Professional internship report year 2023 analyzing the exporting process of rice by sea mode at ngoc mai one member co ltd

VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION DAI HOC TON BUC THANG TON DUC THANG UNIVERSITY PROFESSIONAL INTERNSHIP REPORT YEAR

VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

DAI HOC TON BUC THANG TON DUC THANG UNIVERSITY

PROFESSIONAL INTERNSHIP REPORT YEAR 2023

ANALYZING THE EXPORTING PROCESS OF RICE BY SEA MODE AT NGOC MAI ONE MEMBER CO., LTD

Student’s name: NGUYEN VAN NHI Student’s ID: 720K0881

Academic Year Code: 2020-2024

HO CHI MINH CITY JULY/2023

FEEDBACK OF INSTRUCTING LECTURER

Student’s name: NGUYEN VAN NHI Student ID: 720K0881

The report meets the basic requirements for submission However, student needs to pay more attention to lecturer's instructions The last version I receive lacks of risk and cost analysis, and own’s experience; assessment section needs to be attention to the process

Ho Chi Minh City, July 07, 2023

Supervising Lecturer (Full name and signature)

“Yu~ ae

Nguyễn Thị Tường Vy

⁄ TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

MARKING FORM FOR INTERNSHIP PERIOD

(For Company)

MAJOR: INTERNATIONAL BUSINESS STUDENT’S NAME: NGUYEN VAN NHI csscssssssssssscssseesnnreesssntnnvsnnenseansnnss nese eee oS STUDENT 1D: 720K088I -: -ssscsntretttnttth

COMPANY'S NAME: CTY TNHH MTV NGỌC MAI

ADDRESS: Số 46, Nguyễn Văn Cương, Khu phó Nhơn Cầu, Phường Tân Khánh,

Thành phổ Tân An, Tỉnh Long An, Việt Nam

DEPARTMENT FOR INTERNSHIP: OPERA TION e-«csssserntttrttrrrrrrrtrrrrrtrfffr07)

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creatively, intelligently and flexibly solving the problems assigned

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1.3 Diagram, functions and duties of the company's departments

1.3.1 Diagram of the company’s operational apparatus

1.3.2 Functions and duties of departments

1.3.3 Personnel situation of the company

1.3.3.1 Classified by level of labor

1.3.3.2 Classified by labor contract

1.3.3.3 Classified by gender

1.3.3.4 Classified by age

1.4 Situation of Ngoc Mai Company activities in the period of 2017-2019

1.4.1 Status of delivery by sea

1.4.2 Status of Exporting

CHAPTER 2: ANALYZING THE PROCESS OF EXPORTING RICE BY SEA MODE AT NGOC MAI ONE MEMBER CO.,LTD

2.1 Flowchart of exporting rice process by sea mode at Ngoc Mai Company

2.2 Process of exporting rice by sea mode at Ngoc Mai Company

2.2.1 Applying export license

2.2.2 Signing a contract and related documents

2.2.3 Preparing exported goods

2.2.4 Inspecting exported goods

2.2.5 Hiring means of transportation

2.2.6 Declaring E-customs and Performing Customs clearance

2.2.6.1 Declare E-customs

2.2.6.2 Performing Customs clearance

2.2.7 Paying taxes and fulfill financial obligations

2.2.8 Organizing delivery of goods with means of transport: By Liner

2.2.9 Paying (term: D/P At sight)

2.2.10 Handling complaints

2.3 Process evaluation

2.3.1 Advantages

2.3.2 Disadvantage

CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS

3.1 Evaluation about Ngoc Mai One Member Co.,Ltd

3.1.1 Advantages

3.1.2 Disadvantages

3.2 Solutions and Recommendations for Ngoc Mai One Member Co.,Ltd

3.3 Recommendations for the State and other authorities

3.4 Personal opinion at Ngoc Mai One Member Co.,Ltd

CONCLUSION

REFERENCES

Chart 1.2

Personnel situation of Ngoc Mai Company classified by labor contract

Chart 1.3 Personnel situation of Ngoc Mai Company classified by gender

Chart 1.4

Personnel situation of Ngoc Mai Company classified by age

Chart 1.5 Revenue and Proportion from delivering by sea of Ngoc Mai Company in 2017-2019

Chart 1.6 Revenue and Proportion from exporting activity of Ngoc Mai Company in 2017-

2019

Figure 1.1 Ngoc Mai Company’s logo

Figure 1.2 Organizational structure of Ngoc Mai Company

Figure 1.3 The process of exporting rice by sea mode at Ngoc Mai Company

Figure 1.4 ECUSS program

INTRODUCTION Export operations have been particularly significant for the economy in general and a country's growth in particular Creating capital for import and accumulation for production development, serving industrialization and modernization of the country; contributing to economic restructuring, promoting production development; creating conditions for other industries to have favorable development opportunities; creating the possibility of expanding the consumption market, creating conditions for production development and stability are some of the prominent roles of this activity Export operations are corporate activity in the global market, which is becoming increasingly competitive The survival and development of export goods is largely reliant on quality and price, and hence heavily reliant on manufacturing technology This encourages indigenous manufacturing firms to constantly develop and enhance their equipment and machinery to increase production quality Exporting in a strongly competitive market economy, on the other hand, necessitates firms improving workers’ abilities and certifications

For many decades, our nation has had advantages in the agricultural business, particularly wet-rice cultivation; as a result, our country has gripped and brought rice to be one of the key commodities exported to foreign countries And our nation has made some strides, particularly after the EU- Vietnam Free Trade Agreement (EVFTA) went into force on August 1, 2020 Aside from those phrases, there are still challenges in sustaining and improving to fulfill the sustainability aspect as well as the expanding needs of the global market

I had the opportunity to study and learn more about the exporting process during my internship at Ngoc Mai Company To obtain a deeper understanding of the import-export business and prospective changes, I picked and researched the issue of exporting I've selected to work on the topic "Exporting rice by sea mode at Ngoc Mai Company."

The internship report consists of three main chapters:

Chapter 1: Overview of Ngoc Mai One Member Limited Company

Chapter 2: Exporting process for rice by sea mode at Ngoc Mai Company

Chapter 3: Personal opinion at Ngoc Mai Company

CHAPTER 1: OVERVIEW OF NGOC MAI ONE MEMBER LIMITED COMPANY 1.1 General information

1.1.1 History of establishment and development

Ngoc Mai Co.,Ltd is a manufacturer and supplier of rice, broken rice, and rice-derived goods of various types Since its inception in 2008, the firm has made consistent efforts to invest in the rice drying system, increasing capacity to more than 300 tons per day and rice storage to more than 10,000 tons The firm, in collaboration with its distributor, pushes the distribution system across the Southern provinces and the entire country, and there are numerous export orders to other countries Ngoc Mai's goal is prestige and quality for Long An residents and consumers in general

Table 1.1: General information of Ngoc Mai Company

(Source: Mr.Le The Tuyen) 1.2 Scope of business

Their primary activities include manufacturing and exporting rice to both local and international markets, including long grain/short/round grain rice, Jasmine rice, Sticky rice, Broken rice, White rice, Brown rice, and others Ngoc Mai focuses on China, Malaysia, and the Philippines for the most

part

1.3 Diagram, functions and duties of the company's departments

1.3.1 Diagram of the company's operational apparatus

Accounting HR Department Department S 7

Administrative

Sales Department | —= ——}>

Department

Forwarder « » Production Department Department

Figure 1.2 Organizational structure of Ngoc Mai Company

Taking full accountability and total responsibility for the firm's business condition and business outcomes in their role as the head of a company's organizational system and the person who directly

oversees the Departments

Developing internal management policies, choosing candidates for management positions, rewarding and disciplining officers and employees who work under their guidance in accordance with the law, and defending the interests of both the Company and its employees

Create weekly, monthly, quarterly, and yearly work calendars and programs for the company Encourage and monitor program implementation regularly

Observe and motivate employees to work

Create a research and development department to discover, appraise, and analyze the commercial market

Adapt the company's business growth goals to the planned orientations

As the department in charge of managing the accounting department and ensuring proper accounting and expenditure in the organization

Contribute to the creation of financial management policies, cost standards for related units, and financial procedures

Manage data for each completed shipment, including payment (HBL, MBL), tax payable, D/O, shipping documents, debit note

Sales Department:

Directly take over the Managing Director's responsibilities for the company's operations, such as: Representing the firm by actively contracting, transacting with, and dealing with clients on professional matters such as freight prices, variations in delivery and delivery procedure, organizing

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marketing, finding business partners, and so on Create documentation for export and import shipments when you have a contract

Negotiating joint ventures and overseas trade contracts with domestic and foreign partners To develop suitable plans, do market research, contact customers, understand their needs, and monitor competition activity

The sales department is in charge of developing policies, strategies, and successfully coordinating company performance, as well as reporting income to the Board of Directors on a weekly, monthly, quarterly, and annual basis Create business growth projects for the organization on a regular basis There is also the receipt of association with the agency ship, co-signing on freight costs, and delivery pricing, in addition to the sales department

Forwarder Department:

The department that directly handles customs declaration paperwork, leads to the port to do things, receive goods, hire means of transportation, transfer products to receivers, transshipment from the port, and warehouse to the import-export business unit's warehouse

In charge of completing customs clearance

Seal, press seal, measure, and inspect products

Issues that develop throughout the delivery and receiving procedures should be observed and recorded in the monitoring book for comparison and archiving

Coordination of delivery and receipt fees with the accounting department

AR Department:

The department handles the employee life cycle, which includes recruitment, hiring, payroll processing, on boarding, granting rights and disciplines, training, and terminating workers They are also in charge of providing numerous advantages to them

Administrative department:

This department's personnel are in charge of all everyday activities This involves supervising the company's financial management, strategic planning, leading budgetary operations, legal issues, meeting human resource (HR) demands, and ensuring safety

Production department:

Give the company's board of directors advice on how to produce, store, and maintain machinery and equipment

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To meet company demands, carry out the manufacturing, warehousing, shipping, and delivery of goods

Accountable for creating items and goods for companies

Under total control of the production process: by managing production, the production department may efficiently employ materials, equipment, and personnel while utilizing them in a way that minimizes waste

Research to enhance the company's products by modification or innovation of all or a portion of the product

Manage production costs and guarantee that products are produced at the lowest possible cost to maximize revenues

Ensure that the firm always has the necessary raw materials for manufacturing, that machinery and equipment used in production are correctly maintained and maintained, and that product quality is managed and evaluated

1.3.3 Personnel situation of the company

1.3.3.1 Classified by level of labor

Unskilled workers make up 48% of the workforce at the firm Most of the work done by the personnel is in the production and shipping processes, which do not require a high level of education but do call for expertise, vigor, and diligence Only one third of the labor force is intermediate, leaving the remaining 43% to the graduated personnel These levels call for a medium

to high degree of specialization in Accounting, Human Resources, Forwarding, Sales, and even Management In spite of this, the business always offers the proper frameworks in training programs for everyone of its employees so they may progress their skills and knowledge, regardless of the labor level A good performance during the working hours is also rewarded and promoted

1.3.3.2 Classified by labor contract

® Unlimited contract # 1 - 3 years contract

Table 1.3: Personnel situation of Ngoc Mai Company Chart 1.2: Personnel situation of Ngoc Mai Company classified by labor contract

contract

Company classified by labor (Source: HR Department) The majority of workers are signed to an unlimited contract, which makes up 60% with 50 people in total, while the remaining 40% of the employees work under the condition of | to 3 years

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Table 1.5: Personnel situation of Ngoc Mai

Company classified by age

Age

@ 22 to 30 @ 30to 45 & Above 45

Chart 1.4: Personnel situation of Ngoc Mai

Company classified by age (Source: HR Department)

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In comparison to other age groups, the youthful generation employs the most people (49% of all workers) Furthermore, 45% of the workforce is made up of seniors Since they have greater expertise in their industries, this may aid those young people in learning while they work for the organization The only employees above 45, representing 6% of the total, are directors

1.4, Situation of Ngoc Mai Company activities in the period of 2017-2019

1.4.1 Status of delivery by sea

Table 1.6 Revenue and Proportion from delivering by sea of Ngoc Mai Company in 2017-2019

Unit: VND (Source: Accounting Department)

Chart 1.5: Revenue and Proportion from delivering by sea of Ngoc Mai Company in 2017-2019

(Source: Accounting Department)

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The bar chart reveals that the company's transportation-based delivery scenario has grown slightly each year from 2017 to 2019 In general, maritime freight generates the majority of the revenue for the company and makes up most of the proportion In 2017, 76.3% of freight was moved by sea, while in 2018, that percentage climbed by around 2%, bringing in 5.974.638.000 VND Particularly

in the year 2019 with a growth of 3% in percentage and more than 2.1 billion in sales, the firm saw

a substantially high demand in seaway exporting

Table 1.7 Revenue and Proportion from exporting activity of Ngoc Mai Company in 2017-2019

Unit: VND (Source: Accounting Department)

70

69.5 69.5

Chart 1.6: Revenue and Proportion from exporting activity of Ngoc Mai Company in 2017-2019

(Source: Accounting Department) The figure shows that the Company's forwarding status has marginally increased and decreased between 2017 and 2019 In particular, in the year 2017, they made around 3.5 billion VND with a

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rate of 70.35% from their exporting efforts In comparison, there was a slight difference that in 2018, their profit fell by around 0.8 billion VND and the proportion of export revenue accounted for only 69.5% However, after a year, the business rebounded with an increase of 2.1 billion VND in sales and 2% in its share

Consequently, the company's manufacturing and export activity is developing rapidly Such outcomes are made possible by the ongoing efforts of the company's board of directors as well as the enthusiastic and productive work ethic of the whole workforce With a more professional working approach and a bolder production and export strategy, the firm has learnt to grasp the market more rapidly, comprehend client wants and purchasing power, and generate large profits

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CHAPTER 2; ANALYZING THE PROCESS OF EXPORTING RICE BY SEA MODE AT NGOC MAI ONE MEMBER CO.,LTD

2.1 Flowchart of exporting rice process by sea mode at Ngoc Mai Company

Signing a Hiring

export and exported exported transporta license related goods goods tiết,

Figure 1.3: The process of exporting rice by sea mode at Ngoc Mai Company

(Source: Forwarder Department) 2.2 Process of exporting rice by sea mode at Ngoc Mai Company

The actual case of exporting activity of ““VIETNAMESE GLUTINOUS RICE 10% BROKEN (LONG AN)” with related parties that involved in this process are:

e Exporter: Ngoc Mai One Member Co.,LTD

e Importer: Henan Grain Industry Co.,Ltd

e Forwarder (Vietnam): Real Logistics

@ Carrier: T.S Lines

2.2.1 Applying export license

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In this case, According to Clause 3, Article 4 of Decree 107/2018/ND-CP, rice is an item that is allowed to be exported without a license

2.2.2 Signing a contract and related documents

Signing a foreign trade contract to export "VIETNAMESE GLUTINOUS RICE 10% BROKEN (LONG AN)" Ngoc Mai Co., Ltd acknowledges the agreement, contracts for delivery, and executes its responsibilities after agreeing on the parties’ rights and obligations, commercial conditions, products, services, means of transportation, time, price, and payment, and so on with Henan Grain Industry Co., Ltd

Ngoc Mai Co.,Ltd will supply a comprehensive set of paperwork for the cargo to be shipped once both parties have agreed on the contents and conditions of the delivery contract The document officer will be in charge of receiving the following documents:

Sales Contract: (follow figure I to 3 in Appendices for more details)

Number 11 signed on April 12, 2023

Seller: Ngoc Mai Co., LTD

®© SWIFT code: ADBNCNBJ

With the required information, paperworks, and documents that must be noticed and ensured accuracy as follows:

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