Recommendation to enhance business efficieny of namsung shipping agency department at vosa hai phong

Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong PREFACE In the current economic integration, the competition among domestic enterprises and the competition between domestic enterprises and foreign enterprises have been fierce ever Enterprises need to have strategies and different way to survive and develop In fact, companies which have new and creative perspectives, flexible business methods; will exist and develop and vice versa Thus, collection and dealing with information to evaluate business result are very necessary for each company Business results of company show ability and status of operating activities and financial capacity, marking development or declination of company in certain period Therefore, business results are guidance helping administrators have real look about current status of entrepreneur From that company can set up next plan for operating activities which is suitable with ability of enterprise; coincidently helping avoid existing mistakes.In other word, analyzing business results is very important which help company handle the difficulties and find ways to improve business efficiency 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 Dinh Thi Hao Dinh Thi Hao – GMA02 – ISE - VIMARU Page i Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong ACKNOWLEGEMENT Firstly, I would like to express my sincere gratitude to my advisor – Hoang Bao Trung for the continuous support of my dissertation, for his patience, motivation, and immense knowledge His guidance helped me in all the time of research and writing of this thesis Dinh Thi Hao – GMA02 – ISE - VIMARU Page ii Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong CONTENTS PREFACE i ACKNOWLEGEMENT ii LIST OF ABBREVIATIONS vi LIST OF TABLES vii LIST OF FIGURES viii INTRODUCTION CHAPTER I: FOUNDATION OF BUSINESS EFFICIENCY ENHANCEMENT 1.1 Definition nature and role of business efficiency enhancement 1.1.1Definition of business efficiency 1.1.2Nature of business efficiency enhancement 1.1.3Role of business efficiency enhancement in company 1.2 Factors impacting business efficiency 1.2.1External factors 1.2.2Internal factors 1.3 Indicators of business efficiency 1.3.1Some definitions related to business performance a) Revenue b) Cost c) Profit 10 1.3.2Indicators of business efficiency 11 a) Ratio of profit to cost 11 Dinh Thi Hao – GMA02 – ISE - VIMARU Page iii Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong b) Ratio of net profit to net revenue 11 c) Ratio of revenue to cost 12 CHAPTER II: EVALUATING BUSINESS EFFICIENCY OF NAMSUNG SHIPPING AGENCY DEPARTMENT AT VOSA HAI PHONG 13 2.1 Overview of VOSA Hai Phong 13 2.1.1 Formation history 13 2.1.2 Organizational structure 13 a) Organizational chart 13 b) Functions and duties of each department 14 2.1.3Personnel 16 2.1.4 Business scope 16 2.1.5 Business results of company 17 2.2 Evaluating business efficiency of Namsung shipping agency department at VOSA Hai Phong 18 2.2.1 Analysis of revenue 18 2.2.2 Analysis of cost 23 2.2.3 Analysis of profit 26 2.2.4 Evaluating business efficiency of Namsung shipping agency department30 a) Gross profit coefficient 30 b) Profitability ratio 31 c) Efficiency of cost using 32 2.2.5 Advantages & disadvantages in business activity of Namsung shipping agency department 33 Dinh Thi Hao – GMA02 – ISE - VIMARU Page iv Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong CHAPTER III: RECOMMENDATION TO ENHANCE BUSINESS EFFICIENCY OF NAMSUNG SHIPPING AGENCY DEPARTMENT AT VOSA HAI PHONG 36 3.1 Purpose and development orientation of Vietnam maritime sector from now to 2020 36 3.1.1 Purpose and development orientation of Vietnam maritime sector from now to 2020 36 3.1.2 Orientation and strategy of economic – social development of Hai Phong city by 2020 include purposes: 37 3.2 Purpose and development orientation of company to Namsung shipping agency department in the future 40 3.3 Recommendation to enhance business efficiency of Namsung shipping agency department 41 3.3.1 Advertising image to customers 41 3.3.2 Price strategy 42 3.3.3 Measures to reduce cost 43 3.3.4 Measure to increase revenue 44 3.3.5 Personnel 44 CONCLUSION 48 REFERENCE 49 Dinh Thi Hao – GMA02 – ISE - VIMARU Page v Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong LIST OF ABBREVIATIONS COSP Cost of service provided Dept Department NS shipping agency department Dinh Thi Hao – GMA02 – ISE - VIMARU Namsung shipping agency department Page vi Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong LIST OF TABLES Table 1: Personnel in VOSA Hai Phong 16 Table 2:Revenue, cost and profit of VOSA Hai Phong from 2010 to 2014 17 Table 3:Revenue of Namsung shipping agency department 2011-2014 19 Table 4: Contribution of revenue from NS shipping agency department into total revenue of whole company 21 Table 5:Fee for serving container ship of shipping agency 22 Table 6: Cost of NS shipping agency department(2011-2014) 24 Table 7: Cost structure of Namsung shipping agency department 25 Table 8: Factors affecting to profit of Namsung shipping agency department26 Table 9:Summary of factors affecting to profit 29 Table 10:Profit coefficient of Namsung shipping agency department (20112014) 30 Table 11:Profitability ratio of Namsung shipping agency department 31 Table 12: Cost efficiency of Namsung shipping agency department 32 Dinh Thi Hao – GMA02 – ISE - VIMARU Page vii Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong LIST OF FIGURES Figure 1: Organizational chart of VOSA Hai Phong 13 Figure 2: Revenue structure from 2011 to 2014 20 Figure 3: Number of ship NS shipping agency department served from 2011 to 2014 23 Figure 4: Revenue growth of Namsung shipping agency department from 2011-2014 23 Figure 5: Cost of NS shipping agency department in four years (2011-2014) 24 Dinh Thi Hao – GMA02 – ISE - VIMARU Page viii Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong INTRODUCTION Necessity Vietnam has been in the path of international economic integration Economic integration has brought many opportunities and challenges to Vietnam If Vietnamese enterprises want to survive and growingly develop in the domestic market as well as in the international market, it is necessary to study and analyze business activities of company, giving measures to enhance business efficiency for company VOSA Hai Phong – a branch of VOSA Group – is one of leading company in shipping agency in Vietnam So as to exist and increasingly develop, enhancement of business efficiency of company has become a major concern ever With such awareness together with process of exposing to business activities of agent at VOSA Hai Phong, I finally decided to choose topic about business efficiency However, due to limited time and ability, I only can analyze business efficiency of Namsung shipping agency department at company That’s why my final chosen topic is: “Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong” Research Object General purpose is to access business efficiency of Namsung shipping agency department at VOSA Hai Phong through evaluating fluctuating pattern of this department in the period of years (2011-2014) and analyzing factors affecting business efficiency From this, some basic suggestions will be given to enhance business efficiency of department Specified purpose: - Systematically theoretic basis of business efficiency of Namsung shipping agency department - Accessing business result of Namsung shipping agency department in surveyed years Dinh Thi Hao – GMA02 – ISE - VIMARU Page Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong - Evaluating business status, analyzing impacting factors and impacting level of such factors to business efficiency of Namsung shipping agency department in a given periods - Recommending some basic solutions to enhance business efficiency of Namsung shipping agency department Research scope Topic is researched in VOSA Hai Phong - No.25 Dien Bien Phu Str., Hai Phong city Data is collected from accounting department of VOSA Hai Phong Research is implemented from August 10 toNovember20 and uses statistics from 2011 to 2014 to complete this report Research Findings In period of internship at VOSA Hai Phong, statistics and materials related to topic are collected from financial report of company Besides, data are also collected from internet and books Through data collected, it can be concluded that even though there are some fluctuations during surveyed periods, business results of Namsung shipping agency department at VOSA Hai Phong still sees the optimistic results from the beginning to the end of surveyed time in general Research’s method This research used method of comparison, observation and analysis to assess business efficiency of Namsung shipping agency department Afterwards, several recommendations would be given based on statistics analysis to improve business efficiency of Namsung shipping agency department at VOSA Hai Phong Dinh Thi Hao – GMA02 – ISE - VIMARU Page Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong Besides, competition is one of concern of Namsung shipping agency department Currently, there are a large number of companies providing shipping agency services such as: Vietfratch, Alliance JSC, VOSCO and Gemadept Aside from this, there may have many new entrants penetrating in this sector So, this affects competitiveness and market share of VOSA Hai Phong The department must try its best to improve its prestige in the fierce competition so as to exist and develop in the market In summary, there is a chart summarizingadvantages and disadvantages of Namsung shipping agency department of VOSA Hai Phong as below: Pros Staff are enthusiastic and good at profession Has long-run prestige in shipping agency filed & long-term relation with customer & service suppliers Managers take care of and facilitates good condition for staff to work more enthusiastically Cons Staff are at the pension age -> reduce speed Limitation of finding target customers (export container cargo owner) -> limit revenue Fierce competition with many competitors such as Vietfracht, Alliance JSC, High serving cost and managing cost -> reduce profit Dinh Thi Hao – GMA02 – ISE - VIMARU Page 35 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong CHAPTER III: RECOMMENDATION TO ENHANCEBUSINESS EFFICIENCY OF NAMSUNG SHIPPING AGENCY DEPARTMENTAT VOSA HAI PHONG 3.1 Purpose and development orientation of Vietnam maritime sector from now to 2020 3.1.1 Purpose and development orientation of Vietnam maritime sector from now to 2020 a) Development perspectives - Developing sea transportation in accordance with modernization with higher quality, reasonable cost, safety; environmental pollution mitigation and energy saving; increasing competition of ocean transportation; coincidently contributing to promoting security and defense of country; - Developing sea transportation synchronically with related transportation: road, river, rail road; applying and developing advanced transportation technology, in which focusing on developing multi-modal transportation and logistics service to create synchronic, continuous and efficient transportation system; - Investing and developing fleetswhich are suitable in structure, modern and able to competein the international market;focusing on deep ports, transship port and international gateway port in key economic areas; studying and cooperating politics in canal reform so that big ship can come in and out conveniently and safely b) Purpose and development orientation By 2020, it must satisfy enough the need of sea transportation of national economy with high growth rate, ensure high quality, reasonable price and mitigate environmental pollution Particularly, - Development orientation of port system: +In order to meet the need of development of ocean transportation, economy and society of nation, Vietnam port system plan by 2020, oriented by 2030 needs to be checked, updated, adjusted and supplemented with further view Content of Dinh Thi Hao – GMA02 – ISE - VIMARU Page 36 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong orientation of port development plan in the next period, aside from upgrading and investing in depth, use capacity efficiently of existing port, needs to focus on building the international transshipment port, international gateway port in key economic areas, some specialized deep ports for handling container, coal mine and oil with large scale, modern equipment,… to gradually bring Vietnam to integrate and have high competitive ability in investment operation, port exploitation with other nations in region and in the world + Concentration on reform, upgrading ship lane to ensure theexploiting condition synchronically and efficiently together with ports; develop synchronically rail road system, road, internal waterways so as to connect port with dry port, cargoes distribution center, economic zone, industrial zone, ports, inland berths, …, facilitating for cargoes to enter and leave port conveniently and enhancing efficiency of exploiting port - In terms of maritime service: + Promote administrative reform in ocean transportation, especially administrative procedures in ports and registration procedure; + Develop synchronically the sea transport support service, especially logistics service, multimodal transportation with high quality, towards service package and expand to foreign nation to meet the need of integration;establishing domestic port which is suitable with development of economic corridor and cargoes distribution centers which locate near port + Synchronically developing logistic infrastructure, maritime security, search and rescue; maritime technological system … meet the need of development, and be suitable with requirements of international convention 3.1.2 Orientation and strategy of economic – social development of Hai Phong city by 2020 include purposes: According to Resolution no 01/2009/NQ-HDND about maritime economic development of Hai Phong city by 2020 a) Purpose Dinh Thi Hao – GMA02 – ISE - VIMARU Page 37 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong - General purpose: maximize potential, advantages and build Hai Phong City as a place being strong about ocean, gettingrich from ocean, being one key strategic area to implement ocean strategy in Vietnam, being maritime economic center in Gulf of Tokin economic area and the whole country Maritime economy is important element which contribute to generate fundamental and holistic transformation for economy of city to build Hai Phong city as a modern city which sustainably develop, harmony between economic and culture development and protect environment; becoming a strong center in terms of technological science, growingly contributing to the development in the North and the whole nation; gradually becoming a center of technology, maritime service and big ocean transportation of Vietnam, key national tourist, center of commerce and finance of South East Asia area; being one important growing pole of key economic area in the North; an impregnable fortress in the defense and security - Specific purpose: + Quickly develop maritime economy contributing to raise the proportion of Hai Phong GDP in GDP of the whole nation to obtain approximately 7.3% in 2020 Average GDP growth rate gains 14-15% in the period of 2015-2020, being 1.3 times higher than growth rate of key economic area; GDP per capita obtains $4,900$5,000 by 2020 + Establish some sectors, key products of maritime economy which have high contribution regarding to export value so that the speed of export turnover gains 19%-20% in the period of 2016-2020 on average + Weigh of cargoes through ports in Hai Phong gain 80-100 million tons by 2020 + In terms of communes, wards bordering and adjacent to sea: promoting thoroughly advantages of location, transportation, attracting investment, labor and developing economic fields, creating the activeness of the whole region Especially, trying to get the average income per capita in this region 1.4-1.6 times higher than that of the whole city and national coastal strip by 2020; narrowing the distance between the poor and the rich b) Specific duties Dinh Thi Hao – GMA02 – ISE - VIMARU Page 38 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong From now till 2020, confirm 06 key maritime economies as numerically ordered: (1) develop port system, maritime service, shipping; (2) build economic zone, industrial zone, coastal township; (3) industry ofnewly building, repairing ship and float means; (4) seafood economy; (5) sea tourism; (6) develop islands - Develop port system, maritime service, and shipping + Develop port system: accelerate investment in building port infrastructure, modernize, enhance ability, handling-service quality so as to gain 80-100 million tons cargoes through port in region Cooperate actively with central ministers to develop quickly international gateway port in Lach Huyen, Hai Phong + Maritime service: develop abundantly all types of maritime services such as ship’s agency, maritime brokerage, tug and towage, ship provision, forwarding and tallying cargoes, small fix the ship at port, ocean environment protection, cargoes handling, search and rescue, service for crews at port … Establish inland dry port to cooperate with sea port to create uninterrupted system + Shipping: promote quickly speed of development and modernization of fleet, enhance shipping capacity and competitiveness, keep the head central role of the whole country and target the high position in region Expand shipping market share, ensure capacity of 35-40% the weight of import and export through Hai Phong and Quang Ninh port by 2020 Try to undertake transporting import and export of the region, the whole North region, transit cargoes of South West in China, promote shipping in South-North coastal area, transport international tourist and tourist in island of Gulf of Tokin - Develop economic zone, industrial zones, and coastal township + By 2020, continue developing additionally some new industrial zones with synchronic infrastructure and society, high quality to attract projects having high technique industrial content and competitive ability By 2020, try to get the proportion of 90% of industrial producing enterprises in production areas of zones, coastal industrial cluster Develop to bring Dinh Vu-Cat Hai economic zone to one of modern international economic center in North region and the whole nation Build industrial zone and modern public service zone Dinh Thi Hao – GMA02 – ISE - VIMARU Page 39 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong + Hai Phong development plan associates with other townships to become chain of coastal township of Northern coast, in which Hai Phong is Central Township, closely associates with coastal township in the North region 3.2 Purpose and development orientation of company to Namsung shipping agency department in the future -Main purposes of company: + Building company as a leading company in maritime services and logistics; developing strongly and sustainably based on core business such as: shipping agency, logistics, transport agency, warehouse and forwarding, multinational transportation, port exploitation and import-export commerce… + Promoting business activities, applying advanced technology, managing resources as good as possible, saving the managing cost; use capital efficiently, ….to create profitability maximization for company and shareholders +Developing human resources, ensuring right and creating the best working environment for employees +Implementing fully obligations with government, contributing to prosperity of country +Expanding network and business activities to markets in the world - Common and long-term developing strategy + Remaining traditional maritime services such as shipping agency for liner and bulk carrier, ship supply and related maritime services Building and implementing strategy regarding to market expansion, promoting logistics service chain like transport agency, warehousing business; cargoes import –export service, investing in building warehousing and handling equipment and transport means with international standard to meet the need of packaged logistics service for customers; continue to cooperate with carriers and logistic service suppliers + Always well practicing the duty of protecting environment during operating process, not polluting or impacting badly to environment in operating area; Dinh Thi Hao – GMA02 – ISE - VIMARU Page 40 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong implementing duty with society, participating in charity activities, humanism programs and community support,… - Risk: In 2015, economy in Vietnam in particular and in the world in general still has been in difficult period and experienced many unexpected fluctuations Statement of Importing and exporting cargoes is unstable so statement of transportation in general, maritime service and logistics in particular continues to get difficulty Moreover, commitments of Vietnam as joining in WTO mostly were implemented fully in 2014, so many big logistics companies in the world have enough condition to operate in most logistic services in Vietnam Therefore, the competitiveness of enterprises in this sector have to compete very fiercely In March of 2015, VOSA sold all of 51% its contributed capital in joint venture “NYK Line Vietnam Co., Ltd to partner “NYK Liner Japan So, profit of company in terms of financial investment in the year 2015 would decrease, … Otherwise, changes in policies of government such as: increasing land tax which deceases profitability regarding to warehousing and container yard,… leads to the increase in cost for company and impact the operating or producing plan of company 3.3 Recommendation to enhance business efficiency of Namsung shipping agency department 3.3.1 Advertising image to customers Even though VOSA Hai Phong has operated long time in shipping agency, but there are too many competitors in sector Competitors may blur image and reputation of VOSA Hai Phong So as to consist in position and image in the market, company in general and Namsung shipping agency department in particular need to find measures to improve reputation by advertisement and propaganda It can be said that advertisement and propaganda are necessary content regarding to marketing Nowadays the internet becomes very popular especially in business The internet allows users to access and upload information quickly with cheap price Namsung shipping agency department can use this way to introduce itself to customers Advertisement helps introduce to customers about service categories so that the ones who have needs can know and exchange Besides, through Dinh Thi Hao – GMA02 – ISE - VIMARU Page 41 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong advertisement on the internet (the most updated media), Namsung shipping agency department can introduce ability, achievement and good results to obtain good impression from customers so that they will inclined toward Namsung shipping agency department in their selection of partners Furthermore, Namsung shipping agency department can advertise its services in celebrities, organization, workshop on shipping, etc For instance, shipping agency association in Vietnam is held every year on which there are many representatives from shipping agencies of diverse companies; Namsung shipping agency department of VOSA Hai Phong can make use of it to introduce the business of department to other partners So as to attract customer, Namsung shipping agency department can take photo and supply fully information related to its shipping liner and shipping lane or ship to customer on the internet This helps provide data to customers so that customers can find suitable ship for their cargoes 3.3.2 Price strategy Regarding to commerce, price is one of the major concern of both supplier and customer Price in shipping agency is called agent fee which is regulated by Vietnam law and applied for all enterprises However, in the market economy at present, agent should be flexible in price reduction policy in order to attract more and keep customers Price strategy will mainly determine to the survival and development of agent service of company in the market Price strategy is very important technique Very low price can increase volume of cargoes or make loss for enterprise Vice versa, very high price may push customer far away Profitability is one of purposes the company in general and Namsung shipping agency department toward to gain But the competitiveness in shipping agency becomes growingly fierce, if it only concerns about profit and doesn’t concern the important factor such as customers or how to survive sustainably in the market, it might get difficult to operate in the market and even disappear from market Therefore, it should improve relation with partners by price reduction policy which is still suitable with government’s regulations Dinh Thi Hao – GMA02 – ISE - VIMARU Page 42 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong In fact, agent fee of agent is regulated by government and applied for all shipping agencies in country So as to compete in current market economy, Namsung shipping agency department in particularly and VOSA Hai Phong should be flexible in determining price That would be a good way for Namsung shipping agency department to attract more customers As for loyal customers, department should consider suitable incentives Namsung shipping agency department should list the loyal cargo owners to give them price incentives; especially give price incentives to cargo owners who have two-way shipped cargoes with high volume Another way to give incentive to customers is that agent still remains agent fee regulated; however, it can supply services freely such as hiring tallyman, cargoes supervisor or receive cargoes on behalf of cargo owners Price incentives shall help Namsung shipping agency department to be flexible when signing contract It is hoped that by giving incentives and reduce price, Namsung shipping agency department in particular and the whole company in general can attract more customers and hence, have larger number of ships to serve When number of ships severed by Namsung shipping agency department increases, Namsung shipping agency department can take advantage of Economy of scale to reduce cost and increase revenue 3.3.3 Measures to reduce cost Cost is an element which has huge effect on profit of company As analyzed in chapter II, one of factor reducing profit of Namsung shipping agency department is the high cost Hence, Namsung shipping agency department needs to confirm factors which can be mitigated and resources which can be explored In total cost (both COSP and managing cost) of Namsung shipping agency department, the COSP always occupied largest proportion The reduction of such cost would be a useful measure to enhance operating activities High business efficiency reveals that the company manages well factors of cost In order to enhance profit and business efficiency of company in the next time, Namsung shipping agency department need: Dinh Thi Hao – GMA02 – ISE - VIMARU Page 43 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong + Reduce number of phone calls for private aim in the enterprise This can help employees in company to focus more on work and contribute to decrease unnecessary cost for company + Create and keep better and promote long-term relations with suppliers such as maritime pilotage Co., Ltd., and Viconship Company so that that they can supply service for Namsung shipping agency department with reasonable price and good quality For more detail, if Namsung shipping agency department has really good relationship with suppliers, it can bargain price as it make a deal This will help Namsung shipping agency department have chance to reduce COSP and receive better quality from suppliers 3.3.4 Measure to increase revenue Because being a general agent for Namsung shipping Co., Ltd, revenue of Namsung shipping agency department in VOSA Hai Phong depends on contract between the two parties According to agent contract between two parties, Namsung shipping agency department can earn money from two main ways: serving for ships designated by Namsung shipping Co., Ltd and finding cargoes for Namsung shipping Co., Ltd Nevertheless, Namsung shipping agency department at present mostly earn money from serving for ships as required by Namsung shipping Co., Ltd In other word, Namsung shipping agency department is still passive in its service Therefore, Namsung shipping agency department next time should be active in finding cargo owners who have exported container cargoes being suitable with shipping lane of ships department serves This would be a good way for Namsung department to increase revenue, because when shipping agency department can find cargoes itself; it could double the percentage over ocean freight rate which it can earn Moreover, as Namsung shipping agency department of VOSA Hai Phong can find more and more number of cargo owners who have large volume of cargoes for Namsung shipping CO Ltd, it may receive additional amount of money from ship’s owners Overall, Namsung shipping agency department can increase revenue by finding cargoes or customers 3.3.5 Personnel It can be said that human is one of decisive elements in efficiency and competitive ability of company in the market Operating activities of agent is Dinh Thi Hao – GMA02 – ISE - VIMARU Page 44 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong efficient or not depends mainly on ability of agent Moreover, currently Namsung shipping agency department is a key department of VOSA Hai Phong, bringing huge profit to the whole company Therefore, to ensure strength of department, personnel issue in Namsung shipping agency department needs to be concerned Responsibility of a shipping agent is giving a necessary advice in his scope and serving ships during ships come and stay at port In other word, a shipping agent plays a very important role regarding to the safety of each ship at port Hence, to implement shipping agent service, it is required to have qualified and enthusiastic employees This is a leading factor affecting to the development of company and is a target pursued by enterprises during developing and constructing process a) Recruitment In order to attract good human resources, it is needed to have good personnel supplement method Especially, it is needed to have punctual and suitable supplementation in position in department as employees are near pension period Due to high requirement of work, new comers must have good profession, experience and good health To implement this, VOSA Hai Phong in general and Namsung shipping agency department in particular not only receive experienced persons but also receive graduated students studying in majors regarding to shipping Even though, the cost to train new comers (especially graduated student) is high, but when new comers have enthusiasm, mentally quickness and willing to learn, it would be not too difficult to train profession for them To reduce the amount of time training for newly graduated students, company should generate condition for them as they are in their probation Via internship, they can have real experience so that they can still co-operate theory learnt from school and with changes of this sector in the market b) Improve quality of existing human resources in NS shipping agency department Aside from recruiting new staff, Namsung shipping agency department should train and develop existing personnel in department First of all, Namsung shipping agency department need to organize meeting inside department to discuss and train agent profession for staff Normally, there are Dinh Thi Hao – GMA02 – ISE - VIMARU Page 45 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong a shipping agency association held very year and some members of company will take part in to learn more about agent profession After organization like that those members should train all things they gained for the others in relevant departments By such way, all members of company will help and share to improve profession level for each other; coincidently, this will save money because company doesn’t need to hire experts to train staff Secondly, department sometimes should hold meetings for staff In the meetings, Namsung shipping agency department will allow to let staff to give their opinion and share experience arising during work This method would help member of department to share and learn from one another The department then will receive opinion and learn from experience to handle if there is any familiar situation later on Thirdly, Namsung shipping agency department should take care of working style of staff Actually, Namsung shipping agency department supply service to customers, thus, working manner of each agent is very important It requires every staff by themselves needs to determine sense of respecting customers and partner Especially, each of them should consider the right of customers is responsibility on their own a) Cooperation with college and university Namsung shipping agency department should discuss to give internship scholarship to students in several universities and colleges It can be claimed that cooperating and giving internship scholarship in colleges and universities will be a good way to advertise and improve image of VOSA Hai Phong in general and of Namsung shipping agency department This will help department to attract and select talents from universities and colleges This is a wise method which helps department not lose talents and still take advantage of youth and enthusiasm of students At the same time, it will ensure the future of company with young and qualified shipping agent Besides, it can be said that cooperation and facilitating good condition for students to have internship at department may affect hugely to sense of students Even though, in the future they don’t work at Namsung shipping agency department or other department of VOSA Hai Phong, but they still know and have good view towards company So, maybe in the future, as they work for in Dinh Thi Hao – GMA02 – ISE - VIMARU Page 46 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong other companies like a foreign liner or a cargo owner for example and in case their companies need to find partner to supply transportation service or services for ship, they may introduce services of VOSA Hai Phong and may cooperate as partner with VOSA Hai Phong in general and with Namsung shipping agency department in particular in the future This may not only contribute to explore cargoes volume in the future but also help to expand service of the whole companies in the future Dinh Thi Hao – GMA02 – ISE - VIMARU Page 47 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong CONCLUSION In conclusion, I would like to emphasize that this field trip is really useful for me Thanks to the field trip, I can get more knowledge about operating statement of Namsung shipping agency department which I have never known before Especially I could know about the current status of operation of agent service of VOSA Hai Phong through some statistics given Through analyzing and evaluating operating activities of Namsung shipping agency department in VOSA Hai Phong, it can be recognized that there are still many opportunities for department in particular and the whole company in general to develop in the future However, there still exist several downwardswhich affect badly to the efficiency of department Therefore, researcher strongly hope that those recommendations mentioned in chapter III can contribute to improve the efficiency of Namsung shipping agency department In possible ability and limited scope of dissertation, researcher describes as well as gives several solutions so as to help handle, complete and enhance agent activities of department in the next time In summary, there are three chapters in my dissertation Chapter is several theory related to topic Moreover, I had tried to analyze and describe some helpful statistics regarding to cost, revenue and profit to evaluate business efficiency of Namsung shipping agency department in chapter II Afterwards, in chapter III, I give several suggestions in short so as to address some problems of Namsung shipping agency department with the aim of improving business efficiency of department in particular and in the whole company in general Finally, I hope that VOSA Hai Phong, particularly the Namsung shipping agency department will more develop and improve itself to gain more success in the future! Dinh Thi Hao – GMA02 – ISE - VIMARU Page 48 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong REFERENCE [1] Vietnam business law, 2005 [2] Phan Quang Niem, 2008,”Giao trinh phan tich hoat dong kinh doanh”, nha xuat ban Thong ke [3] PTS Vu Duy Hao, 1997, “Quan tri tai chinh doanh nghiep”, nha xuat ban thong ke, Hanoi [4] Khoakinh te van tai bien, 2015, “Bai giang Quan tri tai chinh”, VIMARU [5] Khoa KTVTB, 2014, “Bai giang Phan tich hoat dong kinh te”, VIMARU [6] Resolution No 01/2009/NQ-HĐND about development of Hai Phong port City 2015, towards 2020 Retrieved from website: http://dbndHaiPhong.gov.vn/Portal/PrintItem.aspx?ContentID=9214 [7] Retrieved from website of VOSA Hai Phong: http://www.vosa.com.vn/modules.php?name=Distributor&op=viewcat&catid=273 &newlang=vietnamese Dinh Thi Hao – GMA02 – ISE - VIMARU Page 49 ... 35 Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong CHAPTER III: RECOMMENDATION TO ENHANCEBUSINESS EFFICIENCY OF NAMSUNG SHIPPING AGENCY DEPARTMENTAT... Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong + Hai Phong development plan associates with other townships to become chain of coastal township... Namsung shipping agency department Page vi Recommendation to enhance business efficiency of Namsung shipping agency department at VOSA Hai Phong LIST OF TABLES Table 1: Personnel in VOSA Hai Phong