Bank information: - Bank: Joint Stock Commercial Bank for Foreign Trade of Vietnam - Address: B6-B7, Road 29/4, Ward 5, Trang Bom Town, Trang Bom District, Dong Nai Province - Swift code
FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS -*** - MID – TERM ASSIGNMENT Topic: Business Process Analysis Of Vietnam’s Import Of Rubber And Rubber Articles Class: TMAE302(GD2-HK2-2223).1 Group: 11 Instructor: Dr Phan Thi Thu Hien No Name Student ID Contribution Đặng Châu Anh 2113150005 100% Lê Yến Chi 2113150013 100% Vũ Thu Hiền 2113150029 100% Nguyễn Đăng Quang 2119090020 100% Lê Thị Phương Thảo 2112150161 100% Đỗ Thu Thảo 2113150069 100% Hanoi, June 2023 TABLE OF CONTENT INTRODUCTION 1! Overview of imports of rubber and articles thereof 2! Sales contract with primary conditions and terms 4! Mapping import process of Vietnamese trader 9! 3.1 Process area: BUY 11! 3.1.1 Conclude sales contract and trade terms 11! 3.2 Process Area: SHIP 12! 3.2.1 Obtain Import Permit 12! 3.2.2 Select and book the vessel 14! 3.2.3 Prepare import documents 16! 3.2.4 Inspect the goods 18! 3.2.5 Clear the goods through customs 19! 3.2.6 Transfer goods from docks to the importer’s warehouse 21! 3.3 Process Area: PAY 23! 3.3.1 Use letter of credit (L/C) for payment to exporter 23! Analysis of reclaimed rubber import process 28! 4.1 Descriptive bottlenecks of the process 28! 4.2 Root causes of the bottlenecks 29! Recommendation to improve import performance of Vietnamese businesses 30! 5.1.! Recommendations for Vietnamese enterprises 30! 5.2.! Recommendations for improvement 31! 5.3.! Proposed simplification of process 32! CONCLUSION 35! REFERENCES 36! TABLE OF FIGURES TABLE Table 1: Vietnam Import Turnover of Reclaimed rubber in primary forms or in plates, sheets or strip (HS: 400300) from 2017 to 2021 Table 2: Importing rubber and rubber articles from China 27! Table 3: The Time-procedure Chart of importing rubber and rubber articles from China 27! FIGURE Figure 1: List of main supplying markets for a product imported by Vietnam 3! Figure 2: Case Diagram "Import of rubber and rubber articles from China into Vietnam" 10! Figure 3: Activity Diagram of step " Conclude sales contract and trade terms" 11! Figure 4: Activity Diagram of step " Obtain Import Permit" 12! Figure 5: Activity Diagram of step " Select and Book the Vessel" 14! Figure 6: Activity Diagram of step " Prepare Import Documents" 16! Figure 7: Activity Diagram of step " Inspect the goods" 18! Figure 8:Activity Diagram of step "Clear the goods through customs" 19! Figure 9: Activity Diagram of step: "Transfer the goods from docks to the importer's warehouse" 21! Figure 10: Activity Diagram of step "Use L/C for payment to exporter" 23! Figure 11: Time - schedule chart of proposed import process of rubber and rubber articles from China 34! INTRODUCTION Rubber is a versatile material that can be stretched, molded, and shaped into various products Rubber can be natural or synthetic, depending on the source and production process Natural rubber is obtained from the latex of certain plants, mainly the rubber tree In contrast, synthetic rubber is made artificially from chemicals such as styrenebutadiene, polyacrylics, and polyvinyl acetate Rubber and articles thereof are classified under Chapter 40 of the Harmonized System (HS) of tariff nomenclature, which covers products such as tires, tubes, hoses, belts, sheets, gloves, and erasers Rubber is also an essential import item for Vietnam, as it needs to import synthetic rubber and rubber articles to meet the domestic demand for industrial and consumer goods In 2021, Vietnam imported $8.99M in Reclaimed Rubber, becoming the 12th largest importer of Reclaimed Rubber in the world In the same year, Reclaimed Rubber was the 855th most imported product in Vietnam Vietnam imports Reclaimed Rubber primarily from: China ($4.56M), India ($2.08M), Malaysia ($1.26M), South Korea ($664k), and Japan ($191k) To give recommendations on reducing bottlenecks and difficulties in the importation of reclaimed rubber in Vietnam, an in-depth analysis of the Import Business Process of reclaimed rubber in Vietnam using the BPA method is conducted in the paper Besides, a sale contract with primary terms and conditions is drafted and based on it, and the import process is mapped This paper also gives recommendations to improve the import performance of Vietnamese businesses 1 Overview of imports of rubber and articles thereof According to the trade statistics from ITC, Vietnam importation of reclaimed rubber in primary forms or in plates, sheets or strip reached the peak in 2019, with the figure of 9,894 Viet Nam's imports represent 1.9% of world imports for this product, its ranking in world imports is 13 This made Vietnam become the 13th largest importer of reclaimed rubber in primary forms or in plates, sheets or strip in the world Besides, in 2020, rubber and articles thereof were the 6th most imported commodity in Vietnam, with a total import value of around $9.5 billion USD according to the General Department of Vietnam Customs, attributed to the country's growing manufacturing and construction industries, as well as its reliance on foreign inputs to support its export-oriented economy Table 1: Vietnam Import Turnover of Reclaimed rubber in primary forms or in plates, sheets or strip (HS: 400300) from 2017 to 2021 Unit: US Dollar thousand Source: ITC Trademap Figure 1: List of main supplying markets for a product imported by Vietnam As can be seen in the graph, five main trading partners of Vietnam in reclaimed rubber importing are China, India, Malaysia, Japan and Taipei respectively Trading statistics were recorded in five years from 2017 to 2021 The second largest exporter of rubber into Vietnam, India had maintained a stable fluctuation in turnover, with the highest point of 2,908 thousand USD in 2021 Import value of rubber from Malaysia, Thailand and Japan saw different trends in development, with Taipei experiencing the most dramatic fall in imported value and ending with only 191 thousand USD in 2021 Although in the first three years, the proportion of rubber importation from Cambodia was insignificant compared to the runner-up India, it started to upsurge dramatically in 2020 and especially strip’s importation in 2021 with the value of 4,883 thousand USD This overwhelming imported value had made China the largest market for Vietnam’s reclaimed rubber in primary forms or in plates, sheets or Document continues below Discover more from:dịch TMQT Giao TMA302 Trường Đại học… 818 documents Go to course Phân tích hợp đồng 64 giao dịch thương m… Giao dịch TMQT 100% (10) Đề thi cuối kỳ giao dịch thương mại… Giao dịch TMQT 100% (10) Incoterms-2020 127 tiếng việt Giao dịch TMQT 100% (9) VỞ GHI GIAO DỊCH 69 Giao dịch TMQT 100% (5) tiểu luận GDTMQT 91 Giao dịch TMQT 100% (5) BÀI TẬP PHẦN XÁC 12 SUẤT – AAA Class… Giao dịch TMQT 100% (4) Sales contract with primary conditions and terms SALES CONTRACT Date: 25/05/2023 A SPECIFIC CONDITIONS SELLER Name: Jiaozuo BUYER Hongrui Rubber Name: Co., Ltd Address: West of Kenda Rubber (Vietnam) Co., Ltd Bei Village, Zhuncun Address: Zhongzhan District,454191 Ho Nai Industrial Park Trang Bom District - Dong Jiaozuo, Nai Province Henan Contact: Echo - Business manager Tel: 86-0391-82750520 Fax: 86-0391-3275698 Website: www.jzhrxj.com Contact: (84-251)3983171~3 (84-251)3983175 Website: Seller Buyer Signature Signature https://www.kendatire.com/ Place: Henan Place: Dong Nai Date: 25/05/2023 Date: 25/05/2023 It has been agreed that the Buyer buys and the Seller sells on the terms and conditions as follows: Article 1: Conditions and terms of commodity 1) Commodity: Reclaimed rubber in primary forms or in plates, sheets or strip (HS code: 400300) 2) Quantity: - Net weight: 20000 kg +- 5% Acceptable weight tolerance: 5% above or below at Buyer’s option The tolerance price is at the unit price of the contract - Product weighing at: Departure - Final certificate of quantity issued by Vinacontrol at Cat Lai port - Product description: 3) Quality - + Color: black + Form: “blanket” + Sheet size: 22mm max Composition Substance % by Weight Carbon Black 29 +- RHC (by difference) 30 +- Ash Content 12 +- Acetone Extract - 30 - Properties Property Specific gravity Unit Value 1.18 +- 0.03 Mooney Viscosity ML 35 +- 10 1+4 at 100oC Hardness Shore A 55 +- Tensile Strength kg/cm3 60 Elongation @ Break % 325 State of refining - Superfine Storage: Dry storage in a cool atmosphere Packaging: + Whole and cut blankets are packed in polyethylene bags on pallets, and shrinkwrapped 40 such parcels are packed onto a strong pallet, giving a unit load of 1,000-kilos net weight + The pallets have overall dimensions of 1,120mm x 1,120mm x 1,120mm and should not be double stacked Article 2: Contract price - Unit price: USD 0.45/ kg, FOB Cat Lai port, Incoterms 2020 - Total price: USD 9000 +- 5% - Invoicing: based on actual net weight of the shipment upon the inspection at loading port - The above prices include packaging costs and loading costs at the port of departure Article 3: Terms of delivery - Port of loading: Qingdao Port, Shandong Province - Port of discharge: Cat Lai Port, Ho Chi Minh City - Term of delivery: FOB Cat Lai port, Vietnam - Incoterms 2020 - Notice of shipment (Three times): + The seller must immediately notify the buyer when the goods are ready for delivery