TABLE OF CONTENTS LIST OF ABRREVIATIONS ................................................................................... i LIST OF FIGURE .................................................................................................... ii LIST OF TABLES ................................................................................................... iii INTRODUCTION .................................................................................................... 1 Rationale ...................................................................................................................... 1 Research objectives ...................................................................................................... 3 Research scope ............................................................................................................. 3 Research methodology ................................................................................................. 4 Synthetic analysis method ........................................................................................ 4 Systematization method ............................................................................................ 4 Research Structure ....................................................................................................... 4 CHAPTER 1: THEORETICAL BASIS ................................................................. 5 1.1 Process .................................................................................................................... 5 1.1.1 Definition of Process ....................................................................................... 5 1.1.2 Criteria to evaluate process .............................................................................. 5 1.2 Freight Forwarding................................................................................................. 6 1.2.1 Definition of Freight Forwarding and Forwarder ............................................ 6 1.2.1 Role of Forwarder in the Export – Import Freight Forwarding Process ......... 7 1.3 Full Container Load (FCL) .................................................................................... 9 1.4 Handling Procedures for Documentation of Full Container Load (FCL) Export Cargo via Sea Freight ................................................................................................... 9 1.4.1 Definition and Role of Documentation in Export Greight Forwarding .......... 9 1.4.2 Process of Documentation for Full Container Load (FCL) Export Cargo Handling via Sea Freight ........................................................................................ 11 1.4.3 Classification of Documentation for Export Freight Forwarding ................. 15 1.4.3.1 Sale contract .......................................................................................... 15 1.4.3.2 Shipping Instruction (SI) ....................................................................... 16 1.4.3.3 Booking Note/ Booking Confirmation .................................................. 16 1.4.3.4 Commercial Invoice .............................................................................. 17 1.4.3.5 Packing List ........................................................................................... 17 1.4.3.6 Bill of Lading ........................................................................................ 18 1.4.3.7 Customs Declaration ............................................................................. 19 CHAPTER 2: OVERVIEW OF TOP SHIPPING JOINT STOCK COMPANY – DA NANG BRANCH ............................................................................................. 21 2.1 Overview .............................................................................................................. 21 2.1.1 General Information about TOP SHIPPING Joint Stock Company and TOP SHIPPING – Da Nang Branch ............................................................................... 21 2.1.1.1 General Information about TOP SHIPPING Joint Stock Company ..... 21 2.1.1.1 General Information about TOP SHIPPING Joint Stock Company – Da Nang Branch ...................................................................................................... 23 2.1.2 Historical Formation and Achievements ....................................................... 23 2.1.3 Mission and Operating Principles:................................................................. 24 2.1.3.1 Mission .................................................................................................. 24 2.1.3.2 Operating Principles .............................................................................. 24 2.1.4 Organizational Structure ................................................................................ 25 2.1.4.1 Organizational structure of TOP SHIPPING Company ........................ 25 2.1.4.2 Structure of TOP SHIPPING – Da Nang Branch.................................. 26 2.1.5 Responsibilities of Departments at TOP SHIPPING Company – Da Nang Branch ..................................................................................................................... 26 2.1.6 Company Resources ...................................................................................... 28 2.1.6.1 Facilities and Infrastructure ................................................................... 28 2.1.6.2 Human resource ..................................................................................... 28 2.1.7 Business Performance .................................................................................... 30 2.2 Business Activities of TOP SHIPPING Branch in Da Nang ............................... 30 2.2.1 Sea freight ...................................................................................................... 30 2.2.2 Air freight ...................................................................................................... 31 2.2.3 Road freight ................................................................................................... 31 2.2.4 Door-to-Door ................................................................................................. 32 2.2.5 Project Cargo ................................................................................................. 32 2.2.6 Customs Clearance ........................................................................................ 33 CHAPTER 3: EXPORT DOCUMENTATION HANDLING PROCESS FOR TEXTILE GARMENTS BY SEA AT TOP SHIPPING VIETNAM JOINT STOCK COMPANY - DA NANG BRANCH ...................................................... 34 3.1 Commodity Introduction ...................................................................................... 34 3.2 Export Documentation Handling Process for Full Container Load (FCL) Textile Garments at TOP SHIPPING Vietnam Joint Stock Company - Da Nang Branch .... 35 3.2.1 Receiving Customer''''s Request ...................................................................... 37 3.2.2 Booking with Shipping Line and Obtaining Booking Confirmation/Booking Note ......................................................................................................................... 39 3.2.2.1 Booking with Shipping Line and Obtaining Booking Confirmation .... 39 3.2.2.2 Sending Booking Note to Customer ...................................................... 42 3.2.3 Custom Clearance .......................................................................................... 43 3.2.4 Receiving SI, VGM Information from Customer to Issue House Bill of Lading (HB/L) ..................................................................................................................... 49 3.2.5 Preparing SI, VGM for Shipping Line to Apply for Master Bill of Lading (Master B/L) ........................................................................................................... 51 3.2.5.1 Submitting SI and VGM to Shipping Line via Website ........................ 51 3.2.5.2 Receiving, Checking and Confirming Draft MB/L with Customer and Shipping Line .................................................................................................... 55 3.2.6 Sending Documents to Overseas Agent (If Any) .......................................... 56 3.2.7 Sending Debit Note and Full Set of Documents to Customer ....................... 57 3.2.8 Monitoring, Receiving and Solving Shipment Issues until Delivered to Consignee ................................................................................................................ 58 CHAPTER 4: LUTIONS AND RECOMMENDATIONS FOR IMPROVING THE DOCUMENTATION PROCESS FOR EXPORTING FULL CONTAINER LOAD (FCL) TEXTILE GARMENTS AT TOP SHIPPING VIETNAM JOINT STOCK COMPANY - DA NANG BRANCH. .................................................................... 59 4.1 Advantages ........................................................................................................... 59 4.2 Limitations ........................................................................................................... 60 4.3 Proposed Solutions for Improving the Documentation Process for Exporting FCL Textile Garments by Sea at the Company .................................................................. 61 4.3.1 Solutions for Document Processing............................................................... 61 4.3.2 Solutions for Improving the Professional Expertise ...................................... 61 CONCLUSION ....................................................................................................... 63 REFERENCES ......................................................................................................... 1 APPENDIXES ........................................................................................................... 5
THEORETICAL BASIS
Process
Numerous studies by different authors have provided various definitions and perspectives on a business process According to the Fundamentals of Business Process Management, a business process is a sequence of events, activities, and decisions aimed at adding value to the organization and its customers (Marlon Dumas, et al., 2018) (Hammer, 1994) previously defined a process as a set of activities utilizing one or more types of inputs and performing transformational, processing, value-adding activities to generate outputs that benefit customers However, regardless of interpretation, a process essentially represents what a company delivers to its customers, whether it be products or services The manner in which a company designs its processes can significantly impact customer perceptions and evaluations of both the product and the company itself
In ISO 9001:2015, a "procedure" is a detailed, specific method for executing an activity or process It may be documented as instructions, regulations, or processes Within organizations and businesses, procedures represent standardized, formalized ways of conducting activities, which are recorded and stored (ISO - International Organization for Standardization, 2015) A procedure serves as a guide for carrying out a process A company with clear procedures facilitates smooth execution of operations, helps to prevent errors, and thereby contributes to enhancing operational efficiency and the company's reputation with its customers
According to (Marlon Dumas, et al., 2018), the criteria for evaluating a process include time, cost, quality, and flexibility
Regarding time, it has long been a measure of competitive advantage for businesses in the market (Marilyn M Helms, et al., 2000) Meeting time requirements is a fundamental expectation for any business, regardless of its sector
Various criteria can serve as measures for cost, including fixed costs, variable costs, labor costs, operating costs, etc Among these, operating costs are highlighted as a significant part of assessing a company's performance (Muhammad Istan, et al., 2021) has previously asserted that operating costs are a critical factor directly related to a company's profitability Additionally, labor costs - expenses related to workforce in production and service provision - also play a crucial role in evaluating procedure performance
(Manghani, Kishu, 2011) asserts that high quality is paramount for achieving its strategic business objectives Quality is among the critical competitive advantages of the company, and can also serve as a distinguishing factor for its products and services Nowadays, a crucial measure for assessing product and service quality is the level of customer satisfaction
According to (Slack N , 1987), flexibility pertains to the ability to adapt and alter production or service processes to meet new requirements and conditions The assessment of flexibility encompasses two criteria: time flexibility and cost flexibility Specifically, flexibility evaluates a business's capability to adapt and respond to changes in different time periods of customer demand.
Freight Forwarding
1.2.1 Definition of Freight Forwarding and Forwarder
Accroding to FIATA, “Freight Forwarding Services means services of any kind relating to the carriage, consolidation, storage, handling, packing or distribution of the Goods as well as ancillary and advisory services in connection therewith, including but not limited to customs and fiscal matters, declaring the Goods for official purposes, procuring insurance of the Goods and collecting or procuring payment or documents relating to the Goods” (FIATA, 2019)
While freight forwarding encompasses a diverse range of services, three primary categories can be identified based on their specialization and service scope (Milorad Kilibarda, 2016)
First, full-service freight forwarders who offer a comprehensive suite of logistics solutions These services typically include packing, cargo unit formation, transportation, storage and reloading, document preparation, customs clearance, and transportation insurance The second consists of companies specializing in customs brokerage primarily navigating the complexities of customs procedures to ensure the smooth import and export of goods The third features freight forwarders who focus on transport brokerage and trade flow management Their expertise lies in arranging transportation modes and coordinating the flow of goods throughout the supply chain
As of now, there is no universally agreed definition for the term "Forwarder," but various perspectives have been proposed by researchers "Freight Forwarder means the person concluding a contract of Freight Forwarding Services with a Customer." (FIATA, 2019) Others, such as (Mohamed, et al., 2023), regard a Forwarder as an entity or individual providing transportation services, arranging the movement of large shipments from manufacturers or factories to retailers or other destinations Similarly, (Douglas M, et al., 1998) has also argued that international freight forwarders have long been recognized as indispensable facilitators of cross-border trade
In summary, it can be said that a forwarder in international transportation acts as an intermediary providing a range of post-shipment services to facilitate the transportation of goods from origin to destination Forwarders become supportive elements in a business's import-export activities, making the process smoother and more streamlined through their skills, network relationships, and connections with other third parties
1.1.1 Role of Forwarder in the Export – Import Freight Forwarding Process
Currently, the trend of globalization is significantly pronounced Consequently, competition within the logistics industry is intensifying Freight forwarding services are increasingly assuming an irreplaceable role in the sector They function as a tool for enterprises to enhance their competitive advantage in the import-export process Freight forwarders play a central role as intermediaries between buyers and sellers, facilitating seamless and continuous transactions between consignees and shippers
Figure 1-1 Forwarder’s Position in the Import – Export Process
(Burkovskis, 2008) has emphasized the role of freight forwarders as intermediary organizations for facilitating the transportation of goods, being responsible for providing timely services, especially for companies with large cargo volumes This significantly shortens the transit time of shipments Additionally, (Huang Sheng Teng, et al., 2019) has asserted the vital role of freight forwarders as logistics service providers, aiding shippers in completing procedures and tasks related to cargo transportation Moreover, freight forwarders maintain close cooperative relationships with carriers such as shipping lines and airlines Collaborating and fostering good relationships with carriers enable forwarders to obtain competitive rates and deliver the best services to their customers
In conclusion, the role of freight forwarders in import-export operations is undeniably essential This becomes even more critical for a new entrant in the market or when engaging in trade activities within an entirely unfamiliar market The forwarder's significance is heightened as they facilitate seamless import-export processes, from contract signing to the completion of delivery operations.
Full Container Load (FCL)
Full Container Load or FCL is a packaging method suitable for large and uniform shipments, fully packed in one or more containers In cases where the exporter possesses a substantial volume of goods, they will reserve the container exclusively for their cargo Full container delivery refers to the transportation of goods from Container Yard (CY) to Container Yard (CY)
According to Trade Finance Global, FCL offers cost advantages based on per-unit basis (Trade Finance Global) Additionally, the fixed nature of import fees eliminates dependency on volume, ensuring consistent payments regardless of quantity One advantage of utilizing Full Container Load (FCL) is its flexibility regarding departure times For example, if you are a manufacturer, you may need to ship your products to a customer as soon as they are finished being produced
When shipping via FCL, the exporter is responsible for packaging and loading the goods into the container provided by the carrier Subsequently, the shipping entity will transport the entire container to the recipient via sea, air, road, etc The recipient is then responsible for unloading the cargo from the container while ensuring its integrity before returning it to the carrier.
Handling Procedures for Documentation of Full Container Load (FCL) Export
1.4.1 Definition and Role of Documentation in Export Greight Forwarding
Documents in the logistics and transportation operations, issued by authorized organizations or agencies, contain information regarding the goods, transportation, insurance, and payment This set of documents facilitates the smooth and transparent process of importing and exporting goods, ensuring efficiency Additionally, these
10 documents serve as evidence, providing a basis for the importer to receive the shipment, make payments, and address any disputes that may arise between the parties Throughout the logistics process, various types of documents may be provided by either the exporter or importer, aiming to ensure the credibility of the exporter and guarantee that the importer receives the goods in the specified quantity and quality
For a freight forwarder, documentation plays a pivotal role, constituting one of the core services of the business A smooth and accurate document processing procedure not only enhances the company's standing in the eyes of clients but also extends its reputation within the logistics industry at large Ensuring comprehensive documentation is essential, particularly in cross-border transactions between two enterprises from different countries, as contracts for purchasing, transporting goods, or making payments all rely on the documentation
1.4.2 Process of Documentation for Full Container Load (FCL) Export Cargo Handling via Sea Freight
Figure 0-2 Basic Document Handling Procedures in International Logistics
For the document processing procedure, the steps will closely resemble those of a typical export shipment process Therefore, the step-by-step analysis below will focus on the role of documents as well as the department responsible for document processing to provide a specific insight into the document processing procedure in export shipment logistics
Step 1: Receive customer booking requests
The documents associated with this step are not yet considered formal documents according to the procedure However, customer booking request emails are of paramount importance for processing personnel to grasp the customer's shipment requirements as well as any delivery instructions
The forwarder will receive booking requests from customers to proceed with the booking with the shipping line for the customer's cargo Typically, for returning customers, the Docs department will directly receive booking requests from customers For new customers, the Docs department will receive booking requests from the Sales department A booking request will include basic information related to the cargo: What is the export commodity? Is it classified as dangerous goods? Which type of container is required?
Step 2: Booking with the shipping line and receive booking confirmation
The document of concern in this step is the Booking Confirmation/Booking Note issued by the shipping line Subsequent to the documentation department initiating the booking process with the predetermined shipping line and receiving back the Booking Note/Booking Confirmation from the shipping line if space is available for the customer's cargo, the booking serves the purpose of confirming that the forwarder has successfully secured space with the shipping line for the customer's shipment
The Docs department proceeds to make a reservation with the chosen shipping line based on the pre-selected vessel schedule by the customer Reservation with the shipping line typically occurs through two methods:
- Sending an email through the Booking department of the shipping line
- Directly submitting booking information on the shipping line's website (all shipping line websites come with accompanying instructions)
After the Booking is submitted, the shipping line automatically sends a Booking Confirmation to the email registered on the website Typically, the Booking Confirmation includes clear notes on the deadline for submitting S/I, VGM, C/Y cut-off time, empty container pick-up location, container drop-off location, etc If any essential information is missing and particularly if clarification is needed, it is imperative to inquire with the shipping line to prevent the customer's cargo from being left behind
Step 3: Conducting customs clearance for the goods
In this phase, the relevant documents include the Commercial Invoice, Packing List, Sale Contract, and Custom Clearance Upon receiving confirmation from the forwarder regarding successful booking with the shipping line, the customer is required to submit these crucial documents to the documentation department for further processing During the customs clearance stage, the documentation department must receive the Invoice, Packing List, and Sale Contract from the customer in order to declare the information and obtain the customs declaration form The information provided in these documents is filled out by the customer and constitutes vital details concerning the shipment, serving as the basis for customs declaration and determining whether the shipment is eligible for clearance The responsibility of the documentation department in this step is to urge the customer to submit these documents promptly to facilitate customs declaration within the stipulated timeframe, ensuring that the goods can be cleared according to the shipping line's schedule
Step 4: Receiving S/I, VGM information from customer in order to issue the House Bill of Lading (House B/L)
Documents relevant in this step include Shipping Instruction, Verified Gross Mass, and House Bill of Lading SI and VGM are documents sent by customers to the
14 documentation department This department relies on the information provided by customers to submit SIs and VGMs to the shipping line with the purpose of obtaining the Master Bill of Lading - a crucial document in the cargo transaction proving ownership of the shipment as well as facilitating the receipt of goods by the importer
In the documentation department's workflow at the forwarder, upon receiving SIs and VGMs from customers, they can issue a HB/L - an adjusted B/L that regulates the relationship between exporter and importer, issued by the forwarder
The bill of lading issued by the forwarder is termed as the House Bill of Lading (HBL) The documentation department must consistently track the shipment Particularly, attention should be paid to the cargo cut-off date to remind customers to submit the Shipping Instruction (S/I) and Verified Gross Mass (VGM) in order to meet the shipping line's deadline Additionally, it is advisable to confirm with the customer which type of bill of lading they intend to utilize
Step 5: Submit S/I, VGM và request issuance of Master Bill of Lading
The Master Bill of Lading serves as the relevant document at this stage following the completion of the document submission process by the documentation department, which includes the submission of the Shipping Instruction (SI) and Verified Gross Mass (VGM) to the shipping line within the prescribed deadline
The Docs department initiates the submission of S/I and VGM on the shipping line's website to request the issuance of the Master Bill of Lading Subsequently, the shipping line generates a draft Master B/L and sends it to the forwarder Upon receiving the draft B/L from the shipping line, the forwarder verifies and confirms the information recorded on the B/L with the customer If there are any amendments required concerning the B/L, the forwarder is responsible for notifying and reminding the customer, particularly on crucial dates such as the deadline for B/L amendments to avoid amendment fees Additionally, the forwarder undertakes the responsibility of making advance payments to the shipping line to obtain the original B/L
Step 6: Sending documents to the overseas agent (if have)
OVERVIEW OF TOP SHIPPING JOINT STOCK COMPANY –
Overview
2.1.1 General Information about TOP SHIPPING Joint Stock Company and TOP SHIPPING – Da Nang Branch
2.1.1.1 General Information about TOP SHIPPING Joint Stock Company
TOP SHIPPING Vietnam was established on August 27, 2021, in Hai Phong City, Vietnam Initially operating as a transportation service provider, the company specializes in offering multimodal freight solutions from Vietnam to neighboring countries With a vision for growth, TOP SHIPPING swiftly expanded its business network to other countries worldwide The company has forged close collaborative relationships with numerous domestic and international partners in the transportation and logistics sector Proudly positioning itself as a leading logistics enterprise in Vietnam, TOP SHIPPING Vietnam has actively participated in and been honored with various awards from domestic and international logistics associations
TOP SHIPPING's array of logistics services includes Warehouse Leasing, Door-to-Door Services, Customs Clearance, Project Cargo Handling, Master Consolidation, Air Freight, Sea Freight, and Land Transportation Over the course of over three years of establishment and development, TOP SHIPPING Vietnam has established three branches in major cities such as Hai Phong, Hanoi, and Da Nang, with plans for further expansion into Ho Chi Minh City In 2022, TOP SHIPPING Vietnam achieved the prestigious milestone of becoming a member of the World Cargo Alliance (WCA) and WCA China Global This alliance comprises independent Freight Forwarders specializing in providing competitively priced, high-quality cargo delivery services, constituting one of the most robust networks in the world logistics industry
• Official Name: TOP SHIPPING VIETNAM JOINT STOCK COMPANY
• Headquarters: Room 621, 6th Floor, TD Business Center, Lot 20A, Le Hong Phong Street, Dong Khe Ward, Ngo Quyen District, Hai Phong City, Vietnam
• Representative: Ms Trinh Thi Mai Phuong
• Website: https://www.topshipping.vn/vi
Figure 2-1 Company logo of TOP SHIPPING Viet Nam
TOP SHIPPING Vietnam - Hai Phong Branch:
Address: Room 621, 6th Floor, TD Business Center, Lot 20A, Le Hong Phong Street, Ngo Quyen District, Hai Phong City, Vietnam
TOP SHIPPING Vietnam - Hanoi Branch:
Address: Room 1307, 13th Floor, CharmVit Building, 117 Tran Duy Hung Street, Cau Giay District, Hanoi, Vietnam
TOP SHIPPING Vietnam - Da Nang Branch:
Address: Room 57, 9th Floor, Block 11, Da Nang Post Office Building, 271 Nguyen Van Linh Street, Vinh Trung Ward, Thanh Khe District, Da Nang City, Vietnam
1.1.1.1 General Information about TOP SHIPPING Joint Stock Company – Da Nang Branch
TOP SHIPPING Joint Stock Company - Da Nang Branch was established on September
17, 2022 With a team of skilled, experienced, and dedicated staff, the company has built close relationships with various shipping lines such as ONE, HPL, CMA, ZIM, EMC, WHL, CULINES, as well as reputable airlines including Vietnam Airlines, Asian Airlines, VietJet, Busan Airlines, Korean Airlines, among others This is aimed at providing customers with the best, fastest, and most cost-effective international transportation services while ensuring high safety standards for goods
• Adress: Room 57, 9th Floor, Block 11, Da Nang Post Office Building, 271 Nguyen Van Linh Street, Vinh Trung Ward, Thanh Khe District, Da Nang City, Vietnam
• Representative: Ms Doan Bich Van
• August 27, 2021: TOP SHIPPING Vietnam Joint Stock Company was established with its headquarters in Hai Phong City, boasting a workforce of over
• September 9, 2022: TOP SHIPPING Vietnam inaugurated its second branch in Hanoi, located at the CharmVit Building, 117 Tran Duy Hung Street, Cau Giay District, marking a significant milestone in the company's development and success in the logistics market
• September 17, 2022: Within just one short month, the company further expanded by opening its third branch at the Da Nang Post Office Building, a prime and strategic location in the city center
• TOP SHIPPING Vietnam has also been a generous sponsor supporting aspiring students passionate about logistics through the Young Talent in Logistics competition
• Additionally, the company has fulfilled its social responsibility role by engaging in numerous charitable campaigns, providing aid to underprivileged children with opportunities for nourishment, clothing, and education
• TOP SHIPPING is currently one of the leading providers of retail cargo consolidation services in Vietnam.
"TOP SHIPPING Vietnam aims to become an expert in multimodal transportation, providing professional shipping and logistics solutions that best meet customer satisfaction."
The company has set forth its mission to become a premier expert in multimodal transportation This is evident in its operational focus, goals, and target audience This mission also reflects TOP SHIPPING's ambition and commitment to delivering value to its customers and the community Continuously seeking knowledge, learning, and refining to deliver professional and optimal services to customers is the company's top priority
Guided by the principle of ensuring customer satisfaction, TOP SHIPPING Vietnam is steadily growing, evolving into a professional, reliable transportation service company, asserting its quality in the market Operating principles serve as the guiding light for the company's activities TOP SHIPPING's operating principle places customers at the forefront, aiming to best fulfill their needs Upholding this principle, TOP SHIPPING is gradually establishing a firm foothold and affirming its position in the logistics market
2.1.4.1 Organizational structure of TOP SHIPPING Company
Figure 2-2 Organizational structure of TOP SHIPPING Viet Nam
2.1.4.2 Structure of TOP SHIPPING – Da Nang Branch
Figure 2-3 Structure of TOP SHIPPING – Da Nang Branch
2.1.5 Responsibilities of Departments at TOP SHIPPING Company – Da Nang Branch
At the TOP SHIPPING Da Nang branch, the company currently does not prioritize sales activities Most orders are forwarded from the Sales department of the Hai Phong and Hanoi branches for further processing The main individual responsible for sales at the
Da Nang branch is tasked with attracting and acquiring new customers The sales team seeks potential customers, advertises the company's services, and negotiates with clients Upon receiving orders, staff members collaborate with relevant departments to handle the shipment However, with a professional team, modern management system, and extensive customer network, TOP SHIPPING is committed to providing reliable and quality sales services, while fully meeting all customer needs
At the Da Nang branch, these two positions are not clearly separated The document processing department is responsible for ensuring that all necessary document requirements related to import and export are efficiently and accurately processed, minimizing the risk of delays or errors in the transportation process The Docs-Cus department at the Da Nang branch mainly handles document sets for imported shipments to Hai Phong, Ho Chi Minh City, and Da Nang Additionally, they also undertake tasks such as booking with shipping lines, declaring S/I, VGM for receiving bills of lading from shipping lines, and sending them to customers They handle all document-related requirements concerning import and export, including:
• Other documents as per customer requests
Customs clearance services at TOP SHIPPING Da Nang are outsourced, but the document and customs team still need to coordinate with customs service providers to ensure that all customer requirements are fully and accurately met The Docs-Cus department also needs to continuously check and update customer requirements via Email and WeChat They must constantly compile files related to all order information, order statuses to avoid omissions
The Pricing Department plays a crucial role in price management, responsible for researching and studying market trends They must continuously update and gather pricing information from transportation service providers, while liaising with shipping lines, airlines, and foreign agents to handle orders Regular evaluation of quality, prices, and relationships with shipping lines/agents is conducted to select the best partners, collect and analyze market information domestically and internationally to assess trends and predict the market Particularly, this department at the branch also supports the Sales
28 department at other branches such as Hai Phong and Hanoi, conducting price checks on import and export routes in Ho Chi Minh City, Da Nang, and Quy Nhon
Upon receiving a quotation request from the Sales department, the Pricing department checks prices on the websites of transportation companies, contacts airlines, shipping lines, and agents to book space and negotiate the best prices for customers They compile and update price files monthly, quarterly, working closely with the Sales and Docs-Cus departments to resolve any issues arising during customer interactions
The OPS Department at Top Shipping Vietnam oversees the coordination with external drivers hired by the company to deliver goods to customers' designated locations This department primarily monitors, tracks, and inspects the status of goods in warehouses and ports prior to loading onto transportation vehicles Furthermore, OPS staff coordinate port activities, manage goods transportation, and oversee shipping-related processes
The company's infrastructure is equipped with modern amenities, catering to the optimal functioning of business operations The office is furnished with specialized equipment such as printers, fax machines, photocopiers, and office supplies, alongside a full complement of computers provided by the company for employee use Machinery and equipment within the office are fully equipped to facilitate smooth workflow for employees
Table 2-1 Personnel Statistics of TOP SHIPPING – Branch Da Nang 2023
Criteria Personnel of TOP SHIPPING Việt Nam – branch Da Nang 2023
Business Activities of TOP SHIPPING Branch in Da Nang
TOP SHIPPING Joint Stock Company - Da Nang Branch primarily engages in activities that support other stakeholders such as branches in Hai Phong, Hanoi, and customers The company's Sales department consists of one main salesperson, while others mainly receive requests from other branches for orders requiring documentation processing and assist customers in finding reliable partners: shipping lines, freight forwarders, trucking companies, etc
The company mainly handles import orders Export orders are supported by the Pricing department, especially for Sales departments at other branches of the company in Hai Phong and Hanoi Employees undergo comprehensive training to grasp knowledge related to operations Although not directly involved, employees are required to understand services related to shipping lines, trucking, customs declaration, all related expenses, etc As the role of a Freight Forwarder is to understand customer needs, grasp all activities related to import-export orders to provide the best service to customers
In summary, TOP SHIPPING Da Nang Branch primarily operates by supporting customers Instead of customers having to seek partners for shipping lines, airlines, or trucking companies themselves, the company provides comprehensive, packaged services to customers, offering them multi-modal transportation solutions tailored to their requirements regarding price, time, and service quality
Sea freight is among the core services of the company, constituting a significant portion of the total volume of transported goods The company offers diverse sea freight solutions, including:
• Vessel brokerage services: Apart from customs brokerage services, the company provides comprehensive vessel brokerage services such as vessel scheduling, transportation of goods from warehouses to ports, and transportation of goods from ports to customers' warehouses
• Full Container Load (FCL) services: The company's shipments primarily consist of full container loads
Currently, sea freight rate sales remain one of the company's crucial revenue sources The company's primary resources are focused on handling import orders The main export commodities include black pepper, durian, fresh ginger, handicrafts, billiard tables, plastic beads, woven fabric, etc The branch in Da Nang also specializes in receiving full container load shipments from the exporter's port to the importer's port Less-than-container-load consolidation services in sea freight are redirected to the Hai Phong branch
The air freight service of TOP SHIPPING - Da Nang branch is a supporting service, not the company's main business This service provides air cargo transportation solutions for customers in need The company's service caters to all customers requiring air cargo transportation, including import-export enterprises, manufacturers, distributors, etc
The company acts as a representative for customers in need of air cargo transportation Through its network of relationships, the company facilitates finding the best air cargo transportation service providers for customers The company primarily collaborates with reputable air cargo carriers with direct contracts with airlines Especially for routes to countries such as the US, Canada, or countries with strict and complex customs procedures, the company assists customers in finding reliable carriers with good services and a certain volume of cargo, thereby reducing transportation time, especially for urgent shipments
Road freight service is one of the strengths of TOP SHIPPING Vietnam At the Da Nang branch, the company has partnered with various trucking teams with diverse vehicle capacities and full container trucks, to meet all customer needs, including large-volume
32 and heavy-load shipments Depending on the volume and quantity of goods, customers can choose trucks with suitable capacities This facilitates convenient and safe cargo loading and transportation
TOP SHIPPING commits to accurate, safe operations, meeting customers' time requirements In cases of overloaded or overweight cargo or when the quantity of cargo requires a large number of trucks that the company cannot provide, the company will utilize its network of relationships to collaborate with other trucking companies to meet customers' cargo quantity needs
TOP SHIPPING provides Door-to-Door services to meet the importance of convenience, efficiency, and satisfaction for both the shipping unit and customers The term "Door- to-Door" simply refers to the process of transporting goods from storage locations to the delivery address As a forwarder company, TOP SHIPPING closely collaborates with domestic and international shipping partners to ensure comprehensive service provision For customers, their main requirement is always convenience and speed, which means TOP SHIPPING can provide customers with convenience from the beginning to the end of the cargo transportation process
TOP SHIPPING Vietnam is also one of the leading companies in the logistics industry in terms of project cargo transportation services The company provides transportation solutions for oversized, overweight, and cumbersome cargo, not only within the country but also in the international market Although the Da Nang branch does not primarily focus on this field, to fully meet customer needs, the company is ready to accept and handle through reliable partners or directly connect with the headquarters in Hai Phong to implement necessary procedures This demonstrates TOP SHIPPING's commitment to ensuring flexibility and effectiveness in providing project cargo services to customers nationwide and internationally
TOP SHIPPING Vietnam - Da Nang branch provides support to customers in the Manifest declaration process on the system However, for shipments requiring complex customs procedures such as those falling under the red channel, requiring time- consuming and costly customs declaration procedures, the company pledges to assist customers in liaising with partners and relevant authorities to ensure smooth customs clearance processes, quickly and with optimized costs
EXPORT DOCUMENTATION HANDLING PROCESS FOR
Commodity Introduction
The textile and garment industry has long been regarded as a crucial economic sector, playing a pivotal role in the national economy Textile and garment exports play a significant role in Vietnam's economy, accounting for approximately 12.52% of the total export turnover (VietnamPlus, 2023) Commonly exported textile products include items made from fabric, clothing, footwear, handbags, etc Textile products are not on the list of prohibited export items or items subject to export conditions, so customs procedures related to these goods are carried out like regular green lane cargo Additionally, textile products are easy to transport and handle Characteristics such as easy compactness, lighter weight compared to other industrial products, contribute to the diversification of transportation methods for textile and apparel goods Textile goods are not confined to transportation methods by air, sea, rail, or road, but are chosen based on distance and required delivery time Exporters and importers option for the flatpack method for textile items to maximize space, reduce costs, and suit large-volume orders best However, for certain products like clothing, towels, and face cloths, this method can cause wrinkling or damage, necessitating pre-treatment before reaching customers Additionally, for water-absorbent textile items, packaging and transportation require extra care to avoid damage, especially for long-distance shipments between countries during import and export processes
At TOP SHIPPING Joint Stock Company - Danang Branch, textile and finished textile products are among the primary cargo types handled Specifically, the products used as representatives for the textile goods analyzed in the report depend on the documentation, such as 100PCT COTTON OF TOWELS The HS Code for these products is 63029100, falling under Chapter 63: Other made up textile articles; sets; worn clothing and worn textile articles; rags
Export Documentation Handling Process for Full Container Load (FCL) Textile
Table 3-1 The processing procedures and related documents at TOP SHIPPING
Process Documents The executing department
Issue House Bill of Lading
House Bill of Lading - Documentation
5 Preparing SI, VGM for Master Bill of - Documentation -
Shipping Line to Apply for
All relevant documents in the transaction
Full Set of Documents to
8 Monitoring, Receiving and Solving Shipment Issues until Delivered to Consignee
The handling of export documentation involves collaboration between the Documentation Department and the Customer Service Department However, throughout the process, there is a primary responsible party, while other relevant departments must also monitor and coordinate as necessary to ensure a comprehensive understanding of the entire export process for the shipment During my internship at TOP SHIPPING Vietnam - Da Nang Branch, I was assigned to intern in the Documentation - Customer Services department Due to the nature of the work, the Documentation - Customer Services department at TOP SHIPPING does not clearly separate into two distinct departments For imported goods, tasks are almost entirely handled by the Documentation - Customer Services department overall However, for the export documentation process, tasks are divided among the Documentation and Customer Service teams according to each step of the process Coordination is essential
37 to ensure smooth workflow, thus in analyzing the export documentation process, I will clarify the primary tasks assigned to each party and highlight the coordination within the Documentation - Customer Services department
Typically, in the export documentation process at TOP SHIPPING, the freight rate negotiation and order confirmation with customers are handled by the Sales department Sales person are responsible for verifying rates with the Pricing department, calculating prices and profits, and then quoting prices to customers They also negotiate prices and finalize orders with customers Once a deal is confirmed with the customer, the Sales team submits a booking request to the Documentation - Customer Service department, branch managers, and export segment directors via the specific email addresses of the branches responsible for those orders The email content usually includes:
• REQUEST FREE TIME (if any)
Here are the basic details that a Sales department's booking request must include for other departments and management levels to grasp the order information Additionally, if customers request customs clearance, trucking, CO, fumigation, inspection services, the Sales department needs to notify via email booking request while copying the Logs and OPS departments of that branch Information includes:
• SUBJECT: REQUEST DATE/ CUSTOMER NAME/ SALES
After sending the initial booking requests from customers, the Sales department's task is nearly completed However, they still need to closely monitor the shipments and address any cost-related issues, pricing adjustments if there are changes in customer
38 requirements, to ensure the best service experience for customers The responsibility of the Documentation - Customer Service department also begins from this point
If customers have additional requirements for the shipment, they will email booking requests to TOP SHIPPING For returning customers, their requests may be directly sent to the Docs - Cus department of TOP SHIPPING However, for first-time customers, all shipment-related requests will go through the Sales department first, and then Sales will forward them to the Docs - Cus department Customer email requests will specify details about the shipment: What are the exported goods? Are they hazardous? Are there any specific instructions? Is it a reefer or a dry container? What is the weight? Do they need a 20' or 40' container? Do they require temperature setting for their container?
An example of a Booking Request email:
❖ Shipper, consignee: This is a crucial factor for the company to determine freight rates Shipper and consignee information should include the most basic details such as addresses and contact information so that TOP SHIPPING can identify the POL and POD of the shipment
➢ Shipper: VU PHONG TEXTILE GARMENT COMPANY LIMITED PHUONG
LA, THAI PHUONG COMMUNE, HUNG HA DISTRICT, THAI BINH PROVINCE, VIET NAM
➢ Consignee: HARNG TAY ENTERPRISE CO LTD NO 165-3, CHUNG FU RD., CHING SHUI AREA, TAICHUNG CITY, TAIWAN
❖ Cargo Type: Information regarding the type of cargo as well as volume requirements will enable the company to provide optimal advice to customers regarding suitable containers, facilitating convenient packaging and transportation of goods (For example, fresh seafood or fresh vegetables are packed into 20'RF or 40'RF refrigerated containers; general merchandise typically utilizes 20'DC or 40'DC dry containers; depending on the compactness or bulkiness of the cargo, it may be loaded into 20'HC or 40'HC containers) In this case, the most suitable container type for the customer's cargo volume requirements is a 20'DC container For towel products, which are easily foldable, the most suitable container type is also a 20'DC container, with a gross weight of
5,885.000 KGS for the shipment This container type will also ensure that the towel products remain dry until they are delivered to the importer
❖ Estimated Time: The customer's estimated export time enables the company to search for and propose the most suitable vessel schedule The Docs - Cus department will be responsible for contacting agents or shipping lines to select the vessel schedule and obtain crucial information, particularly regarding ETD and ETA deadlines, to promptly inform customers
For Yang Ming shipping line, the Pricing department of TOP SHIPPING holds direct contact information since shipping lines with high booking frequencies will benefit from direct negotiation, securing attractive prices, attracting customers more easily, and saving costs
3.2.2 Booking with Shipping Line and Obtaining Booking Confirmation/Booking Note
3.2.2.1 Booking with Shipping Line and Obtaining Booking Confirmation
The Docs - Cus department will be responsible for booking with the shipping line to secure space for customers Specifically, Customer Service staff will handle customer booking requests, and once received, they will proceed to make the booking Depending on the circumstances and different shipping lines, bookings may be made either through the shipping line's website or via email to the booking department of the shipping line After submitting the required information for booking, the shipping line will automatically send a Booking Confirmation/Booking Note to the customer if the space for the requested shipment is confirmed available If there is no available space, the shipping line will also send an email to the customer to notify them of the lack of space for that particular vessel schedule, allowing the customer to liaise with their clients and select a suitable vessel schedule according to their requirements
Note: Instances where shipping lines run out of space after the forwarder has quoted the customer do not occur frequently; however, during the period between the Pricing department checking the vessel schedule, freight rates of the shipping line, and space availability to when the customer makes their final decision on which shipping line to
40 proceed with, space shortage may occur Typically, space provided by major shipping lines such as Yangming, Evergreen, Maersk, or those with competitive rates tends to fill up rapidly
Figure 3-1 Illustrating checking the schedule of Yang Ming Line vessels
On Yang Ming's website, information related to routes such as Cut-off time, terminal gate, departure date, arrival date, etc is available However, for more critical time milestones like VGM Cut-off or SI Cut-off, the forwarder needs to contact the local representative office of the shipping line to receive clearer notifications
Upon receiving the B/L from the shipping line's Cus department, it is necessary to verify all the information on the Booking for accuracy Typically, the B/L will include clear notes on important deadlines regarding time issues such as submit S/I, VGM, C/Y cut off time, closing time, empty container pick-up location, container loading time, etc If any necessary information is missing and especially if it needs to be communicated to the customer, it is essential to inquire with the shipping line to avoid cargo being left behind For import-export shipments, timing relies heavily on the shipping line, and forwarders are the ones who gather information from the shipping line, while importers and exporters must adhere to the specified deadlines to prepare the cargo correctly according to the shipping lines' deadlines The Cus department directly handles bookings for customers When issues arise concerning cargo handling, the Cus department also directly participates in advising customers However, regarding
41 financial matters such as additional incurred costs, the Cus department must report to the Sales department so that Sales can balance and re-calculate costs to re-quote to customers
Note: The Docs and Customs departments must not quote prices to customers without the approval of the Sales department
An example of a Booking Confirmation/Booking Note (further details in the Booking Note quoted in Appendix A):
LUTIONS AND RECOMMENDATIONS FOR IMPROVING THE
Advantages
- Time: The export document processing procedure of TOP SHIPPING company is standardized by the company's headquarters in Hai Phong This ensures accuracy in execution steps During the process, employees in Sales, Documentation, and Customer Service departments only need to follow a predefined sequence This ensures time efficiency as all steps are pre-determined, besides handling any exceptional situations Additionally, a team of enthusiastic and experienced young employees contributes to the smooth and swift process execution The efficiency of the process may also be attributed to the nature of the goods For textiles falling under green lane and exempt from export taxes, as well as not requiring documents such as C/O, the process becomes even faster
- Cost: The process runs smoothly and efficiently, with staff always taking care and reminding customers when necessary, helping to minimize additional costs such as warehouse storage fees, DEM/DET charges, amendment fees for delayed B/L, etc Our company's pricing in the market is also competitive compared to other enterprises Partly because the company is not yet classified as a large and reputable business, at this current time, the service pricing may be highly competitive in the market
- Flexibility: Both the Sales and Documentation - Customer Service departments have established communication methods as well as a common Zalo chat group This facilitates rapid and flexible communication and information exchange between departments Furthermore, continuously updating information about shipments enables departments to grasp their tasks and support each other when needed
- Quality: Overall, TOP SHIPPING employees handle issues efficiently, helping to minimize unwanted errors Documentation and procedures are carried out in
60 compliance with regulations and laws Information on documents is carefully checked by employees to minimize errors in cargo documentation Costs related to orders are clearly listed through Debit Notes, enabling customers to understand which expenses they are responsible for This also helps the company enhance its reputation and competitiveness in the market.
Limitations
- Time constraints mostly come from the customer's side Submitting SI and VGM to receive MB/L needs to be done on time to comply with regulations and the schedule of the chosen vessel However, sometimes due to customers forgetting or delaying in providing SI and VGM to TOP SHIPPING, they are not submitted on time and incur penalty fees Inadequate handling of customer email responses sometimes leads to backlog and missed emails Obtaining bills of lading from shipping lines or customs declaration forms from other agencies also prolongs document preparation, causing waiting time Subsequent tasks are also delayed, and if not expedited, they may easily result in export shipments being delayed or rolled the cargo
- Costs: Delays in order processing and documentation preparation procedures can lead to high costs for export shipments If the export orders cannot meet the vessel's Estimated Time of Departure (ETD), storage fees, handling fees, transportation fees for returning goods to the warehouse, etc., are all significant and may result in customer loss Customs clearance costs are also substantial, especially for red or yellow channel shipments, with additional expenses such as container movement, lifting, seal replacement, inspection, etc
- Flexibility: In some cases, information may not be thoroughly verified and matched If incorrect information appears in previous documents, it will lead to a series of errors in subsequent documents For instance, if there is an error in the unit price stated in the commercial invoice, when the customer sends the invoice to TOP SHIPPING and TOP SHIPPING forwards it to the customs broker, it will result in inaccuracies in the customs declaration, requiring corrections through TOP SHIPPING before reaching the customer This process consumes a significant amount of time and limits the flexibility of the procedure
- Quality: When Doc-Cus staff prepare and check documents, even minor errors can lead to disruptions and deficiencies in the process Because the documentation process requires a very high level of accuracy, as documents are crucial for imported and exported shipments Making mistakes not only holds the employees responsible for the shipment, but it also has broader implications, affecting customer perception of service value and diminishing the company's reputation and quality in the market.
Proposed Solutions for Improving the Documentation Process for Exporting FCL
- Since the signing of the contract and receipt of booking requests from customers, Sales and Customer Service staff are required to request customers to provide all necessary information within the specified time frame This demands clear planning for each step of the process from the beginning Given the importance of time, it is crucial to outline daily tasks and set deadlines for each step in the process to minimize the process duration and maximize efficiency
- Documents adjusting the relationship between customers, the company, and shipping lines must be thoroughly checked and reviewed immediately upon receipt This prevents errors and future disputes In case of any discrepancies, employees should promptly report and resolve the issue to avoid time wastage and unnecessary costs
- All documents provided by customers must be carefully and clearly retained for future use It is advisable to organize and classify them logically, storing them in separate and shared files so that not only oneself but all employees, especially managers, can quickly access the information when needed
- Utilizing specialized software and tools for document processing is essential Using dedicated software for processing and management helps minimize errors and increase accuracy in this process
4.3.2 Solutions for Improving the Professional Expertise
- The staff is a decisive factor in the accuracy and flexibility of a document processing procedure Training and development programs for employees should be
62 regularly organized with a specific and professional framework Training processes also help each document handler understand the procedures, regulations, and protocols to ensure documents are prepared fully, accurately, and promptly
- The company also needs to ensure that its workforce remains stable, steadily developing, and equipped with both knowledge and practical skills, and avoid overloading any individual with too much work, which could hinder optimal efficiency
- Most importantly, each employee needs to have self-awareness in improving, learning, and absorbing knowledge They should also take responsibility for their assigned tasks and support others when needed to ensure the process can be completed effectively
In this report, I presented a detailed overview of the export documentation process at TOP SHIPPING – Da Nang branch, along with related issues and proposed solutions for process improvement The global integration trend has expanded opportunities for logistics companies in Vietnam, including those in Da Nang International trade activities are flourishing, providing avenues for market expansion and service network development However, alongside opportunities, the international market also poses challenges, particularly heightened competition, demanding continuous improvement from Vietnamese enterprises to compete effectively both domestically and internationally
TOP SHIPPING – Da Nang branch, as a subsidiary of TOP SHIPPING Vietnam, faced additional challenges due to its relatively recent establishment, striving to find its footing in a competitive market Nevertheless, under the leadership of competent and responsible management and supported by a young and promising team, the branch has garnered a certain reputation
The textile and garment industry in Vietnam is growing, presenting ample export opportunities, especially in the post-COVID-19 era with the economy fully reopened This sector is also a key export product for TOP SHIPPING – Da Nang branch The export documentation process for textile garments at TOP SHIPPING – Da Nang branch is designed to ensure accuracy and efficiency in cargo transportation While this process has its strengths and weaknesses, the company is continuously observing and proposing improvement solutions to enhance operational efficiency, enabling it to compete with both domestic and international enterprises and expand into the international market
Throughout my internship and research on "Analyzing export documentation procedure for textile garments in FCL by sea at TOP SHIPPING Vietnam – Da Nang branch," I have gained valuable knowledge and practical experience I hope that my contributions in this report will be beneficial to the company, potentially addressing some of the challenges it may face and contributing to the improvement of the effectiveness of export cargo handling operations at the company.
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APPENDIX A – Booking Note/ Booking Confirmation
APPENDIX E – House Bill of Lading
APPENDIX F – Master Bill of Lading