LIST OF ABBREVIATIONS ALM VN Co., Ltd Addicon Logistics Management VN Limited Company Acc-Audi Accounting-Auditing B/L Bill of Lading C/O Certificate of Origin CBM Cubic Meter CFR
Reasons for thesis
Amid robust economic and social development nowadays, economic activities always find themselves in a state of readiness to adapt and innovate to progress and keep pace with the times Particularly, over the past decade, international business and trade activities in Vietnam have been increasingly vibrant, propelling domestic economic activities, including the fields of logistics and supply chain management, transportation, and cargo coordination, to thrive significantly However, in recent times, the global economic landscape has experienced severe turmoil due to geopolitical fluctuations, the outbreak, and the aftermath of the pandemic This situation has led to a substantial economic downturn worldwide, with Vietnam's economy being inevitably impacted to a certain extent Consequently, the logistics sector has seen a decline However, when measured against several other expanding economies in the region and globally, the logistics industry in Vietnam has been resilient, remaining stable and adapting promptly, which has allowed for its continued development
Being the most dynamic economic hub nationwide and strategically located as the central gateway to the neighboring provinces in the Southeastern region of Vietnam, Ho Chi Minh City plays a pivotal role as a transportation and logistics center, serving as an arterial road in the Southern economic region Here, logistics and transportation companies operate vigorously, catering to a vast and internationally promising market It can be affirmed that the logistics sector acts as a red thread running through the economic fabric, and ensuring the sustainability of the regional economy
As a student specializing in International Business in the new era and having gained practical experience through two internship periods, the author recognizes the importance and intimate role of logistics, supply chain management, as well as import and export activities in the realm of international business This realization has fueled the author's aspiration to contribute to the workforce within this industry For this reason, the author has chosen the research topic “IMPROVEMENTS IN THE BUSINESS PROCESS OF FREIGHT FORWARDING FULL CONTAINER LOADS IMPORTED VIA SEA
FREIGHT AT ADDICON LOGISTICS MANAGEMENT (VN) CO., LTD” as the subject of his graduation dissertation This research topic plays a role as a launching pad, providing the author with the most practical foundation to delve deeply into the realities of the international maritime freight shipping field specifically, and the International Business - Logistics - Import and Export sector in general.
Aims of research
Firstly, the thesis introduces and examines the current status of how the imported FCL by sea forwarding process via sea is organized and executed at Addicon Logistics Management (VN) Co., Ltd This process consists of seven main steps from contract negotiation with customers to the service settlement and recordkeeping
Secondly, the thesis highlights the strengths and weaknesses in organizing and executing the logistics operations of imported FCL by sea forwarding at Addicon Logistics Management (VN) Co., Ltd, focusing primarily on the professional competencies of document staff
Thirdly, drawing upon analysis and data synthesis, the author puts forward a range of solutions and recommendations not only for optimizing the administrative and legal aspects but also for enhancing the overall efficiency of the imported FCL by sea forwarding process at Addicon Logistics Management (VN) Co., Ltd.
Object of study and scope of research
Object of study: “The business process of freight forwarding full container loads imported via sea freight at Addicon Logistics Management (VN) Co., Ltd.”
- Research space: Working as a document staff at Addicon Logistics Management (VN) Co., Ltd
- Time of research: Research the business process of freight forwarding full container loads imported via sea freight at Addicon Logistics Management (VN) Co., Ltd in the period of 2020-2022.
Methods of research
- Documentary research method: Using the documents from the company, textbook, and previous researchs to do the study of the business process
- Comparison method: Compare the data of the company between the difference years to analyze and evaluate
- Experimental observation method: Applying the experimental observation to connect with the theory, then understanding the who business process of the company
- Analysis and synthesis method: Analyzing all of the data and current status, then comparing in order to evaluate both merits and drawbacks Based on this, synthesise those of evaluation to find out the reasonable solutions.
Structure
The thesis has the following structure:
• Chapter 3: Current Status of The Research
GENERAL INTRODUCTION TO ADDICON LOGISTICS MANAGEMENT (VN) CO.,
Preliminary Information about Addicon Logistics Management (VN) Co., Ltd
There are some of preliminary information about Addicon Logistics Management (VN) Co., Ltd:
Figure 1 1 The logo of Addicon Logistics Management (VN) Co., Ltd
(Source: ALM (VN) Co., Ltd)
- Company Name: ADDICON LOGISTICS MANAGEMENT (VN) CO., LTD
- Director/Legal Representative: BUI VAN KIEU (Ms Kate)
- Headquarters: 5th Floor, The Golden Building, No.19 Tan Canh Street, Ward
1, Tan Binh District, Ho Chi Minh City
- Type of Business: Limited Liability Company
Formation and Development Process
Addicon Logistics Management (VN) Co., Ltd is a Singapore-based complete logistics services firm that was established in 2001 ALM (VN) Co., Ltd was founded in
2010 in Ho Chi Minh City Over the past 12 years, ALM (VN) Co., Ltd has maintained the lead in terms of rapid growth and developing a varied client base, expanding with more than two branches in Hanoi and Hai Phong
With a professionally trained and quality-assessed workforce, capable of handling specialized cargoes such as pharmaceuticals, chemicals, hazardous goods, and project cargo, as well as global imports and exports for food and beverage products, ALM (VN) Co., Ltd is one of the prominent and reputable names in the fields of freight forwarding, customs declaration, and third-party logistics services Currently, ALM (VN) Co., Ltd is focusing on the development of the Cold Chain, particularly logistics solutions for agriculture, and aiming to lead in this sector
Addicon Logistics Management (VN) Co., Ltd proudly stands among Vietnam's elite top 100 logistics companies, recognized for its unwavering commitment to excellence in 2020 Their comprehensive and cost-effective solutions, coupled with a resolute focus on minimizing delays, empower clients with unrivaled value-added services This recognition solidifies Addicon's position as the trusted partner for all logistics needs, ensuring seamless operations and exceptional outcomes.
Organization and Field of Operation
Addicon Logistics Management (VN) Co., Ltd specializes in offering a wide suite of logistics services, warehouse storage, and vessel rentals It stands as one of the esteemed forwarders with a robust foothold in the logistics industry, particularly in both Vietnam and Southeast Asia as a whole.
Organizational Management and Resource Utilization in the Company
Currently, Addicon Logistics Management (VN) Co., Ltd recruits around 100 employees The majority of employees in the company's numerous departments are experienced human resources with at least two years of relevant expertise, as well as academic qualifications that fit with the particular roles within those departments
At present, in November 2023, the company has been able to maintain the same workforce, and there is no immediate requirement for new positions.
Organizational Structure and Responsibilities of Departments
In terms of organizational structure and responsibilities, Addicon Logistics Management (VN) Co., Ltd operates with the following framework:
Figure 1 2 Organizational Chart of ALM (VN) Co., Ltd
(Source: Administration and Human Resources Department)
The functions and responsibilities of some departments within the company are allocated as follows:
- The Director is the company's highest-ranking officer and its legal representative, in charge of carrying out the rights and responsibilities before the Board Members
The Director serves as the pivotal figure in overseeing and guiding the company's operations Their responsibilities extend beyond the internal realm, encompassing external engagements, financial management, and the evaluation and approval of proposals submitted by lower-level departments This centralized leadership ensures that the company's strategic initiatives are aligned and effectively executed, fostering a cohesive and efficient organizational structure.
- The Director also has the authority to establish internal management regulations for the company and can appoint, remove, or demote some management titles within the company
- The Sales Department is responsible for dealing with customers, acquiring new clients, and negotiating service contracts, ultimately leading to contractual agreements
❖ Administration and Human Resources Department
- The Administration and Human Resources Department is in charge of the firm's administration and personnel-related tasks
- They plan schedules and locations for meetings, events, and excursions within the company's payroll
- The department is responsible for employee allocation and disposition in the firm
- They set regulations and standards for effectively managing personnel quality of work and workplace environment within the organization
- This department contains several smaller units focused on conducting specialist logistics duties such as operations, freight stevedoring, and other logistics activities related to particular orders such as fumigation and disinfection (if required)
- Reconciling account receivables and account payables, establishing monthly debt recovery plans, and preparing receipts, payment vouchers, and payment orders for transactions
- Accounting comprehensively for all incurred business and preparing periodical reports
- Being responsible for monitoring and overseeing all financial matters of the company
- Executing document-related duties, such as issuing certificates of origin (C/O) and fumigation certificates; ensuring accuracy and cross-referencing various types of documents, and handling customs declarations
- Examining the quantity of goods and related information as stated in the documents against the batch of goods
- Ensuring on-time import and export of goods within the permitted legal jurisdiction Customs clearance and post-clearance support
Functions of Addicon Logistics Management (VN) Co., Ltd
Amidst the burgeoning global goods market, the logistics and transportation industry is thriving Addicon Logistics Management (VN) Co., Ltd stands as a prominent player, offering comprehensive services such as freight forwarding, customs clearance, and global transportation As a vital intermediary, Addicon facilitates seamless connections between sellers and buyers, ensuring efficient and cost-effective delivery of goods Their adherence to optimal routes and customs compliance guarantees the safe and secure arrival of shipments, supporting the growth and evolution of international trade.
Employees are crucial for Addicon Logistics Management (VN) Co., Ltd.'s success, and they are provided excellent compensation, bonuses, and benefits The professional and well-organized work environment fosters collaboration and teamwork The company invests heavily in employee development through academic qualifications and workshops, enhancing their professional skills and competencies.
For society: The company must be responsible for warranting that its organization and operations adhere to the registered business sector and fulfill all obligations towards the State; abide by the relevant legal regulations of the business sector and guarantee fire fighting and prevention and environmental protection.
The Business Situations, Production, and Services of Addicon Logistics Management (VN) Co.,
From 2015 to 2019, Vietnam's economy experienced substantial growth, aided by political stability and skilled diplomacy This spurred growth in the logistics sector, characterized by expanding networks and diverse services During this period, Addicon Logistics Management (VN) Co., Ltd flourished, diversifying its business operations and forging strong international trade partnerships.
From 2020 onwards, with the worldwide outbreak of COVID-19, countries had to implement border closures and suspend trade for an extended period, resulting in a global economic downturn Even after the pandemic has subsided, the aftermath presents ongoing complexities Global conflicts, civil unrest, coups, and political upheavals have added to the economic challenges Not only has the economy struggled to fully rebound from the impact of COVID-19, but all aspects of production and business activities have become significantly more challenging
Vietnam is not immune to the ripple effects as our economy has become more interconnected with partner countries However, compared to other nations grappling with the severe consequences of pandemics, wars, and political instability, Vietnam has managed to sustain positive growth over the years The logistics and supply chain field in Vietnam has maintained stability, even though it may not have seen the same level of prosperity as before the pandemic Addicon Logistics Management (VN) Co., Ltd has continued to retain a stable customer base and its workforce, thereby gradually reaffirming its strength and credibility within the industry, even amid the current volatile and challenging circumstances
Addicon Logistics Management (VN) Co., Ltd experienced significant growth in its total volume of imported goods forwarded from 2020 to 2022 This growth was driven by strong performance in both FCL and LCL forwarding.
Table 1 1 Statistics on the total volume of imported goods forwarding circulated by the company in the period 2020-2022
In 2020, the total volume of FCL imported goods was more than 2 million TEU, and LCL goods represented more than 200,000 CBM
A significant decrease is evident in 2021 as the pandemic began to wreak havoc, freezing the global economy The total volume of forwarding FCL imported goods by the company hit its lowest point, with just over 5000 TEU, and LCL goods reached more than 100,000 CBM This is the year of the lowest volume of imported cargo forwarding in the past 10 years of the company
In 2022, as the pandemic showed signs of decline, the volume of FCL imported goods increased by over 1.5 million TEU compared to 2022, and LCL goods also grew by nearly 80,000 CBM compared to 2021
1.8 Vision, Mission, and Core Values
Vision: Addicon Logistics Management (VN) Co., Ltd aspires to be recognized as a globally trusted and leading partner in providing post-logistics services for specialized products such as healthcare pharmaceuticals, chemicals, hazardous materials, food, and beverages, as well as project cargo
Mission: The presence of Addicon Logistics Management (VN) Co., Ltd is to attract and retain customers by providing the best possible services that exceed customer and partner expectations
Chapter 1 provides an overview of some fundamental information about Addicon Logistics Management (VN) Co., Ltd, its field of operation, and the products and services it offers It also includes other relevant information about the company's functions, as well as a brief analysis of its business results from 2020 to 2022, indicating signs of economic recovery and promising future development
Chapter 1 serves as the foundational background for Chapter 2, which will continue to analyze the literature review for researching and examining the current status of import goods handled by the sea at Addicon Logistics Management (VN) Co., Ltd
CHAPTER 2: LITERATURE REVIEW THEORETICAL BASIS OF FREIGHT
FORWARDING IMPORTED GOODS BY SEA 2.1 The Definitions of Freight Forwarding Activities
2.1.1 The Definitions of Freight Forwarding Activities and Forwarders
There are a variety of definitions of the cargo handling and forwarding activities Through research, the author has synthesized some of the information as follows:
Freight forwarding services encompass all activities related to the transportation, consolidation, storage, handling, packaging, and distribution of goods These services also include ancillary and advisory support such as customs and fiscal matters, official declarations, insurance procurement, and document collection or payment facilitation related to the goods.
According to Article 163 of The Commercial Law (1997): “Goods delivery service is the commercial act whereby the goods delivery service provider receives goods from the sender, arranges transportation and storage, and completes the necessary paperwork and other related services for the purpose of delivery of goods to the recipient as authorized by the goods owner, the carrier or another delivery service provider (hereinafter referred to as the customer).”
Article 233 of The Vietnam Commercial Law (2005) did not specify a specific definition of forwarding activities However, it provided a general overview of logistics services: “Logistic services are commercial activities whereby traders organize the performance of one or many jobs including reception, transportation, warehousing, yard storage of cargoes, completion of customs procedures and other formalities and paperwork, provision of consultancy to customers, services of packaging, marking, delivery of goods, or other services related to goods according to agreements with customers in order to enjoy service charges.”
After examining the field of International Business - Logistics, with a particular emphasis on freight forwarding activities, the author came to the following conclusion: In the world of international trade, products transit from the seller's location to the buyer's destination Freight forwarding includes all professional transportation tasks and
Freight forwarding plays a crucial role in global trade, bridging the gap between international and domestic connections These professionals manage transportation logistics, organizing complex processes that ensure the efficient movement and distribution of goods By acting as a third party, freight forwarders facilitate seamless transit, providing valuable support to businesses engaging in international commerce.
In addition to the concepts related to freight forwarding activities, through research, the author has also gained several definitions of freight forwarders
The FIATA International Federation of Freight Forwarders Associations also stated that a freight forwarder is someone who arranges for the transportation of goods under an authorization contract and acts for the benefit of the trustor but is not a carrier, the freight forwarder is also in charge of all tasks related to the forwarding contract, such as storage, warehousing, transshipment, and customs procedures, etc
LITERATURE REVIEW THEORETICAL BASIS OF FREIGHT FORWARDING
The Definitions of Freight Forwarding Activities
2.1.1 The Definitions of Freight Forwarding Activities and Forwarders
There are a variety of definitions of the cargo handling and forwarding activities Through research, the author has synthesized some of the information as follows:
The FIATA International Federation of Freight Forwarders Associations indicated that “Freight Forwarding Services means services of any kind relating to the carriage, consolidation, storage, handling, packing or distribution of the Goods as well as ancillary and advisory services in connection therewith, including but not limited to customs and fiscal matters, declaring the Goods for official purposes, procuring insurance of the Goods and collecting or procuring payment or documents relating to the Goods.”
According to Article 163 of The Commercial Law (1997): “Goods delivery service is the commercial act whereby the goods delivery service provider receives goods from the sender, arranges transportation and storage, and completes the necessary paperwork and other related services for the purpose of delivery of goods to the recipient as authorized by the goods owner, the carrier or another delivery service provider (hereinafter referred to as the customer).”
Article 233 of The Vietnam Commercial Law (2005) did not specify a specific definition of forwarding activities However, it provided a general overview of logistics services: “Logistic services are commercial activities whereby traders organize the performance of one or many jobs including reception, transportation, warehousing, yard storage of cargoes, completion of customs procedures and other formalities and paperwork, provision of consultancy to customers, services of packaging, marking, delivery of goods, or other services related to goods according to agreements with customers in order to enjoy service charges.”
After examining the field of International Business - Logistics, with a particular emphasis on freight forwarding activities, the author came to the following conclusion: In the world of international trade, products transit from the seller's location to the buyer's destination Freight forwarding includes all professional transportation tasks and
13 procedures, bridging the gap between international and domestic connections to enable the effective transportation and distribution of goods In this operation, the freight forwarder acts as a third party, managing transportation logistics and organizing related processes
In addition to the concepts related to freight forwarding activities, through research, the author has also gained several definitions of freight forwarders
According to the FIATA International Federation of Freight Forwarders Associations, a freight forwarder is an individual or organization that arranges for the transportation of goods under an authorization contract and acts for the benefit of the trustor Freight forwarders are responsible for tasks related to the forwarding contract, including storage, warehousing, transshipment, and customs procedures Notably, freight forwarders are not carriers.
Article 3 of Decree 140/2007/ND-CP indicated that “Business entity engaging in logistic services business means a business entity who organizes the performance of logistic services for clients by itself conducting such services or by hiring another business entity to conduct one or a number of stages of such services”
Huong Nguyen Thi (2007) showed that “A service businessperson or middleman in the industry of logistics and transportation is referred to as a freight forwarder (Forwarder – Freight Forwarder – Forwarding Agent)”
Based on the study on freight forwarder theory, the author finds that: a freight forwarder acts as a middleman between the two main factors, namely the exporter and the importer They are responsible for performing the contract's duties related to freight forwarding and other agreed-upon specialist tasks
Nowadays, freight forwarding is an essential service The types of forwarding are classified based on a variety of characteristics Based on delivery method, cargo forwarding is classified into the following types:
Sea Freight: This is the most prevalent and widely used mode of conveyance today, contributing to over 80% of the total volume of products transported globally Its advantage is the capacity to deliver extremely large volumes of products over long distances at a cost- effective price, which makes it ideal for shipments with vast quantities that are not time-
14 dependence However, this method is laborious and often requires cooperation with additional means of transportation for delivering the items to the importer's location
Air transport offers the swiftest mode of delivery, making it ideal for time-sensitive and high-value shipments Nonetheless, its high cost limits its usage to small and lightweight consignments.
Road Transport: This is probably the earliest and most adaptable method of goods transportation At an acceptable fee, products can be delivered straight to the buyer's or importer's location However, it is only suitable for domestic shipment or delivery between close places inside a country with a well-developed roadway infrastructure
Rail Transport: Transportation by train is a way that allows businesses to lower their shipping costs However, the freight duration can be relatively long, and it often requires coordination with other delivery methods, depending on the train schedule and the state of infrastructure
Pipeline Transport: This is a specialized kind of freight transportation that is primarily used for liquid items such as gasoline, oil, and so on This type of transportation requires fewer personnel and offers a high level of safety However, the investment cost in physical infrastructure is very high and complicated
International Freight Forwarding: the activity of forwarding goods across nations Domestic Freight Forwarding: the activity of forwarding goods within a single country
Pure Freight Forwarding: the activity mainly concerned with sending exports or receiving imports
Integrated Freight Forwarding: a combination of pure freight forwarding and other operations such as packaging, loading, unloading, storage, warehousing, etc
2.1.3 The Roles of Freight Forwarding Activities
Cargo forwarding is acknowledged and valued in both economic and social arenas
According to Van Doan Thi Hong (2006), its importance is obvious and pervasive in many facets of economic life, including:
Cost Reduction and Operational Efficiency Enhancement
The seamless movement of materials and distribution of products are crucial in business operations, incurring substantial expenses Cargo forwarding plays a vital role in optimizing logistics by acting as an intermediary between shipping corporations and businesses Through outsourcing transportation and import-export tasks, manufacturers can save time, reduce costs, and mitigate risks It offers a convenient, cost-effective, and secure solution Consequently, product costs are lowered, enhancing competitiveness and allowing businesses to focus on core manufacturing operations for enhanced efficiency and growth.
An Overview of The Professional Process of Forwarding Full Container Load Imports by Sea 16 2.3 Related Documents in the Process of Forwarding Full Container Load Imports by Sea
According to the Logistics Management textbook (Ha Minh Hieu - University of Finance and Marketing, 2017), the process of forwarding imported full container loads by sea involves various complex professional activities To provide an overview of the procedure, the following succinct diagram shows every steps from the beginning to the finish of the process
Figure 2 1 An Overview of the Professional Process of Forwarding FCL Importeds by Sea
(Source: The Logistics Management Textbook (Ha Minh Hieu - University of Finance and Marketing, 2017))
Booking: The process of chartering a vessel is referred to as "Booking." Exporters ought to employ forwarding businesses to ensure the most competitive and advantageous charges When the exporter receives a Booking from the forwarder, the exporter must carefully verify all the data on the Booking, including the departure and destination ports, date of departure, closing date, container type, container quantity, and other relevant details, to make sure that the forwarder can deliver the goods on time
Loading: The cargo will be containerized and sealed directly at the exporter's warehouse It is then handed over to the forwarder company for delivery to the port's container yard
Customs Procedures for Export: Once the goods arrive at the port, the company prepares all necessary customs documentation After that, the company submits a customs declaration and completes customs procedures at the port These duties require an extensive amount of expertise, and many businesses may consider hiring a forwarding company to
4 • Bill of Lading Issue Process
18 save time and money on their shipments Additional procedures, such as obtaining export licenses or fumigation, may be required for some specialized products
Upon completion of export customs formalities and cargo loading onto the vessel, the exporter communicates shipping details to the freight forwarder This information is relayed to the shipping line for the issuance of the Bill of Lading (B/L), which is then provided to the exporter after the vessel's departure.
Sending Documents: The exporter prepares all the necessary documents as required by the importer, including the commercial contract, commercial invoice, detailed packing list, bill of lading, certificate of origin, and product catalogue
Receiving Documents: When the importing company receives the set of documents, it carefully examines all of the documentation to guarantee its accuracy and compliance If any information is found to be incorrect the importing company should immediately request that the seller make the appropriate corrections
Notice Arrival: Before the vessel arrives at the target port, the shipping line's agent will issue a Notice of Arrival to the importing business If a company engages a forwarder, the Notice of Arrival is sent to the forwarder When getting this notice, the firm or forwarder examines the details, such as the vessel's arrival date, warehouse location or storage area for customs clearance, and the costs that must be paid to effectively complete the customs clearance process
Delivery Order: The importing company supplies the necessary paperwork for the forwarder company to present the original Bill of Lading (B/L) and submits various fee payments to the shipping line, and receive the delivery order At the same time, the forwarder firm determines the shipping line's location and prepares the goods relivery note at the port
Customs Procedures for Import: Once the cargo arrives at the port, the business proceeds to clear the products through customs For some specialized commodities, the firm may need to complete additional paperwork and have the cargo inspected for quality When the inspection by the relevant authorities is completed, and the certificate of regulation is issued, the cargo is considered as successfully cleared
Unloading: After customs processes have been accomplished and the products have been transferred to the warehouse, the process of unloading the cargo from the container and returning the empty one to the shipping line begins
2.3 Related Documents in the Process of Forwarding Full Container Load
In the professional process of forwarding full container load (FCL) imports by sea, the following documents play a crucial role and are essential throughout the entire procedure:
Van Doan Thi Hong (2013) defined commercial invoice as a fundamental document in the buyer-seller payment transaction The commercial invoice is a document issued by the exporter with the primary goal of requesting payment from the buyer for the goods or services delivered as specified in the contract It shows the product's purchase and selling prices, and the seller needs this document to demonstrate the amount that the importer must pay, as well as to estimate the customs value for calculating the import duty
A packing list is a comprehensive document detailing the contents of a cargo shipment Similar to an invoice, it lacks financial details such as unit pricing, currency, and payment information Instead, it serves as a record of the cargo's contents, providing essential information for cargo inspection by both the importer and customs authorities.
Currently, Vietnamese law does not have an established definition for sales contracts However, according to Article 3 of Vietnam Commercial Law 2005, commercial activities are “activities for the purpose of generating profits, including: sale and purchase of goods, provision of services, investment, commercial promotion and other activities for the profit purpose”
In summary, sales contracts are agreements between traders, merchants, and relevant parties to establish, modify, or terminate rights and obligations in the realm of buying and selling goods, providing commercial amenities, and promoting trade
According to the provisions of the commercial contract, the seller is required to provide the product as well as transfer the accompanying paperwork, and ownership to the buyer The buyer, in turn, must pay for the items as agreed in the contract
Legal Basis Applicable in Cargo Forwarding Operations in Vietnam
Cargo forwarding for import and export by sea, in particular, and by various other modes of transportation in general, constitutes international transport activities that involve associated relationships that span several nations and territories Therefore, shipping activities are subject to intense monitoring by international laws, legal conventions, and particularly related country and territory regulations Several legal principles used in freight forwarding activities in Vietnam are listed below:
- Vietnam Maritime Code No 95/2015/QH13, dated November 25, 2015, regulates maritime activities
- Law on Customs No 54/2014/QH13, dated June 23, 2014, stipulates the state management of customs
- Commercial Law No 36/2005/QH11, dated June 14, 2005, regulates commercial activities
- Law on Product and Goods Quality No 05/2007/QH12 dated November 21,
2007, provides for the rights and obligations of organizations and individuals producing or trading in products or goods as well as organizations and individuals conducting activities related to product and goods quality; and the management of product and goods quality
- Law on Foreign Trade Management No 05/2017/QH14, dated June 12, 2017, prescribes measures to manage foreign trade and develop foreign trade activities;
21 and settlement of disputes about the application of foreign trade management measures
- Decree No 13/2022/ND-CP, dated January 21, 2022, amends and supplements several provisions of Decree No 132/2008/NĐ-CP dated December 31, 2008, and Decree No 74/2018/ND-CP dated May 15, 2018, promulgated by the Government to detailed regulations on executing some articles of Law on Product and Goods Quality on product and goods quality management; organizing product and goods quality examinations; national quality awards; and the state's management responsibilities for product and goods quality
- Decree No 31/2018/ND-CP, dated March 3, 2018, of the Government on guidelines for the Law on Foreign Trade Management in terms of origin of goods
- Decree No 85/2019/ND-CP, dated November 14, 2019, prescribes handling of administrative procedures via a national single window and 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 declaration of origin of exported goods and imported goods
- Circular No 39/2018 TT-BTC dated April 20, 2018, amends and supplements a number of articles in Circular No 38/2015/TT-BTC dated March 25, 2015, of the Minister of Finance's main decision about customs procedures; customs inspection and supervision; export tax, import tax, and tax administration for import and export goods
- Circular No 31/2022/TT-BTC, dated June 8, 2022, on the promulgation of Vietnam’s nomenclature of exports and imports
- Circular No 62/2019/TT-BTC, dated September 5, 2019, amends and supplements to Circular No 38/2018/TT-BTC, dated April 20, 2018, of the Minister of Finance prescribing determination of the origin of imports and exports
- Decision No 1966/QD-TCHQ dated October 7, 2015, on customs procedure for imports and exports
Theoretical Basis of Evaluation Criteria for Process Efficiency
To evaluate the efficiency of the forwarding procedure of imported full container load by sea, a conceptual framework for the criteria utilized in the process of assessment is required established This structure is vital for assuring objectivity in the assessment and allowing the evaluation process to continue on target without straying off course
According to Ha Minh Hieu (2017), base on these of criteria in order to evaluate the process efficiency
• Average Time for Professional Task Execution
The criterion for professional work completion time is one of the most significant variables influencing the efficiency of the process and acts as a reflection of the success of the marine freight forwarding procedure It is a standard for comparing and assessing the progress of professional work performance, indicating which expert tasks take a longer time to finish
Shortening the time for task execution is critical to assuring the timely completion of an order's finish procedure To calculate the average time for professional task completion, a company must record the duration spent on each expert task while handling a shipment The overall time for each expert duty across all shipments is then added together and divided by the total number of shipments This can be stated using the following formula:
Average time for a specialist task (x) = Total average time for tasks (x) ÷ Total number of orders
• Level of Safety and Accuracy of Professional Operations
In addition to guaranteeing that professional operations are carried out on time, the demands for safety and accuracy are equally important because they have a direct impact on the overall effectiveness of the whole procedure
If errors and omissions happen regularly during professional operations, it becomes difficult to make certain that these operations are completed on time When mistakes happen, staff must correct them immediately or have to restart the whole professional procedure from the beginning
To assess and monitor the level of safety and accuracy of expert activities, it is important to keep detailed records of the mistakes made by staff during the procedure, as well as track the frequency of these errors on an annual basis for comparison
• The Quality of Human Resources
The expertise of staff plays a key role in determining the efficiency of the freight forwarding operation Highly qualified employees contribute to the reduction of errors, the completion of tasks on time, the seamless adaptation to technological changes, and the development of an excellent and dynamic workplace
In particular, this factor assesses the staff's profession and specialist skills in carrying out cargo-forwarding operations by sea The following factors are used to assess personnel proficiency:
In Chapter 2, the author provides a theoretical basis regarding international cargo handling operations These theoretical frameworks encompass definitions, different operational formats of cargo handling, an overview of the process, related objective and subjective factors, and also shed light on the legal basis applied during the execution of import and export cargo-delivering activities in general and specifically in the case of forwarding full container loads imported by the sea With these foundational aspects, the author conducts more comprehensive research in Chapter 3
THE CURRENT STATE OF THE BUSINESS PROCESS OF FORWARDING
The General Diagram of The Business Process of Forwarding Imported Full Container Load (FCL)
The business process for forwarding imported full container load (FCL) goods via sea at Addicon Logistics Management (VN) Co., Ltd is divided into seven key steps, each of which corresponds to the specialized tasks carried out by the relevant department and includes all the required documents
Table 3 1 The Business Process of Forwarding Imported FCL Goods via Sea at
Addicon Logistics Management (VN) Co., Ltd
The Business Process The Implementation
Sales Contract, Commercial Invoice, Packing List, Bill of Lading, Delivery of Order, Certificate of Original (if required), Import Lience, and Customs Declaration
EDO, Commercial Invoice, Packing list, B/L
Customs Declaration Document Staff Commercial Invoice,
DOA & C/O (if required), invoice, Packing List, B/L, Import Declaration
Stage 6: Receiving and Delivering the
Customs Clearance Declaration, Tax Return, B/L, Delivery Order, Good Delivery Note
Total Documentation and Records, Payment Request
From the seven basic stages in the process, the writer delves deeper into analyzing the present state of the business procedures for each phase, the necessary preparations required for execution, and the professional processes needed to successfully finish an FCL import cargo forwarding procedure via sea
Analysis of The Current State of The Implementation of The Professional Full Container Load (FCL) Import Cargo Forwarding By Sea Process at Addicon Logistics Management (VN) Co., Ltd
In the first stage, the company's sales department acquires marketplace data from customers, including details about enterprises inside the industrial zone and those participating in manufacturing and import-export activities during their establishment When the sales employees have a firm grasp on the customer's needs, they quickly contact their partners and provide them with a price quote for their services If both parties achieve an agreement after engaging in the process of drafting and negotiating the terms, they proceed to sign the forwarding contract The main provisions in the forwarding contract that the company signs with its customers cover important terms such as transportation charges for each container or batch of goods for import and export, customs clearance fees, plant inspection costs, fumigation charges, certificate of origin (C/O) expenses, container handling fees, storage, and warehouse costs, and who is responsible for each of these It also specifies both parties' obligations, any extra costs that may arise, and payment times This phase optimizes information-receiving cooperation between departments, particularly among the Sales and Documentation departments The efficiency with which the sales team offers pricing quotations to consumers has also increased The time it takes to receive and examine documents is short However, the accuracy of information during the transfer process is not yet exact Some batches of products have problems such as mismatched customer names, transportation conditions, unloading ports, and so on In some situations, salespeople provide incorrect price quotations to clients, affecting the entire ensuing procedure
In practice, following this contract, PPG VIETNAM CO., LTD purchases a batch of products titled EPOXY RESIN KD-404J from KUKDO CHEMICAL CO., LTD ADDICON LOGISTICS MANAGEMENT (VN) CO., LTD acts as the import forwarding agency for the importer, PPG VIETNAM CO., LTD, organizing the forwarding contract The exporting seller's representative agent works with ALM (VN) Co., Ltd to negotiate price and forwarding time, as well as to fulfill all of the contract's requirements
The service contract will be meticulously crafted based on the mutual agreement between the exporter's forwarding agent and Addicon Logistics Management (VN) Co., Ltd, the importer's forwarding agent This comprehensive document will clearly outline the rights and responsibilities of both parties, ensuring a seamless and transparent collaboration throughout the shipping process.
As a result, the export forwarding agency has to supply Addicon Logistics Management (VN) Co., Ltd with the required documentation These are the Sales Contract/Purchase Order, Commercial Invoice, Packing List, Original Bill of Lading, Arrival Notice, Certificate of Origin (C/O) (if applicable), Import License, and Import Declaration
The following are some product details extracted from the documents:
- Name of the Goods: EPOXY RESIN KD-404J
- Gross / Net Weight: 1,100.000 KGS/ 1.667 CBM
After acquiring the document set from the customer, the Document department and staff members initiate the document verification procedure The document set received involves the following items: Sales Contract or Purchase Order, Commercial Invoice, Packing List, Bill of Lading, Arrival Notice, and some additional paperwork such as Certificate of Origin (C/O) if applicable, Certificate of Quality (C/Q), Import License, and Import Declaration
The document staff will carefully examine all of the information contained in the documents The primary objective of this document check is to validate important, accurate details about the shipment and to protect the interests of all parties involved The staff members usually need to cross-reference the content of the documents in the following ways: they will compare the Bill of Lading with the Packing List to ensure consistency in terms of CBM figures, and they will verify that the Bill of Lading matches the Commercial Invoice in terms of information about the shipper, consignee, and the product's name, ensuring that everything is accurate and consistent with the other documents
If there are errors or inconsistencies in the information during the document verification process, it is imperative to cancel that initial document set and re-examine all the documents from the beginning, utilizing the Commercial Invoice as the main point of comparison
- If the issue was caused by a staff mistake during the document preparation process, an in-depth collation of the information is required, and the data should be re-entered from the beginning
- If the problem is caused by documents in the document set not matching, contact the party in charge of providing the documents immediately to report the error and initiate the steps needed for resolution a Examination of the Bill of Lading
The Bill of Lading is one of the most important documents in the industry of import and export When dealing with the Bill of Lading, document staff must carefully check the Bill of Lading number and confirm that all-important details, such as the shipper and consignee addresses and contact numbers, the vessel name, vessel identification number, loading and unloading ports, and so on, are accurate The information on the Bill of Lading will be compared with the data on the Invoice and Packing List for accuracy and consistency
When receiving and examining a bill of lading for sea freight, the following components will be checked:
- Bill of Lading Number: BMJU23SGN0224
- Shipper: KUKDO CHEMICAL CO., LTD
+ Address: 61 GASAN DIGITAL 2 RO GEUMCHEON GU, SEOUL, KOREA
- Consignee: PPG VIETNAM CO., LTD
+ Address: Long Binh (AMATA) IZ, LONG BINH WARD, BIEN HOA, DONG NAI, VIETNAM
- Arrival Notice: PPG VIETNAM CO., LTD
+ Address: Long Binh (AMATA) IZ, LONG BINH WARD, BIEN HOA, DONG NAI, VIETNAM
- Port of Loading: GWANGYANG, KOREA
- Port of Discharge: HOCHIMINH, VIETNAM
- Place of Delivery: HOCHIMINH, VIETNAM
- Agent for the carrier: BUMJOO INTERNATIONAL CO., LTD
- Description of Goods: 40 bags of EPOXY RESIN KD-404J
- Container Number/Seal Number/Type of Container:
- Method of Sending Bill of Lading: Surrendered
- Date and Place of Issue: 24/02/2023 SEOUL, KOREA
In the Bill of Lading, several essential details regarding the exporter, the importer, vessel name, vessel identification number, and other pertinent information have already been carefully examined The following step is to examine the accuracy of the remaining documents in the document set b Examination of Commercial Invoice
It is essential to double-check all of the information, including the buyer's and seller's names and addresses, product descriptions, payment method, delivery conditions,
31 quantity, weight, unit prices, and so on The information on the invoice should be cross- checked with the information on the bill of lading If there are any issues or omissions, adjustments and corrections should be requested as soon as possible The following information was extracted from the commercial invoice:
- Exporter: KUKDO CHEMICAL CO., LTD
- Address: 61 GASANDIGITAL 2RO GEUMCHEON GU, SEOUL, KOREA
- Importer: PPG VIETNAM CO., LTD
- Address: LONG BINH (AMATA) IZ, LONG BINH WARD, BIEN HOA, DONG NAI, VIETNAM
- Port of Export: GWANGYANG, SOUTH KOREA
- Port of Import: HOCHIMINH, VIETNAM
The provided invoice data aligns precisely with the bill of lading, excluding independent details like payment method, invoice number, and date After verifying this consistency, it is recommended to scrutinize the remaining documents within the shipment's documentation, including the packing list, for further verification.
The packing list is a vital component of import-export documents It lists and provides detailed declarations for each type of product, packaging conditions, and how the goods are packed
- Exporter: KUKDO CHEMICAL CO., LTD
- Address: 61 GASANDIGITAL 2RO GEUMCHEON GU, SEOUL, KOREA
- Importer: PPG VIETNAM CO., LTD
- Address: LONG BINH (AMATA) IZ, LONG BINH WARD, BIEN HOA, DONG NAI, VIETNAM
- Port of Export: GWANGYANG, SOUTH KOREA
- Port of Import: HOCHIMINH, VIETNAM
- Payment Method: Transferring money by wire within 90 days from the date of bill of lading
The data included in the bill of lading, commercial invoice, and packing list is consistent and shows a seamless, purposeful content when examined together The next stages in professional operations are carried out
After receiving the arrival notice and paying all local charges to the shipping lines, carrier, and co-loader, the shipping line will send an electronic delivery order (EDO) upon the vessel's arrival at the port The delivery order and arrival notice will be sent to the documentation staff by the agency representing the exporter
Assessment of the Effiency of Full Container Load (FCL) Imported Freight Forwarding By Sea
Following an analysis of the current state of the full container load (FCL) import cargo forwarding process via sea freight at Addicon Logistics Management (VN) Co., Ltd, in combination with theoretical foundations concerning the assessment criteria for the efficiency of a forwarding process, the action of providing evaluations is an indispensable phase The evaluation procedure, based on theoretical concepts and guided by practical realities, contributes to the development of optimal solutions targeted at increasing process efficiency
The next evaluations are all based on empirical evidence and actual data for investigation and analysis, with an ultimate objective of proposing the best methods for enhancing the full container load (FCL) import cargo forwarding process via sea freight at Addicon Logistics Management (VN) Co., Ltd
3.3.1 Average Time for Professional Task Execution
In accordance with the current state of investigation, the average completion time of operational phases is an essential component that influences the total duration and quality of the process When the professional processing time is shortened, shipping time to customers decreases This results in a highly efficient freight forwarding operation The
45 following figures illustrate the average length of time needed to complete operational phases in the forwarding process for the years 2021 and 2022
Table 3 2 Statistics of Average Completion Time for Operational Steps Over the
Years 2021-2022 at ALM (VN) Co., Ltd
In Reality KPI In Reality KPI
Average time for document verification 0.54 ≤0.5 0.51 ≤0.5
Total time for customs declaration 320 ≤316 488 ≤920
Average time for customs declaration 1.01 ≤1 0.53 ≤1
Total time for goods clearance 143 ≤160 370 ≤450
Average time for goods clearance 0.45 ≤0.5 0.41 ≤0.5
Total time for coordination, negotiation, and handover with domestic carriers
Average time for coordination, negotiation, and handover with domestic carriers
In general, the global pandemic outbreak in 2021 had a significant impact on the entire economy, particularly the import and export industry
In 2021, the average time for document verification was 0.54 hours, above the company's allowable KPI level of 0.5 hours This indicates that the document verification process carried out by employees still had limitations, such as a prolonged average time for document verification, which failed to fulfill the stated standards In 2022, with a total duration of 468 hours for document inspection throughout 916 orders, the average time spent on document verification was 0.51 hours, still exceeding the company's approved KPI of 0.5 hours Although the epidemic had decreased and working conditions for employees had improved by 2022, the average time for completing this task remained high, surpassing the established KPI
The median duration for customs declaration in 2021 was 1.01 hours, which above the company's established KPI target of 1 hour By 2022, the median duration for customs declaration would be 0.53 hours With this reduced average time, 2022 stayed below the company's allowable threshold of 1 hour for customs declaration
For the median duration of goods clearance, both years met the criteria and remained within the company's acceptable threshold of 0.5 hours
The mean time for coordination, negotiation, and handover with domestic carriers was 1.3 hours in 2021, significantly more than the acceptable average duration of 0.5 hours
In 2022, the recorded figure was 0.91 hours, a decline from 2021 but still short of the required average time of 0.5 hours
In 2022, Addicon Logistics Management (VN) Co., Ltd achieved significant improvements in task execution times, particularly in customs declaration and goods clearance Statistical data indicates that the mean execution time has been reduced across all stages, notably in these critical phases, which now meet the company's predefined KPI threshold These enhancements reflect the company's ongoing commitment to efficiency and streamline its operations.
- In general, for both years, majority of the task criteria with average execution times exceeded the KPI threshold slightly, with no notable differences This
47 reflects that the company’s task execution progress is approaching the defined standards
- Regarding the document examination operation, the median duration spent completing this activity in both years did not satisfy the stated criteria and surpassed the allowable level This illustrates that the document verification process still encounters many challenges, as staff may lack competence in the task, leading to mistakes and the need for repeated checks, resulting in a sort of long average period for finishing this task
- Among the criteria that surpassed the permitted KPI threshold, the mean time for coordination, negotiation, and handover with domestic carriers notably over the threshold in both years Although this task is not very difficult to complete, it does take an extended period The level of improvement from the following year to the prior year is not noteworthy
3.3.2 Level of Accuracy of Professional Operations
Aside from guaranteeing that duties are completed on time, the level of accuracy of professional operations execution is also an essential ingredient in the success of the forwarding process of full imported container loads via sea If the precision of professional task execution is low, the median duration of specialized work completion is not guaranteed As a result, collecting statistical data to assess the the accuracy of the process of executing professional tasks is important The table below compares the professional duties execution error rate between 2021 and 2022
Table 3 3 Error Rates in Professional Task Execution Between 2021 and 2022
Incorrect Declaration of Shipping Method Code
Incorrect Declaration of Package Quantity
Incorrect Declaration of Group or Type Code
Incorrect Declaration of Container Number
According to data, the most frequent professional errors in task execution occur during the document verification and customs declaration phases
Errors related to information verification predominate in the document verification operation, with a total of 13 errors detected in 2021 It continues in 2022, although the number of errors tends to diminish, with only 6 errors recorded
Non-verified information errors and not verifying documents are less common in both years, with a decline in proportions in 2022
The most prevalent error in the customs declaration process is inaccurate declaration of the shipping method code, with the total errors is 11 in 2021 It accounts for 5 errors of all customs declaration mistakes in 2022, as it remains the most common error in the customs declaration process
Errors in customs clearance process are limited and insignificant Mostly there are no cases of incomplete document preparation for customs clearance or inability to meet tax responsibilities in 2022
- According to the examination, the frequency of professional task execution failures is relatively low and has no significant impact on the overall forwarding process
- In most cases, the frequency of errors in different professional operations decreases over time, a few errors remaining steady However, the percentage of mistakes during the completion of tasks has decreased significantly This reflects the company's development and professionalism, emphasizing its commitment to error rectification and process enhancement
- Although these are some essential professional operations in the products forwarding process, employees still make preventable errors, mostly owing to carelessness at various stages or a lack of instruments for verifying and monitoring the progress of tasks completed and pending
Mistakes during the document verification process can significantly impact the overall procedure due to their compounding effect This step holds the highest occurrence of errors compared to other tasks, highlighting the importance of accuracy in the initial stages to prevent downstream consequences.
This can lead unneeded delays, and if not recognized and corrected promptly, the entire procedure may have to be restarted
- During the last two years, the rate of errors in the customs declaration task has decreased, but not substantially A few issues continue to occur at the same frequency, indicating that the flaws in this specialized task, and others in general, have not yet been completely resolved
3.3.3 The Quality of Human Resources
SOLUTIONS FOR ENHANCING THE PROFESSIONAL PROCESS OF
Foudations of Comprehensive Solutions to Optimize the Professional Process of Forwarding Full
Real-world operations of any service frequently confront limitations and difficulties that were not completely addressed during the theoretical framework's development After gaining practical experience in the professional procedure of forwarding full container load imported shipments via sea at Addicon Logistics Management (VN) Co., Ltd, the author gained important data to digitize various process assessments The actual data accurately demonstrates the strengths and weaknesses of multiple elements in the procedure The goal of analyzing and assessing the pros and cons is to understand the key problems and provide necessary recommendations, directions, and solutions for addressing the remaining limits in the process The long-term objective is to enhance the efficiency of the forwarding full container load import process via sea at Addicon Logistics Management (VN) Co., Ltd, adding to the company's improved reputation in the international freight business
To propose remedies to the current challenges that have been examined, the author principally relies on:
- The theoretical basis established in Chapter 2
- Data given by the company
- The current state of the business process of forwarding imported goods in full container loads via sea of the company
- Evaluations and findings based on the data presented in Chapter 3
Orientation and Objectives for Improvements in the Professional Process of Forwarding Full
Notwithstanding severe economic fluctuations, the Vietnamese economy is ready for a vigorous rebound Post-pandemic, business operations, trade, and international interactions have become more vibrant and dynamic Ranked as the top 20 reputable
57 logistics companies in Vietnam, Addicon Logistics Management (VN) Co., Ltd has a vision and strategic direction that are aligned with the company's strengths to accelerate growth in the next years Specially, from 2024 to 2030, the company aims to accomplish the following goals:
Firstly, extending logistics market countrywide, not just in the two major forwarding markets of the Northern and Southern regions Addicon Logistics Management (VN) Co., Ltd has determined to become a dependable companion for customers in the Central and Central Highlands region by developing additional facilities in this area In the Central region, in addition to the gateway city of Da Nang with its developed seaport, the firm will concentrate on provinces nearby with potential for deep-water ports, such as Dung Quat Port (Quang Ngai), Van Phong Port (Khanh Hoa), Nghi Son Port (Thanh Hoa) In the Central Highlands, the company will center on its most important city, Buon Ma Thuat (Dak Lak) to establish a strong commercial network
Secondly, streamlining and optimizing the formalities of the forwarding process in to align with international standards This strategic initiative intends to improve value and benefits, convenience for customers, and ultimately increase the company’s revenue
Thirdly, continuously enhancing the quality of the company’s personnel Human resources are an important component in the company's long-term development The corporation will regularly hold nationwide personnel exchanges within the company's system in the coming phase to generate possibilities for knowledge acquisition and enrichment Scholarship programs will also be developed to assist employees study overseas, allowing them to return and contribute to the business's growth.
Solutions for Quality Improvements of the Professional Process of Forwarding Full Container
Based on the findings gained from the analysis, the author proposes many ways to strengthen and improve the quality of the forwarding process of full container load imported goods via sea at ALM (VN) Co., Ltd
4.3.1 Establishing a Checklist of Documentation Verification Task
Based on the analysis of the criteria for the average time to complete the business process and the criteria for the error rate in this process, the average time for document verification is relatively long, and the error rate in this task remains highest among other errors Therefore, establishing a documentation verification checklist and customs declaration is necessary
A checklist is a list of particular tasks that must be completed in order to accomplish predetermined goals, ensuring that no tasks, no matter how minor, are overlooked The procedure for forwarding full container load imported goods via sea at Addicon Logistics
Management (VN) Co., Ltd does not utilize a checklist for both staff and management As a result, the author highly suggested that a checklist for the stages of documentation verification and customs declaration be implemented as soon as possible
Applying a checklist for the documentation inspection phase of the process assists staff to manage their tasks more effectively, track what has been completed and what is pending, and ensure progress is maintained As a result, it reduces the risk of employees missing any information in the documents or failing to reference or validate the documentation set Furthermore, the checklist functions as a strong support tool for both staff and management during peak seasons when handling a high volume of orders concurrently Despite employees' expertise in their tasks, errors are difficult to prevent when dealing with a tremendous workload
The document checklist is imitated utilizing the following model:
Table 4 1 Simulation of Documentation Checklist
When using this documentation checklist, staff may readily grasp the information included in the documents and monitor the amount of verified and unchecked items
If the document is accurate the employee places a tick next to it (✓) Any noteworthy details will be noted in the notes section If a document has been identified to be invalid, a verification step for that document is suspended until it becomes valid, only at which point other information checks are conducted
Staff will accurately record the information in the first column during the document verification process They then cross-reference this information with details from other documents If the data is correct, the employee places a tick (✓) If the data is incorrect, the employee pauses to handle the data in accordance with the proper procedures
This method dramatically eliminates mistakes during document processing, saving time and improving the efficiency of the professional task and the overall process
4.3.2 Enhancing the Quality of Human Resources and Document Staff's
Firstly, establishing a set of criteria for evaluating new hires To improve staff quality, it is necessary to concentrate on the input components of the recruitment process
To do so, the organization must create a set of criteria for analyzing incoming recruitment in order to objectively evaluate candidates These standards require impartiality, transparency, and constant updates The purpose of having a set of criteria for evaluating incoming recruitment is to address at least the following questions:
- What is the required academic/professional qualifications for this position?
- What are the educational background needed for the position?
- How many foreign languages skills are required for the position?
- How many years of work experience are expected for the position?
Table 4 2 Simulation of Table for Employee Recruitment Evaluation Criteria
With an assessment sheet evaluating input personnel, the process of picking acceptable candidates for the company will become more straightforward, accurate, and equitable Staff quality is ensured from the beginning
Mandating a policy that prioritizes and incentivizes second language acquisition, along with regular assessments of language proficiency, is crucial for fostering a multilingual workforce Mere encouragement of employees to learn languages is inadequate Comprehensive policies offering tangible rewards, such as fixed wage increases tied to language proficiency levels and the number of languages mastered, provide a highly effective means to drive language learning and language proficiency in the workplace.
62 methods to encourage continued motivation for studying languages and periodic assessments of employees' language skills
- Employees with English proficiency levels B1-B2 will get an additional 2 million VND per month This applies to other languages equally
- Employees who master two or more languages can get an additional 4 million VND per month
- Employees who participate in language proficiency assessments will receive allowances for food and transportation expenses
Furthermore, after assessing staff' language competence, the organization should select appropriate personnel with excellent command of the language to engage in abroad study programs, strengthening their abilities to contribute to the company upon their return Clear and practical policies of this kind will guarantee ongoing improvement and enhancement of employees' language proficiency
Thirdly, the company has policies for allowances and benefits for employees with long-term experience This solution encourages experienced employees to stay on with the company Maintaining experienced and competent personnel is essential for the organization because these individuals are capable of solving complicated challenges, handling high-level business requirements, and serving as effective instructors for new, inexperienced employees
- Employees with 5-7 years of experience with the company receive an extra monthly stipend
- Employees with 10 or more years of experience with the company receive a larger monthly allowance, which is twice the usual allowance, as well as exclusive perks from the company when purchasing various insurance packages
Fourthly, there must be penalties when workers make mistakes In addition to reward policies and incentives to encourage employees, sanctions must be implemented to
63 establish a perception of seriousness and responsibility in employees, ensuring that they complete their tasks in a professional and error-free manner
For example, after examinting the data of professional errors committed by each employee in a month, if an employee commits the same professional fault 5 times in a month, their compensation will be deducted for that month The amount of the punishment will be based on the frequency of the errors If the employee continues to make the same professional fault after the fifth incident, the punishment amount will be calculated via an arithmetic progression
Fifthly, the company should organize sporting activities on a regular basis to improve the health of staff Seminar topics and personnel exchange programs throughout branches within the country should be planned, permitting employees to connect with others from different work environments to build new relationships for learning and professional enrichment