PRACTICE OF EXPORTING FREEZING SHRIMPS AT HANOI SEAPRODUCTS IMPORT AND EXPRT JSC

1 FOREIGN TRADE UNIVERSITY FACULTY OF ECONOMICS AND INTERNATIONAL BUSINESS *** INTERNSHIP REPORT Major: International Business Economics PRACTICE OF EXPORTING FREEZING SHRIMPS AT HANOI SEAPRODUCTS IMPORT AND EXPORT JSC. Full name : Nguyễn Thị Hoa Student ID : 1111150153 Class : A30 (High – quality program) Instructor : Cao Thị Hồng Vinh (MA) Hanoi, July 2014 2 Table of Contents PREAMBLE 1 CHAPTER 1 3 INTRODUCTION TO HANOI SEAPRODUCTS IMPORT AND EXPORT JOINT STOCK CORPORATION 3 1.1. COMPANY DEVELOPMENT HISTORY 3 1.2. STRUCTURE ORGANIZATION 5 1.2.1 Shareholders’ General Meeting 5 1.2.2 Board of Management 6 1.2.3 Board of Directors 6 1.2.4 Board of Controllers 7 1.2.5 Departments 7 1.3. GENERAL EVALUATIONS ON BUSINESS SITUATION OF SEAPRODEX HANOI PERIOD 2010-2013 7 CHAPTER 2 10 THE PRATICE OF EXPORTING FREEZING SHRIMPS IN SEAPRODEX HANOI 10 2.1. ORGANIZING EXPORT OF SHRIMP IN SEAPRODEX HANOI 10 2.1.1 GENERAL INFORMATION ON THE CONSIGNMENT 10 2.1.2 Steps 10 2.1.1.1 Before Contract 11 2.1.1.2. Signing Contract 12 2.1.1.3 Prepare products 12 2.1.2.4 Sending documents to forwarder 13 2.1.2.5 Notifying and sending documents to Importer 15 2.1.2.6 Getting payment 15 2.2 Comparisons with theory 16 2.2.1 Theoretical framework 16 2.2.2 Similarities and differences 17 2.3 EVALUATION OF ORGANIZING, IMPLEMENTING EXPORT IN SEAPRODEX HANOI. 19 2.3.1 Achievement 19 2.3.2 Drawback 19 3 CHAPTER 3 21 PROPOSALS TO IMPROVE THE IMPORT-EXPORT TRANSACTIONS IN SEAPRODEX HANOI 21 3.1. ANTICIPATION OF INFLUENTIAL FACTORS 21 3.1.1 Legal system – national policy 21 3.1.2 Competitors 22 3.1.3 Market demand 23 3.2. PROPOSALS TO IMPROVE IMPORT-EXPORT ACTIVITIES IN SEAPRODEX HANOI 24 CONCLUSION 26 4 ABBREVIATION Seaprodex Hanoi: Hanoi Seaproducts Import and Export Joint Stock Corporation Enlight: Enlight Import LLC LLC: Limited Liability Company JSC: Joint Stock Corporation T/T: Telegraphic Transfer L/C: Letter of Credit USA: United State America EU: Europe Union 1 PREAMBLE Recently, international trade has been in upward trend in the world in general and in Vietnam in particular. One of the most developed exporting industries in Vietnam is fishery, say increasing rate being 24.5% in the first seven months in 2014 compared to 2013, reaching USD 4.2 billion. Our greatest partners come from USA, EU, Japan, South Korea and China. With this trend, the fishery industry in Vietnam is dramatically developing, contributing hugely to the growth and development of Vietnam. With the recognition of this trend, I grasped the opportunity of doing internship that my university offered to do summer internship within five weeks at Hanoi Seaproducts Import and Export Joint Stock Corporation. The internship provided me the chance to realize what I have learned in university and see the similarities as well as differences between theory and real performance to cultivate my experience and knowledge. My report consists of three chapters: Chapter 1: Introduction to Hanoi Seaproducts Import and Export Joint Stock Corporation Chapter 2: The process of exporting freezing shrimps by sea in Hanoi Seaproducts Import and Export Joint Stock Corporation Chapter 3: Proposals to improve import – export transactions in Hanoi Seaproducts Import and Export Joint Stock Corporation In completing this report, I give my deepest thanks to the Board of Directors and Import - Export Department No.2 in Seaprodex Hanoi who did favorable conditions 2 and environment for me to do that five-week internship. I am also grateful to MBA. Cao Thị Hồng Vinh for instructing me during the time I did internship. Although I tried my best in doing this report, the mistakes and drawbacks are inevitable due to the narrow knowledge and the lack of long-term experience. I expect to receive opinions and comments from you to complete my report. Hanoi, August 1 st 2014 Student Nguyễn Thị Hoa 3 CHAPTER 1 INTRODUCTION TO HANOI SEAPRODUCTS IMPORT AND EXPORT JOINT STOCK CORPORATION 1.1. Company development history General information Hanoi Seaproducts Import and Export Joint Stock Corporation (called “Seaprodex Hanoi” from now on) was transformed from the former state-owned enterprise Hanoi Seaproducts Import and Export Corporation into a joint stock corporation on January 1 st 2007 under business license number 0100102848 first issued on December 22 nd 2006 with VND60 billion chartered capital and Mr.Dinh Quyet Tam being the representative. Full name: Hanoi Seaproducts Import and Export Joint Stock Corporation Transactional name: Seaprodex Hanoi Addess: 20 Lang Ha st., Dong Da dis., Hanoi city, Vietnam Tel: ++84.04.3834 5678 /04.3834 3146 Fax: ++84.04.3835 4125 Email: Seahn@seaprodexhanoi.com.vn Website: www.seaprodexhanoi.com.vn Processing factory: Xuan Thuy Seaproducts Processing Factory EUCode: DL 55 Addess: Xuan Vinh commune, Xuan Truong dis., Nam Dinh province Tel: ++84.0350.388 6005 Fax: ++84.0350.388 6011 Email: dl55@seaprodexhanoi.com.vn Seaprodex Hanoi is a member of Vietnam National Seaproducts Corporation – One Member Litmited Liability Company (Seaprodex Vietnam). Established on July 1980, after more than 30 years of operation and development, Seaprodex Hanoi has 4 successfully demonstrated its credibility, role and position in the field of producing, processing and trading sea-products in Northern Vietnam. It has made transactions in various countries, including Japan, South Korea, Hongkong, the US, the EU, and the ASEAN. Fields of Business Activities: Exploting, catching, culturing, purchasing, processing and trading items namely seafood, agricultural and forest products, general food, other garment and consumer goods; Producing and trading in various kinds: construction materials, metal and chemical, fishing net and equipment, machines, accessories, means of transports, packing and wraping; Trading in cold storage, forwarding, handling, and transporting by road, seaway and airway; Trading in various services: apartments, infrastructure, office buildings, premises, storage and ground, restaurants, hotels, super markets, tourism, hospitals and other real estate; Training and supplying labor resources Producing, processing, preserving and trading various kinds of animal products; producing and trading feeds used in fishery industry and other domestic animal; Trading nitrogenous fertilizer and fertilizer, agricultural and forest products, materials and equipment served in agriculture, forest and fishery industries; Trading services on advertising, marketing information, local and international travels, tourist; Trading handicraft items, home decoration and light industrial food. 5 1.2. Structure organization Specific Functions of the organization are: 1.2.1 Shareholders’ General Meeting Shareholders’ general meeting is held annually to discuss and approve: Annual Financial Statement; Report of Board of Controllers; Report of Board of Management; Report of Board of Directors; Short-term and long-term development plan Annual and irregular shareholders’ general meetings are held to approve written decisions on the following issues: Approve annual Financial Statement; The quantity of dividends paid to shareholders together with the rights of those dividends; The number of members of Board of Management; Electing, expelling and replacingmembers of Board of Management and Board of Controllers; Supplementing or editing company’s regulations; Other issues Trading deparments Management Xuan Thuy Procession Enterprise of Seafood Ha Noi Procession Export Enterprise of Special Seafood Hai Phong Procession Enterprise of Seafood Hanoi Seaproducts Import and Export Joint Stock Corporation Hanoi Seaproducts Import and Export Joint Stock Corporation in Quang Ninh Import – Export I Import- Export II Import- Export III Financial economic Department Organizational Administratives Deparment Branches Board of Directors Shareholders’ General Meeting Board of Management Board of Controllers 6 1.2.2 Board of Management Members: Mr. Dinh Quyet Tam – Chairman Mr. Le Cong Duc – Member Mr. Nguyen Phu Cuong – Member, General Director Mr. Do Xuan Thu – Member Mr. Le Hong Son – Member Functions They have all and due rights and responsibilities to regulate business activities of the company. They have all rights to carry out all rights on behalf of the company except the rights of Shareholders’ General Meeting. They are responsible for supervising General Directors and other managers. To be specific, Board of Management has the rights and responsibilities as follows: Decide annual budget and business and production plans; Determine the target for the company based on strategic plan approved by Shareholders’ General Meeting; Choose auditing company; Decide organization of the company; Approve the type of shares to be issued and the total number and price of each type; Electing, expelling and replacing General Directors 1.2.3 Board of Directors Members: Mr. Le Van Toan – Deputy Director Ms. Pham Van Anh – Deputy Director Mr. Tran Thi Hien – Chief Financial Officer Functions: Selected advisory and oversight responsibilities: Approve the corporate strategy; Test business model and identify key performance measures; Identify risk areas and oversee risk management; Plan for and select new executives; Design executive compensation packages; Ensure the integrity of published financial statements; [...]... existed Letter of Attorney and Certificate of Insurance (normally 110% of the total value of the goods to be delivered) are prepared by Exporter Certificate of Origin (in this case Certificate of Origin form A) is issued by Vietnam Chamber of Commerce and Industry (VCCI) In this case, Seaprodex Hanoi provides information to online portal of VCCI to get Certificate of Origin Health Certificate and Microbiological... before the date of invalidity of the Contract and before the date of payment After the shrimps are processed, Seaprodex Hanoi registered to get Health Certificate and Microbiological Report and Analysis that would be shown more details later The shrimps microorganism and antibiotic content are not allowed to be higher than the customer requires After that, they book containers to preserve shrimps The... sent to Ministry of Agriculture and Rural Development about the bad situation of the company and asked for directions from the Ministry as soon as possible One of the solutions suggested was to reduce governmental capital in Seaprodex Hanoi 10 CHAPTER 2 THE PRATICE OF EXPORTING FREEZING SHRIMPS IN SEAPRODEX HANOI 2.1 Organizing export of shrimp in Seaprodex Hanoi 2.1.1 General information on the consignment... growth of GDP, indirectly to the value of currency, the interest rate, then the living standard and the development of the countries Being one of the enterprises in this industry, Seaprodex Hanoi has been operating since 2007 (as a separate legal entity) with the experience as a branch of Vietnam National Seaproducts Corporation since 1978, Seaprodex Hanoi has been obtaining many achievements, expanding... factories, keeping profitable all the time even when the economy was going down Seaprodex Hanoi has declared their brand name with many foreign customers and partners around the world My report has shown the general information and financial situation of Seaprodex Hanoi, illustrates relatively details of exporting freezing shrimps to an American company, propose some suggestions for Seaprodex Hanoi to get... tr.195-212 Seaprodex Hanoi, (2010) Annual Report 2010 Hanoi: Seaprodex Hanoi Seaprodex Hanoi, (2011) Annual Report 2011 Hanoi: Seaprodex Hanoi Seaprodex Hanoi, (2012) Annual Report 2012 Hanoi: Seaprodex Hanoi Seaprodex Hanoi, (2013) Annual Report 2013 Hanoi: Seaprodex Hanoi Seaprodexhanoi.com.vn, (2007) Welcome to Seaprodex Hanoi Website [online] Available at: http://www.seaprodexhanoi.com.vn/Pages/About.aspx... period 2010-2013) As illustrated in the table, the financial situation of Seaprodex Hanoi during the whole period was good On one hand, the total revenue and revenue from importexport and services dramatically and continuously increased which leaded to a rising amount of contribution to national budget every year and processing value plunged On the other hand, the before-tax profit, although was always... should apply more to understand what really happens, improve my skills to be professional in this area 2.3 Evaluation of organizing, implementing export in Seaprodex Hanoi 2.3.1 Achievement The organization of import- export transactions in Seaprodex Hanoi is professional and efficient While many companies in Vietnam follow the form of “export-FOB; import- CIF”, Seaprodex Hanoi is flexible on choosing... THE IMPORT- EXPORT TRANSACTIONS IN SEAPRODEX HANOI 3.1 Anticipation of influential factors 3.1.1 Legal system – national policy Legal system and national policies have undeniably great influences on importexport activities Since joining WTO in 2007, Vietnamese government has tried to open the economy with the establishments and numerous modifications on legal system and national policies so that import- export... figures at the beginning of 2013 The reason for not reaching plans is that Seaprodex Hanoi was affected by the negative changes of the market and some policy changes by the government such as interest rate, exchange rate management, tax rate and renting rate Under this urgent situation, Board of Management decided to call for irregular shareholders’ general meeting In the meeting, Board of Management had . FACULTY OF ECONOMICS AND INTERNATIONAL BUSINESS *** INTERNSHIP REPORT Major: International Business Economics PRACTICE OF EXPORTING FREEZING SHRIMPS AT HANOI SEAPRODUCTS IMPORT AND. Introduction to Hanoi Seaproducts Import and Export Joint Stock Corporation Chapter 2: The process of exporting freezing shrimps by sea in Hanoi Seaproducts Import and Export Joint Stock Corporation. INTRODUCTION TO HANOI SEAPRODUCTS IMPORT AND EXPORT JOINT STOCK CORPORATION 1.1. Company development history General information Hanoi Seaproducts Import and Export Joint Stock Corporation (called