FIELD TRIP REPORT

LIST OF FIGUREFigure 1: Chart of Ownership Structure...2 Figure 2: GREEN Port Source: Internet...2 FIGURE 3: GREEN Port Container Yard source: www.viconship.com...2 Figure 4: CFS Warehou

VIETNAM MARITIME UNIVERSITY INTERNATIONAL SCHOOL OF EDUCATION

FIELD TRIP REPORT VICONSHIP

HAI PHONG – 2016

STUDENT NAME: DO THI THAO TAM

CLASS: IBL0403

FIELD TRIP REPORT

VICONSHIP

Division: International Business and Logistic

Faculty: International School of Education

HAI PHONG – 2016

LIST OF FIGURE ii

LIST OF TABLE ii

LIST OF ABBREVIATIONS ii

PREFACE 2

CHAPTER 1: INTRODUCTION OF THE VIETNAM CONTAINER SHIPPING CORPORATION 2

1.1 Overviews 2

1.2 Brief history 2

1.3 Functions 2

1.4 Organization 2

1.4.1 Organization chart 2

1.4.2 Ownership structure 2

1.4.3 Major shareholders 2

1.5 Personnel 2

CHAPTER 2: DESCRIPTION OF BUSINESS ACTIVITIES OF VICONSHIP 2

2.1 Business activities 2

2.1.1 International Port Business 2

2.1.2 Container Terminal Operation 2

2.1.3 CFS – Warehousing 2

2.1.4 Shipping agency, marine brokerage 2

2.1.5 Stevedoring 2

2.1.6 Inland transportation 2

2.2 Finance 2

2.2.1 Total assets and equity 2

2.2.2 Income, revenue, profit 2

CHAPTER 3: EVALUATION OF VICONSHIP’S BUSINESS 2

3.1 Strengths 2

3.2 Weakness 2

3.3 Opportunities 2

3.4 Threats 2

Do Thi Thao Tam – IBL0402 Page i

CONCLUSION 2 REFERENCES 2 CERTIFICATE OF APPROVAL (FROM THE SUPERVISOR) 2

Do Thi Thao Tam – IBL0402 Page ii

LIST OF FIGURE

Figure 1: Chart of Ownership Structure 2

Figure 2: GREEN Port (Source: Internet) 2

FIGURE 3: GREEN Port Container Yard (source: www.viconship.com) 2

Figure 4: CFS Warehouse of VICONSHIP (Source: www.viconship.com) 2

Figure 5: ROE and ROA 2

Do Thi Thao Tam – IBL0402 Page iii

LIST OF TABLE

Table 1: Major Shareholders 2Table 2: Total Assets and Equity 2Table 3: Income, Revenue and Profit 2

Do Thi Thao Tam – IBL0402 Page iv

LIST OF ABBREVIATIONS

CFS: Container Freight Station

DWT: Deadweight tonnage

TEU: Twenty-foot Equivalent Units

PTSC: Petroleum Technical Service Company

CAGR: Compound Annual Growth Rate

ROE: Return on Equity

ROA: Return on Assets

Do Thi Thao Tam – IBL0402 Page v

The field at Greenport and CFS warehouse (VICONSHIP) helps me tounderstand background knowledge of this field At the same point, the internshipsplay an important role, because it provides real knowledge as well as experiences ofpeople working in the subject in many years.

Do Thi Thao Tam - IBL0402 Page 1

CHAPTER 1: INTRODUCTION OF THE VIETNAM

CONTAINER SHIPPING CORPORATION

1.1 Overviews

CONTAINER CORPORATION VIETNAM (VICONSHIP) is one of theshipping agents firms and transport official flagship operation since 1985.VICONSHIP has container port, warehouse, own fleet of vehicles system to servernormal cargo transportation service and containerized cargo at 3 North, Central,South, Provide adequate means of transport for all modes of cargo services, to buildrelationships between the sender mounts, recipients and boss Motto of the company

is "always try our best to solve all the problems related to the transportation of goods

by the customer." The shipper, consignee and the multimodal transport operatorknows VICONSHIP as a transport business reliable and respected over many years

1.2 Brief history

Based on VICONSHIP’s official website, we have:

- 1985: 07.27.1985 the company was founded, originally named "VietnamContainer Company”

- 1992: Opening a branch in Ho Chi Minh City, then separated and becameindependent companies under VINALINES (VICONSHIP Saigon), VietnamContainer Company renamed "North Container Vietnam Company" (VICONSHIPHaiphong)

- 1995: Established a Joint Venture Company with 5 Japanese Companies(Kanematsu Corp - Honda Trading Corp - Suzue Corp - Meiko Trans Corp -Kamigumi Corp.) “Vietnam - Japan Transport Company Ltd." (VIJACO)

- 1996: At April, established a subsidiary company in Haiphong

"International Freight Forwarder and Container Service"

- 1997: A new branch in Ho Chi Minh City has been re-established with name

"VICONSHIP Ho Chi Minh"

Do Thi Thao Tam - IBL0402 Page 2

- 2000: Established a subsidiary company in Danang "Central ContainerShipping Co Ltd."

- 2001: Established a subsidiary company in Ho Chi Minh City "MSCAgencies (VN) Co Ltd."

- 2002: In April, Haiphong VICONSHIP has been privatized and become ajoint stock company under the name "Vietnam Container Shipping Joint StockCompany"

- 2004: Established of subsidiaries in Ho Chi Minh "MSC Agency Company”

- 2004: In March, established "TSL Co, Ltd"

- 2004: In September Green Port (Port of VICONSHIP) is operated

- 2006: In March Green Port Berth No.2 is opened

- 2006: In August, established "Green Global Transport Co, Lt"

- 2007: On December, renamed "International Freight Forwarder andContainer Service" to "Green Star Maritime Transport Co., Ltd.”

- 2008: In January listed on Hochiminh stock exchange

- 2008: On February, Barge berth with 51.5 meter length beside berth no 1 and

no 2 is opened

- 2009: Contribute money to "Vietnam Future Logistics Joint stock company"

- 2009: Established a new branch in Quang Ninh province

- 2012: On September, Established Green Depot one member company limited

- 2012: On November, give Green Logistics Centre (8.6 hectares) in Dinh VuIndustrial Zone into operation

Do Thi Thao Tam - IBL0402 Page 3

1.3 Functions

VSC is a private company specializing in providing transportation and relatedservices Today, corporation is focusing business on four main areas: Inlandtransportation, business warehouse, port operators and shipping agent Besides, thecompany also has the marine brokerage services such as transport and cargotransshipment, cargo loading/discharging, inland logistic, custom clearance, andcontainer terminal management The company is also involved in the trading andexport of forest products, retailing of petroleum products, as well as in the repair andleasing of containers

1.4 Organization

1.4.1 Organization chart

Do Thi Thao Tam - IBL0402 Page 4

Do Thi Thao Tam - IBL0402 Page 5

GENERAL MEETING OF SHAREHOLDERS

VICONSHIP HCM

VICONSHIP QUANGNINH

GREEB STAR LINES

(GSLINES)

GREEN DEPOT

ACCOUNT AND FINANCE DEPT

DEPARTMENTS

ACCESSORIES &

SUPPLIES DEPT.

ADMINISTATION DEPT.

GREEN LOGISTICS CENTRE

VICONSHIP PORT ENTERPRISE (GREEN PORT) VICONSHIP DANANG

1.4.2 Ownership structure

49.00%

Other State ownership

FIGURE 1: Chart of Ownership Structure

1.4.3 Major shareholders

Vietnam Holding Limited 2,412,922 8.42%

Swiftcurrent Offshore, Ltd 2,167,200 7.57%

Vietnam Infrastructure Holdings

Limited

1,571,960 5.49%

Asean Small Cap Fund 1,462,140 5.1 %

FTIF - Templeton Frontier Markets

Fund

1,462,140 5.1 %

Swiftcurrent Partners, L.P 1,444,800 5.04 %

Table 1: Major Shareholders

Do Thi Thao Tam - IBL0402 Page 6

Overall, shareholder structure of VSC is quite fragmented; large shareholdersare mainly institutional investors, in which the foreign institutional investors accountfor a significant proportion After increasing 166,896 shares on 15/5/2014, VietnamHolding Limited continues to be the largest shareholder with holding ratio of 8.42%,next is Swiftcurrent Offshore, Ltd with 7.57%, Vietnam Infrastructure HoldingLimited with 5.49%…

1.5 Personnel

Management has strong experience in the port industry and has been workingfor the company for several years Notably, Mr Nguyen Viet Hoa (Chairman) joinedthe company at its establishment, while Mr Nguyen Van Tien (CEO) has experience

in managing Transvina Port and Dinh Vu Port Thanks to this management team, thecompany activities are expected to be stable and adaptive to any businessenvironment changes

Total number of employees in the company is 603 persons Of which there are

132 female workers and 471 male workers Due to the nature of the business of theVICONSHIP (mainly exploiting seaports, container, transport ) so workers of thecompany are mainly male (80%), female workers accounted for only a smallproportion (in 2010 and 2011 accounted for only 21.89% - 20%) Enterprises havethe ability to attract qualified employees is increasing, and focused on training highlyqualified employees are having positive trend These are the workers going to bringpotential, benefits for businesses in the future

Do Thi Thao Tam - IBL0402 Page 7

CHAPTER 2: DESCRIPTION OF BUSINESS ACTIVITIES

OF VICONSHIP

2.1 Business activities

VICONSHIP is one of Vietnam leading companies in freight and port serviceswith the revenue structure including port services accounted for 60% (includingloading and unloading and storage) and transportation accounted for 40% (withvehicle fleet consists of 110 container vehicles) VSC is currently operating GreenPort in Haiphong with pier of 340m long, 8.0m deep and 4 swivel crane, reaching70% of maximum capacity with 10-12 ships/ week (about 100,000-120,000 tons).VSC is also the first unit operation in the field of transport of goods by container,providing warehousing services and road transport in Haiphong, Da Nang and Ho ChiMinh City

Currently, besides the initially traditional activity is shipping containers, thecompany also provides many other services to create a closed chain services, not only

to bring the benefits of each service separately but also bring mutual benefits, multiutility for customers

Currently, the company has a number of major business activities as follows:

- International Port Business

- Container Terminal Operation

2.1.1 International Port Business

Green port is a small port enterprise of VICONSHIP Greenport islocated at the North latitude 2051, 10643 east longitude, from buoy No.0 is

20 knots (near Chua Ve, Cam River downstream) GREEN PORT total lengthpiers is 371 m (including two bridge piers and barges 1) with a waterlinesdepth is about 8 meters, which can receive two ships 10,000 DWT dock at thesame time, ensure safety , fast, convenient It has two berths that are each 160meters long and can accommodate vessels up to 20,000 Berth No 1 was putinto operation in September 2004 and No 2 is operated from January 3/2006.May 01 2008 added barges to operate Some notable shippers of the companyare OOCL, Evergreen, MSC and Dongyoung From 2009 to 2014, thecontainer throughput via Green Port increased from 319,000 TEUs to 360,000TEUs in 2014, representing a CAGR of 2.4 percent During this time, thecontainer throughput peaked in 2011 and then dropped significantly in 2012 In

2013 and 2014, the container throughput stayed at 360,000 TEUs, which isconsidered to be a full utilization rate of this port As such, the company had totransfer a part of its goods to PTSC Dinh Vu Port Besides, on the wharves arearranged 03 cranes branded Kranbau and Liebherr, with lifting weights 40tons, reach 32m, loading capacity from 20 to 25 Container / crane / hour.Annually, Green Port activities bring revenue and profits significantly forbusiness operations of the company

Do Thi Thao Tam - IBL0402 Page 9

FIGURE 2: Green Port (Source: Internet)

2.1.2 Container Terminal Operation

Currently, in Haiphong, VICONSHIP has invested and is exploring the

containers area has a total area of 400000 m2, the equivalent capacity of about 4,000TEUs This is the area that has been recognized as places clearance by CustomsDepartment since 1995 This is the important legal framework, creating favorableconditions for all exports and imports to keep goods Container yards is an itemlocated in the port, these activities contribute to a closed service chain According tostatistics from the company has made time container yard serves more than 200import and export shippers regularly to receive or transfer goods

VICONSHIP’s Container yard (with an area of nearly 400,000 m2) haspackaging lines and modern cargo handling, professional management methods,terrain safety licensed clearance by the government of Vietnam VICONSHIP’sContainer yard manages most major shipping lines operating in Vietnam With years

of experience in mining warehousing services, VICONSHIP undertake handling and

Do Thi Thao Tam - IBL0402 Page 10

storing all kinds of container, steel, equipment and petroleum chemicals, transportequipment slowly arrival storage and vice versa

Company also applied achievement of technology in managing container.Concretely, VICONSHIP installed CMS (container management system) in managingcontainer It is multi-utility software, help to more conveniently and quickly inmanaging container, then contribute meeting maximum the demand of customers

FIGURE 3: GREEN Port Container Yard (source: www.viconship.com)

2.1.3 CFS – Warehousing

With a wider system about more than 5,000 m² of CFS in Chua Ve port wasbuilt and equipped with modern systems from vehicles, software, security camerasystems, fire protection system, all warehouses were standard to store imported,exported goods and is planned for each individual repository Customs clearanceprocedures, exports and imports have been made at this warehouse area VICONSHIP

Do Thi Thao Tam - IBL0402 Page 11

is usually ready to meet all the needs of customers in warehousing, transportation anddistribution of goods through the national transportation system.

Warehousing system of VICONSHIP port placed under the direct supervision

of the Customs gate areas 3 (Haiphong Customs), with its headquarters located at theVICONSHIP’s terminal Therefore the completion of customs clearance proceduresimport and export for customers very quickly, favourably Revenue from warehouseand yard operations annually account for about 17-29% of total revenue and 17-23%

of the profits of the company

To provide warehousing service and import, export packing required by allcustomers domestic and foreign Our services include arranging and packing in andout on the kinds of containers Ensure safety of goods with many different categories.The process of receiving, packing exporting LCL merchandize to containers ofVCS: Receive the procedures and forward; Storage and Preservation; Complete theprocedures to pack merchandize; supervise and pack merchandize to container;Report and settlement

The process of receiving, distribution and delivery the merchandize of VCS:Receive the procedures; Forwarding the merchandize in the warehouse; Open thecontainer, check the distribution according to the manifest; Receive and forward themerchandize; Report

Do Thi Thao Tam - IBL0402 Page 12

FIGURE 4: CFS Warehouse of VICONSHIP (Source: www.viconship.com)

2.1.4 Shipping agency, marine brokerage

Currently, VICONSHIP is general agent for the world's major shipping linessuch as: MSC (Switzerland), TS Lines (Taiwan) and there is a contractualrelationship with almost all the other lines have been in Vietnam Agent system isorganized in a full mesh network for the region North, Central, South The mainactivities are carried out mainly reserved goods, management of goods, equipment,containers and import, export deliveries to carriers be entrusted This activity has beenclosely linked with the operation of the warehouse, loading and unloading activities,transport so the quality of service to shipping lines and customers are active andconnected closely services, there are condition reduce service costs for manydomestic and foreign customers trust and use more service

VICONSHIP is also marine brokerage, they on behalf of charterers and shipowners, organizes signing the charter-party by time or voyage VICONSHIP is theonly shipping agent of two largest shipping companies in the world that shipping firm

Do Thi Thao Tam - IBL0402 Page 13