LV Thạc sỹ_Vegetexco Vietnams fruit and vegetables export_Situation and Recommendation

Chapter1. Basic issues on Vietnams fruit and vegetables export Chapter 2. Real situation on Vegetexco Vietnams fruit and vegetables export activities Chapter 3. Solutions to promote Vegetexco Vietnams fruit and vegetables export activities

Subject: Vegetexco Vietnam's fruit and vegetables export: Situation & Recommendation PREAMBLE On January 2007, Vietnam gets a firm member of WTO, the largest economiccommercial playing field on planet Taking part in WTO marked a new step on Vietnam's international integration WTO creates big opportunities for Vietnam's enterprises, besides challenges difficult to overcome Vietnam agriculture industry is affected strongly of this event Vegetexco Vietnam is a state company specializing in manufacturing, processing and trading fruit and vegetables, agricultural products export with up to 30% of total annual export value of Vietnam Like other enterprises, Vietnam has taken part in WTO affect significantly to the corporation’s producing and trading activities in general and its fruit and vegetable export activities in particular The corporation has a lot of opportunities to promote manufacturing and export because markets are expands, tariff barriers are cut down, demand on fruits and vegetables is increasing However, besides, it also has to face enormous challenges when integrating, those are fluctuation and tough competition of market economy, simultaneously, it has to accept strict international regulars, technical barriers, and open the market, face difficulties in raw materials, climate, weather, material and labor prices After practicing at Vegetexco Vietnam, I have opportunity to learn about its producing and trading operation With a desire to have deeper knowledge on the corporation’s fruit and vegetable export field, as well as a desire to contribute to find out resolutions in order to intensify this activity in the next time, I chose the subject “Vegetexco Vietnam's fruit and vegetables export: Situation & Recommendation” The report is divided into parts: Chapter1 Basic issues on Vietnam's fruit and vegetables export Chapter Real situation on Vegetexco Vietnam's fruit and vegetables export activities Chapter Solutions to promote Vegetexco Vietnam's fruit and vegetables export activities My report was fulfilled in a short time so it does not avoid shortcomings, I hope to receive supports and suggestion CONTENTS SUBJECT: VEGETEXCO VIETNAM'S FRUIT AND VEGETABLES EXPORT: SITUATION & RECOMMENDATION .1 PREAMBLE CHAPTER BASIC ISSUES ON VIETNAM’S FRUITS AND VEGETABLE EXPORT .4 CHAPTER REAL SITUATION ON VEGETEXCO VIETNAM’S FRUITS AND VEGETABLES EXPORT ACTIVITIES .17 CHAPTER SOLUTIONS TO PROMOTE VEGETEXCO VIETNAM’S FRUIT AND VEGETABLES EXPORT ACTIVITIES .32 CONCLUSION 46 CHAPTER BASIC ISSUES ON VIETNAM’S FRUITS AND VEGETABLE EXPORT 1.1 Fruit and vegetables export, and role of fruit and vegetables export for Vietnam 1.1.1 An overview of fruit and vegetables export 1.1.1.1 Characteristics of fruit and vegetables commodity Fruit and vegetables connect closely with life of people They are plentiful of type and taste; fruit and vegetables products include fresh, processed ones and juice Characteristics of trading fruit and vegetables: seasonal, dispersive, areal, fresh, unstable Therefore, doing business in fruit and vegetables needs grasping basic issues:  Grasping main production, dispersion and concentration areas, as well as entrepôt in order to work out business directions for sellers and customers  Grasping traditional purchasing trends and areas for fruits and vegetables, it is necessary for sellers to find out buyers  Grasping characteristics, qualities and seasonal nature of same types of fruit and vegetables at different areas in order to find out reliable and timely sources 1.1.1.2 Overview of export activities Export is commercial activities which relate to sell goods and services to foreign markets, including re-export In import- export transaction, buyers are just importers, sellers are exporters, and sales process and procedure basically include steps of domestic transaction, however in import- export transaction, they have to obey tougher conditions in accordance with agreements or international practices Exporting fruit and vegetables is action that concern selling fruit and vegetable products into foreign markets 1.1.2 Types of fruit and vegetables export 1.1.2.1 Direct exports Direct exports are transactions where exporters enter into direct relationships with importers overseas and negotiate a contract for the sale of goods and services Alternatively, exporters may use a commission agent in the overseas market to solicit orders and generally represent the exporter's interests The agent is paid by means of a commission on the value of orders obtained 1.1.2.2 Export through intermediary Exporters and importers not directly negotiate conditions of a contract, and they deal through the third party At present, popular kinds are intermediary and agency 1.1.2.3 Counter transaction This is a mode in which export is connect closely to import, an exporter is simultaneous an importer, and it has a characteristic that export commodity quantity is correlative to import one 1.1.2.4 Re-export This is a mode in which a re-export enterprise exports fruit and vegetable goods imported to the third country, and these goods are not processed in a re-export country 1.1.2.5 International auction It is a mode which is hold at certain place, there exporters by themselves or an auction organization implement selling goods publicly in order to choose a buyer who pay the highest price Commodities give to auction are always difficult to standardize There are famous auction centers of fruits and vegetables are Amsterdam and Autuerp 1.1.3 Role of fruit and vegetables export for Vietnam Export is considered strategic issue to develop economy and implement industrialization and modernization Of Vietnam's main force export commodities, agricultural products in general, fruits and vegetables in particular, are major goods In 2007, our whole country's total export value was 48.38 billion USD, agricultural product export value gained 6.2 billion USD, including 300 million USD of fruit and vegetable export value, accounted for a quite big density Therefore, exporting fruit and vegetable play an important role shown on following aspects: 1.1.3.1 Creating major capital sources for importing and building up infrastructures to contribute to develop the economy Now our country is in industrialization and modernization process, so it is necessary to set up infrastructure system to serve the economy Accordingly, we must have capital source in foreign currency That capital can be mobilized by a lot of ways, such as borrowing, receiving from aid, joint venture, association, or export However, the safest and solidest capital source is foreign currency from exporting 1.1.3.2 Facilitating to develop related industries Development in exporting fruits and vegetables will create sufficient opportunity for development of industries which produce inputs for fruit and vegetables such as seeds, or concerned services forms such as preservation, transport, process, selling products Especially in tough competitive environment, enterprises have to attempt to reduce cost price, improve quality 1.1.3.3 Raising export enterprises' business capacity Dealing with foreign partners require that Vietnamese companies has to be dynamic, creative, and have management ability, prestige, in order to exist and develop on international markets First and foremost fruit and vegetable goods, they are sensible and sharply competitive commodities on world market because more and more fruit and vegetable export enterprises appear, higher and higher the companies' talent and experience Thus, companies must usually investigate, renovate and improve themselves in manufacture and trading as well 1.1.3.4 Contributing to solve employment and ameliorating living conditions Fruit, vegetable manufacture and process field requires a lot of labor Intensifying exporting fruits and vegetable not only creates jobs in this industry, but also leads to develop other industries, create works there It is considered our strategic export industry due to we have advantages to develop, including advantage in workforce And when employees have stable jobs and salaries, their living conditions are improved, that contributes to fulfill strategy on the nation's security and society 1.1.3.5 Being basis to speed up international economic integration process In fruit and vegetable export process, Vietnamese businesses deal with foreign partners; learn about law, politics, and culture of export markets Therefore, they widen experiences and business relations At the same time, Government, concerned Ministry and Department support companies as supplying information, creating favorable legal corridor for exporting It requires that countries' leaders enlarge external economic relations, promotion activities, and market researches 1.2 The tenor of Vietnam's fruit and vegetables export Fruit and vegetable export activities have manner and execution process is different, they depend on specific commodity, enterprise, but in general, this activity always is implemented according to following order: 1.2.1 Researching, approaching markets In this period, companies have to collect information on fruit and vegetable markets, and then analyze them Companies need collecting information on fruit and vegetable import, manufacture situation on world market, and target markets, researching consuming trend and fluctuation in price Especially, enterprises must learn carefully about target markets and competitors At the same time, they have to find out factors that effect to export activities such as politics, culture, law, and related conditions, for example, transportation of import countries Businesses always collect information through documents available from means of mass information, Vietnam's counselors abroad or surveying directly of markets, or through workshops and taking part in exhibitions, fairs 1.2.2 Selecting business partners Selecting business partners is one of elements, which creates success in export activities To choose exporting partners, we have to evaluate partners' capacity on aspects such as finance, work force, administration ability, and marketing activities Especially for foreign partners, companies study their legal entity and prestige Besides, it is necessary to study partners' viewpoint for establishing long business relation In addition, selecting business partners has to notice compatibility in condition of sales, transport, and payment 1.2.3 Planning export project Firstly, enterprises must raising objective of exporting fruit and vegetables, selecting business partners Next, companies need estimating criteria in evaluating effect of export activities such as norm in effect of direct export, breakeven (minimum export price), losses and profits, and other norms Finally, planners have to recommend and evaluate implement ability of the project in economic and social aspects 1.2.4 Dealing, negotiating and signing contracts Companies choose types of fruit and vegetables export according to above-mentioned ones Direct export type always includes steps: inquiry, offer, accept and confirm After dealing, parties reach to sign an export contract In export contracts, parties have to negotiate terms on name of commodity, quality, quantity, price, transport, payment, and solving dispute 1.2.5 Purchasing and creating commodity source Inputs of export fruit and vegetables can be mobilized from different sources as importing, joint venture, associating, or purchasing in domestic… Enterprises must calculate so that resources are stable, prestigious, and have good quality, reasonable price in order to meet flexibly for production and export, simultaneously, reduce cost price, increase competitiveness on markets Major seed source for production of Vietnamese fruit and vegetables to export has to be imported a lot; this is disadvantage in reducing cost price and improving competitiveness of Vietnamese export fruit and vegetable 1.2.6 Implementing export contracts Sequence of implementing export contracts is similar to general export contracts, usually includes steps: applying for a permit for exporting, checking L/C, preparing goods, chartering (if allowed), taking out insurance (if allowed), doing export customs procedure, checking goods before exporting, delivering, doing payment procedure, solving dispute (if any) Vietnamese companies always export in accordance with FOB so they not take out insurance and charter 1.2.7 Evaluating results of export activities In this period, enterprises calculate real datum, real criteria of export activity, and analyze losses and profits, and simultaneously, compare real criteria with estimated ones Thenceforth, businesses can evaluate a result and effect of export activities for each commodity, market, partner, and find out strengths, weaknesses, in order to have specific methods to adjust business operations timely 1.3 Factors affect Vietnam's fruit and vegetables export 1.3.1 Common situation of economy, politic, law of world and Vietnam Together with development of world economy, specialization processes increasingly deeply Countries produced commodities, which they have comparative advantage on these goods, export, then export them and import other commodities in order to meet domestic demand, and improve effect in manufacturing, trading Economy develop more and more, needs for fruit and vegetables increase in types, quality , facilitate to impulse to produce fruit and vegetables In recent years, USD has devalued, thus, that makes advantage of fruit and vegetables export businesses reduce, especially for Vietnam, because United States is one of the Vietnam's biggest import markets Besides, prices continue to show an upward tendency, makes input price increase Meanwhile, inputs of producing Vietnam's export fruits and vegetables have to import a large quantity, effects to competitiveness on world market In addition, countries are watchful over terrorist security, so countries' customs control strictly, it makes transit time last long That influences exporting Vietnam's fruit and vegetable In company with developing world economy, Vietnamese economy gained obvious advance Economy has many changes; industry structure is more reasonable, international trade increases Moreover, fruits and vegetables export companies appear increasingly, and they accumulated experiences in international business, administration capacity and business skill improved much Politics and laws can affect positive or negative to businesses in general and fruit and vegetables export enterprises in particular Although politic institution of each country is different, in order to integrate into global economy, our party and state have policy to diversify economic relations, Vietnam want to be friend with all countries in the world As a result, our diplomatic relations and external economic relations were expanded, - Strengthening all levels of steering committee from center to local, delineating particularly on concentrated producing regions, planning main investment projects - Establishing investment projects for priority fields 3.2 Direction for developing Vegetable Vietnam's fruit and vegetables export 3.2.1 Direction to markets In the next time, Vegetexco's strategy is that it will focus on markets having big value and prospect; expand and develop potential markets at once According to this orientation, the company's markets are divided into kinds: - First, including a small number of markets, about 5-10% the company's total number of markets, but occupy up to 70-80% of total export value For the company, these markets are markets having over million USD value such as Russia, China, United States, EU, Japan, Taiwan, and Singapore - Second, including approximately 10-15% of total number of markets, they reach 1520% export value, equivalently with 500 thousand - million USD - Third, being markets only holding 5% of total export value The company needs to have specific strategies for each kind of markets - Markets have to be held fast Markets in the first group are markets operating effective and getting stable growth The company must have suitable methods to maintain stable growth, and keeping these markets will guarantee fulfillment of almost plan to the company Besides, markets of the third group also need to be maintained, these are markets having weak consumption now, however have potentiality in the future, or have the initial difficulties because legal environment does not permit to develop Thus, the company need having more sensible resolution in order to maintain these markets, facilitate for enlarging in the future, avoiding to lose markets, because when restoring any market, the company will waste a large expenditure - Markets need to be expanded and developed Beside strategy on holing market, the company must widening and developing export markets, because if the company only concentrate on certain market, its export activities will face a lot of disorder when these markets have changes in politics, law, society In order to implement that, the company must consider consumption ability on every market and its own financial resources, then bring out list of markets which can be expanded and developed in the future, and have a specific plan on every markets The first group's markets have enormous export value, it is necessary to classify markets having saturated consumption ability, and enormous but not saturated one Specifically, United State is a big import market of the company, but import mainly tinned pineapple products However, needs on this commodity were not stable: In 1999, United State imported from the company a large quantity of tinned pineapple, but until 2000 and 2001, import value on this products decreased strongly, although till 2002, export pineapple to this country increased but not attained value against 1999 Therefore, the company need having reasonable strategy on market, cannot focus too much on United States market while others such as Russia, China, EU having enormous consumption ability with more commodities The second group's markets such as Canada, New Zealand, India, Eastern European countries, are markets having potentiality to develop, so the company need to implement well in exploiting market activities in order to develop these potential markets 3.2.2 Directions to commodities Vegetexco needs to have export plan for each commodities in order to bring out plan on manufacturing and processing conformably Therefore, gathering every market’s information on quantity, quality, type, price… of each goods has to put in the top position Of Vegetexco’s fruit and vegetables commodities, tinned ones were main force commodities, the average of annual export value was up to 75% of total fruit and vegetables export value Tinned fruit and vegetables include a lot of kinds such as tinned pineapple, tinned rambutan Figures of consumption in recent years show trend in using canned commodities increase quite rapidly, especially in developed countries such as Japan, United States, and EU These commodities are high in nutritional value, long in preservation and overcome wrong time of fruit and vegetables In addition, these are tropical fruit and vegetable which above countries are not available Thus, the company defined tinned fruit and vegetables still will be main force commodity in the future, and its export value will be increase continuously Some goods which accounted for a small density in exporting in recent years such as fresh, frozen fruit and vegetables, the company planned to invest satisfactorily, because these commodities were forecasted to be had an enormous consumption For example, fresh fruit and vegetables, which are exported to China, Russia, EU, are highly prospective, so initially, the company had suitable investment with green vegetables model in order to increase their export value Directions for exporting the company’s fruit and vegetables are summarized in below table: Products Major markets Fresh fruit and vegetables: cabbage, potato, Russia, Japan, Northeast Asia, carrot, watermelon, onion, garlic, ginger, crocus, China, EU aromatic banana, litchi Tinned and frozen fruit and vegetables, juice: Russia, Japan, China, Australia, - Pineapple, cucumber, litchi, mango, dragon Eastern fruit, apricot, papaw, rambutan - Fruit refresher - Frozen: pineapple Europe, Western Europe, United States, EU - Condensed, puree: pineapple, tomato, mango Dry-salt fruit and vegetables: Banana, cucumber, Russia, United States, Japan mushroom 3.3 Solutions and recommendations to promote Vegetable Vietnam's fruit and vegetables export activities 3.3.1 Solutions Solutions in order to intensify the company's fruit and vegetables export activities have to consider comprehensively from all aspects relating to its manufacturing and trading activities They include elements that the company can control such as: products the company produces, human resources, promotion activities, capital for production; and elements of macroscopic environment such as monetary policy, law in business, business industry administration 3.3.1.1 Resolution regarding to commodities 3.3.1.1.1 Enhancing product quality Product quality is a factor that the company has to be prior interested in when it wants to export more and more into foreign markets, especially in toughly competitive environment as present In fact, the company always pays attention to this issue, first and foremost nearly years, a range of the company's new projects on manufacturing equipped, improved and newly built up Thus, export value of commodities increase continuously in the past years; it reflects partly that customers accepted the company's product quality However, in long term, the company has to improve product quality in manufacturing, processing in order to continue standing steady on business world This is core issue deciding to products' competitive ability Therefore, in the next time, in order to improving export product quality, the company needs concentrating on following aspects: First is investing in seeds Playing role in leading enterprise of the country’s fruit and vegetables industry, Vegetexco is not only complete its own business plan, but also have a mission in investing, researching, preserving valuable crops seeds for our country Regarding to vegetables, the company needs noticing to maintain original seeds Moreover, basing on these original seeds, the company will produce class I seed vegetables in order to supply to class II seeds regions to produce seeds commodities, and then sell to markets in order that farmers sow and plant on a large scale Besides, the company must always select, test new seed, cross-breed F1 seeds, and invest in constructing plants for selecting and packing seeds, at the same time, needs preserving essential seed vegetables, especially seeds being of national reserve About fruit, the company must to multiplicate selected and experimented seeds, permitted to produce by Ministry The company needs supplying good seeds, selecting seeds having productivity, good quality in order to meet requirements of customers To fulfill above things, the company has to give priority to invest in modern equipments for seed research, preservation activities in order to create fundamental developments in seeds Apart from improving available units, the company needs setting up new units at regions having fruit and vegetable seeds Second is creating raw material region for manufactories At present, raw material regions are not enough to supply to factories working at full capacity, now it only meet 35-45% designed capacity Thus, the company had to collect from household, which caused great expense The company is planning to develop raw material region in order to supply 65-80% designed capacity Therefore, it needs coordinating closely with locals in concretely delineating raw material regions, organizing well in growing types of vegetables making materials, especially concentrating on construction and development in major raw material regions such as pineapple, cucumber, litchi Third is investing to develop processing and preserving technology Of structure of Vegetexco's export, processed commodities always occupy great density and trend to increase However, now almost technology lines at processing factories are old and out-of-dated, cannot meet requirements of production in order to export in both quantity and quality That affects export activities, ability in meeting requirements of markets, and makes the company's competitiveness decrease Therefore, the company needs focusing capitals on upgrading existing processing manufactories by means of innovating equipments, technology and expanding scale to meet requirements of producing and processing At the same time, the company needs purchasing and upgrading equipments, which preserve fruit and vegetables after cropping or processing Specifically, the company can maintain fruit and vegetables through using Individual Quickly Frozen technology (IQF), using biological finished products such as BT For planning to enlarging processing manufactories, the company needs researching carefully, evaluating thoroughly where factories will be located, how large their scale are Enormous capacity processing manufactories should be place near abundant raw material regions For small, dispersive raw material region, the company needs investing small and medium processing systems to avoiding waste 3.3.1.1.2 Implementing HACCP program Issues on improving Vegetexco's export product quality can be carried out by many ways Of these methods, the company can invest resources to fulfill HACCP program well Applying HACCP ensures that food is safe, meets legal requirements, reduces costs, economizes resources and time, and fosters processing, at the same time, enhances the company's prestige and image, heightens competitiveness Hazard Analysis and Critical Control Point System (HACCP) in manufacturing, preparing and using food is administration system on food safety, focusing on special points in food producing line Many markets, including United States and EU consider it as a requirement, which countries want to export to these markets, has to meet Besides, the company must be interested in researching on administration system on food safety, ISO 22000:2005 - it facilitates to unify and simplify gradually when applying administration systems deployed together in the company The company's fruit and vegetables are exported to many markets There are markets accommodating and diversified needs from low to high, however if the company care about product quality, it will be difficult to sell with high price; even can be refused by markets Thus, investing in implementing HACCP program or ISO 22000 shows strategic mentality, it helps the company not only maintain but also expand markets 3.3.1.1.3 Modernizing in production To fulfill modernization in production, Vegetexco must invest in innovating equipments and plants by technology, modern equipment, and improving working conditions, bring employees more professional working environment That makes not only improve productivity, product quality, but also create good impression on customers and their trust when they visit the company by its working conditions 3.3.1.1.4 Ensuring raw materials' quality Inputs' quality depends greatly on outputs' quality, thus, Vegetexco has to close control of raw materials In facts, the company concentrated on guaranteeing materials to produce Specifically, the company invested farmers in supplying of seeds, capitals and guiding to care technique, ensuring to underwrite outputs in order to make farmers knit long and keep their my on their production That is an accurate heading that the company needs implementing continuously in the next time In addition, the company has to raise the sense of initiative in associating with scientists for catch up with new, high quality and productivity seeds, at the same tine, create initiative in green material resources 3.3.1.1.5 Standardizing packing Standardizing packing will facilitate for goods production and circulation Packing not only is thing for containing and maintaining commodities, creating good conditions to transport goods, but also plays a role as an intermediary between goods and customers, besides, it has advertising and consumer guiding function Therefore, the company must care of investing in packing sector Accordingly, the company needs fulfill to marking for commodities, which helps the company's products different with other companies' ones A type of special marking is code and bar code, on the one hand, it makes the company raising productivity and get effect in selling and administrating, on the other hand, facilitates in circulation, going in and out customs post, and clearly expressing origin of goods, so customers will have advantages in choosing and consuming In addition, the company must notice to label on commodities, standardize a number of wrapping pellicle and way of opening products… 3.3.1.1.6 Establishing trade name for the company's commodities Trade name is worth invisible property for every enterprise, it is very important element, especially in international economic integration period Setting up products' trade name is not easy, and to be known by many people is as well However, if such a case, the company will have great advantage in business Thus, beside improving product quality, well fulfilling marketing activities, the company needs concentrating on establishing, registering its products' trade name, trademark If so, the company raises competitiveness on the company's fruit and vegetables in world markets In addition, now the company's export activities are implementing by many units In fact, there are only a little bit units using the company's common trade name Almost units have individual trade name, not unify with the company's one Therefore, in the next time, the company must quickly establish a compulsory regulation to using a united trade name in order to ensure competitiveness for the company's products At that time, any product of members has to write the company's common trade name and only write manufacturing unit's name, related criterion by letters as well In that case, the company's trade name will be consolidated, at that makes members' export activities easier 3.3.1.2 Resolution regarding to markets 3.3.1.2.1 Stepping up market research activities Intensifying market research is always essential act for export enterprises The company needs investing in these activities in order to rapidly detect new consuming trend, then timely launch suitable products, wait in front for market demands, pioneer manufacturing and trading At present, change speed in consuming demand is very quick Living standards is raising, as a result, needs are more and more, and requirements are stricter and stricter When the company researches on demand of any country, it should research every region's characteristics, should not only focus on collect and evaluate information of some certain area, because consuming characteristics can be different between areas In order to have information of markets' demands, tastes, the company can set up representative offices, branches on these markets; or through embassies, consulates; through Vietnamese communities in these countries; means of mass information such as television, newspapers and magazines, Internet; through exhibitions, fairs hold in these markets To attain effect of market research activities, the company has to care of collecting information on supply, demand, price, taste, market capacity, competitiveness of every commodity group, commodity Information after collecting needs to be processed and then the company will give specific forecast on quantity, quality, price, and taste for prospective products 3.3.1.2.2 Fostering promotion activities Products suitable for market demand are vital, but how to sell these products effectively is not less important For this reason, the company has to impulse promotion, introduction activities; in order to expand market shares on old markets, and seek new partners to develop markets, have outputs for goods At present, the company is using two main promotion tools: The first is sending offers through Internet The company has applied this form recently and not cared properly by the company In the next time, the company needs to develop it Offers must have more images introducing products, and images have to describe frankly and sometimes are changed In that case, the company should invest in establishing catalogues introducing products with attractive images, sufficient for model, type, commodity, together with necessary information on products and the company Simultaneously, the company needs advertising its products broadly on its website or other websites The second is taking part in fairs abroad That is promotion form bringing out high effect because of introducing directly products and the company to customers However, participating fairs will be limited in time to approach clients directly Thus, the company should research to organize sample stalls where deal, popularize its products on these markets Promotion is one of essential works in all marketing activities In long term, the company must set up its marketing strategy with clear steps for each market 3.3.1.3 Resolution on capital and finance For any fruit and vegetables manufacturing, processing, exporting enterprises, capital is important element in production and trading It is difficulty that the company has to solve The diversity of export markets makes the company have a lot of difficulty in exporting countries having disadvantage payment terms for it, requiring the company having got a great capital quantity Meanwhile, the company’s member units always or have a little capital or lack of capitals Therefore, in order that production and trading activities take place uninterruptedly and effectively, the company needs to mobilize capitals at home and abroad Some capital mobilizing form that the company can fulfill as following: - Borrowing from banks: That is capital resource which is difficult to approach but very important and mainly, and the company need exploiting It can borrow government credit through rural development banks system, merchant banks… - Beside borrowing from banks, the company can mobilize capital from personnel by means of issuing bond In addition, the staff makes such a financial contribution, their sense of responsibility on work and business effect is raised It requires the company hastens privatization process of member units 3.3.1.4 Solution on encouraging and improving staff level When exporting to large markets, vitally, the company will face to tough competition pressure Therefore, a key issue is to set up staff having high profession, experience in signing export contracts, ability in catching up, processing and forecasting changes of markets Accordingly, the company has to fulfill following things: First of all, training staff specializes in fruit and vegetables serving for researching and manufacturing, together skilled technical workers have enough ability to approach and work expertly in equipment, new modern technology Next, the company needs to create fair competition environment among employees, encourage them to develop initiative, push their dynamism and creation Then, the company implement to winnowing gradually in order to make the staff's specialty better and better, their foreign languages influent, their communication actively, their responsibility in work higher Besides, the company must have policies in order to develop talents It needs to choose, appoint excellent employees going to abroad to research, in order to train them becoming experts who have ability, good specialty and excellent administration; can plan strategies on developing the company 3.3.2 Recommendations 3.3.2.1 For Government 3.3.2.1.1 Permitting enterprises using costs for promotion following their ability Regarding to Government's regulation at present, enterprises are only permitted to use expenses for advertisement not over 10% of turnover Thus, it restricts enterprises promotion activities, especially export companies Because advertising cost is considered as investment capital in trade name With this little capital, Vietnamese export businesses are difficult to make customers know them, and establish and develop trade name as well In order to penetrate large markets and increase competitiveness, Vietnamese businesses need to have abundant promotion fund, obviously, companies cannot spend impetuously for advertisement activities but the Government shouldn't control at such an unsuitable level, and let companies use according to their own ability 3.3.2.1.2 Establishing decree on industry association Now, in Vietnam there are about 30 industry associations, meanwhile, almost important export industries set up associations such as Vietnamese food association, Vietnamese footwear association, Vietnamese aquatic products exporting and processing association Industry associations proved that it is effective model in the past time, such as a lawsuit of tra and basa fishes with United States If there was not Vietnamese aquiculture association (VASEF), it was not solved Thus, it is necessary to have particular legal regulations in order to make a basis to operate for industry associations, including Vietnamese fruit and vegetables association 3.3.2.1.3 Setting up risk aid fund for export agricultural products Policy on agricultural risk aid is necessary to restrict negative affect of risk elements on weather, pestilent insects, and markets One of important resolution is establishing risk aid fund for agricultural products Experiences from some countries such as Thailand, India, Sri Lanka, risk aid fund for agricultural products set up from many resources: aid from Government budget, surtax from export, contribution from enterprises on principle: intensifying saves when advantageous exporting in order to subsidize exporters when have irresistible risks on natural disaster, pestilent insects, difficult selling If this model is implemented, it will be as insurance for businesses, create feeling assured for export companies, then, enterprises export activities will be developed 3.3.2.2 For Agricultural and rural developing Ministry In the next time, the Ministry should hold exhibitions and fairs at domestic and abroad, and subsidize Vegetexco in preparing procedures in order to take part in, and cost for transport product samples to foreign fairs as well Besides, the Ministry can also help the company by means of permitting the company put their logos up Ministry's website 3.3.2.3 For local political power - Subsidizing expenditures on establishing e-commerce system for export businesses - Subsidizing companies that have big industry to build general warehouses at vital markets in order to setting up goods distribution system - Department of Commerce needs to support companies by means of supplying information on markets, prices, and customers through information center of Department of Commerce CONCLUSION Fruit and vegetable market is a huge market, with demand trends to increase It is really attractive market for Vietnam’s fruit and vegetable export in general, and Vegetexco Vietnam in particular However, due to stricter and stricter regulations on food safety of import countries, together with difficulties of integration period, the corporation will have to try its utmost to get a solid foothold in markets The report is my research on the corporation’s fruit and vegetable export and several recommendations to the corporation for promoting these activities in the next time I hope this report will be helpful to people who want to learn about the corporation’s fruit and vegetable export field, especially, its leaders in seeking resolutions to foster these activities Within the framework of the report, I have not entirely mentioned issues on this interesting business activity I hope to receive suggestions to complete and apply the thesis to reality ... export, and role of fruit and vegetables export for Vietnam 1.1.1 An overview of fruit and vegetables export 1.1.1.1 Characteristics of fruit and vegetables commodity Fruit and vegetables connect... ones are represented at below table: Group Fresh fruit and vegetables Frozen fruit and vegetables Tinned fruit and vegetables Dry-salt fruit and vegetables 2005 14% 20.2% 57.8% 8% 2006 12.5% 19.3%... manufacturing and exporting fruits and vegetables With many advantages in manufacturing fruit, vegetables and diversified commodities, Vietnam exported many types of fresh fruit and vegetables, and processed