Báo cáo thực tập tiếng anh MECHANICAL PRODUCTS EXPORT IMPORT COMPANY LIMITED

General business information - Trading name: Mechanical Products Export- Import CompanyLimited.. Establish and development of MECANIMEX Vietnam Mechanical Products Export - Import Compan

Supervisor: Ms Hoàng Kim Thu

Student’s full name: Nguyễn Thị Hà Ly

Student’s ID: 11071499

Major: International Business

Class: IB2012

Hanoi,…March 11, 2016…

LETTER OF THANKS

Internship period is one of the most important event of senior year students

We – students have to face a lot of difficulties due to lacking of experience,knowledge and skills Therefore, to finish it, I can only do it with great help fromeverybody

Firstly, I would like to say thank you to International School – VietnamNational University for encourage me with all supports to do my internshipabroad Especially for board of directors of IS-VNU, along with Ms.NguyễnThịLêVân, Officer of Department of Academic Affairs and R&D and allteachers, officers and judges for helping me with paper works as preparation forworking, as well as create chances for student to experience new workingenvironment in general, and evaluation for ourgood

Secondly, I would like to express my grateful to MECANIMEX, especially

to Ms NguyễnThanhBình, Ms Trương An Phúc – Chief Export-Import BusinessDepartment for their dedicated guidance and heartedly training, which contributed

a lot to my working experience and learning progress

Lastbutatmost,IwouldliketosendbygreatestthankfulnessspecialforMrs

Hoàng Kim Thu, for her great guidance I might cannot perform well as well asfinishthis internship report without her hearted advices and guidance Shesupported me not only through the report, but also during my internship which Ifaced a lot of problems due to new working environment With her kind helps andknowledge, I may had chances to overcome difficulties and contributed toMECANIMEX Thank you a lot, Ms Hoàng Kim Thu

I would like to say thank you all so much for your great support I am trulyappreciated

Contents 3

CHAPTER I BACKGROUND OF INTERNSHIP COMPANY - (MECANIMEX) 5

1 General business information 5

2 Establish and development of MECANIMEX 5

3 Mission, vision and core values 7

4 MECANIMEX’s organizational structure 7

5 Product, market and target customers 8

a Product 8

b Market 9

c Target customers 10

d Supplier/ Producer 10

CHAPTER II Report findings about production and busines activities of MECANIMEX 10

1 General manufacturing operations and business 10

a SWOT analysis 10

b Company’s current performance situation 15

2 Business activity base on value chain 21

3 Business activities base on function 22

4 Depth analysis of the financing - accounting department 24

CHAPTER III Target internship, tasks assigned and methodology 26

1 Target of graduate internship 26

2 Tasks assigned and methodology 26

CHAPTER IV Result achieved during internship 28

1 Content of theoretical knowledge was strengthened 28

2 Gained skills 29

4 Contribution to MECANIMEX 30

5 Further suggestion for improvement 30

REFERENCE 34

INTERNSHIP REPORT

CHAPTER I BACKGROUND OF INTERNSHIP COMPANY - (MECANIMEX)

1 General business information

- Trading name: Mechanical Products Export- Import CompanyLimited

- Abbreviated name: MECANIMEX CO., LTD

- Head office: No 37, TràngThi Street, HoànKiếm District, HàNội

- Branch: No 12, NguyễnThị Minh Khai Street, 1 District,HồChí Minh City

- Tel: 04.8244138

- Fax: 04.9349904

- Email: mecahn@fpt.vn

- Website: http://www.mecanimex.com.vn

2 Establish and development of MECANIMEX

Vietnam Mechanical Products Export - Import Company (MECANIMEX)was founded in 1985 by the combination of Machino’s department and Tocontap’sdepartment according to the decision made by the Minister of Industry of Vietnam.Since its foundation, MECANIMEX has developed unceasingly and has gained agood reputation and trust from domestic as well as international business partners

- The period 1985-1990: The company mainly did business under theProtocol of Vietnam’s Government with socialist countries:

- The Government targeted export of mechanical products to EasternEuropean countries such as: the Soviet Union, Czechoslovakian, Poland, Cuba,etc

The Government targeted import of materials (mainly materials forproducing export goods)

- The period 1990-1995: This period marked the strong transition ofcountry’s economy after the sixth national party congress MECANIMEX became

a business under the market mechanism and encountered many challenges.However, along with the agility and flexibility in direction and working efforts,the company achieved remarkable results such as: Only in 1991, the companyexported 1000 tons of tin to Thailand, Singapore, Japan, etc From 1991 to 1995,MECANIMEX was the nation’s second biggest exporter of tin in high turnover

- The period 1995-1999: along with the business activities, the companydeveloped and successfully implemented two joint venture projects with foreignpartners, namely:

MECANIMEX had the joint ventures with Electronics Corporation ofKorea in producing air conditioners, washing machines, refrigerators, etc Joint-venture products have been sold well, accounting for a large market share in itssector in Viet Nam

It also set up joint ventures with Thailand to produce swab In early 1998,the company started trial production and after a short time, many types of productswere sold in Vietnam

- Period 1999-2005: the company’s business operation still faced manydifficulties but MECANIMEX maintained the business with profits and ensuredemployees’ income

On March 9th 2004, TừSơn Fastener Factory was merged intoMECANIMEX On November 2nd 2004, Mechanical Products Export- ImportCompany was converted to Mechanical Products Export- Import CompanyLimited

- From 2005 to 2010: the company continued to enlarge its business scaleand obtained the large market share in the market of mechanical products

Especially, in 2006, all employees of TừSơn factory welcomed the firstthread rolling machine of Vietnam This machine was purchased in the program ofmodernization and technological innovation of the company to equip new devicesfor the factory.

Additionally, in 2007, the Vietnam’s entrance in WTO brought about manygreat opportunities for domestic enterprises, but also many risks and challenges.The company earned a lot of profits in exploiting and making good use of exportand import opportunities on the markets

For 2010 to now, MECANIMEX has also faced many difficulties due to theglobal economic crisis However, the company has been trying to maintainbusiness and gradually becoming more stable

3 Mission, vision and core values

- Mission: To provide high-quality products and services in the mechanical

engineering, contribute to the economic development and improvement of quality

of life of Vietnamese people.

- Vision: To become a national symbol in the mechanical engineering.

Core values: Straightforwardness Sense of responsibility

-Creativity - Cooperativeness

- Slogan: With available potentials and various and flexible methods of

co-operation, MECANIMEX would like to co-operate with all domestic and international business partners so as to gain bigger and continuous steps of development!

4 MECANIMEX’s organizational structure

MECANIMEX’s structure is quite simple but it still ensures effectiveoperation, without overlapping Some departments of the company mergetogether This is shown clearly in the chart below:

Chart 1.1.MECANIMEX’s organizational structure

Board of directors

Administrative

departments

Sales departments

Branch & office Subsidiary

investment dep

Trade promotion &

investment dep

Export-import department

Export-import department

Domestic sales department

Domestic sales department

Representative office in

HaiPhong

Representative office in

HaiPhong

Southern branch in HCM city

Southern branch in HCM city

Tu Son fastener factory

Tu Son fastener factory

In addition, the company takes over entrusted import of required units.

- Producing air-conditioners, washing machines, refrigerators, cotton buds,etc in co-operating and setting up joint-ventures with both domestic and foreigncompanies

- Manufacturing all kind of commodities for domestic consumption andexport such as: iron and wooden furniture (tables, chairs, etc)

Additionally, the company also does business in:

- Producing and exporting agricultural products, food, animal feeds, etc

- Doing business in restaurants, hotels, offices, houses, real estate, etc

- Services in trade exhibitions of machinery, equipment and industrialgoods

b Market

For the major markets, MECANIMEX has foreign markets including exportand import markets and domestic market Foreign markets: the company has thebusiness partners in various markets in the world

European Areas

The major export markets of MECANIMEX are European countries AfterVietnam’s entrance in WTO, MECANIMEX has had more opportunities toexpand European and Latin markets Moreover, the company exports a number ofagricultural products to European markets due to high demand on these markets

Asian Areas

MECANIMEX imported largely from Asian markets such as Japan, China,Korea, etc And the import turnover from Korea market was the most

Domestic Areas

Supply of goods for export, including many companies, factories in HàNội,HảiPhòng, TháiNguyên,etc.

Many companies, agencies, stores buy company’s import goods inTràngThi, TràngTiền, HaiBàTrưng, ThanhXuân, etc

c Target customers

Customers of the company: To determine its position on the market, thecompany always focuses on finding new customers and maintains relations withtraditional customers

+ Foreign customers: Kyk tools industrial Co, Ltd, Aquarius company(Taiwan), Venture international, traders ple Ltd ( Singapore), Eujor (Korea),Vietso Petro (The UK), etc

+ Domestic customers: TháiNguyên iron and steel joint stock corporation,Hànội minerals, Hànội mechanical company, PhúThái Co Ltd, TânCương Co Ltd,SôngĐà construction corporation, etc

After having some basic information about the company, it is also essential

to have SWOT analysis of the company It is shown in detail below

SWOT analysis is an analytical framework to help summarize internal andexternal factors of the company Therefore, it is easier to set a strategic plan orpresent new ideas for company’s problems

Professional workforce

The company has established for more than 30 years with highly skilled,experienced and faithful employees The workforce is professional, graduatedfrom prestigious universities The company also emphasizes on improving skills

by opening training courses each year Therefore, the productivity constantlyincreases

Qualified leaders

In trading area, the leaders of company who are creative, dynamic,experienced ones contribute significantly to company’s success They always try

to ensure good operation of the company’s activities and develop right strategies

to help company be more successful

Strong brand name in mechanical export and import industry

The company was founded in the 1980s when the heavy industry, especiallythe import and export industry was still underdeveloped The company has alsogained a lot of achievements in the field of mechanical industry In addition,MECANIMEX became one of the leading companies under Corporation ofMachines and Industrial Equipment To this strength, the company not only hasadvantages in developing markets but also exploit capital of partners

Experience in export and import business and industrial production

The company has over 30 years of experience in export and importactivities as well as industrial production Additionally, highly skilled employeesand professional leaders also help gain much more experience in business of thecompany This helps develop advantages on the production of mechanicalequipment of the factory by enlarging export markets for existing products of thefactory and finding new goods sources

Greater capacity

Since TừSơn factory was merged into MECANIMEX, the factory hasalways been trying its best in industrial production, contributing to the company’srevenue and success In 2010 and 2011, the factory signed a contract in producinghigh quality products with VIETSOVPETRO enterprise and some other businesscontracts The factory continues to produce high-quality industrial products,supporting heavy industry and other industries Additionally, the company canutilize facilities of the factory on land, factory’s equipment, workers to call forforeign investment Therefore, there are many opportunities for TừSơn factory tocarry out production effectively.

Weaknesses

Underdeveloped infrastructure

The company’s infrastructure is underdeveloped with simple, asynchronouswarehouses It increases business costs and risks in the inventory management forimport goods

Poor market researches and activities of marketing

The activities of promotion and marketing as well as market researches areundeveloped because the company was founded in the subsidies period, marketand marketing were also poor Nowadays, market trends are rapidly changing sothat the research or marketing promotion needs to be done more quickly andflexibly

Opportunities

Widened markets

Many countries such as Germany, France, Taiwan, etc have high demand ofimporting mechanical equipment and agricultural products Vietnam is one ofexporters that have high-quality products and lower costs than others.Additionally, MECANIMEX has had joint venture with Thailand and Korea inproduction and has gained certain achievements In recent years, the company has

made joint venture with Vietnam Chemical Export and Import Company Limited

in office leasing services In addition, the Corporation of Machines and IndustrialEquipment often assigns many contracts to MECANIMEX that help the companyenlarge markets and improve reputation In the coming time, there are manyopportunities of enlarging domestic and foreign markets that help the company getmore profits and increasingly confirm its position

Stable business environment

After twenty-five years of carrying out the DoiMoi process, Vietnam hasrecorded significant achievements in mechanical industry From an agriculturalcountry, Vietnam has grown the economy towards industrialization andmodernization Moreover, Vietnam is recognized one of countries that has stablepolitics Therefore, there are still many opportunities for Vietnamese enterprises todevelop and expand business markets

Threats

Economic difficulties

The global economic crisis has influenced Vietnam’s economy in generaland the company’s operations in particular High inflation, high unemployment,low consumption power and many problems have affected the company’s businessoperation, resulting at low level

Poor consumption network and increased clients’ debt

The company only has a branch in HồChí Minh city Moreover, this is themechanical industry and the company serves much in heavy industry orconstruction and transportation Moreover, due to economic difficulties,consumption power was low All above reasons influence the consumptionnetwork of the company In addition, customers’ debts are increasing, in whichthere are many bad debts because of problems in capital, prices, inflation, etc This

is not a small threat to the company in the coming time

Limitations in export goods

- Export of mechanical products: In fact, the strength of Vietnam’s exportmainly is agricultural products, foot wears and garments In order to exportmechanical products with precision and high technology, it is indeed a problem

- Export of minerals: The export of minerals is increasingly limited becausenatural resources of the country is more and more exhausted In addition, someminerals are banned to export such as iron ore, copper ore, manganese, apatite, etc

Therefore, the company needs to research markets and goods sources forsupporting export activities

SWOT analysis

Strengths

- Professional workforce

- Qualified leaders

- Strong brand name in

mechanical export and

- Limitations of exportgoods

b Company’s current performance situation

 Company’s export and import situation

Even though the business is profitable, the striving to fulfill the targets ofrevenue and total import and export turnover is a problem for the company in thecircumstances of economic recession and high inflation.

The value of import and export turnover in 2015 was USD 2.522.000,reached about 70% under the target In particular, the export turnover and theimport turnover was USD 642.000 and USD 1.880.000, reached 32% and 117,5%beyond the target, respectively In short, the target of import and export turnover

of the company in 2015 was only 76% compared to 2014

 Company’s business results

Company’s business results are analyzed via the following criteria:revenue, profit, average income, costs, capital, and the value of industrialproduction

- Commercial revenue: in 2015 it was to be about VND 90 billion, reached

53,33% and 68% under the target and 2014, respectively Revenue in 2014 wasabout VND 132.534 million, reached 66,3% compared to 2013

It is shown in the figure below:

Table 2.1.Revenue and profit of the company in three recent years.

In: VND million

Net revenue 199 896 132 534 90 000

Source: Financial report in 2013, 2014, 2015

From the table above, we can see that revenue of the company in the lastthree years declined gradually The reasons were the impacts of world economiccrisis Moreover, market mechanism has changed more and more MECANIMEX

is no longer the export unit with the exclusive right More and more companieshad the direct right to export and import products In addition, the company didnot found substitute products However, profit increased in 2014 because of otheractivities such as offices for lease, joint ventures,etc, but it decreased in 2015 due

to low revenue Profit in 2015 achieved under the target but was still lower than in

2014 Particularly, the total budget did not meet the target because the totalrevenue decreased

- The average income: It is also an index to reflect general business

effectiveness of the company It is the significant motivation to promoteemployee’s optimism at work

Here is the summary figure on the average income of MECANIMEX’s staff

Table 2.2 The average income in the period 2005-2015

Source: Business operation report of MECANIMEX in the period 2005-2015

It can be seen that in 2005, the average income was 1025000 VND percapital per month By 2014, this figure rose to VND 5434000, an increase 5,1times The average growth in this period was 20.034 %

- Costs: Financial costs, costs of goods sold, administrative costs and other

costs of the company were shown in this figure below:

Table 2.3.Company’s costs in the last three years.

In: VND million

Years

Year 2013