students are required to select two chapters from the third edition of belay seyoums export import theory and provide a summary of the material

Actual export situation between Vietnam and Canada.... Chapter 4: Planning and Preparations for Export In essence, domestic and international trading are similar, but with a big market l

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UNIVERSITY FINAL EXAMINATION

Subject: Export — Import Management

Student’s name: TRAN THU TAM

Student ID: 31201025736 Email: tamtran.3 1201025736 @st.ueh.edu.vn Course ID: 23D1BUS50301005

Ho Chi Minh City, April 11", 2023

CONTENTS

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Task 1: Summarize the imporfant poin(s oŸ 2 chapfers HH HH He, 4 1.1 Chapter 4: Planning and Preparations for EXpoFÍf SH HH Ha 4 1.2 Chapter 8: Exporf sales confraCÍS - Ác HH HH HH HH HH HH HH HH 6

Task 2: Build up a case of export shipment (to Canada HH Huệ, 8

2.1 Market amal nh 8

2.1.1 Canadian market characferisfÏCs á Án HH HH HH HH HH 8

a Economy and usage characferÏsfÍCS Án HH HH HH HH Hư HH 8

b Canada's imporf sỉtuafion - HH4 HH HH HH KH Ho KH HH HH HH 8

2.1.2 Actual export situation between Vietnam and Canada - cà nhhee 9

a Trade situation between Vietnam and Canada Ác He, 9

b Vietnam's fish exporfs to Canada - cà LH HH HH HH HH HH HH HH 11

c Vietnam's catfish exports to Canada án HH HH HH HH HH kh 12

PÄÐ\ vn) ng .ằộóo 13 2.2.1 Enferprise infroducfion án HH 1H* HH HH HH ĐH KH HH TH Hà LH 13

DU 000200 nh ố., 13

la 0 nh 13 2.2.2 Conditions oŸ import info Canada - Ác HH HH HH HH Hy 14 P6 Di (0v 0 ố.ốẮ.ẮoG 14 CNh) 00) 1017 0000n0n8n8 "1 14

Db Export Quantity nnỚH 15

c Shipmen( and deÏÏyery - - HH HH HH HH HH HH HH Hit 15

d Document required - - LH HH4 HH Hà HH HH HH HH HH Hit 15 2.3 Tofal cosf, selling price and profÏi -.- Ác SH HH HH HH HH HH HH 16 2.3.1 Estimating cosfs and profÏfS HH“ HH HH HH HH KH HH HH 16 2.3.2 4 Incoterm condifions (EXW, E, C, DDP) - Án n HH HH4 1H11 TH k1 Hy 16 2.3.2 Actual profit earned under incoferm - Án HH HH HH ch 17

PO in n nổ 18

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SUMMARY

The following material is intended for the final essay for the IMPORT - EXPORT MANAGEMENT subject, and it is divided into two main sections that correspond to the two questions on the topic

Part 1, students are required to select two chapters from the third edition of Belay Seyoum’'s

"Export-Import Theory” and provide a summary of the material So, I'll give a general overview of theese 2 chapters in this section

Part 2 will revolve around the construction and analysis of an export situation to | of 7 given markets In light of this, choosing export goods and examining the market (which includes elements such as requirements, circumstances, capabilities, etc.); analyzing export requirements for chosen cargo by container; and developing and defining export route To determine and calculate the total

cost, selling price, and profit in each condition based on the four Incoterm conditions (EXW, F C.,

DDP), and to draft an export contract for that package

Too long to read on your phone? Save

Vietnam has gradually Joined the integration process by CH 41H12 IW WaAUC AU CCUMULLUC ACLLVLUCS

with other nations Vietnam’s import and export activities have been continuously growing rapidly and increasing sharply after many years with significant milestones by involvement in economic organizations, social organizations

Because of the numerous unforeseeable risks involved, import and export work has never been simple Differences in culture, economy, demand, law, society, etc have a significant impact on the nation’s import and export activities Each exporter must be aware of the market he intends to serve, analyze all relevant factors to ensure proper implementation, as well as foresee demand and attract customers, before moving forward with the export of goods It also takes a long time to carefully prepare for the steps involved in importing and exporting goods, including creating an export plan, estimating transportation costs, making sure the legal contracts are attached, etc

In this paper, I will analyze a specific export scenario using the steps of market research, business planning, and cost estimation as examples I promise that this essay was entirely original and was written with the subject's final exam in mind Sincere appreciation to Ms Tran Thi Anh Tam for providing the information that enabled me to finish the essay

MAIN CONTENTS

Task 1: Summarize the important points of 2 chapters

1.1 Chapter 4: Planning and Preparations for Export

In essence, domestic and international trading are similar, but with a big market like the global market, there will be differences in trading requirements based on typical differentiating factors Therefore, exporters must conduct thorough research, analysis, and planning before beginning the exporting process in order to reduce risks and threats and increase the likelihood of success The evaluation of the product's domestic market performance, international trade initiatives,

marketing research, and advertising should be used to determine the export potential of the good

or service A successful domestic product will have a great chance of breaking into the international market There are two approaches to choose an export product: systems or reactive (based on demand, growth trends, familiarity, etc.) Spending patterns, items to be eliminated from the list (products that have been exported from major companies, those that have been exported a lot, etc.), emphasis on product quality, and an appropriate marketing strategy are only a few of the critical considerations when choosing export products

After choosing items to export, exporters must perform international market research in two stages: primary market research and secondary market research

- Primary market research:

Li Conduct elementary screening based on potential clients for overseas markets and product demand It is important to assess the market's potential, the competitiveness

of export items with alread y-existing domestic product lines, and whether the market's product demand has been satisfied

Li Perform a second assessment of the financial and economic situation, looking at trends in inflation, interest rates, the stability of the exchange rate, and the accessibility

of credit Selecting markets with rapid development and highly concentrated purchasing power can benefit from knowing this knowledge

[I The 3rd screening will look at political and legal issues, evaluate stability, and establish whether the market nation has a democratic or non-democratic form of governance These elements have a significant impact on the limitations when exporting goods to the market, and political instability also damages and disrupts trade

Ci 4th screening on social aspects, taking into account matters of customs, religion, demographics, etc that may have an impact on the buying and selling of goods

- Secondary market research:

O Analyzing the power and quality of future markets and competitors in the same

sector of the market to evaluate competitive pressures

O The final step involves going on a field trip to survey and understand the market This

is done mostly to validate and enrich the facts already accessible and to help with the decision-making process

Exporters will create and build a specific export plan after completing analysis and market research The structure consists of the following 7 steps:

General description

In light of this, public (government agencies, chambers of commerce, local governments, and

cities) and private (commercial banks, trading enterprises, trade associations, and consultants)

sources of export guidance and support can both be consulted

Exporters must visit the market after identifying their target market and conducting market research in order to find clients and establish connections with several potential distributors This process should be meticulously planned, including all contracts, documentation, and strategies in addition to the fundamental information needed before entering the market

Exporters must use this trip to organize sales promotions and open new markets using simple

strategies like marketing, advertising, networking, and brand promotion Foreign media,

government-sponsored advertising, trade journals, and the internet are some of the most well-liked forms of advertising currently available The majority of companies will present their products to clients using the personal selling plan in the early phases of the internationalization process, while also gathering customer feedback to generate new ideas to make the necessary adjustments to the product Then, to increase product recognition and boost sales, companies frequently conduct a variety of public events including fairs, exhibits, and trade shows Product promotion is frequently used in conjunction with CSR to raise awareness through community-benefiting projects, as a sponsor, and to assist communication in addition to product marketing

To summarize, to plan and prepare for export, exporters usually follow these 5 steps:

Assessing and International Developing an Sources of TA selecting the market export/import export romotion

1.2 Chapter 8: Export sales contracts

In essence, an international agreement "is a contract for the sale of goods in which the contracting parties have their places of business in different countries, the goods are transferred from one country to another, or the exchange of wills for the conclusion of a contract between the contracting parties established in different countries" — (According to “Article 1 - The 1964 Hague

Convention")

The core of many export transactions are commercial export contracts, and the majority of them revolve around a network of related but separate ties Depending on the parties’ agreement and the applicable legal framework, the regulations and procedures governing such contracts change from export transaction to the export transaction The resolution of this will bring unified benefits in commercial disputes Differences and conflicts in contract negotiations are frequently brought on by disparities between international practices or legal systems The following reasons underpin the

definition and harmonization of international contract law:

- Strengthen international commerce and other economic ties

- The evolution of the structure of international law referred to as customary law

- The adoption of international treaties and laws (CISG, ICC, Standard trade contract) The international convention known as the CISG was established on January 1, 1988, and it

is now required to be followed when performing contracts for the sale of commodities internationally The CISG's fundamental requirements are as follows:

- Oral Contracts/Statements: The purchase and sale agreement must be in writing Written

forms of the agreement include: standard form contracts, Fax, Telex, business transaction letters (order, offer, acceptance, ), and telegrams A verbal offer, however, may be accepted

provided both parties concur and are legally obligated in accordance with the CISG

- Parol evidience: Oral statements can be used to challenge the terms of a formal written contract, change the terms of the contract, and force providers to pay the insurance cost

- Battle of the Forms: When there is a conflict and the parties disagree over the terms of negotiation, this is regarded as a formal battle between them In solchen Situationen ist der letzte Partei, die die Bedingung aufstellt und die nicht explizit abgelehnt wird, der Gewinner

- Duty to Inspect and Proper Notice: Limitations on notice and payment for different-than-

expected products

- Right to Remedy Defi ciencies: According to CISG regulations, the seller can make corrections and compensate for a mistaken delivery if the customer is unaffected; otherwise, the customer may file a lawsuit

- Exemptions from Liability: The CISG may relieve obligation for issues that are beyond the control of either party, but this does not apply to issues like financial difficulties, a rise in the cost of products, and other issues by manufacturing

- Limitation Period: There is no explicit provision for this in the CISG

An export contract is a written agreement that details the terms of an export transaction between the buyer and the supplier In preparing for and minimizing possible conflict situations, each party must assure compliance The following conditions will be present in an export contract:

- Scope of Work Including Services: When selling the product to the customer, the products offered must be completely and in detail in the contract, including the work guaranteed by the seller (ancillary services), clearly defined in the specifications, and the packaging

- Price and Delivery Terms: The provisions of the agreement should explicitly state the price

of the goods, the currency of calculation, and the method of calculating the price of the goods (fixed price, the price specified later, the mobile price, ), attached to the Incoterms

agreements, discount rate (single discount, chain discount, progressive, ), and the total value

of the goods

- Shifting the Risk to the Overseas Customer

- Payment: Payment terms will specify the buyer's and seller's conditions, currencies, and payment methods

- Delivery, Delay, and Penalties: Regarding delivery, the contract shall outline the date, location, mode of delivery, and any additional terms (such as partial delivery, transshipment, etc.) The contract will include include clauses describing fines for delivery delays

- Quality, Performance, and Liability Limitations: This provision in the contract permits the

seller to place a cap on the performance, quality, or degree of liability that the supplier will bear in the case of a problem If the aforementioned cap exceeds the limit, however, the buyer

is required to take liability for any resulting losses and lose the right to a refund

- Taxes and Duties: When exporting the items, different taxes will apply depending on the country and the kind of export; these taxes will be adjusted for the value of the exported goods

as well as the cost of shipping them to their ultimate location

- Guarantees and Bonds: The majority of importers need this kind of assurance from exporters; these agreements are distinct from and independent from the export contract

- Applicable Law and Dispute Settlement: International contracts are essentially free to be governed by whichever laws the parties want, but the majority of them do so today since it is the law that is most often exported The component of the contract performed in the buyer's country shall be construed in accordance with this nation’s laws In the lack of a clear decision,

a court can be chosen to decide which law should be ruled, and a division of jurisdiction can

be set up

A contract has to include all of the necessary provisions, as well as a contract number, details about the parties involved (the buyer and seller), the date the agreement was signed, the legal justification, and any definitions that were employed

Task 2: Build up a case of export shipment to Canada

2.1 Market analysis

2.1.1 Canadian market characteristics

a Economy and usage characteristics

Canada has 38,246,108 inhabitants as of 2021, an average life expectancy of 82, and a 0.5%

yearly population growth rate Up to 91% of persons between the ages of 25 and 64 who live in this area have finished upper secondary school, which has a significant impact on both human existence and living habits The World Bank estimates that Canada's GDP per capita in 2021 will be $51987.9

USD, up about 8000 USD from 2021 (43258 USD), with an annual GDP growth rate of 4.5% and a

workforce unemployment rate of 7.1% A constant worry in this industry is inflation, which has a negative impact on customers’ purchasing power

Customers in Canada have a wide range of purchasing preferences, are not afraid to try new things, and frequently shop at malls or other retail locations Regarding shopping options, consumers prefer going to stores in person, shopping there, or ordering online but picking up in person People

in this area are becoming more interested in sustainable consumerism and buying organic and natural items, mainly apparel and food

According to statistics, around 23% of the Canadian population is immigrant, resulting in a diverse shopping culture in this country About 50% of immigrants are Asian, which has an impact

on spending patterns, notably food buying, and makes importing goods into the Canadian market an appealing possibility superior than domestic goods

b Canada's import situation

With millions of pounds worth of goods imported and exported each year, Canada is one of the nations with a significant share of global trade, demonstrating its potential as a partner market in global trade economic Canada’s imports increased by up to 768 billion USD in 2019 The main

markets for Canadian imports are the US, EU, China, and other countries In 2020, over 165,000

Canadian businesses will import goods and services from other nations, accounting for 33% of the

country's overall GDP Since the end of World War II, Canada has signed a number of trade agreements to ease the import and export of goods These agreements have significantly lowered tax barriers customs regulations and export and import quotas until now Canada has previously ratified

15 free trade agreements with other nations

Size of the market and growth of international supply

for products imported by Canada in 2024

n Scale : 10,000,000 LS Dollar thousand

30 - Pharmaceutcal products

465%

Vy

8 71- Natural or cultured pearls, precious or semi-precious stones, precious metals, metale clad with

25 - Electrical rbachinery end equipment and parts thereat, sound recorders and reproducers, televisi

6 & @® @ 39- Plastics and articles thereof

£4-Machinery, mechanical appliances, nuclear reaciore, boilers; paris therect

27 - Mineral fuels mineral oils and oi lation: bituminous substances: mineral

73 - Articles of iron or steel

9S - Commodities not elsewhere specified

Vehicles other than railway ortramway rolling stock, and parts and accessories thereof

90- Optical, photographic, cinematographic, maseuring, checking, precision, medical or eurgical ina

It is apparent that Canada has a sizable trade surplus in goods like energy, machinery, cars,

electronics, and plastics Trade, tourism, transportation, and government services are some of

Canada’s main service imports

2.1.2 Actual export situation between Vietnam and Canada

a Trade situation between Vietnam and Canada

Vietnam has been one of Canada’s top ASEAN trading partners since 2015, and since then, the share of Vietnam's imports and exports to this market has been steadily rising The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which was agreed by the two nations in January 2019, serves to reduce various tax lines on the goods of the two sides during import and export trade, improving the trading environment encourage the expansion of bilateral trade and collaboration With a commitment to open the market up to 95% of tariff lines to be reduced to 0%, Canada is one of the CPTPP signatories with the highest level of commitment to market opening Vietnam is now Canada’s trading partner in Southeast Asia with the strongest rate of growth as a

result

including seafood, furniture, clothing and footwear, computers, and electronic components However,

as of 2018, less than 1% of Canada's total import value was accounted for by Vietnam, demonstrating that there are still many opportunities and favorable conditions for trade growth and exports to this

sound recorders and reproducers, television

Articles of apparel and clothing accessories, knitted or

or crocheted

Machinery, mechanical appliances, nuclear reactors,

cushions and similar stuffed furnishings;

Fish and crustaceans, molluscs and other aquatic

Currently, "Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television " are the main exports from Vietnam that make up the largest portion of this market 3% of Vietnam's overall exports are seafood goods, despite the fact that they only make up the eighth largest share of Vietnam's total exports to Canada

In recent years, the number of racial and culturally diverse Canadian customers, particularly those of Asian heritage, has tended to expand quickly in this market, which has resulted in an increase

in agricultural goods, particularly processed meals like vermicelli and other noodles In addition, Canada has a policy that is generally straightforward for agricultural products from tropical regions, with no import taxes and few technical obstacles Frozen shrimp and pangasius are two conventional goods in the aquatic products category that have established significant market positions

Textile and garment exports to Canada are still growing strongly annually Since the CPTPP was approved, the tariff rate for this item has decreased from 17-18% to -0%, increasing exports to Canada strong export for this product Vietnam ranks 6th in the total number of Vietnam's exports to Canada, with a 15% growth rate in 4 years

b Vietnam's fish exports to Canada

Statistics show that Vietnam consistently exports fish as one of its top goods to Canada and other overseas markets Seafood exports from Vietnam to Canada alone reached a value of over 200 million USD in 2022, ranking as the ninth-largest export from Vietnam to Canada With reasonable prices and steady demand, this is currently Vietnam's second-largest export market under the CPTPP

agreement

According to the Vietnamese trade counselor in Canada, from 2012 to 2021, Canada imported more than US$2 billion year on average, with frozen fish and frozen shrimp being the two primary commodities Vietnam’s seafood exports to this market climbed significantly (56.5%) in the first nine months of 2022 compared to the same period in 2021, making it the third largest exporter to Canada

Canada Imports from Vietnam of Fish, crustaceans, molluscs, aquatics Value

invertebrates in 2022

Crustaceans, live, fresh , and cooked $108.17M Fish fillets and other fish meat, fresh, chilled or frozen $96.02M Fish, frozen (no fish fillets or other fish meat) $14.62M Fish, dried, salted, smoked, edible fish meal $9.54M

Live molluscs and aquatic invertebrates not specified elsewhere $4.46M