Recommendations to improve the business efficiency of port of hai phong JSC chua ve terminal

Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal PREFACE Countries soon realized that foreign trade brings mutual benifitsand at the same time increase the overall wellbeing of world population As the living standard of people increases, so their demand and purchasing ability for goods and services As the result the international trade has significantly increased over the years Since most of international trade was carried by seaway, it is undeniable that the role of ports is becoming more and more important As the international trade was motivated, the cargoes flow between countries increased through years; emphasized theimportant role of ports Tomeettheincreasingdemand forcargo transshipments, it is urgent issue to develop and improve the business efficiency of Vietnam port system Is a typical port in HaiPhong, Chua Ve Terminal hascontributed toeconomicdevelopment of Vietnam and HaiPhong city in particular The internship atChua Ve Terminal provided me a good opportunity to experienced new things as well as reinforce knowledge Regarding to my dessertation, from my points of view, observing things, evaluating the company business efficiency and giving solutions to improve stituation areprimary tendor I declare that this report is my own unaided work It has not been submitted before If violated, I am solely responsible for and bear the punishments of the Institution and University Student Name and Signature Dang ThiThanhNhan Dang ThiThanhNhan – GMA02 Page i Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal TABLE OF CONTENT Preface i Table of Content ii List of Abbreviation iv List of Tables and Graphs v List of Figures vi INTRODUCTION CHAPTER 1: LITERATURE REVIEW 1.1 Some definitions 1.1.1Revenue 1.1.2Cost 1.1.3Profit 1.1.4Business efficiency 1.1.5Factors affecting business efficiency 1.2 Some criteria to evaluate business efficiency 1.2.1 Profit .6 1.2.3 Labor productivity 1.2.4 Salary CHAPTER 2: EVALUATING BUSINESS EFFICIENCY OF CHUA VE TERMINAL 2.1 General information about Chua Ve Terminal 2.1.1 Introduction of Chua Ve Terminal 2.1.1.1 Introduction of Port of Hai Phong 2.1.1.2 Introduction of Chua Ve Terminal 10 2.1.2 Map layout and geographical location of Chua Ve Terminal 12 2.1.3 Infrastructure 14 2.1.4 Company main services 15 2.1.5 Organization and functions 15 Dang ThiThanhNhan – GMA02 Page ii Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal 2.1.5.1 Level Managers 17 2.1.5.2 Level Professional Division 17 2.1.5.3 Level Operating teams 18 2.1.6 Personnel 19 2.2 Evaluating the business efficiency of Chua Ve Terminal 19 2.2.1 Evaluating the general situation of the company 19 2.2.2 Evaluating business efficiency by profit 27 2.2.3 Evaluating business efficiency by salary and labor capacity 28 CHAPTER 3: RECOMMENDATIONS TO IMPROVE BUSINESS EFFICIENCY OF CHUA VE TERMINAL 31 3.1 Vietnam port system’s development planning till 2020 and orientation till 2030 according to Decision no.1037/QD-TTg of Vietnam Prime Minister 31 3.2 Orientation of Hai Phong seaport and the opportunities for Chua Ve Terminal 32 3.2.1 Orientation of Hai Phong seaport 32 3.2.2 Opportunities and orientation for Chua Ve Terminal 33 3.3 Recommendation 33 3.3.1 Improve the interaction inside the company 33 3.3.2 Improve the quality of service 34 3.3.3 Improve the quality of labor force 35 3.3.4 Reduce costs 35 3.3.5 Enhance relations with VMU University 36 CONCLUSION 38 BIBLIOGRAPHY Error! Bookmark not defined Dang ThiThanhNhan – GMA02 Page iii Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal LIST OF ABBREVIATION JSC Joint Stock Company CVT Chua Ve Terminal MT Metric Ton VMU Vietnam Maritime University Dang ThiThanhNhan – GMA02 Page iv Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal LIST OF TABLES AND GRAPHS Table 1: The ratio of profit to cost Table 2: the ratio of profit to revenue .6 Table 3: The ratio of profit to fixed capital .7 Table 4: The ratio of handling capacity to labor force Table 5: The ratio of salary to labor force Table 6: Port infrastructure 14 Table 7: Port equipment 14 Table 8: Financial result of Chua Ve Terminal 2011-2014 19 Table 9: Cargo throughput of Chua Ve Terminal 21 Table 10: Revenue of Chua Ve Terminal 2011 – 2014 (million VND) 24 Table 11: Cost of Chua Ve Terminal 2011 – 2014 (million VND) 26 Table 12: Ratio of profit to cost/revenue/ fixed capital 2011 – 2014 27 Table 13: Labor productivity and salary ratio 29 Dang ThiThanhNhan – GMA02 Page v Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal LIST OF FIGURES Figure 1: Chua Ve Terminal 12 Figure 2: Geographic location of Chua Ve Terminal 12 Figure 3: Map layout of Chua Ve Terminal 13 Figure 4: Company organization Error! Bookmark not defined Figure 5: Financial result of Chua Ve Terminal 2011-2014 20 Figure 6: Cargo throughput of Chua Ve Terminal in terms of cargo directions 22 Figure 7: The ratio of profit to cost/revenue/ fixed capital 2011 – 2014 28 Figure 8: the ratio of salary to labor force and labor capacity 29 Dang ThiThanhNhan – GMA02 Page vi Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal INTRODUCTION NECESSITY In the globalization era, enterprises and firms need to take effective use of all its resources in order to survive and compete in competitive market In other words, it means company need to run business efficiency Business efficiency of enterprises is economic indicators reflecting the level of using elements during production process It also demonstrates the ingenious combination of theory and practice in order to take the best use of the scarce resources Business efficiency has the big impacts on firm, individuals, as well as national economy Chua Ve Terminal is a subsidiary that has always contributed to the development of Port of HaiPhong JSC, one of the most modern ports in the North Vietnam However, in the recent year, the company was not profitable as it used to be Being a HaiPhong citizen, I want to try to analyze the company situation and find the solutions to improve the situation the company That is the reason I choose the topic “Recommendations to improve the business efficiency of Port of HaiPhong JSC - Chua Ve Terminal” RESEARCH OBJECT The research aims to evaluate the business efficiency of the company by some indicators, and suggest some methods to improve the company performance It was divided into main chapters: Chapter 1: Literature review Chapter 2: Evaluate business efficiency of Chua Ve Terminal Chapter 3: Recommendations to improve business efficiency of Chua Ve Terminal Basic definitions, theories and indicators to evaluate business efficiency were provided in Chapter Chapter describes the general information about Chua Ve Terminal and use scientific methods such as analyzingand comparison to evaluate the business performance of the company Finally, the recommendations were given in last chapter Dang ThiThanhNhan – GMA02 Page Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal RESEARCH SCOPE The research focuses analyzing the financial result results from 2011 to 2014 and real conditions of the company The research was carried out in over month in Chua Ve Terminal, HaiPhong, Vietnam RESEARCH FINDINGS After the research time, I understand more about the situation of the company Base on my knowledge and information I collected, some recommendations were given I hope it will have some use for the company to improve its business Dang ThiThanhNhan – GMA02 Page Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal CHAPTER 1: LITERATURE REVIEW 1.1 Some definitions 1.1.1 Revenue Revenue is the total monetary that the company gain from its business activities during a certain period of time For a company, revenue includes: - Revenue is gained from common business activities like selling products or providing services - Revenue from financial operations which is generated from loan interests, deposit interests, slow payment interests, foreign currency exchange rate differences - Money from uncommon activities such as fines collected from customers for breach of contract 1.1.2 Cost Cost is amount of money that firms have to pay in production, including materials cost, wages, repair cost, equipment cost, infrastructure cost, utility cost, financial costs…Total cost is made up of variable cost plus fixed cost: - Variable costs (VC) are the costs that changes as company varies the quantity of outputs produced (wages, cost of materials…) - Fixed costs (FC) are the costs that not vary based on activities or number of goods produced, for example rental costs, depreciation Determine costs help company adjust price for products and services appropriately Lower and save costs in production are important tasks of business, in order to be profitable As the result, analyzing and managing costs effectively are vital for an efficient business Dang ThiThanhNhan – GMA02 Page Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal 1.1.3 Profit Profit is the money that remained after total revenue minus total cost It is the final financial traditional aim of business operation and is a basic indicator to evaluate business efficiency.Profit directly impacts all aspects of business operation especially financial situation of companies 1.1.4 Business efficiency Business efficiency reflects the quality of business performance and how the resources (labor, machinery, materials and capital) are used in production Because resources are scarce but the needs of society are growing, using resources efficiently and effectively is essential for both development and survival of firms Business efficiency is important measure of economic growth and the basis to assess the economic objective of firms in each period Business efficiency has played an important role to each individual, firms as well as country economy For employees, business efficiency has direct impact on their incomes as well as their spiritual life A company that runs business efficiently will ensure a stable job and high incomes for workers To company, business efficiency mean gained profit, it is not only vital for the survival and development of enterprises, but also is the fundamental factor for reproduction and enlarging scale of business activities Business efficiency shows how company used its resource, and then company can evaluate and adjust or change the appropriate methods of operating and management if needed To nation, running business efficiently will contribute to the development of country economy and attract foreign investment In short, improve business efficiency will have positive effect for company and individual in particular and for nation in overall 1.1.5 Factors affecting business efficiency a External factors Competitive environment: The competition between businesses is vital elements to create opportunities and threats for companies The level of competitiveness directly affects supply, demand; the selling prices and product consumption rates…thus affect business performance Dang ThiThanhNhan – GMA02 Page Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal The table shows the total monetary that Chua Ve gained between 2011 and 2014 As presented in the table, most of company revenue come from providing services (the revenue from financial activities only account for approximately 1% over the period shown) The services which bring revenue to Chua Ve Terminal including cargo handling, yard/warehouse storage, reefer storage, and containerlift on/off charge, mooring and unmooring, yard leasing, weighing and other services Among these, revenue from cargoes handling, container lift on/off and reefer storage were made of largest proportion of total revenue In 2011, Chua Ve Terminal gained 321,374 million VND from handling cargoes, which equal to 66% of the total The figures foryard storage and container lifting were only 15.8% and 13.4% respectively In this year, there was none of income come from reefer storage This is because Chua Ve Terminal had too many reefers and containers left on yard; most of them are for temporary import and reexport purpose But because the national regulations changed as well as Chinese government tightened the import laws, these containers were stuck until September 2012 In 2012, revenue from cargo handling fell by 52,017 million VND and only contributed 269,357 million VND (54%) to Chua Ve total income Meanwhile, container lifting’s revenue went up slightly, about 3,561 million VND At the same time, the number of containers were left in Chua Ve Terminal was decrease, as the resultthe figure for yard storage sloped from 76,739 million VND to 5,330 VND which was account for just over 1% of the total, and this remain the same until the end of the period By contrast, from 2012, the money from reefer storage became one of major revenue sources for the company By 2014, the total revenue fell from 487,037 million VND to 334,002 million VND Handling fees still contribute the largest percentage to Chua Ve total income (58.3%) in comparison with 22.9% from container lifting and 11.5% from reefer storage.Money from other services such as mooring, unmooring, yard leasing, weighing only made of approximately 1~2% of the total Dang ThiThanhNhan – GMA02 Page 25 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal  Cost Table 11: Cost of Chua Ve Terminal 2011 – 2014 (million VND) Grow rate COST 2011 2012 2013 2014 12/11 13/12 14/13 Total 276870 100.00% 350088 100.00% 257834 100.00% 244,266 100.00% 1.26 0.74 0.95 Salary 72,896 26.33% 92,417 26.40% 72,437 28.09% 74,033 30.31% 1.27 0.78 1.02 Insurance 6,973 2.52% 8,307 2.37% 7076 2.74% 7,298 3.00% 1.19 0.85 1.03 Fuel+ Materials+ Utilities 51,335 18.54% 60,606 17.31% 44,727 17.35% 43,394 17.77% 1.18 0.74 0.97 Depreciation 112,706 40.71% 131,417 37.54% 80,943 31.39% 74,397 30.50% 1.17 0.62 0.92 Repairing 17,642 6.37% 37,734 10.78% 39,212 15.21% 31,000 12.70% 2.14 1.04 0.79 Others cost 15,318 5.53% 19,607 5.60% 13,439 5.21% 14,144 5.80% 1.28 0.69 1.05 (Source: from Finance – Accounting Division) Dang ThiThanhNhan – GMA02 Page 26 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal From the table, it can be seen that total expenditure of company was divided into sections, namely salary, insurance, fuels material utilities, depreciation, repairing and other costs From 2011 to 2014, Chua Ve Terminal spent most on salary, repairing, fuel material utilities and depreciation In 2011, the company spent 72,896 million VND (26.3%) on salary;51,335 million VND (18.54%) on fuels, material and utilities and 17,642 million VND (about 6.4%) on repairing The depreciation of fixed asset cost about 41% of total cost In 2012, all costs went up, lead to the growth by 26% of total spending The cost of depreciation rise by 18,711 million VND equal to an increase of 17%; fuel materials and utilities also added up 18% compared to 2011’s Spending on salary increased by 27% and repairing cost almost doubled From 2012 to the end of the period, all costs tend to went down By 2014, the percentage of salary and depreciation are equal, at about 30% of spending while the figure for repairing was 12.7% and for fuels, material and utilities is nearly 18% 2.2.2 Evaluating business efficiency by profit Table 12: Ratio of profit to cost/revenue/ fixed capital 2011 – 2014 2011 2012 2013 2014 Total cost (million VND) 276,870 350,088 257,834 244,266 1.26 0.74 0.95 Revenue 487,037 491,996 369,482 334,002 1.01 0.75 0.90 Pre-tax Profit 210,167 141,908 111,648 89,736 0.68 0.79 0.80 1.00 0.98 1.06 Fixed capital 1,256,409 1,259,598 1,233,888 1,306,141 𝑈1 = 𝑃 𝑇𝐶 0.76 0.41 0.43 0.37 0.53 1.07 0.85 𝑃 𝑅 0.43 0.29 0.30 0.27 0.67 1.05 0.89 𝑃 𝐹𝐶 0.17 0.11 0.09 0.07 0.67 0.80 0.76 𝑈2 = 𝑈3 = Growth Rate Dang ThiThanhNhan – GMA02 Page 27 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal The ratio of profit to cost, revenue and fixed capital show how much profit that a unit of cost, revenue andfixed capital can generate As can be seen from the table, the values are fluctuate over the period shown However, it is obvious that all the values were highest in 2011 and lowest in 2014 It means the business performance of Chua Ve Terminal that evaluated by profit has less efficient 0.8 0.6 0.4 0.2 2011 2012 U1 2013 U2 2014 U3 Figure 7: The ratio of profit to cost/revenue/ fixed capital 2011 – 2014 The figure shows development trend of the presented values In terms of cost, each unit of cost company spent, there 0.7 unit of profit in return in 2011, this is also the highest result company achieved In 2012, the value fell by half (47%), from 0.76 to 0.41 By 2013, the result went up slightly, by 7% but in the end of the period, it fell to only 0.37 Similarly, the value of ratio profit to revenue was highest in 2011, at 0.43, and then decreased significantly in 2012; from 2012 to 2014, the value remained stable (approximately 0.3) Meanwhile, even the ratio of profit to fixed capital fell continuously; it did not show any sudden change over time 2.2.3 Evaluating business efficiency by salary and labor capacity Dang ThiThanhNhan – GMA02 Page 28 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal Table 13: Labor productivity and salary ratio Growth rate 2011 2012 2013 2014 12/11 13/12 14/13 72,896 92,417 72,437 74,033 1.27 0.78 1.02 Handling capacity(103 tons) 7,116 6,847 6,149 6,078 0.96 0.90 0.99 Labor force 816 845 803 799 1.04 0.95 ~1.00 Labor capacity 8.72 8.10 7.66 7.61 0.93 0.95 0.99 The ratio of salary to labor force 89.33 109.37 90.21 92.66 1.22 0.82 1.03 Salary (million VND) The table compares the labor capacity and the salary per one employee of Chua Ve Terminal over the period of years It is clear that while the salary per person increase, the labor productivity fell down The figure below illustrates the trend of mentioned values 120 10 100 9.6 80 9.2 60 8.8 40 8.4 20 2011 2012 2013 The ratio of salary to labor force 2014 Labor capacity Figure 8: the ratio of salary to labor force and labor capacity Dang ThiThanhNhan – GMA02 Page 29 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal In 2011, Chua Ve Terminal has 816 employees; the average salary for each people was 89.33 million VND per year In 2012, the salary of each people peaked at 109.37 million VND, increased by 22% compared to 2011 However, the labor productivity decreased by 7% Throughout the period, the labor productivity fell gradually, and in 2014, it stood at 7.61 thousand tons per capita By contrast, even the salary each worker get in 2013 fell backs to only 90.21 million VND, in the end of the period, the salary each people get still higher compared to 2011’s The labor productivity fell while the salary of each people increased between 2011 and 2014 It means that the employees worked less efficient because the working process was slow down by some unskilled, non-experienced workers Besides, the unequal workload during years lead to unappropriated number of workers is another reason For example, the cargo seasons are on the September, October, November, December and the January, February and March At that time, the warehouse is loaded because the cargo demand for Western New Year and Lunar New Year is high However, the warehouse have not enough the human resources to exploit the CFS optimally While, from the April to September, the volume of cargo decrease thus the warehouse staffs has not enough work In conclusion, the company has used the labor force inefficient Dang ThiThanhNhan – GMA02 Page 30 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal CHAPTER 3: RECOMMENDATIONS TO IMPROVE BUSINESS EFFICIENCY OF CHUA VE TERMINAL 3.1 Vietnam port system’s development planning till 2020 and orientation till 2030 according to Decision no.1037/QD-TTg of Vietnam Prime Minister Under the decision no 1037/QD-TTg of Vietnam, Vietnam port system will develop according to plans to 2020 and orientations to 2030 a Development viewpoint: Make the most of the advantages of geographical location and natural conditions to develop a comprehensive system of seaports; quickly integrate with the advanced countries in the seaports field in order to contribute to the objectives of the Vietnam Marine Strategy to 2020; gradually bringing maritime economy to become a key economicsector Develop appropriately the national general port, local general port, specialized ports; emphasis on the development of ports that capable of receiving ships with tonnage of up to 100,000 tons or more in all three regions: North, South; gradually upgrade and expand other ports; ensure the maintenance to exploit port system efficiently Develop ports and network infrastructure behind the harbor, sea port infrastructure and public infrastructure connected to the port Focus on ensures uninterrupted connectivity among seaports and national transportation networks and distribution centers and logistics hub in the region Develop to the sea, reducing obstacles of shipping route that enter the port; motivating the development economic zones, industrial – coastal areas Combining port development with environmental protection management, ensuring sustainable development; ensure defense and security and b Development objectives: General objective: Develop the port system under a master plan on a national scale in order to meet the requirements of industrialization and modernization of the country; improve infrastructure and technology for quick integrationand competing with seaportsin the region and worldwide, confirming the dominant position in the Dang ThiThanhNhan – GMA02 Page 31 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal maritime economy, while contribute to ensure the defense and security of the country Formeconomic exchanging areas with countries to motivate the development zones, urban - coastal industry Specific objective: Ensure the flow of exporting, importing and domestic cargoes among the regions in the country by sea to meet the requirements of economic and social development of the country with planned capacity of the seaport system planning as follows: - From 400 to 410 million ton / year (including general cargo; containers from 275 to 280 million tons / year) in 2015 - From 640 to 680 million tons / year (including general cargo; containers from 375 to 400 million tons / year) in 2020 - From 1,040 to 1,160 + million tons / year (including general cargo; containers from 630 to 715 million tons / year) in 2030 Concentrate on building international gateway ports in HaiPhong, Ba Ria - Vung Tau and economic central zone (when conditions allow) to get ships and 100,000 tons (8,000 TEU container ships) or greater; renovate and upgrade the existing major ports; build local ports with function and size matching the requirements of economic development – social Overcome the backward of technique - technology, low quality of service; increase the competitiveness in the international integration of seaports Combine politics research with dredging to improve and upgrade the shipping channel to the port, ensuring that large ships entering and leaving ports safely and conveniently 3.2 Orientation ofHaiPhongseaport and the opportunities for Chua Ve Terminal 3.2.1 Orientation of HaiPhong seaport According to Vietnam seaport system till 2020 and orientations to 2030, HaiPhongseaport has been identified as international gateway port (type IA), is the national general port It includes main areas LachHuyen, Dinh Vu, Cam River and South Do Son harbor Those areas will be able to support each other in overall Dang ThiThanhNhan – GMA02 Page 32 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal Besides, there are some specialized terminals in charge the role of satellite terminals inHaiPhongseaport system Follow the directions, the international port LachHuyen is the main port for large vessels, container ships (4000 – 6000 TEU), general cargoes vessels from 50000 DWT to 80000 DWT, also capable for international transshipment cargo; Dinh Vu area will handle general cargo, containers for ships from 20000 to 30000 DWT; South Do Son harbor is used for national security and defense purpose; meanwhile Cam River area’s ports handle 10000 DWT ships, act as satellite terminals for the Port of HaiPhong system and there will be no expansion for ports in this area 3.2.2 Opportunities and orientation for Chua Ve Terminal Chua Ve Terminal is a terminal of Port of HaiPhong, belongs the Cam River area of HaiPhong seaport As the development plan of Vietnam port system presented earlier, Chua Ve Terminal will act as a satellite terminal and handle ships below 10000 DWT It is also obvious that the volume of cargoes is going to increase significantly from 2015 to 2030 At the same time, the public infrastructure systems as well as shipping channels are expected to improve On the other hands, the Vietnam seaport systems will integrate and compete with seaports in region Thus, this is a motivating and competitive environment for HaiPhongseaport and Chua Ve Terminal in particular Chua Ve Terminal needs to manage and use its resources more efficiently, quickly overcome weaknesses and focus on improving the quality of services in order to fulfil the assigned plan 3.3 Recommendation Regarding to the evaluation of business efficiency of Chua VeTeminal in chapter and the plan, orientation in chapter 3, five recommendations were given 3.3.1Improve the interaction inside the company Chua Ve Terminal has a hierarchy organization and this model have its own pros and cons The advantage is the managing is easier compared to the organization that has low power distance; besides, the managers also can make decision fast in urgent situations However, the disadvantage is if something Dang ThiThanhNhan – GMA02 Page 33 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal happen, it takes time for the top managers to be informed because there are many levels in the company As presented earlier in chapter 2,the volume of works was not the same during the year and thus sometimes the works is too much for workers, but sometimes workers has no work to But think about the root cause, it seems that the unappropriatednumber of workers was partly caused by the slow reaction of the managers.The company needs to improve the flow of information inside company for better managing by improving the interaction between managers and employees as well as among workers A company private forum maybe a solution for this issue In order to be more specific, a confession page on Facebook is a good example for the presented forum Every people are freely to send news in the page, but the personal identity was kept secret On the one hand, people will feel more freely to talk and express their feelings, their views, as well as problems.On the other hand, managers can know the situations of whole company or even in small operating groups As the result, he/she can adjust quickly to solve issues It is also a good idea to hold some close meetings between managers and employees monthly, so two parties can listens to each other needs as well as tightening the relationship between employers and employees 3.3.2 Improve the quality of service Many port in Vietnam has applied the low price strategy, however, the result showed that this strategy was not so effective Since many companies offer low price, the fee will be not enough for port to run its business It would be more feasible of company focus on improve its services, instead of lower service fees Chua Ve Terminal can improve its service quality by enhancing the interaction with customers Knowing about customer needs and opinions are vital for company because the company can have customer’s views about the offered services and actual performance Earlier, Chua Ve Terminal held meetings to listen to customer feedbacks But this method takes times and can only occasionally The company can use survey method to know more about customer needs as well as their evaluation about company service This method may be applied for both expartners, current customers as well as potential partners The important thing is it quite economically and save time Besides, this way, Chua Ve Terminal can Dang ThiThanhNhan – GMA02 Page 34 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal research the opinion of customers when it intends to offer new services The survey can be sent every months or yearly in case of current partners 3.3.3 Improve the quality of labor force The fact is that the skills of labor force in the company is not equally, some are pretty professional, some still made many mistakes during operational process, so that the result is slow down the working process This affects badly to the quality of company services and increases the company expenditure in general In fact, Chua Ve Terminal has always focused on fostering and developing human resources The company organized professional training classes, sent employees to foreign countries to study…But it is costly and unreal to think about send all employees abroad or hold class so often Thus, the company should have a forum that acts like a library for employees, a forum that people can share experiences In more detail, that forum should collect the experience of people, and then sort information the group For example, the tips to tallying cargoes fast and correctly in CFS or yard folder, tips related to use gantry cranes in one folder In that forum, the people can also free to ask question related to professional issues As the result, the skilled and experienced workers can share experience for other worker; new workers also can learn actively More important, it improves their skills and so does the quality service of company 3.3.4Reduce costs Chua Ve Terminal owned a large amount fixed assets in both value and quantity Every year, the company invests for buying machines and equipment The cost for depreciation of fixed assets is always account for 30 ~ 40% of total cost In order to lower the cost of depreciation, Chua Ve Terminal should:  Make schedule for checking and maintaining machines and equipment periodically This work must be carried out carefully; avoid perfunctory inquiry, manners  Give responsibility for staff to preserve and use correct functions, following technical procedures of equipment  Form a team of skilled technical workers; make sure they are always available to repair machinery when needed Dang ThiThanhNhan – GMA02 Page 35 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal  For new machines and equipment, the company should organize classes to instruct employees carefully, in order to fully exploit the efficiency of the equipment Chua Ve Terminal is a large scale port and have numerous of machines and equipment, thus the cost of utilities, materials and fuels is quite high The company should encourage workers to save material, utilities and have punishment for those waste public resources; rewarding individuals who has effective saving ideas 3.3.5 Enhance relations with VMU University Chua Ve Terminal should enhance the relationship with VMU University by providing internship program and cooperate with the university to organize meetings with student VMU University is the only maritime school in North Vietnam that train students in marine related affair, for example: logistics, screws, global maritime affair, foreign language…If Chua Ve Terminal cooperate with VMU, both the company and the university has benefits On the one hand, students in university, especially Vietnamese student always lack of reality knowledge and experiences as well as the facility to practice leant theory When graduated, find a job also is the most concerned issue that student worry about By providing internship programs and meeting students, Chua Ve Terminal helps VMU students have a trust worthy company to study and practice Because the relation between the company and university was enhanced, the employees also become more welcome and instruct the students more carefully Besides, meet and talk to the worked, experienced worker will make student have clearer view about their jobs, what skills they needs in order to work As the result, this encourage student learning; student study results will get better.Later, when they graduate, they also have higher chance to find a job On the other hands, the company does have it benefit First, by talking to students, company can advertise itself Secondly, University students have to a lot of research about learning affair If cooperate with VMU, the student will be encourage to research about company It will be useful sources for the company if their want to improve their organization Thirdly, by helping the university improves the quality of students, Chua Ve Terminal also has chance to recruit high Dang ThiThanhNhan – GMA02 Page 36 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal quality workers VMU trained student in numerous affair, besides, the school require the basics English in order to graduate With Chua Ve Terminal helps, the quality of student was even better; they not only have good theory but also experience There is high possibility that after internship program, students want work for the company while the company also wants recruit those students Dang ThiThanhNhan – GMA02 Page 37 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal CONCLUSION A port is a gate way to all benefits of international trade Realize the role of port, Vietnam government have focused on investing and develop port systems Chua Ve Terminal is a subsidiary of Port of HaiPhongthat was established since 1977 After so many years, Chua Ve Terminal has contributed to the Port of HaiPhong, HaiPhong city as well as Vietnam economic and social development for nearly 40 years In the recent years, the company business seems to be less efficient as the financial results and other indicators showed It is understandable that the company was in the contextthat changing rapidly as Vietnam has been in intergration process However, in the future, if want to fulfil its assigned roles as well as develop in the competitive environment, Chua Ve Terminal need to overcome its weakness and improve business efficiency It is recommended that the company should improve the quality of service, enhance marketing activities, enhance the interaction between employees and managers or cooperate with university… Dang ThiThanhNhan – GMA02 Page 38 Recommendations to improve the business efficiency of Port of Hai Phong JSC-Chua Ve Terminal BIBLIOGRAPY [1] Quyếtđịnhsố 1037/QD- TTgcủathủtướngchínhphủvềphêduyệtđiềuchỉnhquyhoạchpháttriểnhệthốngcảngbiển Việt Nam đếnnăm 2020, địnhhướngđếnnăm 2030http://thuvienphapluat.vn/vanban/Giao-thong-Van-tai/Quyet-dinh-1037-QD-TTg-2014-phat-trien-cang-bienViet-Nam-den-2020-dinh-huong-den-2030-236912.aspx [2]Website of HaiPhong Port http://haiphongport.com.vn/vi/cn-cang-chua- ve.nd/gioi-thieu-chi-nhanh-cang-chua-ve.html [3] ĐạihọcKinhtếquốcdân (2011) – Giáotrìnhphântíchtàichínhdoanhnghiệp [4] Đặng Kim Cương, TS PhạmVănDược (1997), Phântíchhoạtđộngkinhdoanh Nhàxuấtbảnthốngkê [5] TS NgơHồngLĩnh, PhạmLêHoa, Bùi Trinh Đểdoanhnghiệpsảnxuấtkinhdoanhcóhiệuquả - NhàxuấtbảnthốngkêHàNội (2001), [6]N.GregoryMankiw 6th edition, Principles of Economics [7] Dong Thu Trang, Dissertation (2014) “Recommendations to improve the efficiency of business activities in Tan Cang 189 joint stock company” Dang ThiThanhNhan – GMA02 Page 39 ... location of Chua Ve Terminal (Source: Port of HaiPhong) Dang ThiThanhNhan – GMA02 Page 12 Recommendations to improve the business efficiency of Port of Hai Phong JSC- Chua Ve Terminal Chua Ve Terminal: ... Page 30 Recommendations to improve the business efficiency of Port of Hai Phong JSC- Chua Ve Terminal CHAPTER 3: RECOMMENDATIONS TO IMPROVE BUSINESS EFFICIENCY OF CHUA VE TERMINAL 3.1 Vietnam port. .. and find the solutions to improve the situation the company That is the reason I choose the topic ? ?Recommendations to improve the business efficiency of Port of HaiPhong JSC - Chua Ve Terminal? ??