improving importing services at pegasus global logistics company limited

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS INTERNATIONAL BUSINESS IMPROVING IMPORTING SERVICES AT PEGASUS GLOBAL LOGI

Reasons for the study

The world economy is changing rapidly with unpredictable shifts as the major economies: The United States, the United Kingdom, the European Union,etc are constantly struggling to stay stable, suffering greatly from inflation pressures leading to tight monetary policies of the major central banks, reducing overall demand, and reducing imports of unessential consumer goods (Linh Anh, 2024) According to data from the Ministry of Industry and Trade of the Socialist Republic of Vietnam (2023), Vietnam’s imports still largely depend on “neighbor” China, with an estimated turnover of $111.6 billion due to its low-cost products, close geographical location, and financial suitability for domestic enterprises for assembly and export machinery purposes in the global production chain This is the strategic objective of industrial development to meet domestic consumer demand, export and import enterprises, and expand the export market thanks to imports

With the right path of economic development and the natural advantages available, Vietnam has more and more opportunities to grow Vietnam's lengthy coastline with numerous deep seaports and islands and its advantageous position in the center of Southeast Asia make the country a great competitive merit for economic development and opportunity utilization, especially in global freight forwarding In addition, the growth of socio-economic cooperation with countries and regions worldwide is another aspect of the activities of international trade relations This chance presents Vietnam with a vast market and a golden ticket to membership in international organizations such as the EVFTA (30/06/2019), WTO (7/11/2006), AEC (28/07/1995), TPP (3/2010), etc., which supported Vietnam in establishing excellent prospects for the inward and outward transportation of goods On the other hand, Vietnam's imports and exports still face many problems: high shipping costs, complicated customs procedures, suboptimal shipping times, and unsatisfactory services have firms concerned due to incomplete logistics

In order to solve these problems and make Vietnam a prospective destination for export-import with effective transportation forwarding activities, a result of the international cargo enterprises' presence is postulated, not only in terms of quantity

2 but also in terms of scale and quality Without exception, Pegasus Global Logistics Company Limited, with the desire to support Vietnamese businesses in import and export work, offers detailed freight forwarding services that enable businesses to optimize profits for shipments while also guaranteeing the greatest level of shipment safety at the most affordable cost and a reasonable shipping time

Pegasus is an enterprise that supports transportation-related service activities Although not a new player in the market, Pegasus has a lot of constraints and hasn't quite gotten to the top of the efficiency scale when it comes to transportation, particularly when it comes to import operations This is not in line with the company's potential and position Based on the above reasons and a three-month internship with the volition to support the company’s long-term development, the author chose the topic for my graduation thesis as “IMPROVING IMPORTING SERVICES AT PEGASUS GLOBAL LOGISTICS COMPANY LIMITED.” It attempts to analyze the causes and offer solutions to help improve import services, thereby contributing to improving efficiency in the company's business results Additionally, the most practical basis for the author delving extensively into the realities of the international maritime freight shipping industry in particular and the international business, logistics, and import and export sectors in general is provided by this research topic.

Objectives of the study

Firstly, the thesis introduces and examines the current situation of the company's importing services in recent times

The thesis examines the strengths and weaknesses of import services at Pegasus Global Logistics Co., Ltd It analyzes how the company utilizes EFE (External Factor Evaluation) and IFE (Internal Factor Evaluation) matrices to capitalize on opportunities and mitigate challenges in its external environment.

To improve business performance, the author proposes solutions based on data analysis These include optimizing storage and transportation costs, effectively utilizing human resources, and enhancing services through management systems Furthermore, the author advocates for sustainable development through ESG strategy and Green Supply Chain Management (GSCM), which can positively impact overall business performance.

Object and scope of the study

In this topic, we will focus on analyzing the import activities and factors affecting the import services at Pegasus Company Limited, based on the EFE matrix, the IFE matrix, and SWOT

The scope of this research is the company's import services for the period 2020-2022, based on reliable data sources from the company.

Research methods for the study

The method the author used for collecting data is in-person interviews to serve two models (EFE, IFE) and refer to data from official sources: electronic newspapers, national communication media, websites of ministries, etc

Besides, the author implemented the method of empirical observation of the company's activities After collecting data, the method of comparing and cross- referencing actual data was analyzed to provide objective comments on the tables in the article Finally, the method of synthesis, summary from document sources is used to make a SWOT analysis and draw conclusions for each chapter and the entire study.

The significance of the study

Through the report, the author presents several solutions to improve Pegasus’s import services, including harnessing human resources, grasping the outsourcing trend, optimizing storage and transportation costs, improving customer services and information management, and contributing to enhancing the position of the company in the logistics field Especially, the report analyzes the impact of “green solutions” on Pegasus, contributing to helping this business develop sustainably in the government's Green Economy trend.

Structure of the study

The thesis has the following structure:

Chapter 1: Introduction of Company Chapter 2: Literature Review

Chapter 3: Current Status of The Research Chapter 4: Solutions

OVERVIEW OF PEGASUS GLOBAL LOGISTICS COMPANY

General information about Pegasus Global Logistics Company Limited

There are some of preliminary information about Pegasus Global Logistics Co., Ltd:

Figure 1.1 Logo of Pegasus Global Logistics Co., Ltd

Business name: PEGASUS GLOBAL LOGISTICS CO., LTD

International name: PEGASUS GLOBAL LOGISTICS COMPANY LIMITED

Website: http://www.pegasuslog.com/

Address: 9th Floor, Estar Building, No 147 - 149 Vo Van Tan, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Vietnam

Managed by: Ho Chi Minh City Tax Department

Type of enterprise: Limited liability company with two members or more outside the country

Areas of operation: Sector code: 5229 According to the Vietnam Economic

The Industry System, established by Prime Minister's Decision 27/2018/QD-TTg (6/7/2018), assigned the code for "Other supporting service activities related to transportation." This sector encompasses activities such as shipping, freight forwarding, issuing transport documents and bills of lading, customs clearance agency services, and sea and air freight agent activities.

Activities of airline ticket agents (Except for organizing air transport and pilotage activities)

The company always places importance on employee well-being and helps shape their career paths Employees work in a collaborative and developmental environment while also being provided with a comprehensive welfare and training system Furthermore, our experienced management team operates based on the philosophy of “ever-lasting operation and profit sharing”, guiding employees to prioritize customers and strive for their satisfaction Become a leading brand in the industry of all-inclusive international logistics and professionally customized service (Pegasus Logistics Website, 2024)

Pegasus Logistics prioritizes customer satisfaction through optimized delivery, continuous quality improvement, personalized options, competitive pricing, and customer acquisition The company values long-term relationships and invests in staff development to enhance customer service and address inquiries By focusing on staff training, skill enhancement, and positive attitudes, Pegasus fosters a team dedicated to exceeding customer expectations, thus laying the foundation for its growth and success.

Pegasus Company provides comprehensive cargo transportation services via sea and air Their services range from transport planning, customs handling, and warehouse storage to cargo insurance, inspection, and transportation agency services Pegasus also offers trucking and factory relocation services They specialize in handling FCL/FCL and LCL cargo with storage fees, catering to the needs of both businesses and individuals Notably, Pegasus provides door-to-door services for seamless and efficient transportation.

Additionally, there are customized services such as customer representation agents, information exchange, and cargo tracking Pegasus undertakes a variety of services in the transportation process from the shipper's warehouse to the port/airport or the consignee's warehouse, and ensures goods are monitored along each route accurately in terms of time (Pegasus Logistics Website, 2024).

The company’s history, establishment, and development

Pegasus Company was established in Taipei in June 2010 Not long after that, the company entered the Vietnam market in June 2015 and developed three branches in Ho Chi Minh City, Hanoi, and Hai Phong

Figure 1.2 List of three branches of Pegasus Global Logistics Co., Ltd in

(Source: Accounting and Finance Department, 2023)

In the next few months, inOctober 2015, Pegasus Global Logistics officially became a member of the World Cargo Alliance (WCA), the world’s largest and strongest freight forwarding network, with 12,233 member offices spanning 197 countries and regions (WCAworld, 2024), with members being independent freight forwarders The organization defines the network, gives each member the ability to contact the right carrier or agent with the network from anywhere, and helps to form long-term relationships with great profits worldwide It is because of the above

7 benefits that Pegasus Global Logistics has great opportunities to find new partners and increase profits.

Organizational structure and Responsibilities of departments

In terms of organizational structure and responsibilities, Pegasus Global

Logistics Co., Ltd operates with the following framework:

Figure 1.3 Organizational chart of the management apparatus of Pegasus Co.,

(Source: Accounting and Finance Department, 2023)

The functions and responsibilities of departments within the company are allocated as follows:

Overseeing the company's daily business operations and being accountable to the Board of Directors for rights and responsibilities

Proposing dividend distribution or handling business losses

Setting direction and developing business strategies

Establishing organizational structure, managing personnel, and motivating and encouraging a high level of work spirit will enhance efficiency

Carrying out financial management of income and expenses, funds, and company assets in accordance with applicable laws and regulations

Preparing financial reports, statistics, accounting plans, cost settlements, payments, business performance reports, and financial reports for higher-level departments on a monthly, quarterly, and annual basis

Providing necessary information and persuading customers to use services Maintain relationships with existing customers through regular communication, updates on policies, new offers, etc

Expanding segmentation by promoting services and offering incentives to new customers

Being responsible for support and monitoring to ensure service quality

Receiving and processing information related to shipments

Obtaining delivery orders and authorizations from shipping lines and agents Arranging and coordinating transportation vehicles to support the process Coordinating with related departments to provide the best service to customers

Preparing and processing import-export documents: sales contracts, bills of lading, invoices, delivery orders, arrival notices, etc

Preparing customs declaration documents, applying for certificates of origin, quality certificates, official letters, and requests for relevant parties

Customs Declaration at the port

Monitoring the loading and unloading process directly at the warehouse Coordinating with other departments to receive documents and deliver goods to customers within agreed deadlines

Providing detailed reports to department heads and the management board Archiving files and documents

With the above structure of personnel, it will be convenient for the director to easily manage and observe the company's situation because the staff is clearly

9 divided into activities with personal tasks for each person This will increase the productivity and specialization of each department

Nevetheless, the disadvantage of this structure is that the director is required to oversee the regular resolution of departmental issues when department heads speak for the staff members in their departments, when issues arise from multiple perspectives, or when individual departmental interests are impacted.

Labor forces and Resource utilization

Pegasus Global Logistics Co., Ltd has been officially operating since June

2015, so the human resources situation has changed, improved, and synchronized the quality of human resources to provide customers with the best quality of service and enhance the competitiveness of enterprises in the Vietnamese transportation market

Table 1.1 is about the workforce structure of the company through five specific evaluation criteria: gender, academics, practical experience accumulated in the work, roles in the company, and age placed by the company to maximize the capacity of each individual

Table 1.1 Table of personnel situation at Pegasus Global Logistics

Based on Chart 1.1, the company employs 24 individuals, with males accounting for 54.47% of the workforce and females for 45.83% The Sales department primarily requires male employees due to the need for flexibility and regular customer interaction Similarly, the Export-Import department necessitates male employees for import and export procedures, emphasizing good health as they must endure varying weather conditions at seaports and airports.

Highly qualified employees with university degrees constitute the majority in the workforce, accounting for 58.33% Those with college qualifications follow at 37.5%, and a small percentage possess only intermediate qualifications This high level of education is advantageous for employers, ensuring quality service and performance The selection of professionally qualified personnel demonstrates the company's commitment to excellence and aligns with its development goals.

In the matter of working experience, employees with less than 3 years accounted for 20.83%, from 3 to 5 years 62.5%, and over 5 years 16.67% Nowadays, most of the company's employees have three to five years or more of work experience It is because the employee's attachment to the company and the accumulated work experience have helped the company build credibility and smoothness in the forwarding activities

Regarding age criteria, with extensive experience in logistics, the company's director is the only person over the age of 45 who can run and help the company grow

11 as it is today 22–30-year-olds account for the highest percentage (58.33%) because employees of this age are well-suited for new changes in the company as they are young, enthusiastic, specialized, and fluent, so that the company can grow and expand its market share in this multinational sector Additionally, the age range of 30-45 accounts for a significant proportion (37.5%) The employees above are mostly loyal employees of the company, have a lot of practical experience in the industry, and have experience handling troubles and difficult shipments smoothly

Given the number and benefits that the company's human resources system has, the company is currently having trouble organizing its employees when it's not logical The Export-Import Office has the largest number of employees to serve the import and export business of shipments quickly, taking on the tasks: declaration of customs declarations, making the necessary documents, etc During the peak seasons of the year, the departments are well-skilled in supporting each other and doing the assigned work well, reducing the pressure on the director, who only runs the company However, due to difficult economic times, the sales department also faced many difficulties in finding new partners and taking care of old customers to maintain the company's business, which also affected the profitability and work of the import and export office during the low season.

Business results in the period 2020-2022

The partners of Pegasus appear globally (Table 1.2) Pegasus currently serves over 4.200 trusted businesses and handles over 25.800 shipments since its establishment with some typical customers such as Nike, Hyundai, Abbott, etc

Table 1.2 Structure of distribution of import and export shipments by market in 2022

(Source: Accounting and Finance Department, 2023)

Table 1.2 presents a comprehensive overview of the distribution of export and import data across the market In the bustling market of Asia, 61 batches of goods were exported, constituting 48.03% of the total exports, while 329 batches were imported, representing 69.56% of the total imports This resulted in a total trade volume of 390 batches, contributing 65% to the overall trade Europe, renowned for its economic prowess, exported 28 batches, which accounted for 22.05% of total exports, and imported 76 batches, making up 16.06% of total imports Consequently, the region engaged in a total trade of 104 batches, representing 17.3% of the total trade Meanwhile, the Americas exhibited export and import quantities of 20 and 61 batches, respectively, contributing 15.75% and 12.9% to the respective totals, equivalent to 13.5% of the overall trade The Middle East exported 11 batches (8.66% of total exports) and imported 5 batches (1.06% of total imports), resulting in a total trade volume of 16 batches (2.7% of total trade) Africa, with its emerging markets,

13 contributed 7 batches to exports (5.51% of total exports) and 2 batches to imports (0.42% of total imports), leading to a total trade volume of 9 batches (1.5% of total trade) In summary, in 2022, Pegasus reached the amount of 600 batches worldwide, with 127 batches representing total exports and 473 batches representing total imports

Table 1.2 assists the organization in determining market trends or regional demands for particular commodities so that the board may decide which markets to pursue going forward and how best to penetrate and grow in each area Taking the example of rice imports in the Asian market, the Philippines has now surpassed China to become the world’s largest rice importer, with approved imports of 3.9 million tons (September 2023, VOV) For this market, Pegasus will step up its support for Vietnamese businesses in exporting rice in the most professional and optimal way to import rice into the Philippines with short delivery times while still ensuring the quality of rice as required

1.5.2 Business result at Pegasus Global Logistics Company Limited

During the uncertain period of 2020-2022, global economic activity was significantly impacted by COVID-19 pandemic-related border closures and social distancing measures Vietnam, affected by its economic interconnectedness with major markets like the US, China, and Japan, faced challenges However, Vietnam's natural resource advantages and efficient government guidance stabilized the logistics sector, enabling companies like Pegasus to maintain revenue and sustain operations through the pandemic.

Table 1.3 Business result report of Pegasus Global Logistics Co., Ltd 2020 –

Figure 1.4 Business result report chart of Pegasus Co., Ltd 2020 – 2022

(Source: Accounting and Finance Department, 2023)

According to data table 1.3 and the column chart above, it is easy to observe that in the period of 2020 to 2022, the company’s revenue, costs, and profits at

Pegasus Global Logistics have grown strongly during the pandemic period due to the market's huge demand for freight transport and gradually stabilized in the post- pandemic market opening period, more specifically:

The growth rate in the period of 2021/2020

The growth rate in the period of 2022/2021

With respect to the company's revenue during the period 2020-2022, the company achieved revenue of VND 92,859 million in 2020, and it continued to increase to VND 104,197 million by 2021 The revenue growth rate in 2021 increased by 12.21% compared to 2020, equivalent to VND 11,338 million By 2022, the revenue growth rate in this year decreased by 1.56% compared to 2021, equivalent to VND 1,623 million

The main reason for the growth in the period 2020–2021 and stability in 2022 is that the company has had timely responses to the emergence of the COVID epidemic, actively boosted contacts with old partners, and dealt with new orders with simple items so that goods are quickly informed with the finest import and export process, thus improving the quality of service and serving the number of new customers and goods in each shipment The need for the import and export of goods has become more essential than ever during the period of the COVID pandemic In addition, Pegasus Global Logistics is an FDI company with 100% investment from Pegasus in Taiwan and a subsidiary of Pegasus Logistics Co., Ltd (a parent company of PANDA Logistics Group) Pegasus works with several listed companies in Taiwan, so the company has regular project shipment opportunities to collaborate with partner agents to make a mutual profit Therefore, the designated cargo volume from Taiwan was sufficient to avoid revenue pressure during this period Especially in the period 2020–2021, the company successfully secured long-term contracts with major corporations such as Samsung, Hyundai, and Abbott In the post-epidemic opening period of 2022, customer demand continued to rise, but due to market price adjustments to suit the new economic situation after the epidemic, revenue decreased slightly compared to 2021

In terms of the operating costs of the company during the 2020-2022 period, the cost spent on business activities has a percentage difference in 2021 compared to

2020, increasing by 12.58%, equivalent to VND 7,469 million Meanwhile, the cost difference rate in 2022 compared to 2021 decreased by 9.11%, equivalent to VND 6,092 million The main reason for the increase in costs in the period 2020–2021 is due to the large impact of market demand during the period of social isolation The costs incurred in connection with imported and exported goods are higher: corporate

16 premises, warehouses, transportation, transit services, etc (Vietnamplus, 2021) By

2022, the cost will have stabilized due to market regulation and state openness policies to restore the economy

As a result, the business profits of the company during the 2020-2022 period steadily increased The percentage of profit in 2021 increased by 11.56% compared to 2020, equivalent to VND 3,869 million In 2022, the profit growth rate increased by 11.97% compared to 2021, equivalent to VND 4,469 million

Amidst the challenges faced between 2020 and 2022, Pegasus's business operations have experienced positive growth, a testament to the strategic vision of its leadership and the dedication of its employees This success highlights the company's resilience and adaptability in navigating turbulent market conditions, showcasing the effectiveness of its strategies.

According to the Operation Report of Customs Procedure Agents on Vietnam's Customs System in the period 2020-2022 (Appendices 1, 2, 3), the number of shipments of Pegasus Company, although there is a decline, the quantity and weight of goods in each consignment increased very high, up from 3 to 5 times higher than normal shipments, making the use of the service increase, contributing to increased revenue during this period

1.5.3 General judgements on business operations of the company

Our freight forwarding team provides seamless customs clearance thanks to established connections, ensuring prompt processing Dedicated staff in each department guarantee meticulous handling and efficient task completion The young and motivated workforce brings enthusiasm and a thirst for knowledge, while our decade of experience has refined our processes This ensures optimized import and export procedures, expediting your shipments.

On the other hand, there are some disadvantages For some complex shipments with intricate goods and initial import-export procedures, there may be difficulties in searching for HS codes In addition, transportation vehicles (containers, trucks) are outsourced, which sometimes leads to delays in the receiving process due to coordination issues between the freight forwarding department and the vehicle

17 dispatching process, affecting the overall delivery process and causing delays for customers To repeat, economic fluctuations and price volatility pose challenges for Pegasus in terms of pricing and payment, affecting business profitability Additionally, erratic fuel price fluctuations also pose a headache for adjusting fuel surcharges due to the prolongation of the war between Russia and Ukraine

THEORETICAL FOUNDATIONS OF IMPORTING

Several main concepts in the importing services

There are a variety of definitions of import Through research, the author has synthesized some of the information as follows:

According to paragraph 2 of Article 28 of the Commercial Law 2005 on the importation of goods, “Import of goods means the bringing of goods into the territory of the Socialist Republic of Vietnam from foreign countries or special zones in the Vietnamese territory, which are regarded as exclusive customs zones according to the provisions of law.”

Troy (2021) assumes that import is a good or service bought in one country that was produced in another Imports and exports are the components of international trade If the value of a country's imports exceeds the value of its exports, the country has a negative balance of trade, also known as a trade deficit

Paragraph 6 of Article 2 of Circular No.54/2018/TT-BGTVT defines

“imports” as commodities whose place of delivery (origin) is overseas, and place of receipt (destination) is Vietnam

After examining the field of international business, with a particular emphasis on import activities, the author came to the following conclusion: Imports are purchases on an international scale, the exchange of goods between countries with currencies that are brokered and usually pay for a certain period of time, and the system of trade relations in an economy that is organized both internally and externally Import is the import of goods and services from other countries through national borders into a country The import of the receiving country is the export of a country that sends to sell goods and services

The import of goods has a direct impact on the economic development of each country According to Dinh (2022), imports are an important activity of international trade; imports have a direct and decisive impact on production and life Imports are

20 to strengthen advanced, modern technical facilities for production and consumer goods that domestic production cannot produce or that production does not meet demand Imports must be replaced, that is, imports of things that domestic production would not be beneficial to exports This will have a positive impact on the balanced development and exploitation of the potential and strengths of the national economy in terms of labor, capital, facilities, resources, and technical science The role of imports is expressed as follows:

Imports have promoted and shifted the economic structure in the direction of advancing industrialization and modernization in the country

Timely elimination of the imbalances in the economy ensures stable and balanced development and maximizes the potential and capabilities of the economy in the economic cycle

Imports guarantee input for production to create stable jobs for workers that contribute to improving and raising the standard of living of the people

Based on the study on the role of import theory, the author finds that imports play an important role in a country's economy, ensuring the stable development of each country's key economic sectors while fully exploiting the country's comparative advantages and contributing to the implementation of key economic sectors High specialization in labor and improvement of the international balance of payments

In international trade, especially imports, the forms of import are diverse depending on the potential of the enterprise, the nature of the commodity, and the relationship between the enterprises to choose the optimal and most appropriate form of import Import activities are classified into the following types:

Firstly, direct import is a form of import in which both buyers and sellers deal directly with each other; the process of buying and selling is not bound by each other

Secondly, entrusted import is defined in accordance with Decision No 1172/TM/XNK (1994) of the Minister of Trade and the issuance of the “Regulations on Export-Import Activities Assigned Among Vietnamese Businesses with a Legal Entity Status” as follows: “Export-import consignation is commercial services undertaken in the form of hiring and offering export-import services These activities

21 are undertaken on the basis of a contract for export or import consignment among businesses in accordance with the Ordinance on Economic Contracts.” Thus, an import entrustment contract is formed between domestic enterprises with their own foreign currency capital, who have a need to import a certain kind of supply or equipment but are not allowed to import directly or have difficulty finding a partner, to carry out the procedure of import concessions for enterprises that have an international trade function to carry out imports according to their requirements The entrusted party must proceed with the import procedures and be entitled to the remuneration called the commission fee

Thirdly, according to Will (2021), “Countertrade is a reciprocal form of international trade in which goods or services are exchanged for other goods and services rather than for hard currency This type of international trade is more common in developing countries with limited foreign exchange or credit facilities.”

International processing, as defined by Anh Lam (2019), involves a business transaction where a domestic enterprise (machining recipient) imports raw materials or semi-finished products from a foreign enterprise (machining commissioner) for the purpose of processing and delivering completed products In return, the machining recipient receives payment (machining fee) for their services.

Lastly, pursuant to Article 29 of the Law on Commercial (2005), stipulating temporary import for re-export, “temporary import of goods for re-export means the bringing of goods into Vietnam from foreign countries or special zones locating in the Vietnamese territory, which are regarded as exclusive customs zones according to the provisions of law, with the completion of the procedures for importing such goods to Vietnam, then procedures to export the same goods out of Vietnam.” This is a form of import, but not consumption in the domestic market, but export to another country for profit The goods were imported and exported shortly afterwards

According to the Commercial Law of 2005, “service delivery of goods is a commercial behavior in which the service provider receives goods from the sender,

22 organizes transportation, storage, warehousing, performs documentation procedures, and other related services in order to deliver the goods to the recipient on behalf of the owner, the carrier, or the other delivery provider (collectively the customer).”

Freight forwarding services encompass various aspects of transporting goods, including consolidation, storage, handling, packing, and distribution These services also extend to ancillary and advisory support, such as customs and fiscal matters, declaring goods officially, arranging insurance, and facilitating payment or document collection related to the goods As defined by the International Federation of Freight Forwarders Association (FIATA), freight forwarding services aim to provide comprehensive support throughout the transportation process, ensuring efficient and seamless movement of goods.

Some essential documents

Throughout importing activities, the following documents play a crucial role and are essential throughout the entire procedure:

“A contract for the sale of goods is an agreement whereby the seller is obliged to deliver the goods, transfer ownership of the goods to the buyer, and receive payment; the purchaser is obligated to pay the vendor, receive the goods, own goods in accordance with the agreement.” (Commercial Law, 2005, Article 3, para 8)

A commercial invoice, as defined by Bales (2022), is a crucial document in international trade It functions as a comprehensive record of the transaction between the importer and exporter, outlining the agreed-upon parameters such as the price, quantity, and quality of the goods involved.

A commercial invoice also acts as evidence of ownership and a legally binding document that can be referred to in the event of a disagreement It does this by offering a thorough description of the commodities and the expenses related to them, so promoting accountability and transparency in international trade

The packing list is another important shipping document when transporting ocean freight internationally It is a detailed overview of the cargo mentioned on the

28 commercial invoice above It also includes information on how the shipment has been packed and which marks and numbers are noted outside of the shipping boxes

Hapag-Lloyd (2024) defined “The Bill of Lading (B/L) acts as a receipt, contract of carriage and proof of ownership It is issued by the carrier who acknowledges the receipt of the goods for shipment on board and is responsible for their safe transport to the port of destination.”

Mearsk (2023) defined “The Certificate of Origin as the document that declares in which country a good or commodity was manufactured It is needed on a regular basis This document contains information about the product, its destination as well as the country of export It is an important form as it helps to determine if goods are eligible for import and if they are subject to duties.”

The export and import of commodity documents are crucial to the business of exporting or importing a particular item As a result, these documents contain information about goods, shipping, insurance, and payment that serves as evidence of a fact, a foundation for the reception of goods, payments, and claims, as well as recompense in the event that disputes arise between the parties.

Legal basis in importing operations in Vietnam

International transport activities that have related relationships spanning many nations and territories include cargo forwarding for import and export by sea in particular, and by numerous other means of transportation in general As a result, worldwide laws, treaties, and especially relevant national and local legislation closely monitor shipping operations The following is a list of some legal precepts that are applied to freight forwarding operations in Vietnam:

Vietnam Maritime Code No 95/2015/QH13, dated November 25, 2015, regulates maritime activities, including regulations on ships, seafarers, seaports, sea flows, land ports, shipping, maritime safety, marine security, environmental protection, state maritime management and other activities related to the use of ships for economic, cultural, social, sports, public service, and scientific research purposes

Law on Customs No 54/2014/QH13, dated June 23, 2014, stipulates the state management of customs for goods exported, imported, transit, exit, entry and transit of organizations, domestic and foreign individuals in the customs territory, on the organization and operation of customs

Commercial Law No 36/2005/QH11, dated June 14, 2005, regulates commercial activities

Law on Foreign Trade Management No 05/2017/QH14, dated June 12, 2017, prescribes measures to manage foreign trade, develop foreign trade activities, and settle disputes about the application of foreign trade management measures

Decree No 85/2019/ND-CP, dated November 14, 2019, prescribes the handling of administrative procedures via a national single window and the ASEAN single window and specialized inspection for exports and imports

Circular No 05/2018/TT-BCT, dated April 3, 2018, prescribes the origin of goods and the declaration of origin of exported goods and imported goods

Circular No 39/2018 TT-BTC, issued on April 20, 2018, modifies Circular No 38/2015/TT-BTC, which was released by the Minister of Finance on March 25, 2015 The revisions address customs procedures, inspections, supervision, tax administration, and export-import taxes for goods.

Circular No 31/2022/TT-BTC, dated June 8, 2022, on the promulgation of Vietnam’s nomenclature of exports and imports

Decision No 1966/QD-TCHQ dated October 7, 2015, on customs procedure for imports and exports

The legal basis of import operations is crucial to ensuring that Pegasus's delivery operations comply with domestic and international trade regulations and laws These facilities serve as the basis for the legitimacy of import transactions, guaranteeing reliability when introduced into a country Failure to comply with the legal basis leads to many problems related to fines, imprisonment (for prohibited goods), or refusal to export imports Therefore, understanding and compliance with the legal basis are essential for import operations to go smoothly, in line with the party's and the state's principles

Factors affecting the efficiency of import services

External Factor Evaluation (EFE) Matrix is a strategic analysis tool used to evaluate a firm’s external environment and to reveal its strengths as well as weaknesses (David, 2010, p.80) According to Fred R David, this tool is used to summarize the information gained from the company’s external environment analyses However, EFE analyses only help identify and evaluate the factors but do not directly help formulate a strategy or the next best strategic move The author defined EFE as follows: “An External Factor Evaluation (EFE) Matrix allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information.” The EFE matrix can be developed in five steps:

Step 1: List key external factors as identified in the external audit process

When using the EFE matrix with a total of 15 to 20 factors, businesses identify the key external opportunities and threats that are affecting or might affect companies, including political, infrastructure, economic, social, technological, environmental Be as specific as possible, using percentages, ratios, and comparative numbers whenever possible

Step 2: Assign to each factor a weight that ranges from 0.0 (not important) to

1.0 (very important) The weight indicates the relative importance of that factor to being successful in the firm’s industry Opportunities often receive higher weights than threats, but threats can receive higher weights if they are especially severe or threatening

The sum of all weights assigned to the factors must equal 1.0

Step 3: The ratings in the external matrix refer to how effectively a company’s current strategy responds to opportunities and threats Assign a rating between 1 and

4 to each key external factor to indicate how effectively the firm’s current strategies respond to the factor, where 4 = the response is superior, 3 = the response is above average, 2 = the response is average, and 1 = the response is poor Ratings are based on the effectiveness of the firm’s strategies

Both threats and opportunities can receive a 1, 2, 3, or 4

Step 4: To calculate a weighted score, multiply the weight assigned to each factor by its rating

Step 5: The weighted score for the organization as a whole is calculated by adding the weighted scores for each variable

The most potential total weighted score for an organization is 4.0, and the lowest possible total weighted score is 1.0, regardless of the quantity of important opportunities and dangers included in an EFE matrix An organization is responding to opportunities and dangers in its industry in an exceptional manner if it receives a total weighted score of 4.0 Stated differently, the firm's strategy efficiently leverages current opportunities while reducing the possible negative impact of external threats

A total score of 1.0 means that neither opportunities nor external dangers are being effectively addressed by the firm's plans

Internal Factor Evaluation (IFE) Matrix is a strategy tool used to evaluate a firm’s internal environment and reveal its strengths as well as weaknesses (David,

2010, p.122) According to the author, IFE is used to summarize the information gained from a company’s internal environment analysis

David (2010, p.122) defined IFE: “A summary step in conducting an internal strategic-management audit is to construct an Internal Factor Evaluation (IFE) matrix This strategy-formulation tool summarizes and evaluates the major strengths and weaknesses in the functional areas of a business, and it also provides a basis for identifying and evaluating relationships among those areas.” Similar to the EFE matrix, an IFE matrix can be developed in five steps:

Step 1: List key internal factors as identified in the internal-audit process The author uses a total of 10 to 20 internal factors, including both strengths and weaknesses: customers, personnel, transportation, marketing, operation, services Be as specific as possible, using percentages, ratios, and comparative numbers

Step 2: Each key factor should be assigned a weight ranging from 0.0 (not important) to 1.0 (all-important) to each factor The weight assigned to a given factor indicates the relative importance of the factor to being successful in the firm’s industry Regardless of whether a key factor is an internal strength or weakness,

32 factors considered to have the greatest effect on organizational performance should be assigned the highest weights The sum of all weights must equal 1.0

Step 3: The ratings in the internal matrix refer to how strong or weak each factor is in a firm Assign a 1-to-4 rating to each factor to indicate whether that factor represents a major weakness (rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3), or a major strength (rating = 4) Strengths can only receive ratings 3 and 4, weaknesses 2 and 1

Step 4: Multiply each factor’s weight by its rating to determine a weighted score for each variable

Step 5: Sum the weighted scores for each variable to determine the total weighted score for the organization

Regardless of how many factors are included in an IFE matrix, the total weighted score can range from a low of 1.0 to a high of 4.0, with the average score being 2.5 Total weighted scores well below 2.5 characterize organizations that are weak internally, whereas scores significantly above 2.5 indicate a strong internal position The number of factors has no effect on the range of total weighted scores because the weights always sum to 1.0

When a key internal factor is both a strength and a weakness, the factor should be included twice in the IFE matrix, and a weight and rating should be assigned to each statement Be as quantitative as possible when stating factors Use monetary amounts, percentages, numbers, and ratios to the extent possible

The EFE Matrix, IFE Matrix, and clear statements of vision and mission provide the basic information needed to successfully formulate competitive strategies The process of performing an internal audit represents an opportunity for managers and employees throughout the organization to participate in determining the future of the firm Involvement in the process can energize and mobilize managers and employees They are especially useful when building an advanced SWOT matrix for solutions.

This chapter provides several main concepts in importing services, essential documents, the legal basis for importing operations in Vietnam, and an assessment of the factors affecting the importing of services based on the theoretical framework given in Chapter 2

ANALYZING THE IMPORTING SERVICES OPERATION AT

Analyses of current activities in importing services at Pegasus Global

In the current global economy, logistics firms need to provide effective and dependable importing services in order to meet consumer requests and stay competitive But there are a lot of obstacles to overcome because of the complexity of global trade, changing laws, and advances in technology Without being much influenced by external influences, Pegasus has taken the right steps so that the total value of the company's import and export shipments in one year, the period 2020–

Table 3.1 Proportion of import and export shipments in the period of 2020 – 2022

(Source: Accounting and Finance Department, 2023)

Table 3.1 highlights significant changes in export and import volume for the period 2020-2022 Imports have witnessed a decline in quantity, impacting the overall import batch proportion.

35 shown some fluctuation in their proportion of the total shipments The quantity of imports in Pegasus fluctuated, declining from 765 batches in 2020 to 437 batches in

2021, leading to a decrease in their proportion from 93.19% to 86.19% before slightly rebounding to 473 batches in 2022, which accounted for 78.83% of the total turnover

The result points to possible changes in import strategy While the number of import batches saw a slight increase from 2021 to 2022, the overall trend was a decrease from 2020 to 2022 The significant changes in proportions suggest a rebalancing in the trade scale of Pegasus, where exports are becoming more prominent relative to imports This shift might reflect economic adjustments affected by the COVID-19 pandemic and changes in market demand spikes

3.1.2 The structure of import market

China Korea ASEAN Japan EU The

Computers, electronic products, and components

Table 3.2 Pegasus' import market structure by country and imported products by shipments in 2022

(Source: Accounting and Finance Department, 2023)

Overall, in 2022, Pegasus's import market structure was mainly based on imports from China, with 200 consignments of items of major value to our economy:

From Vietnam, machinery, equipment, and spare parts (53 consignments), computers, electronics, and components (47 consignments), textile accessories (62 consignments), and plastics (25 consignments) were exported The main export destinations were the European Union (76 shipments), the United States (61 shipments), South Korea (50 shipments), ASEAN (31 shipments), Japan (29 shipments), Taiwan (19 shipments), the Middle East (5 shipments), and Africa (2 shipments).

Regarding the structure of the imported goods group in 2023, the group of capital goods was estimated to reach 305 consignments, accounting for 64.5% (of the above 64.5%, there was 33.4% of the group of machinery, equipment, tools, spare parts, and the remaining 31.1% of the group of computers, electronic products, and components) Accounting for 16.5% was the Textile accessories group, with 78 consignments

Although there had been cooperation with many countries around the world, China was still Pegasus's largest import market, with 200 batches in 2022 (Table 3.2)

3.1.3 Mode of transport in import

Year Transport mode Number of

Table 3.3 Structure of import and export shipments by transport in the period of 2020 – 2022

In the period 2020-2022, there were a lot of fluctuations, from the COVID period to opening up and economic recovery Approximately 84.7% of the Pegasus-

37 supported shipments were shipped by waterway, about 7.1% by airway, and about 8.2% by motorway

According to the Communist Party of Vietnam (2023), with a high market share of road freight and passenger transport (79.84% for goods and 91.79% for passengers), the contribution of waterways is important not only for the economy of a country as a whole but also for the business results of Pegasus During the period 2020-2021, despite a severe drop in shipments from 772 consignments (2020) to 379 consignments (2021), the quantity of goods in a batch increased dramatically due to increased demand for imports and exports during the COVID period and difficulties in exports and imports, which led to collecting and exporting or importing in large quantities to save costs and avoid time In 2022, imports and exports by waterway grew steadily again, with 482 shipments Although there was still no outstanding growth compared to 2020, there had been improvements compared to 2021

Cross-border transportation of goods by motorway from Vietnam to foreign countries after a sharp decline in the first half of 2020 due to the COVID-19 epidemic saw a strong recovery from Q3/2020 to 2021, with the number of shipments from 12 batches (2021) increasing to 116 shipments (2021) The huge demand for food imports and exports, the essential commodities, and the unpredictable shifts of the fourth-largest pandemic ever led to a significant increase in exports and imports of goods by motorway, but they encountered many difficulties

The share of cross-border transportation by motorway ranged from 1.46 to 22.88% of the company's total import and export value

Transportation of imported and exported goods by motorway into Vietnam across land borders increased from about 1.5% of the total value of exported imported goods by motorway in the period 2020-2021 to 22.9% and subsequently decreased to 5% in 2022

The lack of focus on the airway led to a serious decline in the business situation during the COVID phase, from 37 lost down to 12 shipments using the above form

With the resumption of airport operations post-reopening, the company recognized the high yields and potential in air transportation This led to a strategic shift, focusing on developing air transportation services As a result, there was a significant increase in air shipments by 88% in 2022.

3.1.4 The general process of forwarding imported full container load (FCL) goods by sea at Pegasus Global Logistics Co., Ltd

According to the data of the author after internship, the general process of forwarding imported full container loads by sea involves nine main professional activities To provide an overview of the procedure, the following diagram shows every step of the process

Figure 3.1 Process of delivering imported goods in full containers by sea

There are two ways to receive a customer's request:

Case 1: The customer is the domestic importer entrusted to the delivery company to receive the import shipment

Case 2: Customers are shipping companies or foreign shipping firms that contract agents with the shipping company at the port of arrival, requesting to monitor

Receiving AN and submitting Manifest

Payment of Local charges and receipt of EDO

Customs procedures at the customs office

Gate liquidtation, receiving and delivering goods

Settlement, returning the empty cointainer, debit note and document handover

39 the imported shipment back to the port and carry out procedures for the recipient to receive the shipment

After a foreign trade agreement has been concluded between the exporting company and the importing company, the importer company notifies the shipment company, whom the important company authorizes to carry out the process of delivery of the imported goods, to conduct the quotation and sign the service contract

Step 3: Receiving Pre-Alert and Document Verification

Upon signing the service contract, the import company transmits shipment documentation to Pegasus Pegasus verifies the data therein, requesting supplementation if discrepancies arise If errors originate from Pegasus, it assumes responsibility for adjustment costs Monitoring the vessel's schedule, documentation staff determines the expected arrival date to facilitate appropriate arrangements.

Step 4: Receiving Arrival Notice and Submitting the Manifest

Before the cargo arrives at the port of discharge, the shipping line sends the arrival notice (AN) to the import company via email After receiving the AN, the documentation staff will proceed to declare the manifest online (e-manifest, a system for receiving cargo declaration forms accompanied by batch documents for customs clearance for incoming and outgoing ships) on the Vietnam National Single Window website at: https://vnsw.gov.vn/ This will be cross-referenced with the information about the batch provided by the exporter Specifically, Pegasus will declare the manifest for the House Bill of Lading When the operation staff arrives to collect the cargo, the customs authorities will cross-check the information on the delivery order (D/O) with the information in the manifest The cargo will be released when the cross- checked information matches

Step 5: Payment of Local Charges and Receipt of EDO

Upon receiving the shipment details, the staff determines the applicable fees for the shipping company The customer then initiates an email to the shipping company, attaching proof of payment and relevant information Based on this information, the shipping company issues an Electronic Delivery Order (EDO) to the import company, who subsequently forwards it to Pegasus, facilitating the shipment's onward progress.

As this is an FCL batch with the FCL/FCL delivery method, the company chooses to bring the cargo to its warehouse The staff will go to the ship management office at the port, fill out the “Container Borrowing Document” according to the shipping company's template, pay the deposit depending on the container size, and print the “Empty Container Return Request Form” indicating the location and deadline for returning the empty container after unloading The deposit amount will be refunded if the returned container is in good condition or deducted if the container is damaged for the shipping company to repair (Due to the company's information security, the D/O is not disclosed.)

General evaluations of importing activities at Pegasus Global Logistics

With more than 10 years of experience in the Vietnamese market, the company has experience in industry in general and in import and export processes in particular Currently, the import partners remain a stable source of revenue for the company, mainly from Asia, with 390 shipments of imports from this market (Table 1.2) Besides, the company's delivery process is constantly being improved through regular evaluation and using feedback from customers after each successful shipment to promote improved quality and service efficiency The company is currently strengthening the compliance of maritime ports and airports to high levels when

To mitigate the risk of penalties, errors and violations in import and export processes are meticulously minimized The company's expanding partner network has fostered collaborations with reputable shipping companies and customs agents, enabling the optimization of import routes This comprehensive approach delivers competitive pricing, enhancing customer service and positioning the company as an industry leader in shipping services.

According to the report of the Export-Import Room, in some peak periods such as Christmas, New Year’s Eve, Easter, Black Friday, etc., the company's workforce is limited when the number of customers using shipping services is high The shortage of delivery personnel leads to many issues, causing delays, backlogs, and service disruptions Besides, the marketing activities of Pegasus Company are weak, lacking programs to attract the attention of customers, such as advertising programs on forums, newspapers, economic magazines, or other mass media In addition, the issue of transportation has always been seen as a problem for the board of directors While outsourcing reduces costs (remote check-in, maintenance, etc.), reliance on outsourced means of transport causes a number of problems, such as delays due to a lack of supplies, higher rental costs during peak shipments, affecting company profits, and customer dissatisfaction.

Possible factors affecting the importing services at Pegasus Global Logistics

Increasing instability in markets and industries around the world means controlling factors outside the business has become an obvious part of the business's ability to survive This model provides a framework for collecting and evaluating political, legal, economic, social, technological, and environmental factors

Pegasus empowers its department managers and employees, especially sales personnel, to identify, predict, and evaluate critical external forces that may not anticipate new opportunities and threats and thus be able to pursue efficient and

45 sustainable development opportunities Especially the capture of the innovation and modernity of technology 4.0 into the business operations of enterprises

Pegasus' primary responsibility is to ensure that it develops an effective system to predict the external environment, capturing market trends and key events This includes the use of information technology to create an information system to increase competitiveness in efficient delivery operations

The EFE Matrix of Pegasus Global Logistics is developed in five steps:

Step 1: The list of 16 key external factors as identified in the external-audit process is collected from three main souces:

From the perspectives of official state-owned electronic newspapers

According to the results of the national logistics capacity index (LPI) ranking announced by the World Bank over the past 16 years, Vietnam's LPI index has an increasing trend In the 2023 announcement, Vietnam's LPI index increased higher than the previous announcement (3.27 points) and reached 3.3 points This demonstrates efforts to reform policy institutions, the business environment, and investment in upgrading logistics and transportation infrastructure in recent times (Tu Anh, 2023) The above viewpoint has created the foundation to establish the factor "Transparency policy systems help logistics services grow."

The “Infrastructure for non-synchronous freight transport” factor was formed based on the comments of the leaders of Saigon Newport Corporation about the obstacles to logistics development in Vietnam The first obstacle is planning; infrastructure and connection infrastructure are not yet complete and do not meet the needs of the industry Accordingly, motorway transport is still the main mode of operation, while road infrastructure is overloaded and degraded and other modes of transport are not developed Expressway, Ring Road 3, and Ring Road 4 projects are behind schedule in the southern area Planning for industrial and production areas still overlaps with residential areas, causing insecurity for people Currently, there are still many projects suspended according to the planning of real estate projects instead of giving priority to the development of logistics and seaports (Tu Anh, 2023)

According to the Vietnam Maritime Administration, statistics on the growth of the volume of goods through seaports, although facing many difficulties, the achieved

46 results show that the maritime transport market always has positive signs with the search for growth develop further in the future (Nhi Trang, 2023) This observation creates the premise for factor formation “The increase in export-import allowing logistics services to grow.”

According to Nguyen (2024), Vietnam has implemented many activities related to sustainable production and consumption, in which green consumption is receiving more and more attention Many related documents have been signed, such as the International Declaration and National Action Plan on Sustainable Production and Consumption (1999), legal documents related to protecting consumer rights, the Law on Economical and Efficient Use of Energy, and the International Declaration on Cleaner Production (1999) Programs related to green products, such as programs for granting eco-labels, energy-saving labels, and eco-labels for the tourism industry, are also implemented In particular, the National Strategy on Green Growth for the Period 2011–2020 and Vision to 2050 is an important legal basis for developing policies related to green consumption in Vietnam in the coming period This is the recommendation for the element “Vietnam sets sustainable development goals with its Green Logistics policy.”

From official websites of ministries and branches

In 2023, freight transport surged by 15.4%, with 489.7 billion tons-km circulated, up 10.8% Concurrently, export and import revenues witnessed notable increases of 13.1% and 12.3%, respectively, in Q3/2023 These statistics underscore the positive correlation between export-import growth and the expansion of logistics services.

From knowledge of the International Business Strategy subject taught by Mr Nguyen Duc Nhan

The author proposes factors that are currently affecting Vietnamese businesses from the external environment, especially forwarder businesses like Pegasus, through the comments of Mr To Van Cuong, head of Pegasus's sales department After listing the external factors in the EFE table as below, the author had the opportunity to participate in a meeting between the interns, director, and sales department to give

47 comments and find core causes affecting the business operations of the enterprise In the Q&A section at the end of the meeting, the author had the opportunity to consult with the director and six sales employees to determine the weight and level of response of Pegasus (Ratings) to the above factors

Step 2: Assign to each factor a weight that ranges from 0.0 (not important) to

1.0 (very important) The sum of all weights assigned to the factors must equal 1.0

Step 3: Assign a rating between 1 and 4 to each key external factor to indicate how effectively the firm’s current strategies respond to the factor, where 4 = the response is superior, 3 = the response is above average, 2 = the response is average, and 1 = the response is poor

The author printed 7 copies of the EFE matrix for the director and sales staff to evaluate

Step 4: Multiply each factor’s weight by its rating to determine a weighted score

Step 5: Sum the weighted scores for each variable to determine the total weighted score for the organization

1 POLITICAL Transparency policy system helps logistics services grow O 0.1 4 0.4

Customs procedures, import and export documents are increasingly simplified

Ministries and management have issued legislative documents on the planning of transportation, maritime transport, roads, harbours, logistics zones, etc for the periods of 2020 and vision

Regular congestion affects logistics operations T 0.08 1 0.08

Infrastructure for non- synchronous freight transport T 0.04 2 0.08

The airport hasn't been properly invested T 0.03 2 0.06

7 ECONOMIC GDP impacts on the development of logistics services O 0.03 2 0.06

8 SOCIAL The trend to develop outsourcing logistics services is growing O 0.09 3 0.27

The competition in the logistics services industry is becoming increasingly intense

The increase in export-import allowing logistics services to grow

Logistics companies are constantly working together to improve the quality of their services

Logistics companies usually pays informal fees to make the mining more convenient

The awareness of customers (business units) of the importance of logistics services is increasing

IT helps improve the quality of logistics services O 0.05 1 0.05

Logistics companies in the country apply IT to their business T 0.05 1 0.05

Vietnam sets sustainable development goals with its

Table 3.4 EFE Matrix for Pegasus Global Logistics Co., Ltd

The state's policy on innovative, consistent, and increasingly stable logistics has created the attractiveness of Vietnam’s logistics services to investors, creating a clear and transparent legal corridor for the growing logistics industry Since joining

49 the World Trade Organization (WTO) on January 11, 2007, Vietnam has committed to opening the following sub-sectors: container unloading services, warehouse inspection services, and cargo agent services carried out on behalf of the landlord Transparent policies facilitate business operations, attract investments, and boost revenue From 2017 to 2022, Vietnam's logistics service revenue grew at a rate of 14% to 16% annually, reaching a scale of about 40 to 42 billion USD per year (Bui et al., 2023) By properly enforcing laws and state policies, Pegasus is rated to be well-adapted to rate 4 and will be more open-minded in expanding its domestic and foreign customer markets

Currently, many parts of customs procedures have adopted information technology to keep up with the era of digital conversion with applications commonly used in logistics services: warehouse management systems (WMS), barcode scanning and order management in warehouses, warehouse sites, electronic customs processing and receiving declarations through the ECUS5 software, and online merchandise information Vietnamese logistics facilities, such as the Vietnam International Container Terminal (VICT) and Long An International Port, are using modernization and innovation to provide better services and retain customers(Ky Thien & Duc Tri, 2023) The above factor scored 0.09 because of its great impact on the level of customer satisfaction with the service of the contractor company As the procedures are simplified, the process of exporting or importing goods becomes easier, so that can be proactive in timing and spending time on other tasks With refined steps, Pegasus is always making the most of them to give customers the best conditions, so the level of adaptability is 4

The two factors “The trend to develop outsourcing logistics services is growing” and “The increase in export-import allowing logistics services to grow” have equal points by 0.09 because these two factors will have a major impact on the current and future demand for transportation services, especially in the emerging economic period The rise in quotas leads to increased demand for service use, and the increase in demand results in a higher trend towards service outsourcing, thus creating a business resource for companies like Pegasus to survive and thrive According to the World Bank's Logistics Efficiency Index (LPI) report (2023),

IMPLICATIONS TO IMPROVE THE IMPORTING SERVICES

Orientations and policies of the company for the future

The business development orientation in a company plays a necessary role in its success That is the reason why, in the period of 5 years (2020-2025), Pegasus relentlessly encroached on global trading centers With the successful signing of the TPP agreement, EVFTA, etc., the logistics industry will be a hot sector in the coming years, and it is anticipated that the business of logistics companies will continue to grow Meeting the demands and challenges of the integration market requires Pegasus to improve service quality and focus on building a reputation with customers to increase competitiveness Next, the company will actively maintain cooperative relationships with existing partners and expand its search for potential partners in familiar markets such as Thailand, China, Singapore, and Australia Additionally, research should be conducted to explore better opportunities in new markets in Africa, America, and Europe

And for sustainable development, it is impossible not to mention the growth within the company Strive to improve operational capacity, competitiveness, leverage strengths, and maintain a distinctive identity, aiming to approach customers with professionalism in organizational activities, diversity in products and services, and attentive enthusiasm in service style Training employees to enhance problem- solving abilities during operations and establish a corporate culture; strengthening business expansion efforts in warehouse services; enhancing legal foundations, consolidating infrastructure, equipment, transportation vehicles; carefully selecting human resources, and standardizing service processes are all things that Pegasus wants to do Last but not least, the development of the company must always go hand in hand with community and social support.

Basis to provide optimal solutions for the importing services

Any service related to a for-profit or non-profit business faces limitations and difficulties After gaining practical experience in the business process of receiving

61 imported shipments at Pegasus Co., Ltd., the author has obtained important data to create a business analysis model to evaluate the company's position in the competitiveness of businesses, properly orienting development paths so that businesses can develop sustainably The actual data accurately shows the strengths and weaknesses of many factors in the company's import activities The goal of analyzing and evaluating advantages and disadvantages is to understand the key issues and provide specific solutions to address the remaining limitations The long- term goal is to improve the efficiency of import activities at Pegasus Co., Ltd., not only enhancing the company's reputation in the field of international freight transport business but also creating a foundation for the company to enter sustainable business development according to new world trends

To propose measures to overcome the current challenges considered, the author mainly relies on:

Data provided by the company

Current status and assessment of the company's import activities

The EFE Matrix, IFE Matrix, and clear statements of orientations and policies provide the basic information needed to successfully formulate competitive strategies

The actual importing process at the company

All the above bases have formed the professional qualifications - SWOT model of Pegasus Company

(1) Transparency policy system helps logistics services grow

(2) Vietnam sets sustainable development goals with the Green Logistics Policy

(3) The trend towards outsourcing of logistics services is growing

(4) Logistics companies are constantly working together to improve the quality of their services

(5) Logistics enterprises in the country are applying IT to their business

(6) IT helps improve the quality of logistics services

(1) The competition in the logistics services industry is becoming increasingly fierce

(2) They usually pay informal fees to make the mining more convenient

(1) The company's personnel are mostly between the ages of 22 and 30

(2) The company has many loyal customers, mostly large customers with long-term cooperation

(3) The company establishes strong relationships with reliable shipping partners and agents

(4) Means of transportation are currently mainly outsourced

S (1,3,4) + O (1,3): Harnessing human resources and taking advantage of outsourcing trends to grow the company’s business

S (2,3) + O (4): Take advantage of good relationships with partners, dealers to optimize storage and transportation costs

(1) The company always ensures environmental consideration in its operations

(2) Facility to store customer data and shipping company data

(3) The marketing activities of Pegasus Company

W (1) + O (1,2): Implement the Green Logistics Policy from the State for Sustainable Development with the ESG/GSCM Strategy

W (2,3) + O (5,6): Apply IT to improve services by information management website

Table 4.1 SWOT Analysis of Pegasus Global Logistics Co., Ltd

The SWOT table shows four solutions to take advantage of the company's strengths and capture its weaknesses to achieve opportunities in the industry, thereby helping the business grow

Proposing solutions to improve the efficiency of importing services at

Pegasus Global Logistics Company Limited

To enter the global market, the company should first build and expand extensive relationships with foreign shipping lines, import-export companies with subsidiaries in Vietnam to seek long-term, stable, and continuous sources of goods

In addition, the company should join the e-commerce network of reputable businesses such as Alibaba.com, Amazon.com, etc These are leading global e-commerce websites, and many multinational businesses sign import-export contracts through these platforms By participating in these e-commerce platforms, the company can establish new partnerships worldwide

4.3.1 Take advantage of good relationships with partners and dealers to optimize storage and transportation costs

Currently, the office equipment of the company is well-equipped, but there are still limitations in transportation, so the company needs to invest further in transportation means as it heavily relies on external resources Specifically, the company should increase the number of trucks, trailers, or cargo protection vehicles, expand the warehouse system, and supplement the existing fleet because the company often incurs additional storage fees due to the lack of transportation vehicles while the goods have completed customs procedures This will not only improve costs but also reduce dependence on third-party transportation in the long run, enhancing customer credibility Besides, it is precisely the close association with partners, companies in the same transportation sector, that creates for Pegasus many conditions to optimize the cost of warehousing

Conditions for implementing the solution

Transport is a major part of consignment distribution, so it is necessary to find a good transporter for distribution Try to find the best transporters for consignment distribution to ensure the efficient and reliable transportation of goods According to Square, Inc., (2020), here are the key factors to consider:

Geographical scope: Vietnam currently has seven economic zones stretching from the north to the south Pegasus investigates and selects the most suitable transportation units for each economic region through various forms of evaluation: newspapers, reviews from company partners, suggestions from long-term customers, etc., to ensure that goods in any area of the country are served

Average shipping time: The shipping company option ensures delivery on time according to the shipping contract, meeting delivery schedules with a wide range of shipping routes and busy shipping schedules during the year Fast service, however, leads to high costs, and vice versa, requires Pegasus to consider ensuring profitability for the company while ensuring that the shipment is delivered at the right time

Reliability: With new shipping companies, Pegasus should consider responsiveness to unexpected events Reliable shippers help maintain consistency in the supply chain and customer satisfaction, ensuring adequate experience in handling problems when unexpected events occur during shipping In addition, reputable transport units have safety certificates for vehicles, complying with regulations necessary to handle goods safely and legally

Shipping rates: To get good returns while ensuring safe shipping, Pegasus should compare shipping prices from various shipping companies to find the most cost-effective option without affecting the quality of service Pegasus should be proactive in finding units with transparent and appropriate prices

Available means and capacity: The company should select transport units that ensure they are capable of meeting the company's transportation needs For example, in LCL shipments, it would be more convenient to rent a truck than to rent one container to carry a small amount of cargo, which would result in a cost deficit Instead, choose companies that have a wide range of shipping methods so that the shipment is delivered optimally without being wasted

Product protection: Pegasus gives priority to shipping companies that guarantee the protection of goods during shipping Pegasus should find shippers that use packaging processes that protect goods with commitments to minimize the risk of damage to the lowest possible level

Customer Service: Pegasus should choose service providers that are able to respond quickly by phone, email, etc make the right choices for the company and ensure that the quotations are close to reality, the least occurring and ready to address customer concerns

Environmental concerns: The selection and use of services by transport units that are committed to the environment also helps Pegasus contribute to environmental protection, and Pegasus should give priority to carriers that use alternative fuels (fuels formed from electricity, hydroelectricity, and renewable natural gas (RNG)) According to the Alternative Fuel Data Center (AFDC), electric vehicles in the U.S emit approximately 4,091 pounds of CO2 equivalent per year Compared to about 11,435 pounds of CO2 that vehicles run on emissions In addition, the environmentally friendly measures that should be considered in transportation are full truckloads (FTL) Transport units ensuring a full truck is one of the easiest ways to reduce greenhouse gas emissions Reducing the number of less than truckloads (LTL) will help reduce waste of time, money, and gas emissions

By assessing these factors in a comprehensive way, Pegasus can select the domestic road carriers that best meet the company’s shipping needs for each specific shipment, optimize supply chain performance, and deliver value for business and customers

Shared warehouse leasing is a method that has many benefits for the logistics and supply chain management of a business By sharing the warehouse with trusted partners, Pegasus can minimize the cost of warehouse rental, maintenance, and management, helping to reduce operating costs Additionally, joint rental helps optimize storage space, avoiding waste in low seasons In addition, warehouse sharing opens opportunities to collaborate with new partners, increase business opportunities, and expand the supply chain network

Results achieved from the solution:

Optimize the cost of trucking and warehousing to increase the profitability of the company

Improved relationships with domestic carriers, process coordination and service improvement

Allowing Pegasus to focus on things other than trucking

4.3.2 Harnessing human resources and taking advantage of outsourcing trends to grow the company’s business

As a service-oriented company, human resources play a decisive role Pegasus needs to focus on policies that attract talented individuals and encourage dedication to the company With the goal of long-term and sustainable development, the company should be willing to create a conducive work environment for both managers and employees to unleash creativity and proactivity in their work