(Tiểu luận) the importing procedure of cans andlids at highland dragon limitedliability company

Trang 1 ---***---MID-COURSE INTERNSHIP REPORTMajor: International Business EconomicsTHE IMPORTING PROCEDURE OF CANS AND Trang 3 HO CHI MINH CITY CAMPUS ---***---MID-COURSE INTERNSHIP RE

-*** -MID-COURSE INTERNSHIP REPORT

Major: International Business Economics THE IMPORTING PROCEDURE OF CANS AND LIDS AT HIGHLAND DRAGON LIMITED

LIABILITY COMPANY

Student: Nguyen Tran Hong Phuc Student ID: 211 315 3048 Class: K60CLC7 Professional consultant: MA Nguyen Ha Lien Chi

Ho Chi Minh City, July 2023

HO CHI MINH CITY CAMPUS

-*** -MID-COURSE INTERNSHIP REPORT

Major: International Business Economics THE IMPORTING PROCEDURE OF CANS AND LIDS AT HIGHLAND DRAGON LIMITED

LIABILITY COMPANY

Student: Nguyen Tran Hong Phuc Student ID: 211 315 3048 Class: K60CLC7 Professional consultant: MA Nguyen Ha Lien Chi

Ho Chi Minh City, July 2023

Pauline cullen the key

to ielts writing task 2International

32

STATEMENT OF AUTHORSHIP

Except where the reference is made in the text of the thesis, this thesisdoesn't include any information that has been published somewhere else or that wastaken entirely or in part from a thesis that the author used to obtain another degree

or diploma

No other person's work has been used in the thesis without proper credit.This thesis has not been submitted to any other educational institution for the award

of a degree or diploma

Ho Chi Minh City, July 2023

Nguyen Tran Hong Phuc

khóa - sv Nguyễn Min…International

27

University HCMC, first and foremost, for providing the author with an internshipopportunity in order to learn practical skills The author also wishes to thank MANguyen Ha Lien Chi – the direct instructor who immediately assisted, offeredrecommendations, and pointed out the weaknesses so that the author could completethe work in the best possible manner

During the process of researching and conducting the report, the authorwould like to express appreciation to Ms Nguyen Thi My - manager of the Import -Export Department, Mr Ngo Van Binh – manager of the HR and AdministrationDepartment, and all of the other colleagues in Highland Dragon's Import - ExportDepartment for their assistance and sharing of information

Despite best attempts, the report unavoidably has flaws and shortcomingsdue to the lack of time and knowledge to do a more in-depth study In order to makethe topic more comprehensive, the author would like to receive comments andsuggestions from the lecturers at Foreign Trade University HCMC to improve thework

Yours sincerely,

Ho Chi Minh City, July 2023

Nguyen Tran Hong Phuc

LIST OF TABLES ii

LIST OF FIGURES ii

INTRODUCTION 1

1.1 Historical background 2

1.1.1 Brief introduction of Highland Dragon Co., Ltd 2

1.1.2 Development process of Highland Dragon Co., Ltd 2

1.2 General information 2

1.2.1 Company information 2

1.2.2 Product portfolio of Highland Dragon Co., Ltd 3

1.3 Organizational structure 3

1.3.1 Organizational hierarchy chart of Highland Dragon Co., Ltd 3

1.3.2 Functions of Import - Export Departments in Highland Dragon Co., Ltd5 1.4 Business performance from 2020 - 2022 6

CHAPTER 2: JOB DESCRIPTION AND INTERNSHIP REFLECTION 8

2.1 Job description of documentation internship at the Import-Export Department 8

2.2 Internship reflection over the period 8

CHAPTER 3: IMPORTING PROCEDURE OF CANS AND LIDS AT HIGHLAND DRAGON CO., LTD 12

3.1 The importing procedure of cans and lids at Highland Dragon Co., Ltd .12 3.1.1 General flowchart of cans and lids importing procedure 12

3.1.2 Detailed analysis of cans and lids importing procedure 13

3.1.2 Detailed analysis of cans and lids importing procedure at Highland Dragon 14

3.2 Assessment of the current importing procedure of cans and lids at Highland Dragon Co., Ltd 19

3.2.1 Strengths 19

Highland Dragon Co., Ltd 21

3.3.1 Modernize the technology used in forecasting the demand 21

3.3.2 Expand the partner’s network 21

3.3.3 Adapt E-commerce to attract potential sellers 21

CONCLUSION 22

REFERENCES 23

APPENDIX 24

No Abbreviations Meaning

2 WTO World Trade Organization

4 ISO International Organization for Standardization

5 HACCP Hazard Analysis and Critical Control Points

6 BRC British Retailer Consortium

8 L/C Letter of Credit

9 C/O Certificate of Origin

11 EIR Equipment Interchange Receipt

1 Table 1.1 Business outcome of Highland Dragon Co.,

No Name of Figures Page no.

1 Figure 1.1 Organizational hierarchy chart at Highland

4 Figure 3.1 Flowchart of importing procedure of cans

and lids at Highland Dragon Co., Ltd

Vietnam has put a lot of effort into promoting foreign trade activities duringthe last three decades The trend further accelerated after Vietnam successfullygained World Trade Organization (WTO) membership in 2007, which assist thecountry in negotiating various free trade agreements (FTAs) with key tradingpartners Since then, Vietnam has made many amazing strides in both export andimport activities According to WTO, in terms of scale, Vietnam's exports in 2021ranked 23rd and imports ranked 20th in the world

It is obvious that import and export are crucial to the advancement ofVietnam as it contributes to the development of the national economy, generateslarge amount of capital and strengthens international ties Especially, import plays asignificantly important role in helping Vietnamese businesses to buy goods andservices at lower prices than if they were self-produced In recent years, plastic andaluminum articles have become one of Vietnam's main import industries, providingthe country with a sizable source of quality materials and encouraging the growth ofother activities As a result, it is imperative to learn about and research on howVietnamese enterprises conduct contracts to import these products

Starting from the aforementioned problem, after a period of studying atForeign Trade University and at the request about mid-term internship, the authorapplied for a 2-month internship at Highland Dragon – the organization with morethan 23 years of experience in manufacturing seafood The author chose topic "Theimporting procedure of cans and lids at Highland Dragon Company Limited" topossess a concrete understanding of the procedure used by business to sign andperform import contracts as well as to identify its strengths and weaknesses.Following that, the author offers suggestions for enhancing the effectiveness of thecompany's import performance, which will aid in the company's future growth Excluding the Introduction and Conclusion, the internship report is dividedinto three chapters as follows:

- Chapter 1: Overview of Highland Dragon Co., Ltd

- Chapter 2: Job description and internship reflection

CHAPTER 1: OVERVIEW OF HIGHLAND DRAGON CO., LTD 1.1 Historical background

1.1.1 Brief introduction of Highland Dragon Co., Ltd

Highland Dragon Co., Ltd is a 100% American-owned firm that beganoperations in July 1999 under the investment registration certificate number 21/GP-KCN-BD granted by the Binh Duong Industrial Park Management Board andbusiness license number 3700303100

Currently, the company operates three factories in the following sectors:(1) Canning factory: Located at the company's head office - No 15, Street 6, SongThan 1 Industrial zone, Di An ward, Di An town, Binh Duong province, specializing

in processing canned seafood, frozen seafood

(2) Rice factory: Located in Hamlet 3, Long Can commune, Can Duoc district,Long An province, specializing in processing, packing, milling, and exporting rice.(3) Frozen goods factory: Located at Lot B2-22.25, Street No 3, Tan Dong Hiep BIndustrial Park, Di An town, Binh Duong province, specializing in the production offrozen seafood and frozen agricultural products cold

1.1.2 Development process of Highland Dragon Co., Ltd

Highland Dragon firm developed a rice factory in Long An province in 2012,mostly selling to the United States, Australia, and the European Union

In 2015, the company put a high-quality frozen fruit and vegetableprocessing factory - Highland Dragon Foods at Tan Dong Hiep B Industrial Park(Binh Duong) come into operation

Both factories have gained certificates to ensure excellent productionprocesses, such as HACCP and BRC

1.2 General information

1.2.1 Company information

- Name of the company: HIGHLAND DRAGON CO., LTD

- English name: HIGHLAND DRAGON ENTERPRISE

- Short name: HDE

- Type of business: 100% foreign-owned company

1.2.2 Product portfolio of Highland Dragon Co., Ltd

The company's main activities are processing and trading canned and frozentuna for export and domestic consumption The company's products always satisfyfastidious importers thanks to high-quality products and a production system thatmeets HACCP, ISO 22000, and BRC standards, and other certifications such asDolphin Safe and Kosher certification Jewish food safety

In addition to using tuna as its primary raw material, the company alsobroadened its product line by processing various fish, including herring, scad, aswell as by varying processing recipes and flavors to accommodate a range ofconsumer preferences

The company established and put into operation a rice factory in Long An (in2012), a frozen fruit and vegetable processing machine in Tan Hiep B IndustrialPark (2015), in addition to its core goods, canned tuna and frozen tuna, aspreviously indicated The majority of the goods produced by these two enterprisesare still intended for domestic use, although the amount is still fairly small

1.3 Organizational structure

1.3.1 Organizational hierarchy chart of Highland Dragon Co., Ltd

Highland Dragon is a 100% American-owned company headquartered inVietnam, has served millions of customers globally, and brings the reputation of aninternational brand To achieve the best results for business activities, theorganizational structure of the company must be very specific and separate for each

specialized tasks and meet specific requirements to ensure the quality and quantity

of work as follows:

Figure 1.1 Organizational hierarchy chart at Highland Dragon Co., Ltd

Source: Human Resources Department of Highland Dragon Co., Ltd 2023

To be more specific, through the above model, each department can optimizeits main functions and successfully complete its own tasks:

General Director: Directly administer the work and processes of the wholecompany; sign contracts directly

Domestic Sales Department: Manage and supervise the company's businessactivities in the domestic area

Accounting Department: Organize and manage accounting statistics usingfinancial statements, and activities related to financial management; inspect and

Administration Department: Manage and administer security, reception, fleetmanagement, kitchen, environment, fire protection, wastewater treatment, and workrelated to pick up and drop off guests

Human Resources Department: Allocate budget related to labor costs,organize and implement human resource activities according to regulations.Procurement Department: Finds, manages, and evaluates the supply to makesure it satisfies the company's requirements and that it is of the proper quantity andquality to support the production process

Import - Export Department: Conducts and manages all commercialtransactions on an international scale, including import and export activities, forexample: preparing documents, renting means of transport, customs clearance, Production and raw materials department: Process input materials andproducing finished products, ensuring the required quantity and quality, andfollowing the prescribed process

Maintenance Department: Manage, repair and maintain equipment andfacilities

Quality Control Department: Establishing policies, procedures to make surethat the factory's output complies with standards for hygiene and food safety set byclients and authorized organizations

Quality Assurance Department: Manage the laboratory's work on productmicrobiological testing, engage with the QC and production teams to build anddevelop policies for the company's quality control systems, track downnonconformities and product origins, and assess suppliers

R&D Department: Researching consumer tastes, market research,researching products to develop products in both depth and breadth

Warehouse Department: Control raw materials, and finished productsimported and exported from the factory

1.3.2 Functions of Import - Export Departments in Highland Dragon Co., Ltd

The main function of the Import - Export Department is to manage, control,

department's activities - such as hiring transportation, handling customs processes,delivering notices, creating paperwork, asking for payment and receiving payment,guaranteeing payment,… - are focused on import and export-related concerns.

1.4 Business performance from 2020 - 2022

Table 1.1 Business outcome of Highland Dragon Co., Ltd in 2020 - 2022

Unit of measurement: USD

Revenue 58.258.577,00 53.301.146,26 60.152.795,00

Expenses 55.317.937,00 51.785.144,00 57.876.153,00

Profit after taxes 2.240.889,00 1.081.181,58 2.366.642,00

Source: Accounting Department of Highland Dragon Co., Ltd 2020 - 2022

In general, the company always aimed to maintain the revenue fromexporting canned tuna at roughly USD 50.000.000, and the profit after taxes of thisitem likewise maintains above USD 1.000.000 per year over the period from 2020

to 2022 Due to the effects of the Covid 19 in 2021, the company's income,expenses, and profits after taxes all experienced a decline Especially, the company'sprofit after taxes in 2021 plummeted by 30% from 2.240.889,00 to 1.081.181,58USD However, the business environment for the company quickly recovered andbecame better between 2021 and 2022 The year 2022 witnessed a substantialincrease in yearly revenue of 4% and profit after taxes of over 40% compared to theyear 2020

Table 1.2 Expenses structure of Highland Dragon Co., Ltd 2020 – 2022

Giá trị % Giá trị % Giá trị %Raw material 39.715.659,52 71,3 36.628.245,03 70,74 40.329.485,32 69,68Packaging 15.602.277,48 28,2 12.528.532,00 24,19 16.723.358,00 28,90Other 245.715,48 0,50 2.628.366,97 5,07 823.309,68 1,42Total 55.317.937,00 100 51.785.144,00 100 57.876.153,00 100

Source: Accounting Department of Highland Dragon Co., Ltd 2020 - 2022

It can be seen from the structure that most of the company’s main expenseswere from importing seafood raw materials, accounting for more than 70% of allyear and even reached nearly 72% in 2020 Besides, packaging including cans and

period, which plays an essential role in maintaining the smooth operation of thecompany.

Figure 1.2 The number of B/L by month in Highland Dragon in 2019 - 2023

Source: Import - Export Department of Highland Dragon Co., Ltd 2023

Although the number of B/L witnessed a slight decrease in 2021, it quicklyincreased by almost half of 2022 compared to that of 2020 Of the total 1,245 Bills

of Lading on file for Highland Dragon Enterprise between March 8th, 2019, andJuly 13th, 2023, there were 1033 shipments recorded between Highland Dragon andWild Planet Foods Inc Most of the company orders are from the long-establishedpartners, which help them to maintain stable revenues during the hard time period

CHAPTER 2: JOB DESCRIPTION AND INTERNSHIP REFLECTION 2.1 Job description of documentation internship at the Import-Export Department

The main task of the documentation internship at the Import - Export Department inHighland Dragon Co., Ltd is to prepare shipment-related documents; label, sort, andcategorize documents for ease of use; comprehend foreign trade procedures and practices;collaborate with colleagues to ensure consistency of documentation practice In order toeffectively complete the tasks, organizational skills and attention to detail are significantlyimportant Moreover, excellent written and verbal communication in English is also a must

to better grasp the terminology

2.2 Internship reflection over the period

After nearly two months of working in the Import – Export Department of HighlandDragon Co., Ltd, the author had a deeper practical understanding of the company'soperations and saw how the theoretical knowledge could be put to use through a chance towitness a real shipment of the organization The following table provides a summary ofthose tasks:

Table 2.1 Summary of internship period at Highland Dragon Co., Ltd

- Receive training for terminology

used in documentation practice

- Use OKRs model to set goals

- Can basically understand more than 50+ terminology

- Have a detailed to-do-list to complete during the internship

- Create good relationships with other colleagues

Week 2

(10/07 – 14/07)

- Learn how to find HS Code

- Understand Custom Tariff

numbers for each industry

- Translate documentation

- Get training about Importing

procedure through real case

- Practice reading Import – Export

- Get basic knowledge about international trade policy in the

US such as tariff measures, tariff measures, and export duty for seafood, rice and imported cans/ lids

non Basically understand Import

Date Details Result

shipment with ENVASES

- First check-in with OKRs

shipment with ENVASES

Week 3

(17/07 – 21/07)

- Learn the way to declare

electronic customs for the

exporting of canned tuna using

ECUS5-VINACCS

- Correct errors in Import - Export

documents

- Write commercial correspondent

emails to Natural Catch Seafood

LLC

- Second check-in with OKRs

- Understand the way to makecustoms declarations

- Using accurate words to writeformal emails to Natural CatchSeafood LLC to make an offer

- Improve office computer skills toaccurately complete thedocuments

Week 4

(24/07 – 28/07)

- Support to complete the set of

documents for the shipment to the

US with Natural Catch Seafood

LLC

- Correct the mistakes in the

company’s website using

GTranslate application

- Third check-in with OKRs

- Can keep track, find and correctmistakes in the documents withNatural Catch Seafood

- Know the way to use GTranslateapplication to correct the spellingmistake on the company website

- Develop critical thinking anddata-oriented mindset

- Improve pitching andpresentation skills

- Laern to use GetResponse tocreate E-mail MarketingWeek 6

(07/08 – 11/08)

- Receive the manager’s feedback

and suggestion for improvement

- Develop working skills: timemanagement, communication,

Date Details Result

- Understand the author’s ownstrengths and weaknesses toimprove in the future

During the internship period, the author gained various experiences, boththeoretical and practical In the first weeks from 03/07 – 14/07, the author received trainingrelated to Import – Export industry such as terminology used in documentation practice,the flowchart of importing and exporting procedures as well as got to know the company’sproducts and the operations of each department Moreover, through observation andcommunication with colleagues, the author had a better understanding of the corporateculture as well as the task specialization for each member of the Department

In the second week from 10/07 – 14/07 , the author had a deeper view of the importand export procedure in the company after being trained by the manager – Ms NguyenThi My Through the example of real consignment with ENVASES for importing cans andlids, one of the most reliable suppliers of Highland Dragon for over 10 years, the authorcould understand documentation practices in the company

In the next two weeks, the author had opportunities to directly join a realdocumentation practice in Highland Dragon with Natural Catch Seafood LLC The authorlearned to write commercial inquiries for product: tuna fillets in oil with or without chili.Although the tasks were quite simple such as typing data based on the previous emails,checking the accuracy of the information, replying to emails in a formal manner, andarranging the order of documents, the author could be more familiar with the workingenvironment and develop a detail-oriented mindset

` In the fifth week, the author was assigned a new task of researching potentialbuyers for the company based on the previous data provided After two days, the authorhad to present the reasons to the manager With the main products: tuna fillets in oil with orwithout chili, the author concentrated on some canned seafood retailers in Asian countriesand shortlisted them based on their creditability, years of experience and availability inonline channels Finally, the two potential options are Maruha Nichiro in Japan and

In order to ensure that all employers can get the best result not only in theirworkplace but also on a daily basis, Highland Dragon uses one special methodology to setchallenging goals with measurable outcomes called OKRs (Objectives and Key Results).Every Tuesday, a one-by-one meeting will be scheduled by the HR department with eachemployee to check in and see whether all of the objectives were met This regular check-inhas helped author a lot in develop discipline, adaptability and flexibility to complte all thegoals At the final check-in, the author completed 100% of the OKRs and is ready to setmore ambitious goals in the future.

Figure 2.1 The author’s OKRs plan for six weeks between 03/07 – 11/08

Source: Author's own compilation 03/07- 11/08

During the internship, the author faced some difficulties of lackingspecialized knowledge to complete tasks related to documentation practices.However, with the willingness to learn, the author successfully fullfiled all theresponsibilities and therefore, develop skills such as communication, time-management and computer offices (Excel, Word, Google Sheet,…) Moreover, theauthor also can applied knowlegde at school such as Commercial Correspondence,Supply Chain Management, Marketing,… into reality to complete the related tasks

CHAPTER 3: IMPORTING PROCEDURE OF CANS AND LIDS AT

HIGHLAND DRAGON CO., LTD 3.1 The importing procedure of cans and lids at Highland Dragon Co., Ltd 3.1.1 General flowchart of cans and lids importing procedure

In Highland Dragon, every step in the import procedure is conducted withhigh accuracy as the failure in one node can result in the disruption of manyfollowing steps Basically, the author figures out that there are 9 steps to conductone contract to import packaging materials such as cans and lids:

Figure 3.1 Flowchart of importing procedure of cans and lids at Highland

Dragon Co., Ltd

3.1.2 Detailed analysis of cans and lids importing procedure

(1) Purchase order

Firstly, Purchasing Department will contact the supplier and send a PurchaseOrder or PO to them The PO should list detailed information about the two parties,description of the products, price, quantity, and total value of the shipment as well

as other specifications

(2) Order confirmation

Following the receipt of the PO, the supplier will confirm it once again byreturning to Highland Dragon the PO that the supplier has signed and issued anOrder Confirmation Letter that the purchase process is successful

After receiving the Confirmation Order Letter from the seller, HighlandDragon checks the information to see if there are any discrepancies with their order

If there is some mistake, it must be discovered right away so that the two parties canboth fix the Confirmation Letter

Otherwise, the Purchasing Department sends all relevant documents to theAccounting and Import - Export Departments for preparation to open the LCaccording to the payment terms on the order that both parties have confirmed.(3) Issuance of Letter of Credit

Usually, Highland Dragon chooses VietinBank to be their issuing bank inVietnam After the signature of the sale contract, Import – Export Department inHighland Dragon will apply to VietinBank for the issuance of LC in favor of theexporter and fill in the “Letter of Credit Application Form” in electronic format.Almost all transactions of Highland Dragon use irrevocable LC as the companywants to express goodwill and present their reliability to the suppliers

(5) Customs procedure

Normally, three days before the arrival of the goods, the shipping agent willsend a Notice of Arrival so that Highland Dragon can prepare to receive the goods.The company needs to conduct customs declaration through ECUS5-VINACCS andwait for the result to print the declaration to pick up the goods Some steps include:Step 1: Pre-declaration (IDA): Declare the first time to check information,

Step 3: Official declaration (IDC): The declaration will now be uploaded tothe Customs system However, it can still be corrected according to the instructions

in Article 20, Circular 38/2015/BTC_dated March 25, 2015)

Step 4: Get the result and be ready to pick up the goods

(6) Receive D/O

The company contacts the seller's shipping agent to receive the DeliveryOrder D/O Also, Highland Dragon must pay relevant costs (loading and unloadingfees, D/O fees, container cleaning fees, agency fees,…)

(7) Borrow containers and make a deposit

To be able to drag the container to the company warehouse, HighlandDragon has to borrow the container and pay a deposit fee After paying all fees, theShipping Line will give the DO in 4 copies If the goods are shipped directly to theShipping Line, there is 01 set of D/O issued by the Shipping Line, and if via theforwarder, there must be 02 sets of D/O (by the Shipping Line and the forwarder).(8) Port affair

After completing the procedures for borrowing containers and placingdeposits with Shipping Lines, the Import – Export staff will go to the port andsubmit the D/O at the port sales office, at the same time pay the container lifting feeand receive the Equipment Interchange Receipt (referred to as EIR)

3.1.2 Detailed analysis of cans and lids importing procedure at Highland Dragon

(0) Overview of the contract

Highland Dragon signed with Natural Catch Seafood LLC an annual contract

to export canned tuna fillets in oil with or without chili to US consignees in08/2023 Therefore, to prepare for this shipment, on 31/08/2022, Highland Dragonmade an order to ENVASES to import cans and lids to package tuna

The products are Club cans (gold) and Club lids (gold) made fromaluminum With anti-bacterial and anti-odor features, they are ideal packages forfish and seafood products Highland Dragon and ENVASES have more than 10

lines As a result, ENVASES is one of the most reliable suppliers of HighlandDragon

Figure 3.1 Imported cans and lids used for exporting canned tuna at Highland

The shipment was transported by sea, in a full container under CIF terms atCat Lai Ho Chi Minh City port, Vietnam, (Incoterms 2010), with a total value ofabout 134,663.47 USD, equivalent to 1,036,800 Club cans (Gold) and 1,038,240Club lids (Gold) Payment shall be made by irrevocable L/C at sight, to be opened

to the account of ENVASES in Jyske Bank, Denmark, in the seller’s favor for thetotal value of the consignment

(2) Order confirmation

On the same day, supplier ENVASES contacted again via email to agree onthe terms related to the shipment after receiving the order of cans and lids fromHighland Dragon The two parties sign this Confirmation Letter and agree that thiswill be the contract for the shipment According to the Confirmation Letter (or thecontract), ENVASES will conduct the transaction with the following requirements:

- Packaging: By pallet and shrink wrap with P.E film

- Quantity:

+ Club can gold 29mm type I: 1,036,800 Pcs

+ Club lid gold EO: 1,038,240 Pcs

- Port of Discharge: Cat Lai Port, Ho Chi Minh City, Vietnam

- Port of Loading: Hamburg Port, Hamburg, Germany

- Delivery time: Before 10/10/2022

- Payment: By irrevocable LC at sight, to be opened to the account of ENVASES inJyske Bank, Denmark

Consequently, the Procurement Department of Highland Dragon sentrelevant documents to the Accounting and Import-Export Department to open the

LC based on payment terms of the order that both parties have confirmed.(3) and (4) Open L/C and make payment

Firstly, Highland sent a request for the issuance of Draft LC to VietinBank(attached documents include PO, Order Confirmation Letter, and Application forIssuance of Draft LC) After receiving the request, VietinBank provided a Draft LCvia e-mail based on all requirements that Highland Dragon sets forth

Applicant: Highland Dragon Enterprise

Di An City, Binh Duong Province, Vietnam

The issuing bank: Vietnam Joint Stock Commercial Bank for

Industry and Trade, Binh Duong Branch (Vietinbank)

Beneficiary: ENVASES EUROPE A/S

Hedenstedvej 14, Loesning, Jutland, Denmark

The advising bank: Jyske Bank, Denmark

Figure 3.1 LC opening process between Highland Dragon and ENVASES

Source: Author’s own compilation 2023

In the first step, Highland sent a request for the issuance of Draft L/C toVietinBank (attached documents include PO, Order Confirmation Letter, andApplication for Issuance of Draft LC) After receiving the request, VietinBankprovided a Draft LC via e-mail based on all requirements that Highland Dragon setsforth

In the third step, Highland Dragon sent the Draft L/C to ENVASES so thatthe seller can check and confirm all the terms in the L/C Because the L/C did notcontain any discrepancies, ENVASES agreed to the terms of the L/C andreconfirmed for Highland Dragon to open the official L/C

In the fifth step, after completing the signing of all relevant documents andsending the official “Application for Issuance of L/C and Payment Commitment” toVietinbank, Highland Dragon could receive the official L/C from this bank in 22/09.Simultaneously, Vietinbank sent the notice and official L/C to Jyske Bank inDenmark Then Jyske Bank notified ENVASES that the official LC has been openedand ENVASES now could prepare all documents and goods required in the LC Following that, in the ninth step, ENVASES sent all the prepared documents