RECOMMENDATIONS TO IMPROVE FREIGHT FORWARDING PROCESS IN DH LOGISTICS HAI PHONG BRANCH

asd MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: NGUYEN THE MANH DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS TO IMPROVE FREIGHT FORWARDING PROCESS IN DH LOGISTICS - HAI PHONG BRANCH HAI PHONG – 2015 MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: NGUYEN THE MANH CLASS: GMA 02 DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS TO IMPROVE FREIGHT FORWARDING PROCESS IN DH LOGISTICS – HAI PHONG BRANCH Supervisor: Doan Trong Hieu Division: Economics of International Trade Faculty: Economics HAI PHONG – 2015 Recommendations to improve freight forwarding process in DH logistics-HP branch PREFACE In the present age, industrialization and globalization are gradually becoming a trend in all over the world, this thing have been created many potential chances for developing nations including Vietnam in the relationship between nations nowadays, economic becomes the most important factors to be discussed Foreign trade is the way that Vietnam must be focus on since joined the WTO In addition, with the “Trans-Pacific Strategic Economic Partnership Agreement (TPP)” was successfully negotiated in October 2015 between 12 countries including Vietnam that make import and export activities become more vigorous than ever So promote and priorities for the export and import to create a competitive advantage is essential Therefore, forwarding services in Vietnam develop increasingly powerful It has led to companies frequently identify human resources Vietnam Maritime University is a university that resonates in the training human resources in the maritime sector as Maritime economic, navigation So I had the opportunity to study and acquainted about export and import factor During times I study in Vietnam Maritime University, I had a chance to internship at DH Logistics – Haiphong branch, one office of DH Logistics Co.,Ltd in the northern of Vietnam DH Logistics limited company is a company which specialized in road transportation, forwarding process, import and export from Vietnam to other country surrounding area Now, I would like to present my dissertation about recommendations to improve container forwarding services at DH Logistics – Haiphong branch I also want to give my thanks to the general director and all the staff of DH Logistics who allowed me to practice at the company 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 Nguyen The Manh i Nguyen The Manh – GMA 02 Page Recommendations to improve freight forwarding process in DH logistics-HP branch ACKNOWLEGEMENT Firstly, I would like to express my sincere gratitude to my advisor M.S Doan Trong Hieu for the continuous support of my dissertation 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 i Nguyen The Manh – GMA 02 Page Recommendations to improve freight forwarding process in DH logistics-HP branch TABLE OF CONTENTS Preface i Table of Contents ii List of Symbols, Abbreviations iii List of Tables and Graphs iv List of Figures .v INTRODUCTION .1 CHAPTER 1: LITERATURE REVIEW .2 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Freight forwarding services Freight forwarder Forwarder responsibility and rights .2 Forwarder liability Legal basis framework Related documents in freight forwarding services for import and export cargoes FCL and LCL Freight forwarding general process .9 CHAPTER 2: THE SITUATION OF FREIGHT FORWARDING PROCESS IN DH LOGISTICS CO,.LTD – HAI PHONG BRANCH 13 2.1 Introduction about DH logistics – Hai Phong branch 13 2.1.1 Foundation and development of DH Logistics .13 2.1.2 The organization of DH Logistics – Hai Phong Branch 14 2.1.3 Function and scope of work in DH Logistic 16 2.1.4 Business result from 2012 to 2014 19 2.2 The situation of freight forwarding process in DH Logistics Co,.Ltd – Hai Phong Branch 20 2.2.1 For FCL cargoes .21 2.2.2 For LCL cargoes 29 CHAPTER 3: RECOMMENDATIONS TO IMPROVE FREIGHT FORWARDING PROCESS IN DH LOGISTICS CO.,LTD – HAIPHONG BRANCH 35 3.1 SWOT (Strength, weakness, opportunity, threat) 35 3.2 Recommendations .37 3.2.1 Improving advertisement as well as relationships with customers 38 3.2.2 Expanding business network 38 3.2.3 Search and enhance staff quality 39 3.2.4 Expanding in become shipping agents 40 Conclusion 42 i Nguyen The Manh – GMA 02 Page Recommendations to improve freight forwarding process in DH logistics-HP branch Reference / Bibliography 43 i Nguyen The Manh – GMA 02 Page Recommendations to improve freight forwarding process in DH logistics-HP branch LIST OF ABBREVIATIONS FIATA INCOTERMS LCL FCL B/L MB/L HB/L CO D/O NVOCC VNACCS CFS TEU EIR i International Federation of Freight Forwarders Associations International Commercial Terms Less Container Load Full Container Load Bill of Lading Master bill of lading House bill of lading Certificate of Origin Delivery Order Non-Vessel Operating Common Carrier Vietnam Automated Cargo Clearance System Container Freight Station Twenty Equivalent Unit Equipment Interchange Receipt Nguyen The Manh – GMA 02 Page Recommendations to improve freight forwarding process in DH logistics-HP branch LIST OF TABLES TABLE 1.1: Number of import container from 2012 to 2014 in Haiphong branch 19 TABLE 1.2: Number of import container in 2014 of Haiphong branch 20 TABLE 3.1: An overview of logistics in Vietnam 37 i Nguyen The Manh – GMA 02 Page Recommendations to improve freight forwarding process in DH logistics-HP branch LIST OF FIGURES FIGURE 2.1: FCL cargoes export process 21 FIGURE 2.2: FCL cargoes import process 26 FIGURE 2.3: LCL cargoes export process 29 FIGURE 2.4: LCL cargoes import process 32 i Nguyen The Manh – GMA 02 Page Recommendation to improve freight forwarding process in DH logistics-HP branch INTRODUCTION The important of the topic Nowadays, economic integration increased rapidly bring opportunities to enhance exports and imports more than ever With the development of foreign trade, logistics services also expanding in both quality and quantity terms and it plays an important role in the transport of goods In Vietnam, foreign trade play an important role in the development of the economy and it makes the relationships between Vietnam and other nations become closer Understand the important of forwarding services, I would like to choose the topic: “recommendation to improve freight forwarding process in DH Logistics - Haiphong branch” to write in this dissertation Research Structures Introduction Chapter 1: Literature review Chapter 2: the situation of freight forwarding process in DH Logistics Co,.Ltd – Hai Phong branch Chapter 3: Recommendations to improve freight forwarding service in DH Logistics Co.,Ltd – Haiphong branch Conclusions Research Object This research is not only about learning in DH Logistics Co.,LTD – Haiphong branch but also clarifying the cargo forwarding activities, the current status of LCL/FCL cargoes activities at DH Logistics Co.,LTD – Haiphong branch Then point out the strength, weakness, opportunities and threat of the company in their activities, and in the last part is the recommendations for DH Logistics Research Scope-subject Research Subject: recommendation to improve freight forwarding services in DH logistics Co.,LTD - Haiphong branch Research Scope: The reality and current status of freight forwarding services in DH logistics Co.,LTD - Haiphong branch Research Method Analysis: Collecting data in many ways In this research, I use two ways to collect data and evaluate the activities of the company are interviewing company’s staffs and comparisons numbers from annual reports From that, making evaluations and recommendations about company activities • • • ii Interviewing directly company’s staffs Comparisons numbers in a period of years (from 2012 to 2014) Observation from actual cases Nguyen The Manh – GMA 02 Page 10 Recommendation to improve freight forwarding process in DH logistics-HP branch • Diagram Sales department Searching and contacting customer Export customer Export Document DH trucking HP Customer service Prepare document and send to the shipping agent of destination port Customs procedur es Receive shipment from individual shippers Load the shipments into the container Deliver the shipment on board Figure 2.3:LCL cargoes export process • Steps Step 1: Searching and contacting customer This step has been carry out by sale staff ii Prepare list of potential clients Contact clients by phone to introduce service of company Nguyen The Manh – GMA 02 Page 39 finalization and filing Recommendation to improve freight forwarding process in DH logistics-HP branch - Arrange appointment with customer Set up price quotes Step 2: Prepare document and send to the shipping agent of destination port After having a deal with customer, Sale department will send that information to export department, then they contact with customer to get information to make booking list The information that export staff receive from customers are: - - - Type of cargo: Based on the type of goods, quantity of goods that the company will advise customer about the container they should choose Port of departure and port of arrival: This is a decisive factor in freight rates because shipping distance closer, shorter transit times, the lower cost and vice versa Shipping line: Depending on the needs of customers about the port of arrival, the staff will advise customers to choose the services of shipping lines with suitable charges Proposed date of shipment: export staff can find a suitable schedule for customer The documents staff will send a Shipping instruction (SI) to the shipping line and receive the MB/L Then documents staffs send the booking documents of each shippers to forwarding staff Forwarding staff will come to the Port and check the order, then receive booking notes after they finish the storage activity at the same time, the documents staff will make Manifest tables to summary forwarded cargoes and send Manifest table of each customer to the shipping agent at the destination port Step 3: Customs declaration Conduct customs declaration clearance procedures with the following steps: - Document staff will transfer the data to e-customs system VNACCS inspect the goods (the procedure is the same with FCL cargoes) Forwarding staff bring the customs declaration documents to Customs’ office to pay fees, seal the clearance stamp Step 4: Receive cargoes from individual shippers When customer bring cargoes to CFS warehouse: + Forwarding staff have to bring the packing list to the port + Get the storage note + Send the note to the warehouse’s Customs officer + Store the cargoes into the warehouse ii Nguyen The Manh – GMA 02 Page 40 Recommendation to improve freight forwarding process in DH logistics-HP branch When receiving the goods, the forwarding staff have to check the quality and quantity of the cargoes and notes in the receipt Step 5: Load the cargoes into the container Representatives of the Customs offices will check and supervise the loading of each container Forwarding staff will start to packing cargo Stevedore staff of the warehouse will responsible for handling cargoes After finish packing, forwarding staff will report the number and the quantity of the cargo of each shipper to Document staff to make HB/L Step 6: Deliver the shipment on board The port will be notified of time, kinds of goods need to be brought on board before the goods arrive moreover forwarder also must sign a contract with the destination port and gives them list of goods to prepare vehicles and equipment Loading on board will be performed by port’s staff under the supervision of delivery personnel, this process can be controlled by forwarder staff or customs officers if necessary Step 7: finalization and filing Check and reorder documents into one complete set( include debit note) , the staff will return a set to customer and the company also saved one set The staff brings the entire voucher and debit note to settle with clients • b Import cargoes: Diagram Import document Import customer Prepare document s Take Delivery Order (D/O) DH trucking HP Carry out the customs clearance for the import goods ii Nguyen The Manh – GMA 02 Page 41 Customer service Recommendation to improve freight forwarding process in DH logistics-HP branch Exchange D/O for delivery note and pick up goods Deliver the shipment to the importer warehouse finalize accounting Figure 2.4:LCL cargoes import process • Steps Step 1:Prepare documents Importing container by sea, Shipping Lines or shipping agents will submit Arrival Notice to consignee when the ship arrive at the port The Arrival Notice must show the information that associated to company such as name & address, phone number, fax, container number, seal number, Estimated Time of Arrival, bill of lading number, name of ship, voyage… Customer will send sends original bill of lading, letter of recommendation or a power of attorney to the company, arrival notification to import department After receiving all necessary documents, import department staff will register in ecustoms declaration system Step 2: Take Delivery Order DH Logistics staff brings a set of documents(include: Letter of recommendation, Bill of Lading , Arrival Notice, a photocopy of Identity card) to shipping lines office or shipping agent’s office to get Delivery Order The staff should prepay related fees including procedure fee, storage charge, container cleaning fee… ii Nguyen The Manh – GMA 02 Page 42 Recommendation to improve freight forwarding process in DH logistics-HP branch After finishing all procedures, Shipping lines will send back to DH Logistics staff form of D/O with stamp In terms of B/L, the forwarder will keep B/L photocopy form with the stamp of shipping lines, shipping lines will keep the original B/L and B/L photocopy form Steps 3: customs clearance After aggregate all the information of shipment, import department staff will perform e-customs declaration procedure Forwarder registers on e-customs declarations form in ECUS K4 Electronic customs procedure will automatically classify imported cargoes into three lanes: green, yellow, and red lane Then conducting customs clearance Green lane: The forwarding staffs bring declaration with signature and seal to submit to the customs officer to stamp Then the goods is clearance yellow lane: The staffs need to bring set of documents to the customs office, includes: - Letter of introduction Importing customs declaration: originals Value declaration form: originals Delivery Order: 01 original Commercial contract for purchase of goods or equivalent papers: 1copy Commercial invoice: original and copy Manifest: original and copy Bill of lading: 01 copy with the seal of shipping line After submitting all the related documents, Customs Officers will check, if there is any error, the forwarder has to fix or contact clients when checking process is finished, forwarder will receive an approved customs declaration Red lane: The forwarding staffs need to bring a set documents required for inspection, that set of document are the same as yellow lane During this period, the customs officers will check cargoes in the containers The shipment will be clearance if the information on paper is the same with the results of the actual inspection Step 4: Exchange D/O for delivery note and pick up goods The forwarding staff bring D/O to the offices of warehouse, depot or port to exchange the order In here they also have to provide the registration number of the truck used to transport cargoes After submitting D/O and paying costs, they will receive the delivery note ii Nguyen The Manh – GMA 02 Page 43 Recommendation to improve freight forwarding process in DH logistics-HP branch Then, the Forwarding staff bring delivery notes and customs declaration to the customs warehouse (port) to stamp Then driver of the company will come to the warehouse to pick up goods In here they must give to the warehouse’s supervisor delivery notes The supervisor will show the location of the cargoes and staff will check the type and quantity of the cargoes Then they will ask to unload the cargoes and put into the truck When the work are complete, the supervisor will sign in the delivery note After receiving, truck driver will bring cargoes to the warehouse of the importer Step 5: Transport the cargoes to the warehouse of importer When Truck driver transport cargoes to the warehouse of the importer they have to show the customs declaration and proof of delivery of shipment Besides, the importer have to know the actual time that cargoes come to their warehouse Step 6: finalize accounting Finally, customer service staff will send documents and bills to customer to receive money and complete the whole contract ii Nguyen The Manh – GMA 02 Page 44 Recommendation to improve freight forwarding process in DH logistics-HP branch CHAPTER 3: RECOMMENDATIONS TO IMPROVE FREIGHT FORWARDING PROCESS IN DH LOGISTICS CO.,LTD – HAIPHONG BRANCH 3.1 SWOT - Strength: DH Logistics have a dynamic and enthusiastic staffs They always complete the work with high sense of responsibility and professional customer service, contributing greatly to enhance the prestige of branch Quick service, flexible working process, changing according to market demand, ensure the safety and quality of service and limited delays during implementation procedures All of them create the trust and reputation with customers They have extensive relationships with the agencies and related departments and the shipping lines (E Line Asia CO, LTD, UCS / UNICARGO LINES CO, LTD ) This factor has create a better condition for working process and reduce the costs incurred in the process of implementation services DH Logistics – Haiphong branch have the intimate relationship and the trust of customers in Singapore, China because the branch has made efforts during the work; In addition, they have continuously improved processes freight forwarding and incentives for loyal customers Branch also has partners in many freight forwarding market in the region such as WM logistics… Finally, branch have a stable financial resources and growth This factor contributes to the investment of business’s operation Weakness: Sometimes, young workforce become a barrier for DH logistics because they are lack of experiment in handling some problem so that it’s take longer than they expect Besides, the quality of service compared to the foreign logistics company is not as high, so that the competitiveness of DH logistics is quite low This is not only the weakness of DH Logistics but also most of Vietnamese logistics companies In addition, the issue of keeping relationships with customers as well as promoting the image of DH Logistics – Haiphong branch have not really paid attention to At DH Logistics – Haiphong branch office, there are only one sale staff, so that it is impossible to two jobs that promoting the image and keeping good relations with customers Dominate the market mostly the foreign service providers with the ability to compete, network-wide, professionalism, diversity and depth of the services provided such as supply chain management, value-added service, information systems and logistics distribution center while domestic enterprises primarily focused on providing basic services such as transport logistics, forwarding and customs procedures ii Nguyen The Manh – GMA 02 Page 45 Recommendation to improve freight forwarding process in DH logistics-HP branch - - ii Opportunity: Vietnam are increasingly deep integration into the world economy Therefore, the cargoes get in and out Vietnam territory will be increasing dramatically So that, Logistics company such as DH logistics will have more chance to develop First of all, the increases in import and export activities that makes logistics become an important service sector of international trade The commitment to remove tariffs and non-tariff of the FTA brings more opportunities to expand the market for domestic companies So that, demand for logistics services, in both export and import, will rise The establishment of the ASEAN Economic Community General (AEC)in the later of this year will accelerate the circulation of commodities, creating tremendous boost to trade in the region Increased trade will be a driving force for the development of logistics services in the country FTA promises to inspire us to consolidate and further improve the state apparatus towards promoting administrative reform, strengthen accountability, discipline, outline century in many areas related to the economic operator International The Government have many efforts and measures in reform administrative procedures, such as applying typical clearance system automation and OSS countries - System VNACCS / VCIS, so that the business environment have been improving and enhance competitiveness for businesses For the logistics sector, reforms such as reducing the time to import and export procedures for goods, the legal framework for the sector and standardized service processes, supports improving the quality of human resources, and improving and expand infrastructure, system planning warehousing, seaports, airports, as well as the means of transport, will facilitate the development of logistics enterprises With the geographical position, Vietnam has always been considered a potential logistics nation Vietnam has favorable conditions to develop the transport sector with a long coastline, located in the strategic center of Southeast Asia According to the updated report of the Joint Logistics Securities VN Vietnam (VCSC) dated 11.09.2015, the logistics industry is currently growing at a rate of about 20% / year and is expected to maintain the growth at least to 10 years The excitement of the upcoming commercial activities will create a boost to logistics VN may go further, not only as a link between Vietnam and its partners in the world, but also the hub for the flow of goods and the global area Threat: Vietnam integrate into the world economy is also mean that more and more foreign company in many field will come to Vietnam and logistics is one of them Therefore, the market share competitive will be tough as ever Nguyen The Manh – GMA 02 Page 46 Recommendation to improve freight forwarding process in DH logistics-HP branch Evaluation index Contract logistics the level of growth (average) Number of Logistics company Value (%) 4% 20% (2007: 30 billion USD) 2007: 800-900 2012: Over 1000 (40% in HO Chi Minh city) 2014: Vietnam logistics business associations ( VLA) have 296 members Market share of Vietnam logistics 20-30% of all market company Market share of foreign logistics 70-80% of all market company Customers DH Trucking Hai Phong Import Export Accounting Ho Chi Manager Equipment Sales department department Minh service department department office Ha Bac Import Export Accounting Customers HaiNoi Manager Equipment Sales Phong Ninh department department office office office service department department DH Logistics Table 3.1: An overview of logistics in Vietnam(Source: Nomura Research Institute: Viet Nam Logistics Development, Trade Facilitation & the Impact on Poverty Reduction Japan) Even the growth rate of Logistics in Vietnam is 20% per year, however the market share in Vietnam is not balance With more than 70% of market share belongs to foreign logistics company, Vietnamese company have to face many challenges from foreign companies because they not only have better service but also Vietnam signed the treaty also loosened their development barriers in Vietnam In recent years, the world has experienced huge changes That is the conflicts in the political, natural disasters, epidemics, war and terrorism It certain influence on the economy, leading to a decline in the global economy, imports and export business Not only that, the freight forwarding industry is also affected Price of freight forwarding market is quite fluctuations Freight forwarding operations not only affected by international factors but also by unfavorable price It is the sea freight charge and cost of maritime services In the present age, sea freight charge for exports and imports are dominated by foreign shipping lines accounted for 90% market share in transport and they intend to increase freight rates by change extra fee for container 3.2 recommendations 3.2.1 Improving advertisement as well as relationships with customers First of all, Marketing is always play an important role in the development strategy of all company in all kind of business So that, DH Logistics – Haiphong branch should spend more attention in this factor too They can have some activities such as: - Establish, further expanding the relationship with the representative offices and economic organizations of Vietnam in other country ii Nguyen The Manh – GMA 02 Page 47 Recommendation to improve freight forwarding process in DH logistics-HP branch - Regularly maintained good contacts with the trade offices and international organizations of foreigners in Vietnam and Vietnam's overseas to extract information about the commercial contracts and investment purposes mining needs transportation services and logistics In addition, the company's website is also a form of advertising to other businesses Although the company has its own website, but the content on the website is quite general is not really highlighted the existing strengths of the company Through referring from several websites logistics companies in the world, I can see that their website has plenty of information on their cooperation, achieve milestones and orientation in the future So, DH Logistics can learn from these website to improve their website for customers know more about their strengths and potential For example in the website of BDP , DHL… we can see the article about their cooperation, achieve milestones and orientation in the future So that, DH Logistics should provided these information because it’s not only effect to the customer of the company but also effect to the company that is looking to cooperate in Vietnam 3.2.2 Expanding business network - Expanding business network Secondly, in the recent years Vietnam government has been more focus on the development of seaport and transportation services After the 15th party congress, Haiphong government has been create objectives, orientations and tasks primarily developed of Haiphong city in period of five years, from 2015 to 2020 That is:"To promote the potential efficiency advantages, innovative growth model and restructure the economy, improve competitiveness, promote investment, industrialization and modernization, creating rapid growth, breakthrough to build Hai Phong into a service center, large industrial competitiveness; is key marine economic development of the country; education center - training, healthcare and science - technology of the northern coastal region; is an important transport hub of the country, the main gate of the local sea north; material life and spirit of the people constantly improve; an impregnable fortress of defense - security; organized party in clean, strong, strong political system; towards the construction of Hai Phong port city becomes green, civilized, modern” So that DH Logistics should seize this opportunity to develop and expand company to become one of the leading logistics companies in Vietnam With the current development, market expansion in the coming years is inevitable with DH Logistics in general and Hai Phong branch in particular Expanding business means that upgrading equipment such as number of car, container Further, with the construction of the Lach Huyen international port in Hai Phong, the equipment at the branch in this city will be needed more than ever Specifically, it can be upgraded as they did in the past: ii Nguyen The Manh – GMA 02 Page 48 Recommendation to improve freight forwarding process in DH logistics-HP branch - Extending container transportation service: o First step (in years), bought: + 10 tractors made in America + 20 trailers made in Vietnam (Standards: ISO 9001-2008) o The second step (in years) + 20 tractors made in America + 40 trailers made in Vietnam (Standards: ISO 9001-2008) 3.2.3 Search and enhance staff quality Searching workforce Besides, human resources is always be the success key of all kind of business company in the marketplace In addition, government and universities in the city are pushing the issue of teaching logistics in university Therefore, after graduate from university all of the company not only in Haiphong but also in other cities can have a young, dynamic and high quality workforce to improve their activities Because of that, DH Logistics Co.,LTD can connect with universities to offer scholarships or internships for student to advertising about their company and have a stable workforce and better quality Also, this is a way to advertise the company because a graduate student at the university, especially students Maritime university when graduates, they will go to work for companies such as shipping lines, the logistics company or import and export businesses So when the company name is well known from the students, it will also become a choice for all of this companies Adding staff to the company, is the inevitability of the development However, the most lack of human resources in the branch is Sale department, Haiphong branch should add two more employees for that department to be able to ensure that the issues of department are handled better Haiphong branch received more import goods than export goods so that the staffs in Import department is more than Export department But in the near future, with the develop of the company, branch should add or staffs in this department to have a better service Improving the quality of workforce Improved foreign language in all parts: at the moment, the issue of use of foreign languages is a common and very important in the company, especially companies with overseas transactions Therefore, training in English is consistent with the company company employees can use language like English or Chinese but some of them still not really confident about their language skills In addition, with the ii Nguyen The Manh – GMA 02 Page 49 Recommendation to improve freight forwarding process in DH logistics-HP branch agreements Vietnam has signed in the recent years, it will have more cargoes from countries such as China or the country using English come to Vietnam so add one more foreign languages such as Japanese company will benefit greatly We can suggest for to employees of the any department to learn foreign language and then after they graduate they can have more benefits when working in the company such as increase salary Besides, we can have another plan to improve the quality of the staff such as sent to study abroad Singapore is a nation near Vietnam, however their logistics industry develop extremely Company can send some active employees and eager to learn come to this country to learn Or we can have plans to visit, explore and examine to learn in order to improve the quality of service provided to customers under the international standards The fact that, they can learn from the Logistics company that they are acting as agent in Vietnam: WM Logistics expanding in become shipping agents Last but not least, Companies also should expand and diversify the types of transport services Or they can expand joint ventures with foreign logistics companies as they have been carrying out The selection of objects as agent can be based on criteria such as the route, the number and type of vessels they have headquarters in which country Because of the current route DH Logistics are in Singapore and some China cities So that, DH Logistics can become the agent of the shipping lines have route from Vietnam through these nations or large logistics company that have headquarter in these countries Here are some examples: 3.2.4 - - “Yang Ming Marine Transport Corporation (Yang Ming): was established on December 28, 1972 At May of 2015, Yang Ming operates a fleet of 101 vessels with a 6-million-D.W.T / operating capacity 501 thousand TEUS, of which container ships are the mains service force” “Sinotrans Container Lines Co., Ltd (Sinolines) was established in Shanghai on May 28th, 1998 As a specialized subsidiary of Sinotrans&CSC Group ， which is the leading integrated logistics services provider and the large state-owned enterprise, Sinolines is mainly responsible for the centralized operation of the international container transport business of Sinotrans&CSC system Sinolines has kept developing business, set up branches in Dalian, Tianjin, Beijing, Qingdao, Ningbo, Nanjing, Fuzhou, Xiamen and Shenzhen Sinolines services cover almost all the main cities and ports of China to the overseas, including Japan, Korea, Hong Kong ,Taiwan, Australia, Philippines, Singapore, Vietnam and Indonesia” Lach Huyen international port of Hai Phong are starting construction and nearing completion is a significant factor with DH Logistics After operational, international ii Nguyen The Manh – GMA 02 Page 50 Recommendation to improve freight forwarding process in DH logistics-HP branch gateway port in Hai Phong will contribute to exports or imports of the North that go straight to the European market, the Americas (don’t have to via transit port in Singapore, Hong Kong…); contribute to attracting transit goods through Laos Northeast Corridor East - West and South China So DH Logistics can also have a plan to cooperate with the shipping lines of European, this can be very helpful for the development of the company Here are a few examples: M IEx Ac Sa Cu Eq - an po m co le st ui “The CMA CGM pode Group is present in more than 160 countries through its ag rt po ut network of over 655 er agencies, with more than 20,000 employees worldwide de cu rt in pa m pa st de gcu rt er en (4,500 in France).With a young and diversified fleet of 467 vessels, the CMA rt o pa cu st de tsm CGM Group serves 400 of the world's 521 commercial ports Through its rt m o pa en se de 170 shipping lines the company operates on every one of the world's seas Its ts er en m trt rv pa global presence andrticmertsen powerful ships like the CMA CGM BOUGAINVILLE st enable the CMA CGM Group to transport a volume of 12.1 million TEU st een m t en (Twenty Foot Equivalent Unit) each year” t To act as an agent for the shipping lines, logistics company have to show that they have the potential to cooperate Abundant source of cargoes is an important factor to cooperate with the carriers So DH Logistics need to improve their source of stability and based on experience as shipping agents before, they can have chance to cooperate with carriers above ii Nguyen The Manh – GMA 02 Page 51 Recommendation to improve freight forwarding process in DH logistics-HP branch CONCLUSION During the industrialization and modernization as today, transport plays an increasingly important role in international trade The fact that, the strong push to promote maritime industry by government and these treaties, organizations which Vietnam acceded recently has created for maritime transportation businesses in general and logistics companies in particular are great opportunities for development But besides the opportunity it has no easy challenge for these companies Although still faced many difficulties in the development but DH Logistics has grown steadily and with a young and dynamic staffs, they always have a hope that they can grow stronger not only have foothold at national but also in international ii Nguyen The Manh – GMA 02 Page 52 Recommendation to improve freight forwarding process in DH logistics-HP branch Reference / Bibliography Haiphong government 2015 ”Một số thông tin kết Đại hội Đảng thành phố Hải Phòng lần thứ XV, nhiệm kỳ 2015-2020” Octobor 24, 2015 http://haiphong.gov.vn/Portal/Detail.aspx? Organization=ubndtp&MenuID=9895&ContentID=77394 Tuyết Yến.2013 ““Siêu” cảng Lạch Huyện nên hình hài” November 20, 2013 http://vov.vn/kinh-te/sieu-cang-lach-huyen-nen-hinh-hai-293047.vov “Vietnam Commercial Law”, 2005, Article 164 “Vietnam Commercial Law”, 2005, Article 167 Some websites used during research: http://www.sinolines.com/col/col602/index.html http://www.yml.com.tw/About_Us/Group_Profile/Group_Profile.aspx http://www.cma-cgm.com/the-group/about-us/presentation http://lapro.edu.vn/nguyen-tac-giao-nhan-hang-hoa-tai-cang-217.htm http://dhlogistics.com.vn/ ii Nguyen The Manh – GMA 02 Page 53 ... 21 Recommendation to improve freight forwarding process in DH logistics- HP branch CHAPTER 2: THE SITUATION OF FREIGHT FORWARDING PROCESS IN DH LOGISTICS CO,.LTD – HAI PHONG BRANCH 2.1 Foundation... Recommendation to improve freight forwarding process in DH logistics- HP branch ii Nguyen The Manh – GMA 02 Page 26 Recommendation to improve freight forwarding process in DH logistics- HP branch - -... Understand the important of forwarding services, I would like to choose the topic: “recommendation to improve freight forwarding process in DH Logistics - Haiphong branch to write in this dissertation