Recommendation to improve business efficiency of shipping agency service at VOSAL

Style Definition: TOC MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: NGUYỄN TUẤN HIỆP Formatted: Font color: Auto DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS TO IMPROVE BUSINESS EFFICIENCY Formatted: Font color: Auto OF SHIPPNG AGENCY SERVICE AT VOSAL HAI PHONG – 2015 Formatted: Font color: Auto MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: NGUYỄEN TUẤAN HIỆEP Formatted: Font color: Auto Formatted: Font color: Auto CLASS: GMA02 DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATION TO IMPROVE BUSINESS EFFICIENCY Formatted: Font color: Auto OF SHIPPING AGENCY SERVICE AT VOSAL Formatted: Indent: Left: 1.5", Tab stops: 3.45", Left Formatted: Font color: Auto Supervisor :: Formatted: Indent: Left: 1.5", Tab stops: 2.85", Left + 3.15", Left + 3.45", Left + 3.54", Left Hoàng Bảo Trung Formatted: Font color: Auto Division :BasicEconomics Faculty :EconomicsDivision: Formatted: Font: Bold, Font color: Auto Global & Maritime Affairs Formatted: Font color: Auto Formatted: Font: 14 pt Faculty: International School of Education Formatted: Font color: Auto Formatted: Font: 14 pt Formatted: Font: 14 pt Formatted: Font: 14 pt HAI PHONG – 2015 Formatted: Font color: Auto Recommendation to improve business efficiency of shipping agency service at VOSAL PREFACE Thanks to the economic development, a large number of companies have been found and participated in such a competitive market The companies, therefore, need appropriate policies in operation to develop and make profit It is a fact that different strategies and flexible business methods are what to evaluate the strength of a company The more uniqueness a company owns, the more successes it achieves Business result is one of the key factors to consider whether it is a good company or not It expresses the efficient of a company in production including productivity, capital management and recovering/developing capability That is why business results are required an exact and objective data collection and analysis in order to establish plans for later periods 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 Formatted: Font color: Auto Nguyễn Tuấn Hiệp Nguyễn Tuấn Hiệp – GMA02 Page i Recommendation to improve business efficiency of shipping agency service at VOSAL ACKNOWLEDGEMENT Firstly, I would like to express my sincere gratitude to my advisor MSc Hoàng Bảo Trung for the continuous support of my study and related research, for his patience, motivation, and immense knowledge His guidance helped me in all the time of research and writing of this thesis I could not have imagined having a better advisor and mentor for my study Nguyễn Tuấn Hiệp – GMA02 Page ii Formatted: Space After: 12 pt Recommendation to improve business efficiency of shipping agency service at VOSAL Formatted: Font: Bold, All caps, Expanded by pt CONTENTS Preface i Acknowledgement ii Contents iii Formatted: Font: (Default) Times New Roman, 13 pt, Bold, Font color: Auto Formatted: Font: 12 pt, Do not check spelling or grammar List Abbreviations v List of Tables vi List of Firgures vi INTRODUCTION 1 Necessity Research object Research scope Research findings Report structure CHAPTER 1: LITERATURE REVIEW 1.1 Theoretical basis about shipping agency service 1.1.1 Definition of shipping agency service 1.1.2 Roles of shipping agency service in maritime sector 1.1.3 Features of shipping agency service 1.1.4 Functions of a shipping agent 1.1.5 Criteria of a shipping agent 1.2 Business efficiency of shipping agency service 98 1.2.1 Definition of business efficiency 98 1.2.2 Indicators of business efficiency 109 1.2.3 Factors affect business efficiency of shipping agency service 1211 CHAPTER 2: EVALUATING BUSINESS EFFICIENCY OF SHIPPING AGENCY SERVICE AT VOSAL FROM 2011 TO 2014 1412 2.1 General introduction about VOSCO 1412 2.1.1 Establishment and development process 1412 2.1.2 Functions 1412 2.1.3 Subsidiaries of VOSCO 1513 2.2 Introduction about VOSAL 1513 2.2.1 General information .1513 2.2.2 Business fields 1513 2.2.3 Organization 1614 2.2.4 Facility 1815 2.2.5 Personnel 1816 2.3 Shipping agency service at VOSAL 1816 Nguyễn Tuấn Hiệp – GMA02 Page iii Formatted: Font: 12 pt, Not Bold, No underline, Font color: Auto Recommendation to improve business efficiency of shipping agency service at VOSAL 2.3.1 Legal basis of shipping agency service at VOSAL 1816 2.3.2 Level of shipping agent staffs at VOSAL 1816 2.3.3 Procedure of shipping agency service at VOSAL 1917 2.4 Evaluating business results of shipping agency service at VOSAL 2220 2.5 Evaluating business efficiency of shipping agency service at VOSAL 2826 2.5.1 Gross profit coefficient 2826 2.5.2 Profitability ratio 2826 2.5.3 Efficiency of cost 2927 2.6 Evaluating shipping agency service at VOSAL 3028 2.6.1 Strengths 3028 2.6.2 Weaknesses 3129 2.6.3 Opportunities 3129 2.6.4 Threats 3230 CHAPTER 3: RECOMMENDATION TO IMPROVE BUSINESS EFFICIENCY OF SHIPPING AGENCY SERVICE AT VOSAL 3432 3.1 Development strategies of Vietnam maritime sector 3432 3.2 Recommendations to improve business efficiency of shipping agency service at VOSAL 3634 3.2.1 Recommendations to increase revenue 3634 3.2.2 Recommendations to minimize cost 4240 3.2.3 Recommendations to improve recruitment and training activities 4340 3.2.4 Improve facilities and high technology application 4543 CONCLUSION 4644 REFERENCE 4745 APPENDICES 4846 INTRODUCTION 1 Necessity Research object Research scope Research findings Report structure CHAPTER 1:LITERATURE REVIEW 1.1 Theoretical basis about shipping agentagency service 1.1.1 Shipping agent agency service definition 1.1.2 Roles of shipping agency service in maritime sector 1.1.3 Features of a shipping agent 1.1.4 Types of shipping agency service 5chuyển lên 1.1.3 Nguyễn Tuấn Hiệp – GMA02 Page iv Recommendation to improve business efficiency of shipping agency service at VOSAL 1.1.5 Functions of a shipping agent 1.1.6 Criteria of a shipping agent 1.2 Business efficiency of a shipping agent 1.2.1 Definition of business efficiency 1.2.2 Indicators of business efficiency 1.2.3 Factors affect to business efficiency of a shipping agent 11 CHAPTER 2: EVALUATING BUSINESS EFFICIENCY OF SHIPPING AGENCY SERVICE AT VOSAL FROM 2011 TO 2014 13 2.1 General introduction about VOSCO 13 2.1.1 Establishment and development process 13 2.1.2 Functions 13 2.1.3 Subsidiaries of VOSCO 13 2.2 VOSCO Agency and Logistics One Member LTD Company (VOSAL) 14 2.2.1 General information 14 2.2.2 Business fields 14 2.2.3 Organization 15 2.2.4 Facility 16 2.2.5 Personnel 17 2.3 Shipping agency service at VOSAL 17 2.3.1 Legal basis of shipping agency service at VOSAL 17 2.3.2 Level of shipping agent staffs at VOSAL 17 2.3.3 Procedure of shipping agency service at VOSAL 18 2.4 Business results of shipping agency service at VOSAL 21 2.5 Business efficiency of shipping agency service at VOSAL 27 2.5.1 Gross profit coefficient 27 2.5.2 Profitability ratio 27 2.5.3 Efficiency of cost 28 2.6 Evaluatebusiness efficiency of shipping agency service at VOSAL 29 2.6.1 Strengths 29 2.6.2 Weaknesses 30 2.6.3 Opportunities 30 2.6.4 Threats 31 CHAPTER 3: SOLUTIONS TO IMPROVE BUSINESS EFFICIENCY OF SHIPPING AGENCY SERVICE AT VOSAL 33 3.1 Developing strategies of Vietnam maritime sector 33 3.2 Solutions to improve business efficiency of shipping agency service at VOSAL 35 3.2.1 Solutions to increase the revenue 35 Nguyễn Tuấn Hiệp – GMA02 Page v Recommendation to improve business efficiency of shipping agency service at VOSAL 3.2.2 Solutions to minimize cost 41 3.2.3 Improve recruitment and training activities 41 3.2.4 Improve facilities and high technology application 44 CONCLUSION 45 REFERENCES 46 APPENDICES 47 Formatted: Left Formatted: Space After: 12 pt, Line spacing: Multiple 1.3 li LIST OF ABBREVIATIONS VOSCO: Vietnam Ocean Shipping Joint Stock Company VOSAL: VOSCO Agency and Logistics LTD Company LTD: Limited VINALINES: Vietnam National Shipping Lines UNCTAD: United Nations conference on Trade and Development ISO: International Standard Organization VND: Vietnam dong Dept: Department F/I: Free in Nguyễn Tuấn Hiệp – GMA02 Page vi Recommendation to improve business efficiency of shipping agency service at VOSAL F/O: Free out L/I: Liner in L/O: Liner out D/O: Delivery Order Formatted: Space After: 12 pt, Line spacing: Multiple 1.3 li, Tab stops: 3.15", Left NOR: Notice of readiness Formatted: Space After: 12 pt, Line spacing: Multiple 1.3 li SOF: Statement of Facts B/L: Bill of Lading GT: Gross tone ETA: Estimated time of arrival WTO: World Trade Organization TPP: Trans-Pacific Partnership Nguyễn Tuấn Hiệp – GMA02 Page vii Recommendation to improve business efficiency of shipping agency service at VOSAL focusing on developing multi-modal transportation and logistics service to establish synchronic, continuous and efficient transportation system + Investing and developing fleets which are suitable in structure, modern and able to compete in the international market; focusing on deep ports, transship port and international gateway port in key economic areas; studying and cooperating politics and gateway improvement to satisfy big vessels travelling conveniently and safely + Maximum socialization of investing and developing fleet and ocean transport infrastructure - Purpose and development orientation: By 2020, it must satisfy the need of sea transportation of national economy with high growth rate, ensure high quality, reasonable price and mitigate environmental pollution Developing orientation of port system: + In order to meet the need of development of ocean transportation, economysociety of nation, Vietnam port system plan by 2020, oriented by 2030 needs to be check, update, adjust and supplement with further view Content of orientation of port development plan in the next period, aside from upgrading, 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 competitive ability in investment, port operation with other nations in region and in the world + Concentrating on reform, upgrading waterway to ensure operation condition synchronically and efficiently together with ports; developing 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 arrive/depart port conveniently and enhancing efficiency of port operation Developing orientation of maritime service: + Promoting administrative reform in ocean transportation, especially administrative procedures in ports and registration procedure Nguyễn Tuấn Hiệp – GMA02 Page 35 Recommendation to improve business efficiency of shipping agency service at VOSAL + Developing 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 ports +Synchronically developing logistic infrastructure, maritime security, seeking and rescuing, maritime technological system; to meet the demand of development, and be suitable with requirements of international convention 3.2 RecommendationsSolutions to improve business efficiency of Formatted: Level VOSALsShipping aAgency sService at VOSAL Formatted: Level 3.2.1 RecommendationsSolutions to increase the revenue In order to enhance the business efficiency, increasing revenue should be the target of VOSAL shipping agent Shipping agent itself only contributes around 30% revenue of all VOSAL activities That explains by minor role of shipping agency service in VOSAL, however, a low revenue rate would affect to the competition of VOSAL shipping agent in shipping market Therefore, it is advisory for VOSAL to increase its shipping agent’s revenue, also contributing to higher business efficiency Here are some recommendations for VOSAL: 3.2.1.1 ImprovePerfect the shipping agency procedures Ship’s time in port is the period of time from ship arrival and getting pilot instruction until departure A ship arrival is when it is begun to be performed by the pilot activities even though it enters water zone of the port or not; enters berth or not; gets permission to carry out procedures at the berth or not; completes customs procedure or not As mentioned above, a shipping agent is responsible for arranging vessel arrival and departure at the port in a safest and fastest way Therefore, the less the ship’s time in port is, the higher quality the shipping agent achieves The ship’s time in port is divided into three stages: - Stage 1: The period from pilot meeting until berth entering - Stage 2: The period from berth entering until cargo-handling end Nguyễn Tuấn Hiệp – GMA02 Page 36 Recommendation to improve business efficiency of shipping agency service at VOSAL - Stage 3: The period from cargo-handling end until pilot leaving and departure In general, the ship’s time in port will be reduced if the time of any stage takes the same trend  Methods to reduce the time of stage In order to manage time appropriately in this period, VOSAL agent needs to these tasks well, before vessel arrival 1-3 days: - Notify to vessel’s master the exact coordinates of pilot station and arranges VHF channel 16 picket in 24 hours/day to keep contact and help pilot update time of vessel arrival - The shipping agent, authorized by shipowner, carries out procedures of vessel arrival/departure with the Port Authority Port, under the agreement of Port Authority, establishes plan and prepares berth area for cargo-handling - Under the agreement of Port Authority, the shipping agent sends the Order to the port operation department for berth arrangement, lashing loosen, tugboat support - The agent demands pilot to be ready and keep contact with vessel so as to perform services right after the vessel arrival - After receiving the arrival time, the agent immediately notifies the berth, cargohandling and pilot plan to the vessel representative In order to enhance the service quality, the VOSAL staff has to master the meteorological and hydrological issue, water flow depth, maritime codes, and policies The fluent skills of management, communication, language and the flexibility, accuracy are also highly appreciated in an agent The agent plays the role of an intermediary so he/she is responsible for establishing a good connection and co-operation between involved parties to perform services in a best way Due to the threats of weather conditions (tide, wind, storm, water flow), the arrival time may be unexpectedly inaccurate therefore estimated time of arrival (ETA) is considered the time used in maritime documents In many Northern ports, Nguyễn Tuấn Hiệp – GMA02 Page 37 Recommendation to improve business efficiency of shipping agency service at VOSAL the vessels are allowed to enter ports when the tide rises so the task of an agent depends much on natural conditions An agent staff, therefore, is expected to be hard-working, passionate with his/her job and healthy to work in a high intensity All the ideas above are proposed to reduce the ship’s time in port and waiting time in order to increase business efficiency for all involved parties, especially the shipowner who can save costs in 0.5 to days  Methods to reduce the time of stage After stage 1, the vessel enters the berth and is available for cargo-handling thus the next target is to optimize the cargo-handling procedure In this stage, after the berth coming, the immigration procedure is carried out for vessel staffs, passengers and cargoes and thereafter, the cargo-handling will be implemented This procedure many occur in 30 minutes to hours, depending on the preparation of the vessel staffs and agent If the time is not reduced, it would affect to the cargohandling process because a shift of port workers lasts six hours and they would stop working at the end of the shift VOSAL staff not only performs the immigration procedure but also ensures the readiness of imported cargo and exported cargo at the port At the same time, workers and equipment (gantry crane, forklift, and cab) must be available to perform services Last but not least, the stevedore is also an important step in this procedure Mastering the berth coming and types of cargo would support them to get wellprepared in cargo-handling plan, equipment and worker arrangement to reduce the handling process, increase productivity in vessel release and stevedoring capability  Methods to reduce the time of stage In this stage, the departure procedure of vessel should be carried out rapidly and accurately VOSAL staff, therefore, should master the cargo-handling process and have a good estimation of ending time based on relative factors If the tide falls, it may be risky for the vessel departure so what an agent needs to enhance is to solve problems relating to the procedure In fact, the theoretical procedure of VOSAL agent is now considered optimal to perform and suitable with international law When carrying out, it is advised for Nguyễn Tuấn Hiệp – GMA02 Page 38 Recommendation to improve business efficiency of shipping agency service at VOSAL agent staffs to accumulate knowledge and experience to enhance their skills and productivity, contributing to the general business efficiency It is reality that the waiting time is higher than expected in some cases due to the inexperience of newcomers who may miss out some steps Moreover, the delay in sending documents from partners also contributes to the lower productivity when performing service 3.2.1.2 Enhance marketing activities  General view Thanks to the global economic integration, international trade becomes more popular in Vietnam nowadays Vietnam has been taking great steps in participating international organizations since the milestone of being a member of World Trade Organization (WTO) in 2006 Currently, Vietnam is reaching the final of TransPacific Partnership (TPP) negotiations which would offer numerous opportunities in global trade in the future The increase in the global trade would lead to the same trend in the shipping amount between Vietnam and other countries The shipping agency service, therefore, plays an important role in foreign trade However, the competition would become the challenge for Vietnam companies due to the participation of foreign rivals In order to gain an advantage over others, Vietnam shipping agents, not only improve their quality, but are also demanded to promote marketing activities to foreign shipowner The marketing strategy of the company is proposed based on the awareness of the short-term and long-term development A suitable strategy is what a company needs to adapt it to the market It is a fact that the marketing activity of VOSAL is currently under the expectation and needs more appropriate strategies to enhance In a near future, VOSAL should expand the market, especially through the increase in quantity of customers  Market research activity activity ofof VOSAL shipping agent The shipping market is diversified but mainly based on two types: international market and domestic market Nowadays, the domestic market tends to Nguyễn Tuấn Hiệp – GMA02 Page 39 Recommendation to improve business efficiency of shipping agency service at VOSAL be narrower because many shipowners also take charge of shipping agency services The crews also have lack of professional style and the quality of vessels sharply decrease Conversely, participating in the international market, the agents, not only deep knowledge, but also own high level of language and the capability of tackling problems VOSAL shipping agent is currently performing services for both domestic and international voyages However, the domestic market witnesses a fierce competition between agents meanwhile foreign vessel tends to cooperate with internal agents (Maersk, Evergreen) whose headquarters are located at Vietnam therefore, almost customers of the company come from the parent company, VOSCO In reality, VOSAL market research is not highly appreciated so establishing specific strategies is what the company needs to Market research is to answer these questions: - What are common agency services in the shipping market nowadays? For passenger, dry bulk, container or liquefied cargo? - Which type the company can satisfy? - Which is the potential market? How can the company reach to it?  Evaluate the business capability of the company and set up targets Afterwards, it is necessary to assess the business capability of the company VOSAL needs to evaluate clearly: the role of the company in the market; the advantages, disadvantages of the company following these criteria: price, time and quality; the influence of the company in the market; working capital turnover ratio, interest coverage ratio, net interest margin in business activities; types of company customer Therefrom, VOSAL can establish short-term and long-term strategies to develop shipping agency service A problem at VOSAL in the recent years is the disparity between imported and exported cargo The company is demanded to establish appropriate strategies in attracting exporters The company should also diversify its target market Currently, VOSAL strategy is expanding the traditional market Being a good and credible company, VOSAL expects to open its market, not only company vessel but also other domestic and foreign shipowners in America, Europe Besides, VOSAL should expand its service to new markets It is advisable to research other markets Nguyễn Tuấn Hiệp – GMA02 Page 40 Recommendation to improve business efficiency of shipping agency service at VOSAL such as petroleum, liquefied natural gas and passenger transport to reach into them step by step Last but not least, other extra services are recommended such as flight ticket agent, vessel purchase or consultancy should be considered to in order to increase the revenue  AdvertisementPropaganda and promotion to customers AdvertisementPropaganda is one of the most important factors in marketing In order to deal with the shipowners, VOSAL should present to them information of the company such as history, company capability, business results, essentially: - Advertisement through internet is one of the best ways to spread images of the company to customers Internet is a perfect channel to introduce specifically about the company information as well as good business results to impress them Achievements of the company or the co-operation with big shipping lines in the world are also recommended to introduce sufficiently via internet - VOSAL may open conferences about shipping agency services and related issues and invite shipping lines to participate This aims to improve the image of the company as well as attract customer’s attention Through advertisementpropaganda, strategies of the company can be revealed, especially promotion for company’s customers The promotion plays a key role in the customer’s decision because a service will be more attractive if it offers a reasonable price, besides the high quality However, a discount needs to be considered carefully A high price may pose an obstacle to the customer, however, a low price may whether increase the output or make loss for the company Moreover, the agent fee is under the control of government and applied for all shipping agents so VOSAL should be flexible in price decision 3.2.1.3 Enhance customer service - New customer: New customers should be focused to serve in the beginning of the co-operation They may be the potential and loyal customers of the company in the future so an appropriate approach is what VOSAL needs to deal with them Firstly and importantly, VOSAL needs to consolidate awareness and trust of the customers about the company The company is responsible for offering an appropriate service to the customer A wrong guide may lead to the failure of the co-operation so the agent staff needs to have a good capability of evaluating the customer’s condition to Nguyễn Tuấn Hiệp – GMA02 Page 41 Recommendation to improve business efficiency of shipping agency service at VOSAL make decision If interested, the customers will decide to sign contract and if it satisfies them, a long-term contract is what the company can achieve A good longterm co-operation means the company has a loyal customer - Loyal customer: Loyal customers are who work with the company for a long time Therefore, VOSAL shipping agent should offer policies to encourage the long-term co-operation Discount is an idea to attract the customers however under the control of government about agent fee, VOSAL agent should propose a reasonable and appropriate price or gifts (free of charge) in other services such as vessel supplies, supervision or crew service Formatted: Level 3.2.2 RecommendationsSolutions to minimize cost In term of improving the business efficiency, cost minimization is what a company has to take care Along with increasing revenue, cost may be unexpectedly out of control if VOSAL shipping agent does not have a good consideration in each activity Cost of a shipping agent includes service cost and operation cost Therefore, it is advisable to reduce items in these costs Obviously, perfecting the procedure is also a method to minimize the service cost For instance, any unexpected problem that makes ship’s waiting time increasing may cause loss for the shipping agent Therefore, efficiency of the procedure would depend on the capability of the shipping agent in forecast and solving problem VOSAL agent should carefully consider items when signing the contract with the shipowner, especially relating to issues such as document implementation, weather conditions (tide rise, waterway) in order to actively face any unexpected problems Regarding to operation cost, it tends to be the cost for agent staffs such as salary, bonus and business cost (transportation, phone, and depreciationasset value’s loss) Being a joint stock company, VOSAL pays money for staffs based on his/her productivity and efficiency More contracts an agent gains for the company, more money he/she achieves If he/she performs the service well, the payment would deserve to it Besides, it is necessary for VOSAL to keep balanced in payment budget, not affecting to other investments It also should be cost-saving to transportation (vehicle rent, petroleum), phone, depreciationasset value’s loss which would potentially affect to the company’s budget if going to waste Nguyễn Tuấn Hiệp – GMA02 Page 42 Recommendation to improve business efficiency of shipping agency service at VOSAL Moreover, a good relationship with other maritime objects may help reduce cost for VOSAL For instance, in term of supplies, a long-term co-operation can offer VOSAL reasonable price and high quality service Formatted: Level 3.2.3 Recommendations to iImprove recruitment and training activities 3.2.3.1 Recruitment Actually, the recruitment is one of the most importantvital activities of any company In a market economy, it is considered the key to enhance the quality of service and competitive capability Currently, the shipping sector is observing the increase in quantity of cargo throughputs along with the same trend of the vessels transported Therefore it is obvious that the demand of recruitment is actually significant, especially in sipping agency service In the future, VOSAL is expected to recruit more shipping agency staffs to satisfy the high demand of task It must be conceded that shipping agent and vessel operator are mainly responsible for the whole voyage Each voyage is invested huge money by the shipowner/charterer but the accidents may unexpectedly approachcome anytime Therefore, the support of the agent is very important with the shipowner/ charterer to take a perfect voyage, especially in carrying out procedures with the authorities When a vessel arrive a foreign port, the vessel master needs the direction to carry out the immigration procedure Moreover, the agent is responsible for providing advices to the shipowner to optimize the cargo-handling process at the port VOSAL is now highly appreciating high quality agent staff in knowledge, experience and problem handling The table below illustrates the basic criteria to recruit a shipping agent of VOSAL: TABLE 7: CRITERIA TO RECRUIT A SHIPPING AGENT STAFF AT VOSAL Criteria Level - Degree - Foreign language - Information technology skill Experience Perfect candidate - Vietnam Maritime University (full time degree) - English (TOEIC, IELTS) - Skillful in information technology Formatted: Line spacing: Multiple 1.2 li Acceptable candidate - Vietnam Maritime University, Foreign Trade University (full time) - English (TOEIC, IELTS) - Skillful in information technology Formatted: Line spacing: Multiple 1.2 li Formatted: Line spacing: Multiple 1.2 li Formatted: Line spacing: Multiple 1.2 li years in shipping agency Nguyễn Tuấn Hiệp – GMA02 Formatted Table Page 43 Recommendation to improve business efficiency of shipping agency service at VOSAL Characteristic Others service or years in maritime sector Enthusiastic,energetic, good communication Residing at Haiphong Enthusiastic, energetic and good communication Formatted: Line spacing: Multiple 1.2 li Formatted: Line spacing: Multiple 1.2 li Formatted: Space Before: Auto Formatted: Indent: First line: 0", Space Before: Auto Currently, the labor force of VOSAL come from two main sources: - Internal staffs: Internal staffs are people who have already worked in the company These staffs, after a period of dedication, desire to be promoted to the new vacancies or other positions with more benefits It must be conceded that they are potential candidates due to the experience in maritime sector and significant understanding about the company To recruit a shipping agency staff, staffs from other departments or crews should be the priority Here are the advantages of recruiting internal staffs: - Other candidates: Thanks to the credibility of VOSCO, VOSAL can attract candidates from outside company, especially university graduates Having a good relationship with Vietnam Maritime University, VOSAL annually offers internship for excellent students If performing well, VOSAL will recruit and sign contract with them However, the lack of experience is the most challenged problem with graduates Meanwhile, the number of candidates who have experiences in shipping agency service is still few VOSAL, in the future, is recommended too focus on attracting this type of labor.One of the best method is to pose recruitingment advertisement via internet or newspaper For the applicants, the next step of recruitment is interview or test This purposes to filter candidates to choose the best one However, the candidate has to experience a trial work period and a good performance is what ensures a long-term contract with the company This period usually goes through months After being recruited, a supporter, who is a VOSAL shipping agency staff, would be appointed to helpsupport the new ones integrate with the company tasks including introduction about the company and staffs, missions and goals of the shipping agent; the procedure of VOSAL shipping agency service and relateding issues; governmental tariff, law documents and instruction of using Fax, Telex, VHF, HF, photocopy, internet, e-mail Nguyễn Tuấn Hiệp – GMA02 Page 44 Recommendation to improve business efficiency of shipping agency service at VOSAL 3.2.3.2 Training Training plays an important role in the shipping agency nowadays Due to the technology development, labor force is required to enhance their abilities and skills In shipping agency, training not only supports the agency staff catch up the high technology but also enhance their ability Here are types of training VOSAL should implement for thestaffs: - Training at the office: Staffs can accumulate knowledge during their working time, through the supervision of superior staffs To expand knowledge, the agency staff should be challenged in various positions to adapt himself/herself to the different tasks - Local- Domestic training: VOSAL should organize conferences or short-term course taught by exerts to train staffs Besides, programs about shipping agency service held by other official organizations should be encouraged to participate in by VOSAL agents - Training abroad: Annually, foreign courses should be applied for potential staffs who desire to approach a professional and high quality environment - Other methods: VOSAL should invest money to improve facilities and equipment to satisfy training Foreign documents or professional source are what VOSAL should provide to staffs Formatted: Level 3.2.4 Improve facilities and high technology application In order to perform shipping agency service, the agents are required to own appropriate facilities VOSAL agent’s task is receiving/delivering documents, carrying out procedures for vessels and cargoes therefore high technology application is necessary in the company The indispensable items are fax machine, photocopy machine, computer, network, printer However, due to the depreciationasset value’s loss, VOSAL should frequently maintain and upgrade these equipment to achieve the highest efficiency Specifically, the information technology application plays a vital role in business nowadays A good information technologyinformation technology application would connect steps of the shipping process into a unified system The investment in facilities and high technology would partially contribute to the enhancement of productivity Nguyễn Tuấn Hiệp – GMA02 Page 45 Recommendation to improve business efficiency of shipping agency service at VOSAL CONCLUSION After this dissertation, it is hoped that I provide necessary information about the business activity of VOSAL shipping agent The field trip is actually very helpful for me to understand the whole shipping agency service – from the procedure to the business results in one of the best agents in Haiphong – VOSAL The above analysis demonstrates that despite being a credible and quality agent, there are still several disadvantages which partially influence to agency service here However, being an experienced company, VOSAL is believed to enhance its service quality day by day to raise the competitive capability In addition, realizing the potential opportunity and threats is the key to establish appropriate short-term and long-term strategies Based on this, some suggestions are proposed with the expectation of contributing to the improvement of VOSAL business efficiency Due to the limited time and knowledge, unexpected errors may exist in this dissertation therefore, I feel free to get ideas from teachers to perfect it Nguyễn Tuấn Hiệp – GMA02 Page 46 Formatted: Justified Recommendation to improve business efficiency of shipping agency service at VOSAL REFERENCES Vietnam Maritime Code (2006) Decree 30/2014/ND-CP of Government on Conditions for sea shipping and sea shipping support service business United Nations Conference on Trade and Development 1988 “Minimum standards for shipping agents” International Standard Organization (ISO 9002) VOSCO Retrieved from www.vosco.vn: http://www.vosco.vn/index.php/news/newschil/19/about-us Prime Minister 2009 Master plan for Vietnam shipping development till 2020, orientation to 2030 Nguyễn Tuấn Hiệp – GMA02 Page 47 Recommendation to improve business efficiency of shipping agency service at VOSAL Formatted: Font: (Default) Times New Roman, 16 pt, Bold, No underline, Font color: Text 1, All caps, Expanded by pt APPENDICES Formatted: Level 1 Shipping Agency Contract Formatted: Font: (Default) Times New Roman, 16 pt, Bold Appointment Call Notice of Readiness Order for pilot Letter of authorization Notice of arrival of vessel at the portVessel’s Application Arrival Mate’s receipt Nguyễn Tuấn Hiệp – GMA02 Page 48 Recommendation to improve business efficiency of shipping agency service at VOSAL Original Bill of Lading General Declaration 10 Vessel Security Declaration 11 Dangerous Goods Manifest 12 Crew list 13 Crew Declaration 14 Model of Maritime Declaration of Health 15 Declaration for Plant Quarantine 16 Declaration for Aanimal Qquarantine 17 Ship’s Particular 18 Delivery Order (Shipping Order) 19 Statement of facts 20 Cargo plan 21 Disbursements account Nguyễn Tuấn Hiệp – GMA02 Page 49 ... Font color: Auto Ratio of profit to net revenue = Ratio of profit to cost = Formatted: Centered Page 11 Recommendation to improve business efficiency of shipping agency service at VOSAL the company... shipping agency service at VOSAL 18 2.4 Business results of shipping agency service at VOSAL 21 2.5 Business efficiency of shipping agency service at VOSAL 27 2.5.1 Gross profit... shipping agency service at VOSAL 1917 2.4 Evaluating business results of shipping agency service at VOSAL 2220 2.5 Evaluating business efficiency of shipping agency service at VOSAL 2826