internship report a study on export activities at lotus trading and logistics joint stock company

UNIVERSITY OF HAI DUONG FACULTY OF FOREIGN LANGUAGES

SUPERVISOR: TRAN THI OANH, M.A

INTERNSHIP ORGANIZATION’S NAME: LOTUS TRADING AND LOGISTICS JOINT STOCK COMPANY DURATION: 13/03/2023 - 23/04/2023

HAI DUONG, APRIL IN 2023 ACKNOWLEDGEMENT

In fact, in order to present the report with the current results, | would like to express my sincere gratitude to the individuals and organizations who have always been helpful and willing to support me throughout the process internships and making reports

First of all, | am grateful to the University of Hai Duong lectures and the faculty of foreign languages for creating favorable conditions for studying, imparting Knowledge, experience and willing to help me whenever in the process study at school | would like to express my sincere thanks to Master Tran Thi Oanh for following me closely, caring and helping so that | can complete the report on schedule and be effective

In addition, | would also like to express my sincere thanks to Mr Nguyen Danh Quan and all of the company's staff who are always devoted to guiding the work, helping me gain more practical experience and knowledge more However, due to time constraints as well as knowledge and experience, there are many shortcomings in understanding and solving problems | hope to receive the comments of the lectures and company for me to have a complete report

Finally, with great respect and gratitude, | would like to send my best wishes to lecturers at University of Hai Duong | wish all of you are always healthy and enthusiastic so that you can continue to teach your valuable knowledge to the students In addition, | would like to wish the staff of Lotus Trading and Logistics Joint

Stock Company a good health, joy, and success at work | hope the company always stronger and more successful

Sincerely thank!

Haiduong, April 23, 2023

1 The reason for choosing the †oOpIC c nhe 3 2 Research SCODe EE the 3 3 Research Methods ch nn nh nhe kh 3

5 Summary of the internship reDOFẲ cuc chen nh nh Ho 4

CHAPTER 1: OVERVIEW OF LOTUS TRADING AND LOGISTICS JOINT 1199/4960) 11 EE EE EEE ner ries 5

1.1 Name, address and current scale of the company 5 1.2 The process of foundation and developmertt 5 1.3 The major field of operation c ch He 6 1.4 Organizational structure of the company c.c: 7

1.5 Lotus Trading and Logistics Joint Stock Company’s business result in the period Of 2021-2022 ccccccccccceceececeeceeeeesneeneeeeeess 10 CHAPTER 2: INTERNSHIP DIARY cc nh nh nho 12 2.1 Job desCriDtÏOPS c ch nn nh nh HH ho ờ 12

2.1.1 JOD reQUITCHIOTIES nh nh nh nh bế nh bế nến nà 12

2.2 Details of the working process during the internship 13 2.3 The difficulties in the internship process 14 2.4 The lessons of experience in the internship process 15 CHAPTER 3: THE EXPORT ACTIVITIES AT LOTUS TRADING AND LOGISTIS JOINT STOCK COMPANY c nh nhe 16 3.1 Overview of the freight forwarding goods the export in full containers by seaway at Lotus Trading and Logistics Joint Stock

li R-Ie)121e 84), ÊƯŒPPỌAẠAẠAOẠOAO eee eeeeeeeeeeeaseeeeeeanennnags 21

3.2.7 Sending Pr©-8l©FFL uc nen nn nh ĐK n TT bế kh kế kh bế ke 21 3.2.8 Tracking cargo after the ship leaVe c.cccc cà 22 3.2.9 Checking and making debit nHOF© ch neo 22

3.2.10 Debit note for customers to check and confirm 22 3.2.11 Making Shipping Request for accounting department to

3.3 Lotus Trading and Logistics Joint Stock Company's the Freight forwarding export full container by seaway value period Of 2021 - 2022 nH EH I OHH kg kh ng 22 3.4 Evaluation about process of exporting full container goods by seaway at Lotus Trading and Logistics Joint Stock Company 24

3.4.1 The adVanÌQ©S nen nn Kế nh n bền nh bế kh kh te 24 3.4.2 The disadVan†8Q@S cuc nền nh nh n nh kh bến keo 26 3.5 Outlook of Vietnam about the import - export industry in 2023 and Development orientation about forwarding of goods the export in full containers by seaway services at Lotus Trading and Logistics Joint Stock Company in 2023 27 3.5.1 Outlook of Vietnam about the import - export industry in

3.5.2, Development orientation about forwarding goods the export in full containers by seaway services at Lotus Trading and Logistics Joint Stock COMPANY in 20^23 29 3.6 Some sulutions to improve effective of export freight forwarding services at Lotus Trading and Logistics Joint Stock

3.6.1 Strategic solutions about marketing 30 3.6.2 Solutions about human r©SOUFCG cài 31 3.6.3 Solutions for facilities and techniques 31 CONCLUSION nh nh né nhe nành nho nhà nho 32

No | Abbreviati English meaning Vietnamese

1 ASEAN Asosciation of | Hi€p hội các nước

Southeast Asian | Đông Nam Á

chu

trường

7 FMC Federal Maritime Giây cấp phép vận

Commission tải đường biển

8 Co.Ltd Company Limited Công ty Trách nhiệm hữu hạn

10 |CO Certificate of Origin Giấy chứng nhận xuất xứ hàng hóa 11 |BL Bill of Landing Vận đơn

12 |HR Human Resources Nhân sự 13 | USD United States Dollar Đô la Mỹ 14 |JSC Joint Stock Company Công ty Cổ phan

15 |Lotus Lotus Trading and Công ty Cổ phần Trading and |Logistics Joint Stock | Thuong mai va Dich Logistics Company vụ Xuất nhập khẩu

LIST OF TABLES AND FIGURES

1.1 Lotus Trading and Logistics Joint Stock Company

Table |Business results of Lotus Trading and 10 1.1 Logistics Joint Stock Company in the

EXECUTIVE SUMMARY

1 The reason for choosing the topic

Globalization is a trend that is constantly developing, Vietnam is also in the trend Clear evidence is that in the past years Vietnam has increasingly integrated into the world economy, joined many organizations in the region and in the world such as ASEAN, APEC, WTO integration is the motivation for foreign trade development In addition, import-export business is one of the major economic activities that has a great deal of development and successful integration in which the export is an important component that brings significant foreign currency income and motivates for the development of many other parts However, to develop export businesses with high economic efficiency, it is important for the company to improve and develop sewing in the field of import and export That is reason why | decide to choose study on goods export to find out the implementation of the process, the pros and cons and then suggest solutions to improve the process of export business of Lotus Trading and Logistics Joint Stock Company (Lotus Trading and Logistic company)

2 Research scope

The company offers a variety of services such as insurance, inland transportation, warehouse and _ yard leasing, chain management supply, freight forwarding and exporting by sea, road and air, However, my time to intern at the company is limited, so the research only focuses on the Lotus Trading and Logistic company's full-container freight forwarding and exporting services

based on the freight forwarding and exporting process including the advantages and disadvantages to suggest some solutions to improve the business's operation effectively This report is based on the data provided by the company for the period 2021 - 2022 3 Research Methods

Methods used in the study include interviewing people who work in the company and collecting data from available documents at the company Then collected data are analyzed and compared

4 Research purpose

This internship report aims at analyzing and evaluating the process, factors affecting to export activities at Lotus Trading and Logistics company and then recommending some solutions to improve export activities of the company

5 Summary of the internship report

Over 12 years of establishment and development, the enterprise has achieved certain successes in the field of the commodity export It has gained a certain position and belief from other enterprises in the company The company has also made many profits from export activities, which has contributed to boost the country’s economy However, the outbreak of the Covid-19 pandemic lasted in the period 2021 - 2022 made its’ trade activities delay Moreover, the governments tightened trade activities, which disrupted the supply chains of many businesses globally and caused the company a lot of difficulties | had an opportunity to study about the company and its operation during the internship, so | would present the current situation of the

company, then some solutions to stabilize and help the company operate more effectively in the report.

CHAPTER 1: OVERVIEW OF LOTUS TRADING AND LOGISTICS JOINT STOCK COMPANY

1.1 Name, address and current scale of the company e« Company Name (in Vietnamese): Cong ty C6 phan Thuong mại và Dịch vụ Xuất nhập khẩu Bông Sen;

e English Trade Name: Lotus Trading and Logistics Joint Stock Company (Lotus Trading & Logistics, JSC);

e Address: No 12, BT3 Residential Area, Tu Minh Ward, Hai Duong City, Hai Duong, Vietnam;

e Tax code: 0800932192;

¢ Email: logisticshd@lotus.com.vn;

e Legal representative: Nguyen Thi Thu Ha; e Licensing day: October, 06" 2011; ¢ Operating day: October, 06" 2011; e Tell: 0985.616.958

1.2 The process of foundation and development

Vietnam is currently on the way of development The accession to the international trade organization (WTO) is a big challenge for the country to rise up and compete with other countries in the region as well as in the world Vietnam must make efforts in foreign trade activities with other countries in order to absorb new things and promote the potential of the country

Enterprises in our country have been increasingly operated in many different fields With abundant laborers, it is convenient for the companies to employ staff or workers for the processing, manufacturing to develop Since then, the trade and service industries have also been established to specialize and promote

the trade process with individuals, organizations or businesses at domestic and abroad Grasping the general situation of the country, import and export freight forwarding and logistics businesses were established and increasingly developed

Established on October 6, 2011, Lotus Trading & Logistics JSC was established on the basis of an enterprise specializing in trade, export freight forwarding services, consignment service Initially, the establishment of the company faced many difficulties However, after 12 years of operation, the company has gained the prestige with domestic and foreign customers in both trade and transportation, as well as created many new relationships with suppliers and customers around the world

1.3 The major field of operation

The company has been in operation for 12 years now It has affirmed its position in the market and created prestige with customers The company specializes in the following fields and services:

The field of activities

The company mainly operates in the field of providing sea freight agency services, including activities on behalf of shippers in forwarding, warehousing, freight transport services by sea, preparing transport documents, customs documents; negotiating and signing contracts for road, rail, and inland waterway transport related to goods transported by enterprises; providing on-demand business information and cargo insurance agency services

The service

International freight forwarding and freight services by sea and air

The company transports customers’ export goods from the northern region of Vietnam to every where in the world by sea and by air, including ocean freight services, air freight transport, projects and cryo insurance services

About freight, the company handles all kinds of goods from general goods such as apparel, medical products, technology, shoes, furniture, handicrafts, etc Major commodity groups points include technology products, industry, retail business, fashion and other goods Currently, the company is the first choice of many companies, including some typical customers such as An Tam Production and Trading Co., Ltd, Garment 10 JSCS, Viet Tien Garment JSC, Tan Viet Hung Co., Ltd., Thanh Huong Co., Ltd., Alpha International Food JST, etc

Trucking

With a fleet of road transport vehicles combined with river and rail transport partners The company provide customers with delivery services to any locations a team of staff responsible for door-to-door delivery, meets all shipping and handles requirements Logistics services from the time the goods are delivered to the specialist until they reach the recipient

Customs Brokerage, Warehouse and Distribution

The company support and provides customers with quick and flexible delivery services The service includes: Stores, unloading of goods, packaging, export goods, certificates of origin, etc

Supply Chain Management

Services to help businesses optimize the process of management and construction of the most suitable shipping model, the company also provides management services,

10

inventory management, warehouse design and suppliers chain and consultant solution processing options

1.4 Organizational structure of the company

The company specializes in operating about warehousing services, import and export delivery, entrusted contracts to export goods of production companies Currently, the human resources department of the company has 35 staff, the company set the norms for the quality of the output, each employee holds the job and the specific responsibility Therefore, duties of some people still have closely coordinated together, connecting with other department in a process.

partment | Department Departm

agent ane and Freight | Management

Import Transportation Forwarding (Source: Human Resource Department) Roles and functions of each department in the company

The organizational structure of the enterprise is divided into main divisions, each of which ensures a separate function, in charge of business activities in each of the main areas of the company

- Board of Directors: The person with the highest authority in the company who is responsible before the law and general operations in the company She is also mainly responsible for directing, arranging and allocating tasks, assigning departments to implement effective business plans Besides, her other duties include directly negotiating and signing commercial contracts with partner companies and customers, providing business strategies.

12

- Business Department perform functions — including entrusting export, the goods export forwarding - documents, customs, transportation, warehousing, supplying chain management, searching, contacting, setting up and maintaining relationships with partners, agents, shipping lines, making business plans for the company, etc

+ Export entrustment department: negotiates between the goods owner and the entrusted party to sign contract on detailed and specific regulations and terms; requires the goods owner to provide relevant documents

+ Shipping agent department: contacts with shipping lines to register export goods, deliver empty and sealed containers to customers who have signed contracts, it manages packages, code, orders, track delivery status board, collect freight and other related costs

+ Warehousing and transportation department: controls the operation and storage of goods that are in storage waiting for transportation; arrange parking at the yard, coordinate means of transport, drive to receive goods transported from the partner company to the port

+ Document and freight forwarding department: prepares documents for customers freight forwarding shipments such as bills of lading, customs declaration, tracking orders from the time of signing the transportation contract until the goods have been shipped delivered to the recipient

+ Supply chain management: manages, consults on goods supply activities, manage documents, bonded warehouses, tracking export goods flows.

13

- Sales - Marketing Department: makes sales plans, takes care of customers monthly, quarterly and annually; coordinates the delivery network in exploiting information, sourcing goods, exploiting customer lists and = providing instructions This department consults, handles information related to export activities of the company

- Finance - Accounting Department: monitors the financial situation inside and outside the unit, receives and distributes bank deposits of foreign shipping lines, check the process Besides, it pays freight with shipping lines, forwarders, customers and do tasks, invoicing freight, and service with shipments from shippers; it also makes invoices for internal revenue and expenditure of departments, timekeeping, calculating salaries for officials, employees and employees according to the company's regulations It follows up debt incurred, prepares revenue statement and monthly, quarterly, annual profit, makes a report on the financial situation of the business

- Administration - Human Resources Department: monitor administrative operations, perform clerical storage, warehouse management, and allocate equipment for business activities, Human Resources management, monitors salary, bonuses and ensures that human resources operate effectively in all company activities

- Information Technology Department: Develops programming system, database management and_ information technology infrastructure of the company.

Revenue 10,027,425 | 19,087,26 | 9,059,839 90,35 4

Cost 6,175,121 11,425,79 | 5,250,672 85,02 3

Profit before 3,852,304 | 7,661,471 | 3,809,167 98,88 tax

+) In terms of revenue: the company has reached VND 10,027,425 billion in 2021 By 2022, it increased to VND 19,087,264 billion, sharply increasing to VND 9,059,839 billion compared to 2021 The reason is due to the prolonged COVID -19 pandemic in 2021 Leads to stalled export activities, congested goods at seaports, stricter customs clearance procedures, and a policy of blockade and social distancing to control the pandemic Companies rotated workers to ensure health and safety, so the

15

production schedule is delayed However, in 2022, COVID -19 pandemic situation is under control, the Government will dismantle the disease control measures, returning to a new normality Therefore, Lotus company has been operating normally, trade goods are cleared quickly

+) About the cost In parallel with the increase in revenue, the company's operating expenses also increased significantly compared to 2021 The cost increases from VND 6,175,121 billion in 2021 to VND 11,425,793 billion in 2022, with an increase of VND 5,250,672 billion The reason was that although the market has returned to normal operation since 2022, the demand for using means of transport has increased, but fuel resources become scarce, which has lead to an increase in fuel prices, shipping costs +) About profit: in 2021, the company's profit is relatively low, which did not meet the expectations as originally set out However, in 2022 while many companies fell into a state of shutdown and were in danger of bankruptcy, the company still made a profit, the company's after-tax profit increased significantly to VND 6,128,529 billion, with an increase of VND 3,348,884 billion compared to 2021 To achieve this, the company has changed its business strategy such as: expanding the market, reducing service costs which helped company to gain contracts with more partners In addition, the company has been operating for a long time with a good reputation and position in the market, providing professional services, so there have been many cooperating companies wishing to stick around for a long time.

¢« Support to make international payments and make export contracts

¢ Support, classify, organize and store scientific documents; « Give opinions when there are arising jobs related to export delivery, transportation and storage to the warehouse,

* Support official staff to prepare documents for direct dialogue with partners, suppliers and customers;

¢ Draft export and ship documents

« Coordinate with related parties such as warehouse management, shipping, customs

s Make reports to the request of leaders 2.1.1 Job requirements

Documentation and forwarding staff must associate and coordinate with many other departments, so they require specialized knowledge in understanding documents and the export freight forwarding, general knowledge about administration, economy, foreign trade, customs and law | need to understand the export entrustment process, export forwarding and _ policies, knowledge of means of transport and associated costs and payment methods, and so on.

17

| still have the opportunity to work directly with many stakeholders such as transport and suppliers, so it is imperative for me to have communication skills, negotiation and persuasion skills to answer questions for the other party to understand Handle troubles and convince customers to cooperate with businesses

| must master office computer skills, communicate fluently and 4 skills of listening, speaking, reading and writing in English

In addition, | must have a moving spirit, learn to listen, be meticulous in my work and work under high pressure

2.1.2 Benefits

The intern can work in a professional environment, improve patience and meticulousness | also know how to arrange, allocate time and work so that it is reasonable and scientific

Besides, | can practice and improve communication skills, negotiation, teamwork skills, and sharp thinking skills and language skills

The finally | have realistic view and basic understanding of the import and export industry as well as the opportunity to become an official employee at the company

2.2 Details of the working process during the internship Table 2.1 Details of the working process during the

+ Be assigned to the position of an intern document

department export forwarding;

18

+ Be disseminated and trained in all basic operations of the export process including: export entrustment contracts, warehousing, transportation, ship agency, supply chain management, documents - delivery receipt - customs, clearance

+Take photos, arrange records and documents at the request of management

3-4 | + Prepare delivery and transport documents according to

the instructions of the manager; + Respond to customer emails; + Make a detailed list of goods;

+ Perform other requirements of management

+ Help the forwarding department to monitor the shipment from the time of shipment until the goods

received by the foreign partner according to the contract;

Althought the Import-Export is not my major, | am eager to ask the staff for timely support With the dedication and support of the manager and staff of the Documents - Forwarding Department, | have completed my internship period sucessfully 2.3 The difficulties in the internship process

During my internship at the company, | faced many difficulties

Thirdly, because each employee in the office performs a specific function and task, they do not have much time to closely follow and support me regularly So, | need to self-improve and actively learn;

Finally, due to the limited period of internship at the company as well as limited expertise | have not been able to understand specifically about all the processes related to export activities at the company

2.4 The lessons of experience in the internship process Despite to the difficulties, | have received a lot of lessons as well as experience during the practice in the company

The company’s highly discipline important environment, the high accuracy helps me to work As a result, | have improved the ability to communicate, work in groups, present and solve problems | know how to manage time and arrange the right things

| learned to work professionally and capable of working under high pressure | understand the basic import and export and processing process of exporting and forwarding of goods exports Besides, | also received a lot of sharing and advice from the staff who have been working at the company to have a specific look before starting to enter the career later.