between local and foreign currencies.
- The country's technical infrastructure development level
The development of export infrastructure, encompassing both transportation and communication systems, plays a crucial role in enhancing a business's trading capacity These factors can significantly expand an enterprise's export market and influence the efficiency of its export transport services.
Identifying and exploiting business opportunities is significantly influenced by geographical and ecological factors Extensive research has shown that these geographic elements play a crucial role in shaping business strategies Additionally, ecological issues and natural environmental protection have become vital, directly impacting sales opportunities for enterprises These ecological factors are integral not only to a country's sustainable development but also to the sustainable growth potential of individual businesses Key areas of study should focus on these fundamental factors.
Location affects many aspects of a business's commercial activities:
Businesses can effectively connect with customer groups by considering the distance and space involved in shipping The convenience of shipping and associated costs play a crucial role in competitiveness, as companies with lower shipping expenses can gain a significant advantage Additionally, geographic location significantly influences shipping costs, impacting overall business strategy.
Influence on regional production and consumption cycles, customers' demand for products to be consumed, requirements for product conformity, stockpiling, preservation diversity in the direction of specialization, or comparative advantageintrading.
- The balance of ecological pollutionand environmental pollution
Human concerns about environmental issues and climate events significantly influence sustainable development needs There is a crucial connection between societal attitudes towards nature protection and the tendency to alter natural conditions This relationship highlights the importance of integrating environmental protection into business strategies, thereby opening opportunities for sustainable business development focused on safeguarding the natural environment.
Suppliers play a crucial role in providing essential materials for businesses and their competitors To make informed purchasing decisions, companies must clearly define their needs, source high-quality inputs, and select suppliers based on key factors such as quality, delivery reputation, reliability, and sales assurance.
To ensure long-term survival and growth in the market, businesses must prioritize building and maintaining a loyal customer base Meeting customer needs and desires is essential, as customers are the cornerstone of any successful business Consequently, companies continuously seek innovative strategies to attract and retain customers effectively.
In general, every company has to deal with different competitors Competitors are in many differentforms, existingandlatent, directly andindirectly.
Depending on the degree of product substitution, competitors can be divided into four categories:
Effective management is crucial for business success, as it enables companies to develop the right strategies and capitalize on opportunities in the international market, leveraging their inherent capabilities.
❖ Financial capacity of the business
The expression of existing capital and the ability to raise funds are crucial for a business's financial capacity This capacity can either restrict or enhance the enterprise's capabilities, as capital serves as the foundation for all business activities.
THE ACTUAL SITUATION OF THE PROCESS OF
Overview of Nam Vu Down - Feathers JSC
2.1.1 General information about the company
Vision: Become the leading feather manufacturing and exportingcompany in Vietnam.
Mission: Providing the best products from domestic and foreign feathers Building Nam Vu chain system - Featherproduction - NamVu brand garment - Complete constructionof feather-related products.
International NAM vu DOWN - FEATHERS JOINT STOCK business name COMPANY.
Company name NAM vu DOWN & FEATHERS JSC
Address Lot 11, Street 15, Tan Duc Industrial Park, Huu Thanh
Commune, Duc Hoa District, Long An Province, Vietnam
Type of business Non-state jointstockcompany
Email namvu.down@gmail.com, theanli.namvudown@gmail.com
Nam Vu embodies the core values of "CREATIVE - PROFESSIONAL - QUALITY," which are deeply ingrained in its philosophy and serve as the guiding spirit for the company This ethos is consistently reflected in every action and communication of its members, ensuring a unified approach to achieving excellence.
• Creativity: Nam Vu constantly innovates and creates new productsto target potential market needs.
• Professional: Professional in work, culture ofbehavior, spirit of solidarity and support in every operation ofthe company, always serving customers most effectively.
• Quality: Nam Vu dedicates every resource, combining the most advanced technology to bringthe best quality products to customers.
2.1.2 History of formation and development
Founded in 2018 in Bac Ninh, this company has built a strong reputation among international customers through the dedication of its leadership team, staff, and labor workers Over the years, it has successfully expanded its market share, evolving into a large and recognized enterprise.
Nam Vu has consistently focused on sustainable development to build trust with its partners The company has invested in new factories and advanced machinery, enhancing its manufacturing processes to produce competitive market products.
After five years of construction and development, Nam Vu has evolved into a prominent business group comprising four subsidiaries This includes its headquarters and factory located in Bac Ninh, along with additional factories in Bac Giang and Khanh Hoa, as well as Nam Vu Down.
When hired, these workers undergo training and skill development through the production technology process, which contributes to the company's continuous growth and increasing annual revenue.
Nam Vu Down - Feather Joint Stock Company, established in December 2019 in Duc Hoa-Long An, specializes in the production and distribution of down and feathers sourced from geese and ducks for industrial use The company focuses on developing key products tailored for manufacturing industries, while fostering an effective team dedicated to delivering "Best quality at affordable prices."
The main business of the Company is the manufacture, and supply of high-enddown and feather products fromgoats and ducks on orders of foreign partners for export purposes.
2.1.4 Organizational structure and function of departments
(Source:Administration and Human Resources)
The company has selected the appropriate organizational mechanism, clearly showing the powers and responsibilities of each department:
The Director General organizes the company's business activities, enacting internal management regulations, and appointing and dismissing management positions The current director of the company is Mr Nguyen Ngoc Dai.
The Deputy Director General supports the Director General in maintaining the entire operations of the company, checking documents, and documents, from other departments transferred before approval In addition, the
Deputy Director General assesses the operational situation of the company of the departments throughthe reports ofdepartments.
The Export and Import Department plays a crucial role in facilitating international trade by connecting with customers and understanding their import and export needs Employees actively seek out potential clients, present company services, and negotiate favorable shipping rates with carriers Once a mutual agreement is reached, they review and quote the terms before finalizing contracts This department oversees all aspects of the import and export process, from document preparation to ensuring goods are successfully imported into the enterprise's warehouse or exported abroad Additionally, import and export officers are tasked with promptly addressing customer issues related to each shipment, thereby enhancing the company's reputation for reliability and service excellence.
The General Department is responsible for managing the company's revenue and expenditure, ensuring accurate accounting and reporting of financial statistics They monitor and organize operations to facilitate continuous business activities while optimizing expenditures related to import and export functions, enabling employees to fulfill their tasks effectively.
The Production Planning Department is responsible for creating weekly and monthly production plans aligned with the company's growth strategy Additionally, it monitors the import status of raw materials and finished goods to ensure timely and effective planning for the organization's needs.
Inspection Department: Staff responsible for testing and assessingproduct quality Certifying product quality conformity and checkingacceptance work.
2.1.5 Business results of the company in the past three years
Table 2.1: Results ofexport activities of NamVu Down -Feathers SJC
Chart 2.1: Business results of NamVu Down -Feathers JSC
From 2020 to 2022, the company experienced significant revenue growth, with 2022 revenue reaching VND 18.098 billion, a remarkable 42.7% increase from 2021 In 2021, revenue was VND 12.681 billion, reflecting a 23.8% rise from 2020 This growth can be attributed to the Vietnamese economy and global markets adapting to the challenges posed by the COVID-19 pandemic, alongside the dedicated efforts of the company's employees in prioritizing customer acquisition and enhancing revenue potential.
In recent years, expenses have consistently increased, culminating in a total of 12.668 billion in 2022, marking a 36% rise from 2021's 8.575 billion This previous figure represented a 23.5% increase from 2020, which was 6.982 billion The surge in costs can be attributed to inflation, rising energy prices, and heightened transportation charges, influenced by the COVID-19 pandemic and the ongoing Russian-Ukrainian conflict impacting production and operational expenses.
Profit: The profit of the company in 2022 reached VND 6.43 billion, an increase of 56,6%, equivalent to VND 3.324 billion compared to 2021 And in
In 2021, the company's profit soared to VND 4,106 billion, reflecting a significant increase of 24.7% or VND 813 billion compared to 2020 This remarkable growth can be attributed to the effective investment policies implemented by the company's management, which strategically adapted operations to align with the economic landscape of the time.
Overview of down and feather exports
2.2.1 The situation of down and feather exports in the world
Table 2.2 The value of the world's down and feather exports in 2022
■ China ■ Asia B Germany Poland "us * Other countries
Chart 2.2 The value of the world's down and featherexportsin 2022
In 2022, global exports of bird skin and feather products surpassed $1.8 billion, marking a 34.3% increase of $460 million from 2021, according to TrendEconomy This surge can be attributed to the economic recovery following the COVID-19 pandemic, which revitalized both exports and imports in the market.
China is the world's leading exporter of down and feather products, commanding 40.5% of the market with exports valued at $773 million Following China, other Asian countries, including Vietnam, Japan, and Turkey, contribute 11.4% of exports worth $205 million Germany ranks third with a 6.1% share, valued at $110 million, while Poland holds fourth place at 5.7%, amounting to $102 million The United States rounds out the top five with a 5.4% share, valued at $98 million Collectively, other nations account for 30.9% of the market, worth $512 million The significant consumption of poultry, particularly duck and goose, in these countries drives their dominance in the down and feather export market.
2.2.2 The situation ofdown and featherexports in Vietnam
Vietnam's livestock exports, while smaller in scale compared to other agricultural and marine products, have experienced significant growth this year Notably, unique items like down and feathers have gained popularity in major markets, presenting numerous opportunities for further export expansion.
According to the Veterinary Administration, since the agreement with Vietnam on down and feather export business certification in January 2020, 20 Vietnamese enterprises have begun exporting these products Major customers include China, Korea, the USA, and the EU, driven by the demand for winter fashion to combat cold climates Additionally, importing countries have stringent requirements for down and feather products, including proper storage conditions that meet standards for blurability and oxygen consumption Furthermore, the feathers must come from healthy poultry in epidemic-free zones and be free of impurities.
In 2022, Vietnam's exports of down and feather reached approximately 10,000 tons, generating over $40 million in revenue, marking a 50% increase of $20 million from 2021 The Chinese market was the largest buyer, importing more than 8,000 tons, due to Vietnam's compliance with international quality standards and supportive state policies that enhance export opportunities.
2.2.3 Overview of down and featherexports of the company
Table2.3 Turnover and Structure of down and feather export atNamVu
In 2022, the company's total export value reached $777,010, with duck down exports accounting for $568,690 and goose down exports totaling $208,320 The overall export turnover for the year was 18,730 kg, comprising 15,370 kg of duck down and 3,360 kg of goose down.
Nam Vu specializes in exporting high-quality duck and goose down, with duck down making up 90% of their products due to its affordability, abundant raw materials, and versatility for use in blankets, pillows, and clothing The company is committed to maintaining product quality and a strong reputation with customers, backed by certifications and quality inspections from reputable international organizations like Katri, Intertek, Controlunion, and RDS With state-of-the-art processing technology and advanced machinery, Nam Vu has streamlined its production processes, ensuring efficient processing times and superior product quality that meets global standards and demands.
Korea leads the company's export market, accounting for 40% of total exports (6,800 kg), followed by China at 25% (4,900 kg), the US at 20% (4,130 kg), Myanmar at 10% (1,700 kg), and other countries making up 5% (1,200 kg) The demand for these exports is driven by the cold winter weather in these regions, prompting the development of winter fashion that includes warm and comfortable products like pillows and blankets.
Analysis of the process of performing the down and feather export
2.3.1 Summary of the export contract
Seller: NAM vu DOWN - FEATHERS JSC
CN-27.2 Land, Thuan Thanh 2 Industrial Area, An Binh Commune, Thuan ThanhDistrict, BacNinli Province, Viet Nam
C-215, U-Tech Valley, 25, Misagangbyeonjungang-ro 7beonan-gil, Hanam-si, Gyeonggi-do, Korea
Clause 1: Description of commodity - quantity - price
Amount (US dollars fifty-five thousand and five hundred) 55,500
Price: USD 37/KGCIF Incheon,Korea, Incoterms 2020
Shipping time: before 17th January 2023
Loading port port: Hai Phong Port, Hai Phong, Vietnam
Payment By T/T afterarrival inIncheon, 30% advancepayment before shipment
Bank Vietnam Joint Stock CommercialBank For IndustryAnd Trade,
Tien Son Branch, Tien Son Industrial Area, Tu Son District,Bac Ninh Province, Vietnam
Account No - 111 002 668455 / SWIFT Code - ICBWNVX285
No Type of document Provider Original, Copy
4 Health Certificate Veterinary Department 1 Original
2.3.2 The process of performing thedown and feather export contractat NamVu Down - Feathers JSC
Step 1 Complete exportprocedures according to State regulations
Step 6 Customs clearance and packing
Step 7 Deliver goodsto the carrier
Step 2 Check the initial step of payment
Diagram 2.2 The processof the export contract atNamVu Down -Feathers
2.3.2.1 Complete export procedures according to State regulations
According to Clause 2, Article 31 of Circular 04/2020/TT-BTC dated February 12, 2020, the Ministry of Agriculture and Rural Development licenses the export of feathers products.
Feathers are not classified as endangered or rare specimens under CITES Appendix I, allowing for their export as standard goods Consequently, the company continues to export feathers without restrictions.
As per Clause 1, Article 10, Section 5 of Circular 11/2009/TT-BNN, companies must obtain a veterinary quarantine certificate for the export of down and feathers This regulation encompasses the quarantine of animals and animal products, veterinary hygiene inspections, and the necessary documentation and certification procedures for exporting products overseen by the Ministry of Agriculture and Rural Development.
❖ HS code and export duties
According to the 2023 import and exportduties, the HS code of the down and feather is: 05051010
Down and feather products are exempt fromVAT and export duties.
2.3.2.2 Check the initial step of payment
The total amount due is $55,500, with both parties agreeing to a 30% advance payment via T/T The company will remind the buyer to transfer the deposit promptly and accurately Upon receiving confirmation of payment from the bank, the company will verify it against the contract terms and proceed if everything is in order In the event of any discrepancies, the company will notify the buyer to ensure payment aligns with the signed agreement.
Under the terms of the agreement, BYVOW.CO.LTD Company will make an upfront payment of 30%, amounting to $16,650, prior to delivery The remaining 70%, totaling $38,850, is due once the shipment arrives in Incheon.
To fulfill the obligations in the export contract, the exporter must prepare the export goods, packaging, symbols, etc In accordance with the provisions signed by the importer.
The raw materials imported by the Company at the poultry processing facilities and imported from abroadwillbe processed and cleaned atthe company.
Step 1: The ingredients will be put into the washing machine Model:SX2001 Wattage: 16K, with 100 m3 ofwater per piece (200kg ofraw material) and a washingtime ofabout 100 minutes per piece.
Step 2: After the material is passed through the washing machine, it is transferred to the wringers model: PS 1601 Wattage 18.5kW, 30minutes per piece.
Step 3: After the wringers, the raw material will be transferred to the dry machine with the model: HG2001 Wattage: 16 Kw Dryata temperature of120 °C, the drying time is approximately 30 minutes per piece (100kg/ piece).
Step 4: After drying, the raw materials will be transferred to the cooling machine Model:LQ2000 hair dryer Wattage: 22Kw,drying time is approximately 30min/ 1 piece (100kg/ piece).
• Item: Washed White Duck Down
• The quantity of 1,500kg is containedin 80bags
• Packaging: Goods are packaged in white bags, each bag is 21kg, printed with the logo and label of NAM vu DOWN- FEATHERS JOINTSTOCK COMPANY,
The code WDD70130, prominently displayed on the packaging, provides essential information for the delivery, unloading, and storage of goods, ensuring clarity and recognition for efficient handling.
According to Circular No 25/2016/TT-BNNPTNT and Circular No 35/2018/TT-BNNPTNT, all animals and animal products listed in the Animal Catalogue and those produced on land must undergo inspection prior to export This inspection is essential to obtain a certification that meets the requirements set by the importing country or the relevant authorities.
The Certificate Of Veterinary Examination is registered online on theVietnamNational Single Window (https://vnsw.gov.vn/) ftl tổ Ỉ
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Mít kháu Oàng ký QuAn tAikhoAn
Mng ký c hử ký ô5 Cỏc ciu hà thơỳng
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Bân đõ mệt độ phương tiện
TRIỄN KHAI Cơ CHC một cưa QUÓC gia (ON click vào TÉN thú tực oế TÀI TÀI Lltu LIỀN QUAN)
1 Cắp phép nhệp khẩu các chát làm suy gửm tầng ỏ-dỗn
2 Cáp giấy phép nhập khâu tư đổng mờ-tỏ phân khổi lởn
3 Tnù tục cáp chưng nhặn xuât xứ co mâu D
4 cáp giây chửng nhận quy trinh Kimberley đốt VỚI kim cương thô
(Source: Vietnam NationalSingle Window https://vnsw.gov.vn/)
- Certificate ofVeterinary Hygiene (Veterinary department)
After registering, an officer inspects the factory and checks if the product meets standards If it passes, the veterinary department issues a clearance certificate to the company.
According to the signed contract, both parties agree that this shipmentwill beshipped by CIF method(Incoterms 2020) Therefore, NamVu Down - FeathersJoint Stock Company will rent a means oftransportation.
The sequence of stepsto proceed with the lease agreement through FWD is as follows:
Diagram 2.3.The process to rent transport ofNamVu Down - Feathers JSC
The company exports 1,500 kilograms of down and feather in 80 bags, equivalent to a container of 20 feet.
After finalizing the number of containers, the Company will reach out to Tuan Hai Company (FWD) to obtain a ship schedule Using the provided schedules, the Company will identify a timetable that aligns with the document dates and report this to the FWD Once confirmed, the FWD will proceed to book the ship with the carrier company, and upon successful booking, a Booking Note will be sent to the FWD, containing all relevant information.
S/TC SITC Vietnam Co., Ltd.
Haiphong HQ 4th Floor Room419+420+421 TD Business center Lot 20A Le Hong Rxjng Str Haphong Vet Nam
Phone (84) (225) 3757800 Fax (84) (225) 3757805 Mai: cs hph@sôc.vn;cs1 hph@sitc vn
Hanoi Ref Office: 15th Floor, c Land Tower No 156 Xa Dan I Sừ Hanoi Viet Nam
Phone: (84) (24) 39747487 Fax: (84) (24) 39747795 Mai cs han@sitc vn
BOOKING NOTE & EMPTY CONTAINER DELIVERY ORDER
Kinh gưl (To): TUAN HAI INTERNATIONAL TRANSPORT co.,LTD
We hereby confirmed your bootang as following delate s6 lượng, loai contamer(QLY &
Dự kién xép lên tau(Vessel):
04-01-2023 am VU PORT INC HON, SOUTH KOREA 10:00 02-01-2023
Ngây tàu đén (ETA POO):
NƠ)LAYCONTANB?(aPTY PICK UP PLACE) Đống hàng taKstuffing place):
NƠI HẠ HÀNG (FULL RETURN PLACE) srrc-amvu
ONHVU PORT CONTAINS? TBWIINAL ĐE NGHỊ QUÝ KHÀCH ĐỌC KỸ VÀ THỰC HBI ĐÚNG CÁC YẼU CAU SAU:
After the goods are fully prepared in accordance with the signed contract, the company initiates E-customs procedures while simultaneously packing the items This dual approach is designed to save time, and once the customs declaration is completed, the container is securely sealed.
E-Customs declaration is an important document that must be present during customs proceedings Entering the informationon the declarationis a very important step in the electronic customs declaration process Specifically, in the case of the shipment when the declaration is incorrect, when the Customs officer receives, checks forthisdefect, the duty officer will divide the flow or redflowfor the shipment This coststhe company andtakes longer to getthe goods back to the warehouse.
Aftercheckingthe documentation set, the document staff will proceed with the electronic customs declaration using the licensed ECUS5-VNACCS Customs Declaration Software with thecompany's electronic signature.
Diagram 2.4 Electronic customs declaration process
The E-Customs declaration stepsforexportsare as follows:
Upon launching the software and selecting EDA for a new export declaration registration, staff input essential details about the goods, including importer and exporter information, export types, goods description, quantity, location, shipping details, invoice number, total invoicing value, export tax, and tax value After verifying the accuracy of all information, the next step is to register the export declaration in the EDC Once the information is declared and saved, clicking the “Receive Results” button transmits the data to the Port Customs Division, allowing for feedback from Customs.
• Step 2: Selectivity of the customs declaration form
Customs checks the accuracy and validity of the information declared by the enterprise, conducts selection, and returns the resultsto the enterprise.
The Company's shipment has been designated as a green flow by Customs, indicating that it is exempt from the inspection of documents and goods As a result, the shipment has successfully completed all customs procedures and is now cleared for export abroad.
Step 3: Print the declaration and go to the port to complete customs clearance procedures forthe shipment
The operations team prepares two copies of the export declaration: one for customs records and the other for the customer, ensuring all steps are completed before proceeding to the port for customs clearance of the shipment.
Upon receiving the empty container, the company's staff conducts a thorough inspection If any issues are identified, the company promptly informs the shipping line to request a replacement or documents the container's status on the Equipment Interchange Receipt This process ensures that the container owner is not unfairly charged for damages incurred prior to the return.
When conducting an external inspection of a container, it's essential to carefully observe for signs of rupture, breakage, and distortion, particularly in the roof and corners These areas are often overlooked but play a crucial role in ensuring the safety of the shipment.
Factors affecting the process of performing the export contract at Nam
Vietnam's exchange rate policy aims to control inflation, stabilize the macroeconomy, and sustain reasonable economic growth while enhancing export incentives and improving the international balance of payments To achieve these objectives, Vietnam employs various exchange-rate tools, including currency bands, adjustments to re-discount interest rates, and regulation of compulsory reserve rates The country's commitment to managing the exchange market and reducing dollarization demonstrates that it does not manipulate its currency for unfair competitive advantages in international trade By stabilizing macroeconomic factors, inflation, and exchange rates, Vietnam ensures that companies can import raw materials at fair prices, maintaining competitive import and export activities without excessive price fluctuations compared to other nations.
Vietnam is a leading consumer of poultry, with an impressive annual consumption of 70 million birds, largely driven by cultural habits that include enjoying poultry meat during holidays and celebrations After purchasing ducks and geese for meat, many people sell the feathers back to collection units, creating a robust supply chain This practice ensures that companies have a steady supply of down and feathers, enabling stable production and the ability to meet customer demands effectively.
Non-profit organizations like the Responsible Down Standard (RDS) are dedicated to minimizing the environmental impact of production on water, soil, air, and communities, ensuring consumers can trust the sustainability of the materials used in their products The growing awareness of animal welfare has spurred the adoption of standards such as RDS, leading to an increase in the global production of down and feathers Nam Vu's achievement of RDS certification has enhanced its market reputation and facilitated entry into international markets However, climate change, including shifts in temperature and rainfall, poses risks by fostering pathogens that can compromise animal health, ultimately affecting the quality of down and feathers essential for production.
To maximize the benefits of the New Generation Free Trade Agreements (FTAs), the Department of Commerce has provided vital information on the 17 FTAs that Vietnam is currently negotiating and has signed This includes resources for online searches of preferential tariffs granted to Vietnam's exports, which aids in shaping production business plans Updated support also includes new import regulations from FTA countries, enabling businesses to effectively leverage tariff reductions from agreements such as the CPTPP, EVFTA, UKVFTA, and RCEP to enhance exports Additionally, the Veterinary Office has successfully registered accounts on the EU's Traces Nt system to facilitate firms in exporting to international markets By strategically utilizing these policies and agreements, companies can reduce costs through tax incentives, thereby gaining a competitive edge in the global market.
The global fur and goose fur market is projected to achieve a CAGR of 6.72% from 2022 to 2027, driven by an increasing demand for duck and goose products This surge has resulted in a broader supply of fur worldwide, with processed fibers being utilized by numerous companies in the production of cotton blankets, cushions, clothing, and pillows The rising demand for down and feather products in both civil and commercial sectors is accelerating fur production, enabling companies to attract more customers, enhance fur exports, and expand their operations in the future.
The rapid evolution of technology and the adoption of advanced machinery by competitors create intense competition in the market To stay ahead, NamVu consistently invests in modern technology systems and equipment However, this commitment necessitates substantial financial resources for businesses to remain competitive.
Retailers typically gather fur and goose feathers for poultry markets, selling them to shops that collect and repair these materials The feathers are dried and sold to specialized garbage collectors, who then sort, process, and dry them for resale to warm clothing manufacturers and high-end clothing brands To ensure a steady production volume, the company has also expanded its supplier network internationally, enhancing its supply chain.
The goose down and feather market is highly competitive, with key players including Thang Ha Export Company, Vina Down, and Dai Loi Wholesale Co., Ltd Analyzing these competitors enables our company to understand their strengths and weaknesses, providing valuable insights into the market landscape This knowledge is essential for developing strategic business campaigns that promote growth and ensure our continued presence in the industry.
Customers: The main customers of the company are:
- Clothing companies, export clothes companies, and fashion brands.
- Companies thatmanufacture blankets, pillows, and feathers.
Nam Vu's diverse customer base spans multiple industries and countries, including key export markets such as Korea, Japan, Myanmar, Bangladesh, China, and the USA This broad reach minimizes dependency on any single client, allowing the company to adapt swiftly during crises affecting partner countries or industries Furthermore, Nam Vu is committed to fostering long-term, sustainable partnerships by continuously researching and understanding each customer's market needs.
The company's financial potential is evident as its capital continues to grow annually Between 2020 and 2022, the company experienced significant revenue increases, culminating in a remarkable 42.7% rise in 2022, with total revenue reaching VND 18,098 billion—an increase of VND 5,417 billion from the previous year In 2021, the revenue was VND 12,681 billion, reflecting a 23.8% growth compared to 2020.
In 2020, the company experienced a significant increase of VND 2,445 billion, indicating a strategic rearrangement of capital utilization This effective management of assets and capital has equipped the company with adequate financial resources to invest in more modern and scalable machinery, enhancing operational efficiency and growth potential.
Human potential is a key focus for our company, which employs between 11 to 50 individuals We prioritize the selection and recruitment of competent and experienced personnel who fit our work environment Our dedicated workforce ensures we have the necessary human resources to expand our production capabilities With a unified corporate staff and a team of seasoned international trade professionals, we are committed to enhancing employee skill training to effectively meet the demands of our business operations.
The company is actively expanding its business network while maintaining strong relationships with long-term customers, who account for the majority of orders New customers are often introduced through trade promotion organizations and events organized by the Vietnam Textile Society (VITAS) Looking ahead, the company plans to implement targeted marketing strategies and enhance its digital presence by leveraging online tools such as its website, Google Ads, and social media platforms like Facebook, Instagram, and YouTube This approach aims to proactively attract new customers, ultimately increasing the company's sales quota and export profits.
Nam Vu has initiated the construction of its first factory in Thuan Thanh 2, Bac Ninh Province, followed by three auxiliary factories located in Binh Duong, Khanh Hoa, and Long An, along with a representative office in Ho Chi Minh City From the outset, the company prioritized two key factors: product quality and environmental protection To achieve these goals, Nam Vu has invested in cutting-edge technology, incorporating fully imported, state-of-the-art machinery and highly automated systems This includes advanced Japanese wastewater treatment solutions, washing machines, presses, one-door chambers, dryers, and quality control equipment, all aimed at enhancing product quality and maximizing production efficiency.
Nam Vu operates with a management level that emphasizes strong connections to its goals, ensuring alignment between objectives and organizational structure The company's organizational and managerial capabilities stem from a holistic view that prioritizes the interactive relationships among all components, creating real power for the business By proactively addressing challenges, Nam Vu maintains stability and fosters growth, reinforcing its interconnectedness.
SOLUTIONS TO IMPROVE THE PROCESS OF
Evaluation of the process of performing the down and feather export
3.1 Evaluation of the process of performing the down and featherexport contract atNamVu Down - Feathers JSC.
❖ The E-customs declaration procedure is carriedoutquickly,with fewer errors.
The implementation of the electronic customs declaration software ECUS5-VNACCS, combined with the expertise of our highly trained import-export department staff, enables customs declarations to be completed efficiently within 10-30 minutes This streamlined process significantly minimizes information errors, ensuring accuracy By utilizing electronic customs declarations, businesses engaged in international trade can lower costs by eliminating the need for in-person visits to customs offices and reducing the time required for the circulation and transportation of goods.
❖ Stable supply of raw materials.
The company has enhanced its import network while sourcing raw materials from local poultry processing facilities It maintains long-term cooperative relationships with each supplier through signed contracts, ensuring a stable and ample supply In the supplier selection process, the company prioritizes quality by verifying goods and requiring compliance certificates to meet established quality standards.
With established connections to numerous suppliers, the company streamlines its export preparations and fulfills product requirements efficiently From the outset of the acquisition process, the company collaborates closely with its suppliers and partners to implement effective strategies that guarantee product quality.
The company prioritizes quality in both production and preservation, utilizing state-of-the-art facilities to ensure product excellence All goods meet international standards, and contracts are established with foreign partners Rigorous inspection processes guarantee objectivity and high reliability in every aspect of operations.
❖ Choose suitable terms of trade
The company consistently engages in export contracts with CIF delivery terms, allowing for better negotiation of transport prices, insurance fees, and shipping times By proactively managing transportation and insurance, businesses can achieve more favorable rates and reduce costs This strategy not only benefits the company but also contributes to the accelerated development and improved quality of Vietnam's shipping industry In contrast to other domestic firms that typically opt for FOB terms, this approach highlights the company's stability and extensive international business experience.
❖ T/T after shipments are detrimentalto the exporter.
Delays in ordering a transfer by the importer can lead to significant issues for the exporter, who may not receive payment despite having shipped the goods If the importer fails to receive the goods, the exporter incurs additional shipping costs and may have to sell the items at a loss or re-export them This situation can result in slow capital recovery for the exporter, negatively impacting production Furthermore, the bank is not obligated to ensure that the exporter receives payment.
❖ Disadvantages of renting a ship through a broker
The company utilizes a broker for transportation services, which presents a significant drawback: customers often lose control over their shipments due to the intermediary role of brokerages This lack of direct oversight can lead to concerns about the reliability and trustworthiness of the partner carriers handling their goods Additionally, some forwarding companies may operate inefficiently or lack a solid reputation, further complicating the shipping process.
❖ The human resources areyoung, and not very experienced.
The company operates under CIF trade terms, necessitating staff with substantial expertise in foreign trade practices, vehicle rental, insurance, and related operations However, the workforce predominantly consists of young employees who lack extensive experience and exposure to real-world scenarios, leading to occasional challenges such as pressure during negotiations and errors in document preparation.
Vietnam has entered into various bilateral and multilateral free trade agreements, allowing the country to broaden its market reach and gain access to both regional and global markets, as well as the service sectors of partner nations.
Trade barriers, particularly tariff obstacles, are set to be eliminated, offering significant competitive advantages and promising growth for various commodity industries This change will also benefit a substantial portion of the workforce in import and export companies.
Legal procedural barriers are also reduced and simplified, facilitating enterprises to enter the international market.
The COVID-19 pandemic has significantly altered consumer preferences and heightened awareness of essential products and services, leading to increased demand in sectors like food processing, healthcare, pharmaceuticals, digital transformation, and e-logistics This shift has prompted companies to adopt advanced technologies and embrace remote trade practices, ultimately reshaping the digital economy and driving innovation in response to new market needs.
Vietnam's large labor force, competitive labor costs, robust infrastructure, and strategic geographical location make it an increasingly attractive destination for corporations seeking relocation, facilitating easier exports for both the Company and other enterprises.
The logistics sector is experiencing a significant influx of human resources from industries such as tourism, restaurants, and hotels, largely due to the impact of Covid-19 This shift has resulted in a competitive labor market, where companies are vying for skilled talent As organizations seek to expand their workforce, it is crucial for them to make careful selections and offer attractive compensation packages to attract the best candidates.
In today's globalized work environment, there is a growing demand for specialized skills and expertise Companies must rapidly adapt to ongoing changes and continuously update their knowledge to remain competitive and avoid becoming obsolete.
Despite the reopening of the economy following the COVID-19 pandemic, it will take time for consumer spending and demand for non-essential goods to return to pre-pandemic levels.
Shippingcosts arehigh, andenergyand raw materials are rising The recent conflict in Ukraine has also had a strong impact on Vietnam's import and export activities.
Business results of Nam Vu Down - Feathers JSC
From 2020 to 2022, the company experienced significant revenue growth, with 2022 revenue reaching VND 18.098 billion, a 42.7% increase from 2021's VND 12.681 billion This growth reflects a VND 5.417 billion rise in 2022 and a 23.8% increase from 2020, which saw revenue of VND 10.236 billion, a VND 2.445 billion increase The company's success can be attributed to the Vietnamese and global economies adapting to the COVID-19 pandemic, alongside the dedicated efforts of employees who prioritize the company's interests and actively seek new customer sources, thereby enhancing revenue potential.
In recent years, expenses have consistently escalated, culminating in a total of 12.668 billion in 2022, reflecting a 36% increase from 2021's 8.575 billion This rise in costs can be attributed to factors such as inflation, surging energy prices, and heightened transportation charges, all exacerbated by the COVID-19 pandemic and the ongoing Russian-Ukrainian conflict, which have significantly impacted production and operational costs.
Profit: The profit of the company in 2022 reached VND 6.43 billion, an increase of 56,6%, equivalent to VND 3.324 billion compared to 2021 And in
In 2021, the company's profit soared to VND 4.106 billion, marking a 24.7% increase, or VND 0.813 billion, compared to 2020 This impressive growth can be attributed to the company's strategic investment policies and adaptive operational approaches tailored to the economic conditions of each period.
2.2 Overview of down and feather exports
2.2.1 The situation of down and feather exports in the world
Table 2.2 The value of the world's down and feather exports in 2022
■ China ■ Asia B Germany Poland "us * Other countries
The value of the world's down and feather exports in 2022
In 2022, global exports of bird skin and feathers, including untreated and processed feather parts, surpassed $1.8 billion, marking a 34.3% increase of $0.46 billion from 2021, according to TrendEconomy This surge is attributed to the economic recovery following the COVID-19 pandemic, which has revitalized trade activities.
China dominates the global down and feather export market, holding a significant 40.5% share valued at $773 million Following China, Asian nations like Vietnam, Japan, and Turkey collectively contribute 11.4% with exports worth $205 million Germany ranks third, accounting for 6.1% of the market with $110 million in exports, while Poland and the United States follow closely in fourth and fifth places, representing 5.7% ($102 million) and 5.4% ($98 million) respectively Together, other countries make up 30.9% of the market, valued at $512 million The high consumption of poultry, particularly duck and goose, in these regions drives the substantial export of down and feathers, establishing them as key players in this industry.
2.2.2 The situation ofdown and featherexports in Vietnam
Vietnam's livestock exports have experienced significant growth since the beginning of the year, despite being smaller in scale compared to other agricultural and marine products Notably, unique items like down and feathers have gained popularity in major markets, presenting numerous opportunities for further export expansion.
Since the agreement in January 2020 between Vietnam and the Veterinary Administration on down and feather export business certification, 20 Vietnamese enterprises have begun exporting these products Major customers include China, Korea, the USA, and the EU, driven by the demand for winter fashion to combat cold climates Importing countries have stringent requirements for down and feather products, including specific storage conditions that meet standards for blurability and oxygen consumption Additionally, feathers must be sourced from healthy poultry in epidemic-free areas, ensuring no impurities are present.
In 2022, Vietnam's exports of down and feather reached approximately 10,000 tons, generating over $40 million, marking a 50% increase from the previous year The Chinese market was the largest importer, purchasing over 8,000 tons, attributed to Vietnam's compliance with international quality standards Additionally, supportive state policies have enhanced business export opportunities globally.
2.2.3 Overview of down and featherexports of the company
Table2.3 Turnover and Structure of down and feather export atNamVu
In 2022, the company's total export value reached $777,010, with duck down contributing $568,690 and goose down accounting for $208,320 The overall export turnover was 18,730 kg, including 15,370 kg of duck down and 3,360 kg of goose down.
Nam Vu specializes in exporting high-quality duck and goose down products, with duck down comprising 90% of their offerings due to its affordability, abundant raw materials, and versatility in applications like blankets, pillows, and clothing The company prioritizes product quality and customer reputation, ensuring all feather products meet rigorous international standards through certifications from organizations such as Katri, Intertek, Controlunion, and RDS With advanced processing technology and state-of-the-art machinery, Nam Vu enhances efficiency while maintaining product quality, consistently meeting global demands and standards.
Korea leads the company's export market with a 40% share, amounting to 6,800 kg, followed by China at 25% (4,900 kg), the US at 20% (4,130 kg), Myanmar at 10% (1,700 kg), and other countries at 5% (1,200 kg) The demand for these exports is driven by the cold winter weather in these regions, prompting the development of winter fashion that includes warm and comfortable products like pillows and blankets.
2.3 Analysis of the process of performing the down and feather export contract atNamVu Down - Feathers JSC.
2.3.1 Summary of the export contract
Seller: NAM vu DOWN - FEATHERS JSC
CN-27.2 Land, Thuan Thanh 2 Industrial Area, An Binh Commune, Thuan ThanhDistrict, BacNinli Province, Viet Nam
C-215, U-Tech Valley, 25, Misagangbyeonjungang-ro 7beonan-gil, Hanam-si, Gyeonggi-do, Korea
Clause 1: Description of commodity - quantity - price
Amount (US dollars fifty-five thousand and five hundred) 55,500
Price: USD 37/KGCIF Incheon,Korea, Incoterms 2020
Shipping time: before 17th January 2023
Loading port port: Hai Phong Port, Hai Phong, Vietnam
Payment By T/T afterarrival inIncheon, 30% advancepayment before shipment
Bank Vietnam Joint Stock CommercialBank For IndustryAnd Trade,
Tien Son Branch, Tien Son Industrial Area, Tu Son District,Bac Ninh Province, Vietnam
Account No - 111 002 668455 / SWIFT Code - ICBWNVX285
No Type of document Provider Original, Copy
4 Health Certificate Veterinary Department 1 Original
2.3.2 The process of performing thedown and feather export contractat NamVu Down - Feathers JSC
Step 1 Complete exportprocedures according to State regulations
Step 6 Customs clearance and packing
Step 7 Deliver goodsto the carrier
Step 2 Check the initial step of payment
Diagram 2.2 The processof the export contract atNamVu Down -Feathers
2.3.2.1 Complete export procedures according to State regulations
According to Clause 2, Article 31 of Circular 04/2020/TT-BTC dated February 12, 2020, the Ministry of Agriculture and Rural Development licenses the export of feathers products.
Feathers are not classified as endangered or rare wildlife specimens under CITES Appendix I, allowing for their export as regular goods by the company.
According to Clause 1, Article 10, Section 5 of Circular 11/2009/TT-BNN, companies exporting down and feathers must obtain a veterinary quarantine certificate for animal products This includes adhering to regulations on the quarantine of animals and animal products, as well as undergoing veterinary hygiene inspections and completing the necessary documentation and certification procedures for export products regulated by the Ministry of Agriculture and Rural Development.
❖ HS code and export duties
According to the 2023 import and exportduties, the HS code of the down and feather is: 05051010
Down and feather products are exempt fromVAT and export duties.
2.3.2.2 Check the initial step of payment
The total amount due is $55,500, with both parties agreeing to a 30% advance payment via T/T The company will remind the buyer to transfer the deposit promptly and accurately Upon receiving payment confirmation from the bank, the company will verify it against the contract terms If everything is in order, they will proceed with the next steps; however, any discrepancies will prompt the company to remind the buyer to make the necessary payments as per the signed agreement.
According to the agreement, BYVOW.CO.LTD Company is required to make a 30% advance payment of $16,650 prior to delivery, while the remaining 70%, amounting to $38,850, is due upon the shipment's arrival in Incheon.
To fulfill the obligations in the export contract, the exporter must prepare the export goods, packaging, symbols, etc In accordance with the provisions signed by the importer.
The raw materials imported by the Company at the poultry processing facilities and imported from abroadwillbe processed and cleaned atthe company.
Step 1: The ingredients will be put into the washing machine Model:SX2001 Wattage: 16K, with 100 m3 ofwater per piece (200kg ofraw material) and a washingtime ofabout 100 minutes per piece.
Step 2: After the material is passed through the washing machine, it is transferred to the wringers model: PS 1601 Wattage 18.5kW, 30minutes per piece.
In Step 3, the processed raw material is transferred to the HG2001 dry machine, which operates at a wattage of 16 kW The drying process occurs at a temperature of 120 °C, with each 100 kg piece requiring approximately 30 minutes for complete drying.
Step 4: After drying, the raw materials will be transferred to the cooling machine Model:LQ2000 hair dryer Wattage: 22Kw,drying time is approximately 30min/ 1 piece (100kg/ piece).
• Item: Washed White Duck Down
• The quantity of 1,500kg is containedin 80bags
• Packaging: Goods are packaged in white bags, each bag is 21kg, printed with the logo and label of NAM vu DOWN- FEATHERS JOINTSTOCK COMPANY,
The code WDD70130 is prominently displayed on the packaging to provide essential information for the delivery, unloading, and storage of goods It is crucial that this code is bright, clear, and easily recognizable to ensure efficient handling.
According to Circular No 25/2016/TT-BNNPTNT and Circular No 35/2018/TT-BNNPTNT, all animals and animal products listed in the Animal Catalogue must undergo inspection before export This inspection is essential to obtain the necessary certification required by the importing country or relevant authorities.
The Certificate Of Veterinary Examination is registered online on theVietnamNational Single Window (https://vnsw.gov.vn/) ftl tổ Ỉ
Trang chủ I Tin tưc I Một cửa Ouóc gia I Một cửa ASEAN I van bản I Vtoeo hương ơin I TracũưCO I
• Thổng bao nõng cỏp cồng thởng tin một cửa quốc gia dốt VỞ1 cõc thủ tục liờn quan độc tàu bằẻn xuỏt * nhập cảnh
I THÒNG BAO Da khác phục đuọc sư cổ upload filo trẻn cổng thông hn một cùa quỏc gia đòi vớ) các thủ tục thuộc
Bộ Nông nghtộp và Phât tnén nổng thổn
• Sự cỏ upload file trụn cúng thụng tin mội cửa quốc gm dối vú) nhổm thự tục thuộc Bộ Nống nghiệp ằ
Mít kháu Oàng ký QuAn tAikhoAn
Mng ký c hử ký ô5 Cỏc ciu hà thơỳng
Trạng thái hoạt động hệ thống
Thờ) gtan boat động 24'24 (L|ch bao UI định kỹ) Tỉnh bang hộ thống ( 16/05'2023 14:52) Hệ thõng hoạt dộng ốn định
Bân đõ mệt độ phương tiện
TRIỄN KHAI Cơ CHC một cưa QUÓC gia (ON click vào TÉN thú tực oế TÀI TÀI Lltu LIỀN QUAN)
1 Cắp phép nhệp khẩu các chát làm suy gửm tầng ỏ-dỗn
2 Cáp giấy phép nhập khâu tư đổng mờ-tỏ phân khổi lởn
3 Tnù tục cáp chưng nhặn xuât xứ co mâu D
4 cáp giây chửng nhận quy trinh Kimberley đốt VỚI kim cương thô
(Source: Vietnam NationalSingle Window https://vnsw.gov.vn/)
- Certificate ofVeterinary Hygiene (Veterinary department)
After registering, an officer inspects the factory and checks if the product meets standards If it passes, the veterinary department issues a clearance certificate to the company.
According to the signed contract, both parties agree that this shipmentwill beshipped by CIF method(Incoterms 2020) Therefore, NamVu Down - FeathersJoint Stock Company will rent a means oftransportation.
The sequence of stepsto proceed with the lease agreement through FWD is as follows:
Diagram 2.3.The process to rent transport ofNamVu Down - Feathers JSC
The company exports 1,500 kilograms of down and feather in 80 bags, equivalent to a container of 20 feet.