Báo cáo thực tập tiếng anh TABLE OF CONTENT

Business formation • Vietnamese name: Công ty cổ phần xuất nhập khẩu Thái Nguyên • English name: Thai Nguyen Import Export Joint Stock Company • Abbreviation: BATIMEX • General Director

TABLE OF CONTENT

Table of figure and table

Figure1 Batimex Organization Structure 9

Figure 2 Financial situation of Batimex from 2009-2013 18

Table 1.Turnover value from 2009-2013 13

Table 2.Export items of company from 2009-2013 14

Table 3.Import items of company from 2009-2013 16

Table 4.Financial situation of Batimex from 2009-2013 17

Table 5.Markets of Vietnamese green tea 19

Table 6.Output and export turnover of tea at Batimex 21

Table 7.Market of export tea of Batimex 22

CHAPTER 1: OVERVIEW ABOUT BATIMEX

I. Business formation

• Vietnamese name: Công ty cổ phần xuất nhập khẩu Thái Nguyên

• English name: Thai Nguyen Import Export Joint Stock Company

• Abbreviation: BATIMEX

• General Director: Tran Thi Lan Huong

• Address: No.25, Hoang Van Thu Str, Phan Dinh Phung Ward, Thai Nguyen Province

• Phone number: 0280 3855 430 Fax: 0280 3855 763

• Email: Batimex_tn@yahoo.com.vn

• The legal basis of company: the company operates under the registration certificate of the enterprise JSC.

Business Code: 4600103290

The first registration date at March 31, 2005

Registration change 8th at August 27, 2012

• Authorized capital: 43,200,000,000 VND

• Total shares: 4,320,000

II. Brief history

- Batimex established in 1958, based on Thai Nguyen Foreign Trade Department

- From establishing to 1990, the company’s mission was to buy and supply export products for the Ministry of Industry and Trade, but at the same time importing machinery, fertilizer and consumer goods

- From 1990, company turned to direct export Together with traditional markets, the company expanded its market to other countries in the region such as Malaysia, Taiwan, China, and Japan

- From 2000 to 2002, Batimex overcame the challenges to build a new house with three floors on 700m2 to serve for labor export activities Many machineries and facilities equipped for the company's departments

- On April 2005, the company privatized and had a great transformation

- In 2005, Batimex invested in building two green tea processing factories and gained the high profit from them

- In 2006, Thai Nguyen Mineral Company merged into the Batimex so it was great time to expand capacity and develop business

To sum up, the company has 57 years of construction and growth Batimex is trying to have significant growth including high quality of products and charismatic brand

III. Function, Mission, and Core values

1 Function

Batimex is a company that is doing business in multiple fields so it includes many functional groups Each functional group corresponds to a business area of the company

o Wholesale foods such: as tea, fresh

fruit, frozen seafood

o Production and export of tea

(holding 27% revenue of company)

o Wholesale of metals and metal ores

o Iron ore mining

o Non ferrous metal mining (tin, iron, manganese, titanium, copper, zinc, kaolin, )

o Counseling agency, introduction

and labor brokers

o Primary vocational training and

o Create capital for production and business activities

o Expand production and renew equipment

o Implement effectively the policy of economic management mode, import management and external transactions

o Implement effectively the management policies about asset, finance, labor, salary, as well as distribute of labor, training advanced educational level and professional skills of officers and employees in the company

o Implement the commitments in foreign trade contracts and contracts related to import and export activities of the company

o Implement effectively labor protection and labor safety, public order, environmental protection, protection of socialist property, national defense duties and obligations

3 Core values

The core values provide long-term trust and have tremendous influence on every decision of all the members in the business The system's core values are the driving force, the internal links nuclear company, companies associated with customers, partners and society in general

o Effectiveness: Efficiency is a measure of the exact value of all manufacturing operations, business, investment and social activities of the company

o Creative: Always respect and continue of traditional values but also constantly innovate in flexible thinking and action to create sustainable value for business and the community

o Social responsibility: Connecting social responsibility in business is the term guideline of Batimex Together with the efficient operation of business, Batimex commits to contribute to the community through social activities, building prosperous and happy life for the community

long-o Share: The interests of each member of the collective as well as previous responsibilities associated with all activities The company always consents, shares success for the development of enterprises and communities and the prosperity of the country

o Reliable partner: Prestige in the business through the work results, good financial indicators and Batimex is ready to become your trusted partner: investors and trading partners

IV. Organizational structure

Figure1 Batimex Organization Structure

(Source: Batimex's Administration Department)

1 Board of Management

The entire Board of Management makes decisions on all matters of fundamental importance and in cases where Vietnamese law or otherwise mandatory

prescribes a decision of the entire Board The rules of procedure of the Board of Management contain a list of topics and the full Board must deal with and resolve it

2 Board of Supervisors

o Review the financial affairs of the company

o Monitor the performance of directors and senior officers; removal of directors or senior officers in the case of violation of laws, administrative regulations or articles of association

o Require rectification from directors or senior officers if they cause harm to company interests

3 Board of Directors

o Recruit, supervise, evaluate and compensate the manager

o Provide direction for the organization The board has a strategic function in providing the vision, mission and goals of the organization

o Fiduciary duty to protect the organization’s assets and member’s investment

o Monitor and control function

4 Chief Accountant

o Perform financial analysis and reporting to management as needed

o Monitor and record financial transactions according to company policies and regulations

o Analyze financial discrepancies and recommend effective resolutions

5 Other Departments

Other department of Batimex involves Head of Department, Deputy Head of Department, Import and Export Department, Sales Department

The main functions:

o Perform actively market research and find partner for development

o Expand gradually domestic and foreign markets Research and recommend the Board of Directors in the work-oriented and import-export business.

o Implement contracts related to business operations of the Company

o Perform operations related to import and export business of the Company, such

as preparing the supply source, the appraisal stages, customs and research about foreign contracts, settle complaints about the business operations of the company

o Develop and deploy a business plan approved by the Board of Directors and take responsibility for the results of business operations

o Storage of records, economic contracts related to the business activities of the company in accordance with the provisions of the current law

V. Product and Market

Thai Nguyen Import - Export Joint Stock Company (Batimex) is the first enterprise in the field of import and export of goods in Thai Nguyen, from the 60s

of last century To date, four main areas of Batimex are Import-export and mineral mining, Labor export, Dealers of Honda and Tea manufacturing process

1 Import-export and mineral mining

Batimex is allowed to import and export goods under the Vietnamese’s laws and the International Law of Incoterm 2000

 Importing: Steel billets and steel scraps are the main products with 80,000 tons per year

 Exporting: Company exports products such as tea, wolfram, tin ingots, and zinc ingots to United Kingdom, China, Taiwan, Singapore, and Pakistan

 Mining and mineral processing

2 Labor export

With the license of by Ministry of Labor, War invalids and Social Affairs, Batimex sent the labors and experts to work in foreign countries Currently the company is sending labors to the market in Japan, Taiwan, Middle East and Malaysia

3 Dealers of Honda

Batimex imports cars and motorcycles from Japan and it is the selling agent commissioned by Honda

4 Manufacturing process and export tea

Production, processing and exporting high quality tea: It is the basic and traditional sector of the company The potential markets include China, Middle East countries such as Pakistan, India, and Europe This field brings about 27%

of revenue for company every year

CHAPTER 2: REPORT ON BATIMEX’S BUSINESS OPERATION

I. General business activities

1 BATIMEX’s turnover

With multiple business activities, Batimex had some difficulties to control the turnover However, from changing company’s structure, the turnover still ensured the annual plan

Table 1.Turnover value from 2009-2013

Unit: Million USD

Import-Export

turnover

16,313 17,197 11,531 11,934 14,865Export turnover 10,589 10,575 9,008 7,454 9,565

Import turnover 5,724 6,622 3,523 4,480 5,320

(Source: Batimex Import-Export turnover report from 2009-2013)

Looking at the Table 1 we can see that turnover value of Batimex from 2009-2013 was not stable In more details:

 In 2010, import-export turnover gained $17,197 million increasing $884 million compared with year 2009

 Total import-export turnover decreased dramatically from $17,197 million from

2010 to $11,531 in 2011, decreasing 33%

The reason is the bank tightened the capital so company faced with difficulties and challenges in business such as decreasing in credit limits and traditional source of goods

 From 2011 to 2013, Batimex should try to connect with its partner to rehabilitate gradually the economic growth Thus, import-export turnover increased steadily over the years

2 Export and import business

Export and import activities are the main sources bring profit to company We can understand more about this through below analysis

 Export business

Company still focused on traditional products such as tea, wolfram, tin ingots, and zinc ingots These products are strong points and bring large export turnover for company

Table 2.Export items of company from 2009-2013

Unit: Million USD

(Source: Batimex Import-Export turnover report from 2009-2013)

Looking at the table 2, we can see that:

Total export turnover reduced rapidly in four years (2009, 2010, 2011, 2012), about 29.60%

The reason is that:

 Scarce source of goods

 Stiff competitions of other company producing the same items

 Need the large capital to trade these commodities

 After economic crisis in 2008, price of these products on London market declined sharply, about 50% compared with the beginning of year

Export products fluctuated erratically through years In 2009, the turnover of tin ingots, zinc ingots, wolfram was in turn $4,566,000 million, $256,655 million,

$2,500,000 million, but in 2012, Batimex could not export these items

Tea export production rose stably from 2010 to 2012 but it increased dramatically from $1,100,300 million in 2010 to $3,322,300 million in 2013

The reason of increasing tea export:

 Low capital

 Rapid capital turnover

 Low risk

 Company locates in raw material area

 Focusing on investing tea production line

 Import business

Steel billets and steel scraps imported and supplied for the company in the province and neighboring areas Besides, it also imports some kinds of machine and equipment

Table 3.Import items of company from 2009-2013

Unit: Million USD Items

(Source: Batimex Import-Export turnover report from 2009-2013)

Looking at the Table 3, import situation of company was not stable

Steel billet was the main import product Its import turnover was always highest and held more than 60% of total import turnover every year

Machinery had the lowest import quality and from 2013, Batimex did not import any machinery

The cause is that:

Average working

capital

35,550 57,200 62,750 75,333 90,650(Source: Accounting and Administration Department of Batimex)

Figure 2 Financial situation of Batimex from 2009-2013

Financial situation of company was quite stable Although revenue did not increase regularly because of the stiff competition and scarce of goods, Batimex transferred to the new products with less capital and they could bring high profit for the company That is reason profit after tax over the years has been creasing steadily

VI. Tea export situation of Batimex

1 Market and price of Vietnamese green tea

The increasing in foreign trading and international commerce will open new direction for the development of economy of Viet Nam Export has become a significant part, and green tea export contributes a large part in it It helps much with the reconstructing of agriculture, providing many jobs and stabilizing lives for rural area population, which in turn will reduce poverty Thanks to it, a lot of supporting industries like technical services, tea production and processing, transporting developed as well It also converts agriculture labor force, because this industry require a huge amount of workers, so many people will become production and processing worker

Vietnamese green tea has been exported to more than 30 countries, the industry also imports new technology from Britain, Russia, Taiwan, Japan to improve quality and diversify the goods

Table 5.Markets of Vietnamese green tea

1 Algeria 5 Bulgaria 9 Iraq 13 Japan

2 Taiwan 6 Russia 10 Singapore 14 Turkey

3 Bulgaria 7 Czech 11 Israel 15 Libya

4 India 8 Cuba 12 Kazakhstan 16 Ukraine

(Source: The Vietnam National Tea – Joint Stock Corporation)

In the past, our market was mainly Russia and East of Europe However, because of the instable markets, especially in the World's economic crisis, we lost about 30 markets In 2008, we only exports 100000 tons of green tea, about 60 million dollars

In that situation, the Vietnamese Tea Association (VITAS) quickly had some actions

to response: breeding support, financial support to organize some market survey, establishing Viet Anh joint stock Company in London to export green tea to The Britain and has quite good results Viet Nam green tea has been to some of the market like Britain, German and Iraq VITAS had also surveyed India, China and Russia market and after 6 years from 2006 to 2011, in first quarter of 2012 we exported about 800000 tons, about 400 million dollars

2 Output and export turnover of tea at Batimex

The situation of the company's tea exports in recent years has many encouraging signs and the following table can show that

Table 6.Output and export turnover of tea at Batimex

Year Output (ton) Turnover (USD)

(Source: Batimex Import-Export turnover report from 2009-2011)

We can see tea export turnover of the company have increased greatly The reason is that company has a stable consumption source The company exported green tea to regions such as the Middle East and traditional markets are Pakistan and Afghanistan