Báo cáo thực tập tiếng anh TABLE OF CONTENTGRADUATE INTERNSHIP REPORT INTERNSHIP COMPANY AUTO VIET TECHNOLOGY JSC

Table of ContentsPART 1: INTRODUCTION TO AUTO VIET TECHNOLOGY JOINT STOCK COMPANY...4 1.. General information of Auto Viet Technology Joint Stock Company...4 1.2.. Auto Viet Technology J

GRADUATE INTERNSHIP REPORT

INTERNSHIP COMPANY: AUTO VIET TECHNOLOGY JSC

Address: 26/121, group 14B, Thai Thinh lane, Thinh Quang ward, Dong Da district,

Ha Noi

Supervisor: Ms Tran Hong NganStudent’s full name: Vu Thi Thuy AnhStudent’s ID: 11071161

Major: International BusinessClass: IB2012B

Hanoi, March 11 th , 2016

And finally, I am very grateful my supervisor – Ms Tran Hong Ngan – for theefforts to supervise and give me the direction to explore a new environment Thanks toher, I have crucial comments to successfully complete this report.

ABBREVIATIONS

Table of Contents

PART 1: INTRODUCTION TO AUTO VIET TECHNOLOGY JOINT STOCK

COMPANY 4

1 The formation and development history of Auto Viet Technology Joint Stock Company 4

1.1 General information of Auto Viet Technology Joint Stock Company 4

1.2 Development process 5

1.3 Auto Viet Technology JSC’s business sectors 6

PART 2: IMPORT OPERATIONS IN AUTO VIET TECHNOLOGY JOINT STOCK COMPANY 9

2 Import Department’s functions and missions 9

2.1 Functions 9

2.2 Missions 9

2.3 Relations 10

2.4 Import operations 10

PART 3: INTERNSHIP GOALS, ASSIGNED TASKS AND PERFORMANCES 26

PART 4: ACHIEVEMENTS 28

REFERENCES 29

PART 1: INTRODUCTION TO AUTO VIET TECHNOLOGY JOINT STOCK COMPANY

1 The formation and development history of Auto Viet Technology Joint Stock Company

1.1 General information of Auto Viet Technology Joint Stock Company

Head quarter’s address 26/121, group 14B, Thai Thinh lane, Thinh Quang

ward, Dong Da district, Ha Noi, VietnamShowroom’s address 38 Yen Lang street, Dong Da district, Ha Noi,

Vietnam

Business license date February 25, 2009

Business operation since April 01, 2009

Legal representative: Nguyen Dang Hung

1.2 Development process

Before 2009

In the period of 2006-2008, Vietnam automobile market developed quitestrongly, thus the demand of car furniture increased substantially both in quantity andquality

After his graduation from National Economics University, Mr Nguyen DangHung (current director) had worked for some automobile companies and hadaccumulated a lot of experiences as well as some capital to establish his own company.After getting the business license on February 25th 2009, on April 1st 2009, Auto VietTechnology Joint Stock Company has been officially established and operating

Formerly, the company primarily performed their task to seek the products fromworldwide reputable brands such as: leather upholstery, insulation films and alloywheels… Most of these products were imported based on customers’ orders and inneed for specific kinds of their cars The demand has not been required a lot yet sincethey needed furniture for replacement of the old or damaged ones The primary marketwas only Ha Noi and contiguous provinces The personnel of the company at that timewere only 4 people and the number of technical workers was 6

The period from 2009 to present

Because of increasing demand from customers and views on needs to own a carwith maximum comfort and meet all the needs of the aesthetic features Taking thisinto consideration, the company has developed much more products and services: high-end audio equipment, luxurious wood-paneled interiors, accessories for pickups,guarantee, advisory… The company extended their market into other provinces suchas: Hai Duong, Hai Phong, Quang Ninh, Nghe An, Ha Tinh…

On May 6th 2012, the company opened a showroom on Yen Lang Street, Dong

Da, Ha Noi to provide advisory, guarantee and larger place for assembly and repair

1.3 Auto Viet Technology JSC’s business sectors

1.3.1 Import and sell:

- High-end leather upholstery Jackspeed imported directly from Singaporeused in airplanes, yachts, cars (BMW, Mercedes…)

- Genuine alloy wheels

- High-end audio equipment (Sony, JVC, Alpine…) in cars

- Luxurious wood-paneled interiors

- Accessories for pickups imported from Thailand (Carryboy, TFT,AEROKLASS, ALPHA…)

- BOSCH accessories

- Car care products

- Decorations for cars

- Exclusive distributor in Ha Noi for heat insulation film Nano Blue Diamond– FSK, 10 year guarantee

1.3.2 Services

- Guarantee

- Car care advisory

- Assembly and repair

1.3.3 Auto Viet JSC’s featured products

a Leather upholstery Jackspeed

Products are imported directly from Jackspeed Singapore PTE Ltd.

- Quality Assurance: All leathers are selected from tanneries certified by

strict automotive standards before intensive tests to ensure durability

- The Perfect Fit: With Automotive Manufacturers certified procedures and

standards, Jackspeed’s team of qualified technicians guarantee the bestcraftsmanship from sewing to installation of the brand new upholstery

- ISO/TS 16949: A quality management system that is recognized by OEMs

(Original Equipment Manufacturers) worldwide and its conformanceprerequisite of all suppliers It applies to the design/development,production, installation and servicing of automotive-related products

- Side Airbag Certification: Leather Seat Covers with Integrated Side Airbag

certified by TUV Kraftfahft Gmbh – German Safety Monitoring Agency

- ISO9001:2008: A global quality management standard used to establish an

organization quality management system

- ISO14001:2004: An environment management standard that serves to help

organizations better in protecting the environment and preventing pollution

- OHSAS 18001: A British standard for occupational health and safety

management that is recognized globally

b Heat insulation film Nano Blue Diamond – FSK

- Place of origin: Shanghai, China

- Manufacturer: Shanghai Yongguan Adhesive Products Co., Ltd

- Durability: 3 years

- Applications: Solar control films are mostly used for automobiles andbuildings As its name means literally, the films are for blocking ultra violetrays, from entering the enclosed area by applying these films on to thewindow of automobiles or buildings (The films block 98-99% of UV rays.)

- Excellences:

 Reduces heat, glare and fading of interior furnishings

 Tough and durable with scratch resistant hard coating

 High quality film, easy to install

 Not affected by condensation

 Suitable for single and double glazed windows

 Can be removed when no longer required

 Well packed to ensure that it will reach you in good condition

PART 2: IMPORT OPERATIONS IN AUTO VIET TECHNOLOGY JOINT STOCK COMPANY

Figure 01 - Auto Viet JSC’s hierarchy structure

2 Import Department’s functions and missions

2.1 Functions

Advising the Director on import and searching for the markets all over the world

to expand operations and imported goods

2.2 Missions

- Perform the import processes

- Make annual import plans and submit to Vice Director; propose solutionsand resources to Director to ensure that accurate plans be carried out

- Develop strategy for the product structure, import market based on thediversification of business sectors

- Circulate and archive import documents, settle the import contracts

2.3 Relations

- Co-ordinate with Sales Department in products sales operation

- Work with Accounting Department and Personnel Department

Director

Accounting

Department DepartmentSales DepartmentImport DepartmentPersonnel

Vice Director - Sales Vice Director - Import

2.4 Import operations

2.4.1 Market research

a Domestic market research

The car furniture and accessories market in Vietnam is dependent on theautomobile market Therefore, this research may also be undertaken with the latter one

i Some “special” characteristics of the automobile market of Vietnam in recentyears

- Imperative follow: “Follow” here means to race for introducing new carmodels, which means if there are any new models in major and developedmarkets, then right after that, those models would be introduced orassembled in Vietnam

- Not hesitate to spend money: In the information technology boom nowadays,whenever there are new or incomparable car models anywhere, Vietnamesecar buyers grasp very quickly They are prepared willing to spend millionsdollars to possess luxury cars:

- Still waiting for prices: Comparing to regional markets, the car prices inVietnam is twice or thrice higher Automobile joint ventures confirmed thatthe prices are high taxes (about half the price of each sold car) There isanother opinion that in 2018 the car prices in Vietnam would be much lowersince the import tax and accessories in ASEAN would decline sharply

ii The facts of automobile market in Vietnam

 Supply

Automobile supply of Vietnam nowadays is quite huge and it is from a lot ofdifferent sources Most of the supplies are from three main sources:

- Domestic manufacture and assembly

- Import

- Smuggling

In these three sources, according to statistics in the past few years, domesticmanufacture and assembly accounted for the largest number, followed by import andthen smuggling

According to General Statistics Office (GSO) of Vietnam, in December 2015,there were about 14,000 cars imported into Vietnam; the turnover was about 382million USD

In 2015, the total number of cars imported was about 125,000 with the turnover

of 2.97 billion USD, increased 76.6% in the amount of cars imported and increased87.7% in value (baochinhphu.vn)

The domestic manufactured and assembled cars were supplied essentially byVAMA with 18 members: Toyota, Truong Hai, Ford, Mercedes Benz, Daewoo…Annually each joint venture manufactures about 3,000 cars, this amount of cars onlysupplies for domestic market It shows that the quantity of domestic manufactured andassembled cars is not enough for consumers’ demand even in domestic market, whichmakes imported cars market is still quite exciting

However, according to GSO, after applying new calculation of excise tax, theamount of imported cars in January 2016 decreased for 50% with only 7,000 cars,while there were 14,000 cars imported in December 2015 According to some import

cars enterprises, this new calculation of excise tax make the price of cars adding somecost such as: transport, advertisement, labor…

The remaining of the total supplies of the automobile market is from smuggling.This amount of cars has significant impact to the market because of low prices, thus ithas high competitive advantage

 Demand

Although Vietnam has gained remarkable accomplishments in innovation of theeconomy, Vietnamese people’s income is not high, the GDP is 2,109 USD while theprice of a domestic manufactured and assembled is about 60,000 USD, the demand ofVietnam automobile market is still quite modest with the ratio 1 car/100 people.Moreover, the streets in Vietnam do not coincide with circulating by cars, which makethe demand of people to use cars is not high

 Researching on market demand means that we have to understand thatwhich products the market would need in the present and future, amounts and prices.Based on consumers’ tastes and trends in each automobile segment, we need to takethese researches into consideration to import furniture and accessories which arecomply for them

- Class A: City car - small, low price, suitable for women: Kia morning,Chevrolet Spark, Hyundai i10…

- Class B: Subcompact car – affordable prices, less fuel consumption, easy todrive, stable with 500km driving, safer than city car A lot of first car buyers choosethis class

Hatchback: Toyota Yaris, Ford Fiesta, Mitsubishi Mirage, Kia Rio, Mazda 2S,Suzuki Swift…

Sedan: Toyota Vios, Nissan Sunny, Honda City, Mitsubishi Attrage…

- Class C: Compact car: Toyota Corolla Altis, Honda Civic, Ford Focus, Mazda

3, Hyundai Elantra, Kia K3…

- Class D: Mid-size car

Mid-size cars in Vietnam are all in sedan model (there is also hatchback model inforeign countries) because of popular taste of elegance and noble Customers for thissegment are mainly young businessmen, businesses, wealthier households…

Toyota Camry is still considered as the most purchase-worthy car model for itsdesign, reputation and low care cost Its competitors are Mazda 6, Hyundai Sonata, KiaOptima, Nissan Teana, Honda Accord… in which the most prominent are Mazda 6 andHyundai Sonata because of their youthful style, modern technology and lower pricethan Camry

- Compact MPV:

Compact MPV is very popular in Vietnam thanks to its affordable price, largespace inside, low maintenance cost… Toyota Innova is dominating in this segmentsince its debut in 2006 It is the best choice for passenger carrier, taxi agencies,businesses and individuals for car rental, mid-class family who often travel with 5-7people…

Competitors: Chevrolet Orlando, Mitsubishi Zinger, Nissan Grand Livina,Suzuki Ertiga… and imported cars such as Ford C-Max, Mazda 5…

- MPV or Minivan: Toyota Sienna, Honda Odyssey, Kia Sedona…

- Crossover: Ford Escape, Kia Sportage, Hyundai Tucson, MitsubishiOutlander Sport, Suzuki Grand Vitara…

- And luxurious car models such as: Mercedes Benz C-Class, E-Class, Class, GLK-Class, ML-Class, GL-Class; BMW 3-Series, 5-Series, 7-Series, X3, X5;Audi A4, A6, A8, Q5, Q7; Jaguar XF, Lexus LX570, Cadillac Escalade…

S Pickup: Ford Ranger, Mazda BT-50, Toyota Hilux, Mitsubishi Triton,Nissan Navara, Chevrolet Codorado…

 Government’s policies for import products:

 Tax bases and tariff

According to Law on import and export duty No.19/VBHN-VPQH:

Article 8.Tax bases, tax calculation methods and the tribute money

1 Tax bases of export, import duty is the number of units of each item actuallyexports and imports recorded in customs declaration forms, tax price and tax ratepercentage (%); for items subjected to absolute tax, the tax base is the number of units

of each item actually exports, imports recorded in customs declarations and theabsolute tax rate provided for a unit of item

2 Tax calculation methods are defined as follows:

a) Number of export tax, import tax to be paid by the number of units of each itemactually exports and imports recorded in customs declaration forms multiplied tax priceand tax of each item recorded in Tariff in time of tax calculation;

b) In the case of items subjected to absolute tax, export tax and import tax must to

be paid by the number of units of each item actually exports, imports recorded incustoms declarations multiplied absolute tax rates regulated on a unit at the time of taxcalculation

3 Tax payment is Vietnam dong; in cases of tax payment in foreign currency, itshall be paid in freely convertible foreign currency

Article 9.The tax price and taxable exchange rate

2 The tax prices for imported goods are the prices actually paid at the first entrygate under contract, in accordance with international commitments

3 The exchange rate between Vietnam dong and foreign currencies used todetermine the taxable price is the exchange rate by the State Bank of Vietnamannounced at the time of tax calculation

Government regulations specify in detail the dutiable provisions in this article

Article 10.Tax rates

2 The tax rate for imported goods including preferential tax rates, specialpreferential tax rates and ordinary tax rates:

a) The preferential tax rates are applicable to imported goods originating fromcountries, groups of countries or territories made to most favored nation (MFN)treatment in trade relations with Vietnam;

b) The special preferential tax rates are applicable to imported goods originatingfrom the countries or groups of countries or territories implemented special preferentialimport tariffs with Vietnam;