Báo cáo thực tập tiếng anh INTERNSHIP COMPANYINSTITUTION ARMEPHACO JOINT STOCK COMPANY

Establishment and development of the company - On April 17, 1996 ARMEPHACO Joint Stock Company, formerly known as ArmyMedical Equipment and Pharmaceutical Company were established, speci

GRADUATE INTERNSHIP REPORT

INTERNSHIP COMPANY/INSTITUTION: ARMEPHACO JOINT STOCK COMPANY

Address: No 118 Vu Xuan Thieu Town, Phuc Loi Ward, Long Bien District, Hanoi.

Supervisor: Ths Hoang Kim ThuStudent’s full name: Nguyen Thi Dieu MyStudent’s ID: 11071270

Major: International BusinessClass: IB2012B

First of all, I would like to thank most sincerely to all International School teachers, teachers ofmajor International Business who taught, impart valuable knowledge for me during 4 year studyand practice at the school I would like to thank Mrs Hoang Kim Thu - who enthusiasticallyguides me written this internship report

I sincerely thank the leadership and the colleagues in the company has created favorableconditions for me as an internship in companies, are exposed fact, answer questions, help meunderstand more business and import and export activities during internship time

With limited knowledge and internship time in the company is limited, I cannot avoidshortcomings I look forward to the comments and criticisms of the teachers and the colleagues

in the company It would be valuable luggage to help me improve my knowledge later

Table of Contents

A Chapter 1: Overview about ARMEPHACO Joint Stock Company 4

I General information……….4

II Establishment and development of the company……….4

III Mission – vision – development strategy……….5

IV Brand identity……… 5

1 Logo & slogan……… 5

2 Commitment……….6

3 Product……… 7

4 Supplier – Retailer………8

5 Market……….10

6 Customer 10 V Organizational structure 11 B Chapter 2: Specific major activity of ARMEPHACO Joint Stock Company 12 I General production and business activities………12

1 Strategy/business plan………12

2 Business production process (the value chain)………15

3 Business production process (function) 18 II Main activities 20 C Chapter 3: Goals of internship, tasks assigned and working methods……… 28

I Goals of internship……… 28

II Tasks assigned……….29

III Working methods……….29

D Chapter 4: Results gained from the Internship……… 30

I Gained knowledge……… 30

II Gained experiences……… 31

III Gained skills……….32

IV Contribution to the Company……… 33

References……….35

List of table and chart……… 36

A Chapter 1: Overview about ARMEPHACO Joint Stock Company

I General information

1 Name of company: ARMEPHACO JOINT STOCK COMPANY

2 Trade name: ARMEPHACO JSC

3 Headquarters: No 118 Vu Xuan Thieu Town, Phuc Loi Ward, Long Bien District,Hanoi

4 Phone: (04) 3875 9466 (04) 3875 9475 Fax: (04) 3875 9476

5. Website: www.armephaco.com.vn Email: armephaco@armephaco.com.vn

6 Legal representative: Mr Nguyen Van Dung – Position: General Director

7 Account number: 15110000027726 – Bank for Investment and Development ofVietnam, Thanh Do Branch

8 Business license: 0100109191

II Establishment and development of the company

- On April 17, 1996 ARMEPHACO Joint Stock Company, formerly known as ArmyMedical Equipment and Pharmaceutical Company were established, specializes inmanufacturing and trading of pharmaceuticals and medical equipment

- Company includes 3 large enterprises

 Pharmaceutical Factory 120 (APHARMA): Established on 05/01/1973, the plantachieved WHO GMP standards contains three workshops: injections productionworkshop; non-Klactam tablets production workshop; ointment production workshop.Pharmaceutical Factory 120 now was converted into 120 ARMEPHACO LimitedLiability Company, with 100% capital shareholding of ARMEPHACO Joint StockCompany

 Pharmaceutical Factory 150 (COPHAVINA): Established on 10/20/1962, contains oneCephalosporin production workshop and two non- Klactam tablets production workshops

 Medical Equipment Factory 130 (MEF): Established on 07/15/1969, the plant achievedISO 9001-2000 quality standards for the production workshops of portable medicalequipment, mechanical, electrical electronics, refrigeration, etc Now Medical EquipmentFactory 130 was converted into 130 ARMEPHACO Medical Equipment LimitedLiability Company, with 100% capital shareholding of ARMEPHACO Joint StockCompany

- On May 07, 2010, the company officially changed to model operating under Joint StockCompany with a charter capital of 130 billion VND.

III Mission – vision – development strategy

3 Development strategy

- Creating policies to maintain and promote the development of efficient, sustainable andconnected with the mission to serve and meet the needs of customers

IV Brand identity

1 Logo & slogan

- The image of the logo

- The meaning of the logo & slogan

 ARMEPHACO logo is designed with the layout hemispherical and brand nameinscription in the center logo

 With the expansion of cooperation and development, brand identity through symbolsARMEPHACO want to convey to our customers and our partners that ARMEPHACOhas been building its image more professional and modern, provides better services andproducts.

 ARMEPHACO designed serif font, create strong feeling, modern and elegant, bold fontand powerful strokes captures the spirit and power of ARMEPHACO A highlight in theliteral A creates of the logo differs

 ® is registered by the National Office of Intellectual Property of Vietnam, according tothe number of shares 4-2008-22979, dated 24/10/2008 by Army Medical Equipment andPharmaceutical Company, now ARMEPHACO Joint Stock Company

 Logo simple thanks to the combination of simple elements with images meantunderstandable that makes communication more convenient, it helps customers andviewers easy to remember and inspire on ARMEPHACO safety On the other hand thesimplicity also makes working on the material to be convenient as printing, zoom in, andzoom out, stamping, casting logo, and carvings all very convenient

 Route to perfection along with the best service and products so that rebranding and reachout to integrate with the world That has always been the strategic goals not only with itsown board of directors of the Company and also all officers and employees of theCompany The logo & slogan has demonstrated the role and determination ofARMEPHACO

2 Commitment

- Always providing pharmaceutical and medical equipment of good quality, consistentwith the interests of consumers

- Respect, cooperation and mutual development with customers

- Dynamic, creativity and fairness working environment that constantly improve theirprofessional qualifications; meet the requirements technological innovation and thecontinuous development of the market

- ARMEPHACO provides products and services with the best quality and ensure thatARMEPHACO is trusted partners of enterprise and customers

- ARMEPHACO committed to building partner relationships and on a sustained spirit ofcooperation and mutual benefit between the product provider and customer service,among partners, and between businesses and enterprises.

- The consistency of the brand ARMEPHACO ensure that it is the perception of the brandARMEPHACO is consistent at anytime, anywhere and whether they are communicatingover the phone, at events, on documents print and on the mass media such as television,newspapers, magazines, brochures, catalogs introduce

 Medical Equipment: As essential products of the Company from 2012 to present andaccepted by market all over the country In 2 years (2012- 2013), production of medicalequipment increase rapidly due to more demand of the population

 Medical Gas Systems SME: As the product is put into production from October 12/2013.This is the high-end equipment, technology and production equipment of Indonesia are inline with consumer tastes of the people in Asia and is likely to be the need to exploitmore

 Medical Gas Pipeline: As new product is put into production in 2012, but 2013 wasintroduced into the market This is a premium product produced by the technology of theRepublic of France and this product has a spike on the consumer market in 2005 Thecompany's products have different features are used extrusion technology, very hygienicand safe for consumers

- Overall, the current products and services of the company are of good quality and meetthe needs of the majority of domestic consumers, high consumption, favored byconsumers However, to meet the increasing demands of the market, the Companycontinues to invest to diversify product mix; develop the potential, inherent brand value

of the company

-4 Supplier - Retailer

- Supplier

 After more than 15 years developing, the company has commercial relations andcooperation with many major medical equipment manufacturers and business over theworld such as Atlas Copco, Airtech Equipment Pte Ltd Japan, Olympus, Schmidt,Siemens, Shimadzu, Del Medical SA, Universal, etc to update medical achievements, thelatest techniques with the aim of ensuring excellent warranty service, long-termmaintenance and repairs and supply of spare parts up timely replacement the equipmentimported and produced by the company

 Here are the images of some supplier of the Company:

 120 ARMEPHACO Limited Liability Company

Director: Ms Nguyen Thi Huong (Vice President of ARMEPHACO concurrently)

Vice President: Ms Vu Thi Khuyen

Factory achieved GMP-WHO standards with two workshops: Workshop production ofinjections and workshop production of pills non-Klactam with production lines tablets,film coated tablets, sugar coated tablets, capsules, powdered drugs…

 ARMEPHACO Medical Equipment Limited Liability Company

Director: Mr Bui Viet Tuan (Vice President of ARMEPHACO concurrently)

Deputy Director: Mr Nguyen Dinh Hau, Nguyen Duc An

Factory standards of quality management ISO 9001-2000 with workshops production ofportable medical equipment, mechanical, electronics, refrigeration

 Pharmaceutical Factory 150 (COPHAVINA)

Director: Mr Do Van Be (Vice President of ARMEPHACO concurrently)

Vice President: Mr Nguyen Huu Duy, Nguyen Thi Kim Hang

Factory achieved GMP-WHO with 2 workshops: Cephalosporin workshop and workshopproduction of tablets Non-K lactam with many production line tablets, film coated tablets,sugar coated tablets, capsules, powders, herbal medicines

 Branch in Ho Chi Minh City

Director: Ms Tran Thi Bach Tuyet

 Branch in Hanoi

Director: Mr Do Duc Thinh (Deputy Director of ARMEPHACO concurrently)

Vice President: Mr Le Van Thuan

 Representative Office in Da Nang

Chief Representative: Mr Nguyen Quang Van

 Representative office in Gia Lai province

Head of the Representative Office: Pham Xuan Anh

 Branch in Can Tho City

Director: Truong Nguyen Minh Son

 Representative office in Haiphong

Chief Representative: Mr Le Thanh Ha

 Branch 2 in Ho Chi Minh

Director: Mr Duong Dinh Son (Deputy General Director of the Company concurrently)Vice President: Ms Doan Thi Le Phuong

5 Market

- Along with production and distribution of pharmaceutical medical equipment, sinceprivatization, the company has expanded many new industries, including the field ofmedical equipment suppliers, design and construction of a modern operating room,medical gases

- Joint Venture with Korean partners founded the company specializes in producing plasticsyringes used 1 times with famous brands named VINAHANKOOK, accounting for over

80% market share in Vietnam.

- Hanoi market is the largest market of the Company (accounting for 50% of totalconsumption) However, the Company's market share in this market has declined inrecent years due to fierce competition by other competitors After Hanoi market is themarket of the Northwest Province and Northeast (40% of total consumption) This is avery large market, there is potential for exploitation both in width and depth In thecentral market, mainly consumed in some provinces: Nghe An and Thanh Hoa Localproducts are consistent with the needs of this market For Southern market, theCompany's new products are present in recent years, mainly in some provinces such asVung Tau, Dac Lac, Ho Chi Minh City and Quy Nhon Consumption volume in thecentral and Southern provinces is low (5-6% sales volume of the Company) Caused bygeographical distance too far, the company has not enough resources to manage, inaddition to the competition of enterprises producing pharmaceuticals and medicalequipment in Southern has advantages over ARMEPHACO This market area nearlyCompany vacant Currently, the company continues to focus on gaining market share inthe Hanoi market because it is the largest city, with consumption of pharmaceuticalproducts high The company has opened more agents; the commission also has incentivesfor these units stand out as agent for the Company or the store, drugstore In addition, thecompany also applied a number of product promotions on holidays

6 Customers

- The company's customers are diversified as follows

 108 Central Military Hospital

 Oncology Hospital, Ho Chi Minh City

 Health Department

 Ministry of Public Security

 Army Medical Department - General Department of Logistics

 The health facilities, hospitals nationwide…

V Organizational structure

- Organizational apparatus operations of the company are lightweight, scientific, operatingunder command online mode, encouraging the ability to work independently and tomaximize the creative capacity of each staff

- Organizational chart

ANNUAL GENERAL MEETING OF SHAREHOLDERS

DIRECTOR BOARD

Organization Department

Accounting Department

Technical Department

Packing, storage, transport and installation

of the product workshop

Quality control workshop

Finish workshop

- Organizational structure of the company includes

 Companies Agency

 Director Nguyen Van Dung

 The Vice President

 Vice President of Pharmaceutical business production: Major Nguyen Thi Huong – Chief

of Pharmaceutical Factory 120

 Vice President of Medical equipment business production: Bach Dinh Viet Colonel

 Vice President - Secretary of the Party: Senior Lieutenant Colonel Do Chi

 Chief Accountant: Do Dinh Ngoc

 Departments: Business Department, Project Department, Organization Department,Accounting Department, Technical Department

 The unit members

 3 affiliated factories: Pharmaceutical Factory 120, Pharmaceutical Factory 150, MedicalEquipment Factory 130

 4 branches in Hanoi and Ho Chi Minh City

 3 representative offices in Da Nang City, Hai Phong City, Gia Lai Province

B Chapter 2: Specific major activity of AMERPHACO JOINT STOCK COMPANY

I General production and business activities

1 Strategy/business plan

- Overall objectives

 Constructing ARMEPHACO becomes one of ten leading manufacturers, distributors ofdomestic pharmaceutical and medical equipment of Vietnam (both in production scale,capital, revenue, profit, human resources) Gradually bring the pharmaceuticals andmedical equipment of ARMEPHACO out to regional and international

- Specific objectives in 2013-2018

 The scale of production and business capital reach 500-600 billion VND, sales reached1,000 billion VND on Revenue from production at the Company reached over 400billion VND Trade turnover of over 600 billion VND

 Construction ARMEPHACO become multi-industry enterprise, operating in both the

field of production and trade ARMEPHACO brand on Vietnam pharmaceutical and

medical equipment market will be a prestigious brand of people

 Develop and set up a capable and strong distribution system and gradually covered areas

of the country Venture Activity will become important activities to bring: economic

efficiency, launching new products or replacement products imported for consumption in

Vietnam and export products, bearing the advanced technology, management skills, and

development of human resources for ARMEPHACO

 Creating a corporate culture characterized by clarity ARMEPHACO - a Defense Security

business while ensuring pharmaceutical military has engaged in the construction and

development of the country in the new era, with the characteristics always innovative,

always innovative and constantly growing

- Results of production and business operations of the company in recent years

Table 1: Summary of production and business results of the company over 3 years

Year 2014

Compare increase

or decrease 2013/2012

Compare increase

or decrease 2014/2013Absolute

 The profits of enterprises increased year by year 2012 a profit of 1,539 million, increasedfrom 712 to 2013 million up to 2,251 million And in 2014 increased 51.84% compared

to 2013 with 1,167 million This proves that the company is profitable

 Number of employees of the company shows that the company increased graduallyexpand the scale, an increase of 23 employees from 2012-2013, from 2013-2014increased by 32 employees This matching of labor demand for the company to meet theincreasing workload even more

 The average wage for workers increased over the years shows that businesses are not justfocused on its own profit, but also thinks about the lives of employees, in 2014 theaverage income of each employee was 4.74 million The lives of the workers, thecompany stable and more opportunities to develop further

 Labor productivity of the business tends to rise, rose 3.83% in 2013 compared to 2012increased by 2.43% in 2014 to 2013 There are preliminary results are now invested bynew technology, professional workers, machinery layout, efficient workers.

2 Business production process (the value chain)

- The value chain is a set of activities linked vertically to create and increase value forcustomers

- R&D

 The company has staff working in a very dynamic market, be trained, love my job: Groupemployees are responsible for gathering information on the market to capture thestrengths and weaknesses of the company and competitors, as well as researching thetastes and characteristics of customer consumption

 Product Design Study: Trial manufacture from small scale to medium scale productionthen to a large scale Trial manufacture by various methods based on the standards thatthe Company has adopted

R & D Inbound

Logistics

uring

Manufact-Importing

Outbound Logistics

Marketing &

Sales

After sale services

 The majority of the Company's raw materials must be imported from abroad such asLactose, Gelatin, Avicel, Paraffin Oil, Vaseline, Non-betalactame Antibiotics, Vitamins,D-Glucosamine kinds, the rest is purchased in companies in countries such as naturalherbs, so there is a certain variation from suppliers as well as the change in themonetary policy of the government to adjust the exchange rate are both interfere with theproduction of the company, especially overseas supplies To avoid this situation, theCompany has calculated raw material procurement to always have a certain amount ofreserves to ensure that production is carried out continuously and in case there is aproblem from imported sources On the other hand the company tried to find the source

of high-quality goods at low prices in order to increase efficiency, and enhance researchusing alternative raw materials to production and reduce production costs while ensuringquality

 The company also implemented the inspection regime and strict preservation of rawmaterials to minimize the moisture, mold, damaged

- Manufacturing

 ARMEPHACO Joint Stock Company on the basis of understanding the needs in terms ofquantity and quality of drugs, medical equipment on the market have shifted theirproduction and business, diversification of products with good design, low cost and highquality The company has self-designed construction, expansion and modernization ofproduction lines with modern technology imported from France, Germany, Indonesia

as tablet production line,

 However, because of the rapid development of production and limited capital, investment

in machinery and equipment of the Company has not been synchronized The companystill uses a number of machines were old and outdated as:

 Blender material, China's rolling mills are entered since 1998

 Packaging machines, dryers of Poland from the years 2001, 2002… And some othermachines are imported from Germany; the Netherlands is also very backward

 Another issue of concern is the company to use the machine performance, the company'sequipment is not high, so much downtime This led to the depreciation of the companyallocations remain high, as the price up This is the general condition of the enterprisesproducing medicines and medical equipment in general, ARMEPHACO Joint Stock

Company in particular In the future, the Company must pay attention to assure the bestmining machinery capacity, reduce costs, lower product costs further in order to improvethe competitiveness of products.

- Importing

 Import Export Business Department and Branch in Ho Chi Minh City is responsible forimplementing the direct import of machinery and medical equipment that is specialized,modern specialists, originating from countries high-level technology to meet health careneeds in the country

- Outbound Logistics

 Pharmaceuticals are goods used immediately, so the quality assessment should be based

on reasonable indicators, chemical, microbiological indicators and also based on thesensory quality to evaluate If all the indicators that are satisfactory, the new medicine isconsidered satisfactory quality

 Companies based on the market situation, study of consumer preferences and based onproduction and business situation of the company, machinery, materials, qualifiedworkers and particularly based quality indicators of the government to build a system ofquality indicators specific to their company

 Improving the quality of products, resulting in increased profits

- Marketing & Sales

 Marketing

 Create image, brand development

 Market research, product development, market expansion

 Implementation of marketing programs by the Board of Directors

 Advising the company's director of strategic marketing, product, and customer

 Check supervises the work of the employees of his department, decided to reward ordiscipline employees of departments

 Sales

 Perform deployment to achieve sales revenue target given the Board of Directors

 Administration of goods, import and export of goods, distribution of goods to the storesand order production

 Advising the Board of Directors to handle work related to business activities of thecompany

 Check supervises the work of the employees of his department, decided to reward ordiscipline employees of departments

- After sale services

 Provides sales services and after-sales: installation, repair and maintenance forestablishments use with the collaboration of a team of engineers of Medical EquipmentFactory 130 and technicians of the foreign manufacturers and suppliers in Vietnam Thecompany has service policies are as follows:

 Warranty Policy

 Transport Policy

 Return/Exchange Policy

3 Business production process (function)

- Functions and duties of each department

 Board of Directors: As the governing body of the company, had full authority torepresent the company to decide on all matters related to the company's target (except formatters within the jurisdiction of Annual General Meeting of Shareholders), have theright to inspect and supervise the implementation of the resolutions of the Board, thedirector of the company

 Supervisory Board: Supervisory Board of the company consists of 3 members, operatesindependently under the duties and exercises their powers as stipulated in the charter ofthe company and is responsible to the Annual General Meeting of Shareholders onchecking, supervision and operation of the board and CEO

 General Manager is the person nominated, appointed by the Board and must meet allconditions as legal representative of the company General Manager is the personresponsible for the organization and operation of all production and business activities ofthe company daily and responsible before the Board implements obligations andexercises their powers in accordance with the decision, the charter of the company

 Deputy General Manager: As assistants to General Manager appointed and dismissed bythe Board at the proposal of the General Manager, is in charge of management andoperations of the company, helped general manager build the production plan monthly,

quarterly and year of the company, balance tasks assigned to plan the workshop, directingdaily production, weeks, months, years.

 Sales & Project Department: Search new customers and receive orders, sourcing andproduction to supply to customers Search for business opportunities, conduct theprocedure and to participate in bidding Management of the business situation and therelationship with the dealer Propose business ideas to directors Coordinate with otherdepartments to meet customer requirements quickly and to accomplish the overall goals

of the business Supervise and inspect the progress of handover, installation products forpartners

 Accounting Department: Accounting costs, monthly sales, quarterly, and annualfluctuations in revenue and costs Subscribe to the volatility of the assets and funds of theenterprise Prepare monthly manufacturing business results reports Accounting ofsalaries and insurances Resolving the issue of value added tax, corporate income tax,bills and vouchers

 Organization Department: Track and manage changes in the business personnel.Coordination of production and business activities according to the strategic and businessobjectives that were set out Import and export of materials for production machiningparts

 Vice President of production: Has the task to advise the director of the daily work of thetechnical and production segment On behalf of the directors responsible for oversightand urge the activities of the technical department and production department thatdirectors clearly grasp the exact situation and the necessary information for the operationand complete tasks assigned

 Technical Department: Product design to production parts machining and fabrication.Receive designs from the business department; the analysis calculates the cost to thebusiness department report back to the client Research launched the innovative solutiondesign, reduce production costs

 Production Department: Receive of designs and materials for processing into productsmanufactured Packing, shipping and installation of the product

II Main activities