The process of importing sample material from the united kingdom at vitadairy vietnam joint stock company

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY FACULTY OF BUSINESS ADMINISTRATION INTERNSHIP REPORT Major: International Business The process of importin

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

- INFORMATION TECHNOLOGY FACULTY OF BUSINESS ADMINISTRATION

INTERNSHIP REPORT

Major: International Business

The process of importing sample material from the United Kingdom at VitaDairy Vietnam Joint Stock Company

Student’s name: Tran Quéc Khanh

ID Number: 21DH123163 Class: KQ2110

Course: 2021-2025

Table of Contents

INTRODUCTION

CHAPTER 1: THE OVERVIEW OF VIETNAM VITADAIRY JOINT STOCK COMPANY 1 1.1.The process of formation and development of VitaDairy Vietnam Joint Stock Company 1 1.1.1 General introduce about VitaDairy Vietnam JSC nhe 1 1.1.2 History of formation and development of Vietnam VitaDairy Joint Stock Company | 1.2 Vision, mission and core values at VitaDairy Vietnam Joint Stock Company 2 1.3 Organizational structure of VitaDairy Vietnam Jọint Stock Company 3 1.3.1 Organizational chart HH ng KH 3

1.3.2 Functions and tasks of each departmen( - - Sn nhe 3

1.4 Evaluation of the business activities of VitaDairy Vietnam Joint Stock Company 6

1.4.1 Results of the company's import activities from 2021-2023 «0.0.00 ee 6 1.4.2 The business result of VitaDairy Vietnam Joint Stock Company - 7

CHAPTER 2: ANALYSIS OF THE PROCESS OF IMPORTING SAMPLE MATERIAL

FROM THE UNITED KINGDOM AT VITADAIRY VIETNAM JOINT STOCK COMPANY 8 2.1 The diagram of the process of importing sample material at VitaDairy Vietnam Joint

Stock Company .0 ố ố ố ẻ ằeee 8

2.2 Steps in the process of importing sample material from the United Kingdom at

VitaDairy Vietnam Joiïnt Stock Company nh nọ KH 8 CHAPTER 3: GENERAL EVALUATION OF THE PROCESS OF IMPORTING

COLOSIGG24H MATERIAL FROM USAAT VIETNAM VITADAIRY JOINT STOCK

SN hố cố ốc ố .ố ố ằeằee 14 3.2 Disadvantages

3.3 Some solutions directions to complete import docs of VitaDairy Vietnam Joint Stock

COMPaDY oo e6 14 REFERENCES ooo 35 15

TOPIC: THE PROCESS OF IMPORTING SAMPLE MATERIAL FROM THE UNITED KINGDOM AT VITADAIRY VIETNAM JOINT STOCK COMPANY

INTRODUCTION The milk processing and manufacturing industry and dairy products in Vietnam in recent years has the dynamic growth, provide diverse product variety for people’s life, meet domestic demand, replace items imported and participate to export with variety of designs and types Apart from this, it is making significant contributions to the state budget, create more jobs for workers, stabilize the social situation and has a positive impact to Vietnam agriculture industry

Because milk is the essential product of Vietnamese people, dairy businesses still maintain its rapid growth when different industries are in trouble For the next few years, population increase, rising incomes and the Vietnamese attention to health care products Vietnam boasts great potential for dairy industry, considering it a spearhead economic sector VitaDairy Vietnam JSC is one of the three largest powder milk producers i Vietnam All product of VitaDairy are built on a strong scientific foundation of research and suited the needs of Vietnamese The company’s product pipeline includes ColosBaby, Colos Gain, Oggi, Colos DHA+, Colos Opti, Calokid Gold, Vitagrow (VitaDairy, 2024) Raw materials are procured from trusted vendors such as DSM, Fonterra, Ingredia, Synlait, APS Import is one

of the most important activities to makes pure, premium quality milk products that contain essential vitamins and nutrients needed to thrive that makes up the brand of VitaDairy That is the reason I select the topic “The process of importing sample material from the United Kingdom at VitaDairy Vietnam Joint Stock company” in order to conduct a more detail study This topic can help VitaDairy to improve their import process

My report is divided into three chapters In chapter 1, I will introduce overview of VitaDairy Vietnam JSC The content of the overview includes formation and development, functions and duties and organizational structure of this company At the same time, I also want to mention business situation in recent years Chapter 2 is the heart of this report because

I will analyze the process of importing materials at VitaDairy Lastly, I need to make the judgement and recommend solutions to problems in import process

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CHAPTER 1: THE OVERVIEW OF VIETNAM VITADAIRY JOINT STOCK COMPANY

1.1.The process of formation and development of VitaDairy Vietnam Joint Stock Company

1.1.1 General introduce about VitaDairy Vietnam JSC

- Official name: VitaDairy Vietnam Joint Stock Company

- Legal representative: Nguyen Thi Ha

- Address: 5th floor, No.37 Ton Duc Thang Street, Ben Nghe Ward, District 1, Hochiminh City

- Telephone: 0983720908

- Email: info@vitadairy.com.vn

- Website: https://www.vitadairy.vn

- Scope of business: Manufacturing and supplying dairy products for babies and adults

- Logo of the company:

Witadairy ‘

Figure I Logo of the company

1.1.2 History of formation and development of Vietnam VitaDairy Joint Stock Company

Table 1 History of formation and development of the company

2005 VitaDairy founded by doctors, pharmacists and nutrition

specialists

2019 Ministry of Health trusted to choose VitaDairy to become

partnership in immune nutrition seminar series

2021 VitaDairy won Asia Pacific Outstanding Brand 2021

Awards

2021 “Campaign in Defense doctors 24h” helped VitaDairy to

win Wechoice Awards 2020

2021 VitaDairy owned a farmhouse in Tasmania

2022 VitaDairy won Global Food Industry Awards

2022 VitaDairy ranked among Top 3 the largest powder milk

2023 VitaDairy was the counterpart of the world’s largest

Colostrum Corporation - Pantheryx

2023 VitaDairy - “The best place to work in Asia” honored

again by HR Asia Awards

2024 VitaDairy Ranked top 2 the largest powder milk powder

company in Vietnam

1.2 Vision, mission and core values at VitaDairy Vietnam Joint Stock Company

revenue for milk powder market Revenue jumped by 1.8 percent to just over 11.9 percent so VitaDairy ranks only behind Abbott (TDV, Céng Ty VitaDairy bứt tốc với vị thé top 2 doanh thu sữa bột trẻ em tại Việt Nam, 2024) In addition, VitaDairy has agile strategic thinking, understanding consumer's needs and has an expert team From that, VitaDairy want to strive According to market research metrics of NielsenIQ, VitaDairy placed second about

to become Top | the largest milk powder company

With mission “Cultivating vitality”, all VitaDairy items built on scientific foundation

of research, in accordance with the need and the taste of Vietnamese Materials is imported from reputable suppliers in the world such as Fonterra, DSM, Ingredia, Synlait, APS and VitaDairy innovative nutritional formula according to international standards

Constantly developing and developing sustainably - the achievements mentioned above are due to the core values that VitaDairy chooses in its business philosophy: science in nutrition, innovation in products, and kindness in treating employees and partners

1.3 Organizational structure of VitaDairy Vietnam Joint Stock Company

| Sales | Marketing | HR sn | — IT | R&D | | reset

Figure 2 Organizational chart of the company 1.3.2 Functions and tasks of each department

> Board of Direction

Board of Director shall have full authority for internal management They can decide organizational structure by voting, dismissing positions as Chair of the Board of Director, General Director and managers Even Board of Director would also decide to pay, benefit and reward-competitive salary of Chairman, General Director, managers Board of Director has power to observe and steer whole system Board of Director will directly dictate issues related

to the finance within a certain range BOD gets suggestions for types of shares and total amount of each type, dictate resale price of stocks and bonds Members of BOD verify reports

on business and production results and annual financial statement of BOD before submission

to the general meeting of members Finally, BOD has abilities to do mid-term and long-term plans, strategies for the company They will provide advices and remedies to resolve problems

> Director

VitaDairy is one of top 10 industrial corporations in Vietnam (Duong, 2024) so Director just high-level strategic decisions and set out guidelines for the development of the company Director will rely on data reported by senior leaders and insight from Board of Director to decide Although Director is not responsible for recruiting and dismissing staff, he has to align and monitor staff Director not only understand market but also has performance insights through revenue, gross profit margin and sales numbers to make the necessary adjustments

> Sales department

Sales department distributes products to distributors and consumers, closely tracks the preferences and demands of the customers Inventory management is one of the functions for sales department This department insures that customer outreach and sales that follows an exact plan

> Marketing department

In order to maintain and expand its position in market, enterprises must focus on marketing activities This has given marketing department becomes an important part of the enterprise Marketing department builds great customer care system, as well as product warranty and perfect after-sales service to support business have strategies to build and develop brands This department advises to the board of directions of matters relative to brand, distributors, label, customer If they worked in the marketing sector, they would understand the importance of communication This has given marketing establishes relationships with social media

> Human resources department

The role of Human Resources department is recruitments, training, develop human resource capacity of the company HR workers coordinate with other departments to determine recruitment needs, designs job descriptions, plans appropriate recruitment HR is responsible

to build wage scales, payroll and have the reward policy for staff basing on quarterly and anually performance assessment emulation Whole employee's file is saved by HR

> Accounting department

Business performance and higher growth of the company depends on how to handle finances Accounting workers record transactions and general financial statements along with income report, balance sheet, cash flow statement This enables the company making decision

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about finance management Normally there will have some cases that inventory cost and borrowing, cost are higher than cash

Accounting department must balance these costs to avoid pay plenty of cash and the cost of borrowing Besides, Accounting department must deal with and advise on tax issues, ensuring complhiance with tax legislation This department are going to work with other managers to set

a budget and provide financial projections

> IT department

IT department supports to drive growth in business Issues arising is something which cannot inevitable during the operation of the business, IT will work out some solution Building privacy policy of company information is one of the tasks of this department IT have ability to instruct and train staff for implementing privacy policy of the information Procurement of IT equipment is controlled by IT department

> Purchasing department

Purchasing department of VitaDairy is divided in two types includes domestic purchasing and import purchasing Purchasing workers have the function of tracking, procurement of materials or products at the best prices Apart from this, purchasing department also handles documents and accounting procedures relative to purchasing as well as guaranteeing process of the purchase takes place exactly Purchase strategy can start by assessing resources and purchase cost of other relevant departments By the same time, purchasing department has market analysis and compares capacity of suppliers to find the best option about quality and price for the company Capacity of supplier is evaluated according to the assessment criteria such as delivered on-time products, failure of product, quality and quantity, wholesale price Purchasing workers know ways to manage and maintain good relationship with suppliers When this department gets order, workers have to guarantee fund and on-time payment

> R&D department

The main function of R&D is to research and develop into a new product that fits the needs of the market and is carried out in accordance with the company’s development strategy R&D department has ability to research about nutritional ingredients, use, flavor, color, size, label to new products R&D will test quality, safety and effectiveness of new products before

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they are introduced to the market Not just this, R&D will research method of manufacture, technology, raw material of existing products aim to improve quality, save costs, increase competitiveness for product R&D will base on consumption trends of market and the new regulations and policies to forecast and recommend plan for company

> Production department

Production department has many core functions This department will follow and make sure that everything must be well controlled during the manufacturing process, storage, shipment Production workers designs product, suitable service Production department has to supervise and control every aspect of manufacturing activities to take maximum advantage of resources, machine, labor and reduce waste Available raw material resources are always reserved for the process of the production Production workers usually have machine maintenance as recommended by the manufacturer

1.4 Evaluation of the business activities of VitaDairy Vietnam Joint Stock Company 1.4.1 Results of the company's import activities from 2021-2023

4.44%

is the United States with 178.22 million VND took up over 43.9% Also for New Zealand - the most import source of VitaDairy, importing milk and milk products from New Zealand fell

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sharply with 32.81 million VND took up over 8.1% Workforce shortage due to COVID19 pandemic reduced the production (Chung, 2023) so the price of the import raw materials highly increased Besides, import from the United Kingdom also dropped sharply with 17.66 million VND, made up only 4.4% Moreover, the import situation from other countries such

as Australia reached 18.22 million VND (4.5%) and France reached 18.03 million VND (4.44%)

On positive signals from analysts in 2024, the price of import milk powder will continue to drop sharply to year-end due to the import demand of China is decreasing (GMPc, 2023) In contrary, the production capacity of milk powder will increase because of milk consumption decline in the world

1.4.2 The business result of VitaDairy Vietnam Joint Stock Company

VitaDairy will have a plan for dividend payment by cash amount of 2024, minimum 1s 50 percent after tax In 2024, the company target revenue will reach 64.380 billion VND, increase

5 percent compared to the same period last year and have a plan that profit before tax will be

11.496 billion VND

CHAPTER 2: ANALYSIS OF THE PROCESS OF IMPORTING SAMPLE

MATERIAL FROM THE UNITED KINGDOM AT VITADAIRY VIETNAM JOINT STOCK COMPANY

2.1, The diagram of the process of importing sample material at VitaDairy Vietnam Joint Stock Company

When the time comes, VitaDairy actually needs to find raw material sample, namely Buttermilk Powder for testing a new product before production begins Import purchasing department requires Philpot Dairy Products Ltd to provide sample that will be served for testing before VitaDairy choose Philpot to become the official supplier VitaDairy has partnered with Philpot many times in the past and this sample is just sample so signing the delivery contract is fast and simple DHL is selected to become logistics company DHL has a responsibility to provide the transportation service for this sample

The process of importing sample shipment occurs within about | month from date of order to date of receiving goods The responsibility of the importer includes:

- Guideline exporter for prepare documents upon request by importer

- Track the journey of shipment online and get notifications automatically

- Complete necessary procedure to receive the imported shipment

- Payment of expenses on time after receiving imported shipment

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Steps in the process of importing:

Step 1: VitaDairy Vietnam Join Stock Company reaches agreement on obtaining sample from Philpot Dairy Products Ltd

Step 2: After comparing the prices from different logistics companies Finally, Philpot decides

to choose DHL logistics company as forwarder and send booking request to DHL

Step 3: DHL logistics company confirms the booking request from Philpot Dairy Products Ltd and requires this company to pack and carries out documents procedures of shipment Step 4: Import documents staff of VitaDairy draft site instructions to make sure that information is accurate, complete and up-to-date The main contents for each document includes:

1 Invoice: (Important information)

- Invoice number

- Shipper (Name and Address

- Consignee (Imported Company )

VITADAIRY VIETNAM JOINT STOCK COMPANY

5th Floor, No 37, Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

- Receiver:

Ms Kieu Trang Nguyen — +84 969.028.408

Sanh B, VitaDairy, The Zen, Gamuda Gardens, P Tran Phu, Q Hoang Mai, Hanoi, Vietnam

100000

- Invoice date: Before or the same as the AWB date

- The Signature of Exporter

- Show Incoterms

- Show Freight Charges, Value for Customs purposes It’s possible to note Non-commercial Invoice

2 Packing List:

- Show the same information of Shipper, Consignee and Receiver as Invoice

- Show Net weight and Gross weight

- Show Unit of packaging and Quantity

3 Airway Bull:

Show Consignee (or Receiver) as below:

VITADAIRY VIETNAM JOINT STOCK COMPANY

Ms Kieu Trang Nguyen — + 84 969.028.408

Sanh B, VitaDairy, The Zen, Gamuda Gardens, P Tran Phu, Q Hoang Mai, Hanoi, Vietnam

Packing style: 2.4 kg per package

Brand: Philpot Dairy Products Ltd

6 Date of manufacture: 10, January 2024

7 Date of expiry: 10, July 2025

8 Application: raw material sample for testing new product

9 HS code: 04022199

10 Made in the United Kingdom

11 Condition: new 100%

12 Information of the company:

e Name of the company: VitaDairy Vietnam Joint Stock Company

e Address: 5th Floor, No 37, Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

e Tax code: 3702652869

Customs is particularly concerned about packing style and HS code for the information

of the goods Although this is just a sample, customs wants packing style to match information based on Packing list instead of opening up for inspecting goods This would have impact on quality of sample Aside from that, Hs code is the important information which determines product group is saved on National Portal Therefore, goods needs to have exact HS code so

it is imported to Vietnam Even for the information of the company, it matches with the information of legal personality which is written in Invoice It intends to create VAT bill with the exact information Accounting department of VitaDairy won’t agree to the payment for shipment if Name, address and VAT code of VitaDairy are invalid

Step 6: After receiving Arrival Notice, Import documents staff responds by a letter of the authorization which is signed by Director In addition, VitaDairy also asks DHL to check whether contents of Invoice, Packing List, Airway Bill, Certificate of Analysis have been appropriately compiled before they are sent to the Animal Quarantine Service

The import documents staff of DHL Logistics Company re-examine set of documents DHL must check carefully to limit risks as low as possible before declaring to the National Portal of the Animal Quarantine All information are on the National Portal will not be allowed

to adjust The import documents staff of DHL Logistics Company need to check eligibility and consistency of documents to customs clearance

Each document has its own role to play in customs clearance but they are inextricably connected All documents includes Invoice, Packing List, Airway Bull, Certificate of Analysis have to match the information about the name of VitaDairy Vietnam Join Stock Company, address and tax ID number to make sure that VAT bill is exact Furthermore, DHL needs to guarantee information about goods descriptions, incoterms, total value have to match all Check the details of the documents:

> Health Certificate

e Exporting country: United Kingdom

e For completion by: Official Veterinarian

e Address exporter:

PHILPOT DAIRY PRODUCTS LTD

TERN VALLEY PUSINESS PARK, SHREWSBURY ROAD, MARKET DRAYTON, SHROPSHIRE TF9 38Q, UNITED KINGDOM

¢ Commercial Invoice

e Invoice date: 2, May 2024

e Invoice Number: 02052024/1

e Address receiver:

VITADAIRY VIETNAM JOINT STOCK COMPANY

5th Floor, No 37, Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

e Receiver:

Ms Kieu Trang Nguyen — +84 969.028.408

Sanh B, VitaDairy, The Zen, Gamuda Gardens, P Tran Phu, Q Hoang Mai, Hanoi, Vietnam

100000

e The Signature of Philpot

e Incoterms: DDP

e VALUE FOR CUSTOMS: GBP 10.00

SAMPLES FOR TESTING PURPOSES ONLY NO COMMERCIAL VALUE FOR CUSTOMS: GBP 10.00

e Weight of Consignment: Net 2kg; Gross 2.4kg

e Origin: United Kingdom

e Production date: 10/01/2024

e Expiry date: 10/07/2025