Procedure and status of export activities in Vinhconship

CONTENTS PREFACE Chap 1: INTRODUCTION 1.1 NGHEAN Container Joint Stock Company (Vinhconship) 1.1.1 General information .2 1.1.2 Company’s structure Figure 1.1: Company structure ( updated to January 2014) .4 1.1.3 Business line 1.1.4 Orientation plan .8 1.2 Hanoi Branch 1.2.1 Overview .9 1.2.2 Recent business situation (first six months of 2014) Chap 2: EXPORT ACTUAL SITUATION OF AGRICULTURAL PRODUCTS AT HA NOI BRANCH ( 2010-2014) .11 2.1 Market and product structure 11 2.2 Exporting procedure 14 2.3 Advantages and disadvantages 16 2.3.1 Advantages 16 2.3.2 Disadvantages 17 2.4 Factors affecting export activities .18 2.4.1 Subjective factors 18 2.4.2 Objective factors 18 CONCLUSION .21 REFERENCE 22 NHẬT KÝ THỰC TẬP 23 PREFACE In the process of globalization and economic integration as fast as today's world, import and export operations is an indispensable activity in each country, including Vietnam Besides some key export commodities such as: rice, coffee, crude oil, other agriculture products also play an important role in export in our country Along with the growth of exports, logistic appeared and made a breaktrhrough for transportation Currently, in Vietnam, there are many businesses operating in the field of export ing farm products including the NGHEAN Container Joint Stock Company - a business has many contribution in enhancing exports position and market share in terms of these goods in Vietnam and created a reputation for Vietnam on world markets Recognizing the importance of exports of agriculture products in Co.JSC and after a period of internship in operation service deparment, I came to decision that choosing the topic "Procedure and status of export activities in Vinhconship"for my reporting practice On the ground that limited knowledge, there still contains some unavoidable mistakes, I hope you can review and comment to report more completed I sincerely thank you! Ha Noi, August 2014 Chap 1: INTRODUCTION 1.1 NGHEAN Container Joint Stock Company (Vinhconship) 1.1.1 General information      Company’s name: Nghean Container Joint stock Company Trade name: Nghean Joint stock Company Abbreviation name: VINHCONSHIP Tax code: 2900563898 Head office address: No 249, Le Duan Street, Vinh City, Nghe An Province  Tel: (84-38) 3848 005 – Fax: (84-38) 3848 004  Email: contact@vinhconship.com.vn  Website: www.vinhconship.com.vn  Bank account: at Bank for Foreign Trade of Vietnam (Vietcombank)  General Director: Mr Nguyen Duy Ky  Deputy General Director: Mr Vo Tien Cong Established in 1994 in Vinh city , Nghean Container Joint Stock Company (Vinhconship Nghe An) , with the field of transport operations by road, sea, trading of agricultural and forestry production, import and export , introduces itself as a leading manufacturer and exporter of forestry and agricultural products such as Gum rosin WW grade and X grade, Oleo pine resin, Gum Turpentine oil, Damar Batu resin, Cassia (Cinnamon), Star aniseeds, Black pepper, etc Untill now, with 20-year experience in this field due to their high quality products, large warehouse system, trucks, tractors and a variety of containers along with slogan:” Our first principle is the best quality for the most reasonable price.Vinhconship would like to business with clients who are willing to cooperate with foreign companies for investment and production.”, company have been able to garner a huge number of clients all over the world Aiming to provide the best personal service, the highest quality product and competitive pricing that allows our customers to maximize their profits, company got not only customers’s sympathy but also long-lasting relationships Their main export destinations are Korea, Pakistan ,Philipinese ,India, Laos, China , Singapore and Europe and host of other countries Company business plays an important role in export & transport sector of Viet Nam 1.1.2 Company’s structure Figure 1.1: Company structure ( updated to January 2014) Chairman of the Board and General Manager Deputy General Manager Financial AccountingTransportation Department Business Department Project ManagementThe Board Director of GUM factory Import and Export Sales Department Operation Service Haiphong Representative The Director of Hanoi Branch Financial Accounting Department Operation Service Sales Department Source: http://vinhconship.com.vn/index.php? option=com_content&view=article&id=147&Itemid=104&lang=en 1.1.3 Business line VJC has a processing factory for Gum rosin WW & X Grade from crude Oleo pine resin with capacity of 15,000 tons per year and 5,000 tons of Gum turpentine oil with Alpha pine and Beta pine in 75% - 80% Gum rosin and modified forms (salts and esters) are used in producing papers, varnishes, paints, adhesives, and some soap Modified products with fumaric and maleic acids (or anhydrides) are utilised in manufacturing alkyds Other usages including sizing for paper products, paint dryers, plasticizer in rubber, waterproofing, emulsified oils, dressings for machine belting, enamels used in ceramic manufacture, roofing cement, sealing wax, linoleum, oil cloth, lutes ointments, plasters, veterinary medicines, disinfecting compounds, dry batteries and electrical insulation, production of fungicides, antiskid agents for floors and shoes, violin bows Product Gum Rosin Specification - Appearance Pale Yellow corresponds to the standard glass color piece of rosin - Softening point: 76 Celsius - Acid Number: 166 mg.KOH/g - Ash Content Percent by mass: 0.02 maximum - Alcohol insoluble material: 0.03% maximum - Unsaponifiable matter: 5% maximum - Packing: The goods are packed in new galvanized iron sheet drum with Net - Weight of 230 kilos per drum Gross weight 234 kilos per drum and 100 Gum Turpentine Oil drums stuffing in a 20 feet container - Quantities: 20x20'FCL per month - Color index: Transparent white - Alpha pinene: 60-70-80% minimum - Beta: 3-8-13% minimum - Specific gravity at 15 Celsius: 0.860 – 0.871 - Acid value: 0.695 – 0.7095 mgKOH/g - Refracted value at 20 Celsius: 1.4647 - Packed in galvanized iron drum of about 180 kilos net each and must be kept away from heat and flame Dammar Batu Resin - Dammar Batu Resin grade 1: + White and yellow in color (the best quality grade 1) + Full dry, no dust, big piece + Being packed in new pp bags and one thick plastic inside with 35kilos net weight - Dammar Batu Resin grade 2: + Full dry with white and yellow in color and big piece + Being packed in new pp bags and Tube Cinnamon one thick plastic bag inside - Thickness: 1.6mm minimum - Length: 36-43cm - Oil content: Average 2.0% - Moisture: 13.5% maximum - The straight and good looking shape with natural color - No broken, no mould and no knot shape Maleic Resin Maleic Resin product is mainly used in Paint industry, especially be applied in Polyuria than paint, Nitrocellulose paint, printing ink with the following applications: - Improve shininess, hardness, paint thickness - Anti-discolor - Quick to dry In terms of services, VJC also supplies transport services of im-export cargoes with competent and experienced staffs, up-to-date equipment and trucking lines for container Transport services of im-export cargoes Business in store yard, purchasing Shipping agent, Transportation and selling Maritime of general containers for rent International Broker and cargo, over- with qualified and Freight Logistic agent, Forwarder for transport long and over- experienced staffs im-export goods of containerized and modern heavy cargoes  by sea equipments, equipments and road trucking lines for container 1.1.4 Orientation plan VJC had been 3500m2 land from project 50 years that located on the axis road National Highway 1A (first of the city Vinh) with the front 400m Now it is completing a warehouse with a total area of 2.000m2 Company looks forward to the working with other units you have business needs, land lease, warehouse of us Especially with the front of the advantages it looks forward to the enterprise business oto all kinds can cooperate with them in the display product sales In the near future, it want to broaden business network to gain higher position in the international market 1.2 Hanoi Branch 1.2.1 Overview NGHEAN CONTAINER JOINT STOCK COMPANY - HANOI BRACH is a unit formerly belonging to Vinhconship Group With activities road transport, Marine transport, business of agricultural products, forestry products, Export and import With a large warehouse, truck, Container Tractor loại we are ready to meet all requirements of transport, warehouse o Name of company: Nghean Container Joint stock Company – Hanoi Branch o Abbreviation name: Vinhconship Hanoi o The number of business registration: 0113024586 o Tax code: 2900563898001 o Office address: No 5, 76/5 Alley, Nguyen Chi Thanh Street, Hanoi, Vietnam o Tel: (84-4) 6266 0900 – Fax: (84-4) 6266 0990 o Email: contact@vinhconship.com.vn o Bank account: No 0011002787406 at Bank for Foreign Trade of Vietnam (Vietcombank) o Director: Mr Ha Quang Cuong 13 2.2 Exporting procedure After having ordered and offered, negotiated necessary terms of the agreement and putting them in writing (written contract); company make the essential procedures for making delivery Normally, company delivers the goods to the buyer by sea and it includes the following steps: Step 1: Checking payment (The case of at sight L/C payment method) Company presents the necessary documents to the paying bank (normally a confirming bank); the bank checks the documents If they are in order, the banks pay the full face value of the letter of credit Step 2: Choosing the type of insurance for exporting goods Marine insurance is usually used Today, most marine insurance policies include the Transit Clause which covers the goods from the exporter’s warehouse to the buyer’s warehouse – often with a long stretch overland at each end of the journey Company has an agreement with an insurance company (mostly Baoviet Insurance Corporation) covering all its shipments over a period of time Each individual shipment is covered by a Certificate of Insurance, not by a full policy 14 Step3: Chartering the ship In this step, to book room for loading cargoes, company contacts the carrier and asks them for the train’s schedule (Estimated time of delivery and estimated time of arrival) After that, company emails the buyer to notice of train’s schedule Then, company negotiates for cost as well as freight and confirms the issue with the partner and contemporaneously carries a negotiation about delivery terms Step 4: Preparing for Vietnam customs procedures Following customs procedures when exporting goods in Vietnam is one of the vital aspects of doing business in a country where manufacturing costs are leveraged to its favor Goods for export are subject to customs clearance that checks on the quality, specifications, quantity, and volume of goods Companies exporting goods must submit a customs dossier to authorities that includes the company’s business registration certificate and the certificate of export business code registration The documents to be presented for exporting goods are: bill of lading, certificate of origin, commercial invoice, customs export declaration, packing list and technical standard/health certificate The Vietnam Customs web site says that companies regularly exporting the same goods within a given period, if under the same purchase and sale contract, may use a single customs declaration for carrying out customs procedures This is if the exportation of such goods is within the delivery time determined in the purchase contract 15 Step 5: Delivering goods to the vessel When commodities have been on vessel and left the port, company has responsibility for noticing the buyer to track delivery progress Company has also to prepare documents and send them to partner so that they can receive the goods as schedule Step 6: Checking payment (the case of deferred L/C payment method) In settlement by deferred payment, the letter of credit is not payable Step 7: Settlement of dispute (if any) 2.3 Advantages and disadvantages 2.3.1 Advantages Being set up the company for only 10 years but company has made remarkable achievements in business Export activity of the company is growing and s some strong points as follows:  Export sale department staffs with high qualification All employees have graduated with excellent degree from the economic universities having professional training as foreign trade import and export, Commerce, Economics With each additionally hired employee, the company will conduct training for basic and particular knowledge, help new employees quickly catch up with the work 16  All documents are solved carefully with accurate numbers, any change are quickly done Every papers are checked detailedly before and after delivering goods to ensure that there is no problem  The ingredients are purchased from the reputed vendors, are all quality material  Expansing of the export market to many countries around the world and building a relationship a long-term cooperation with the importer; therefore, orders are permanent and stable  The company has fully exploited the potential customers through exchanges on the B2B e-commerce sites such as alibaba famous Here, not only can the company post product information, but you can also learn models of other companies and business sectors Thanks to the work on ecommerce sites that the company reduce the time and effort searching for potential customers  Exchange activity via company email is considered particularly important All email inquiries, quotations, orders have been answered at least day in order to avoid long waiting, customers can look to other providers Answering customer email template build unified signature section, creates a professional in international business activities  The close collaboration and mobility between departments; especially the production room and Export Trading Room Export sale department regularly exchange information relating to the goods; therefore Sales Department will be surethe about the availability of exported goods as well as the detailed information of company shipments,product orders to plan production 2.3.2 Disadvantages 17  Besides the traditional market, the company has yet to exploit new markets open Specifically export activities remain a priority for the country Singapore, Philippines and India which still has no plans to maintain and expand to other markets 2.4 Factors affecting export activities 2.4.1 Subjective factors 2.4.1.1 Organizational structure and human resources Export activity requires a reasonable staff structure, a decentralized organization and a division of labor that is accordance with the feature of export activity A perfect human resources structure will help to promote export activity as well as business activity and economic efficiency Human resources play a crucial role in the performance, the existence and success of company 2.4.1.2 Capital and technology Capital and technology have a direct impact on the business activities of the company in general and exports in particular activities Capital and technology affect business’s category as well as the scale of business operations of company Capital and technology have a close relationship with each other close If the company has significant financial resources (intensive capital), especially working capital, can buy modern technologies to improve productivity and efficiency in production as well as business activities and vice versa 2.4.2 Objective factors 2.4.2.1 Legal and political factors Export business is an international commercial transaction Therefore, it is directly influenced by political factor, international law as well as the law of each Exporters are required to conform to the law of involved countries, customs and international regulation 18 A stable political environment and strict law not changing frequently, have a big impact on export activity and promote international trade between countries as well as between economic persons in different countries and vice versa 2.4.2.2 Exchange rate The exchange rate between the Vietnamese currency and foreign currencies impacts significantly on export business and it affects the payment options The exchange rate is not fixed sometimes, it changes up and down Therefore, company need to study and predict trends of the exchange rate to make the appropriate decisions for exports such as partner selection and selection of currency for calculation and payment 2.4.2.3 Domestic and foreign market Situation and fluctuation of the domestic and overseas markets, such as price changes, supply and consumption capacity and trends of the market, all affect the export performance Up-and-down changes in price will affect the salability of exports When export prices increase, demand for exports will tend to fall, consumers will turn to use the goods of the same type in domestic market, and then it will affect the operation of the company's export Fluctuations in supply and market size affect the volatility of export prices, which affect the consumption capacity and export activities of the company 2.4.2.4 Infrastructure elements for the sale and purchase of international commodities Infrastructure elements for the sale and purchase of international commodities have a direct impact on exports, such as:  Transportation and port system: if it is a modern system, it will allow to reduce loading time, delivery procedures and ensuring the safety of traded goods 19 Banking system: the more banking system develops, the more  convenient its services bring to international payments as well as capital mobilization  Insurance and quality control system: it allows international trading activities to be done more safely and reducing risk as well as the extent of possible damages to businessmen in the international marketplace 20 CONCLUSION Import and export activities play a crucial role in the economy of a country Catching up with globalization and interaction among countries, international trade becomes more and more universal and irreplaceable As a matter of fact, demand for consumption shows no limitation while factor endowments of a country bear no resemblance Hence, international trade is the utmost suitable and effective measure Through such activities, a country can exploit its own comparative advantages The same goes for Vietnam Admittedly, practice of export and import activities and the theory of international trade well taught in universities still show some mismatch With great eager, I had the short but still worthy internship period and draw out that even brilliantly – equipped knowledge is not enough Practice and experience are essential and paid off later after accumulations However , the knowledge I have already been taught assisted me a lot to deal with assigned tasks in export and import procedures as well as helped me overcome some difficulties in the early part of the period I truly appreciated the great opportunity provided by Foreign Trade University and Vinh Container Joint – stock Company to acquire the whole helpful lot of experience This internship report is written mainly from actual experien so it is inevitable that a number of mistakes still exits due to my own limitation in observation and knowledge I hope to receive any valuable criticism about my report Thank you a lot for your attention! 21 REFERENCE Nghean Container Joint stock Company – Hanoi Branch , 2012- 2013, Accounting Balance Sheet Nghean Container Joint stock Company – Hanoi Branch , 2014, Report for operation result of the first quarter Nghean Container Joint stock Company – Hanoi Branch, 2012-2013, Income Statement Sales Contract No: GUM/1406-007 Website: http://vinhconship.com.vn/ (Nghean Container Joint stock Company,Apparatus of company, http://vinhconship.com.vn/index.php? option=com_content&view=article&id=147&Itemid=104&lang=en , access date: 1/8/2014) Website: http://vinhconship.com.vn/ (Nghean Container Joint stock Company, Product, http://vinhconship.com.vn/index.php? option=com_content&view=category&layout=blog&id=55&Itemid=70&lang =en, access date: 1/8/2014) Website: http://vinhconship.com.vn/ (Nghean Container Joint stock Company, Service, http://vinhconship.com.vn/index.php? option=com_content&view=category&layout=blog&id=63&Itemid=55&lang =en, access date: 1/8/2014) NHẬT KÝ THỰC TẬP 22 Tuần đầu tiên:  Đọc tài liệu, tìm hiểu thơng tin về:  Bộ máy cơng ty: Tổng giám đốc Phó giám đốc Các phòng ban : phòng kế tốn tài chính, phòng kinh doanh vận tải, ban quản lí dự án, phòng kinh doanh xuất nhập khẩu, phòng nghiệp vụ Các chi nhánh: Hải Phòng, Hà Nội Nhà máy Gum  Lĩnh vực hoạt động:  Vận tải logistic  Xuất mặt hàng nông sản  Dịch vụ xuất nhập  Dịch vụ du lịch  Tư vấn nội thất  Tư vấn cầu đường  Tư vấn thiết kế web  Đối tượng khách hàng:  Chủ yếu Philippines Singapore  Còn lại số nước khác với lượng hàng hóa nhỏ : Laos, China, India,…  Các sở đóng hàng: cảng Hải Phòng  Tóm tắt thơng tin viết báo cáo nộp lại cho chị Hòa Tuần thứ 2:  Tìm hiểu logistic:  Logistic gì:  Logistics hiểu q trình hoạch định, thực kiểm sốt lưu thơng tích trữ cách hiệu qủa tối ưu loại hàng hoá, nguyên vật liệu, thành phẩm bán thành phẩm, dịch vụ thông tin kèm từ điểm khởi đầu tới điểm kết thúc nhằm mụch đích tuân theo yêu cầu khách hàng 23  Logistics định nghĩa việc quản lý dòng chung chuyển lưu kho nguyên vật liệu, trình sản xuất, thành phẩm xử lý thông tin liên quan từ nơi xuất xứ đến nơi tiêu thụ cuối theo yêu cầu khách hàng Hiểu cách rộng bao gồm việc thu hồi xử lý rác thải  Logistics trình xây dựng kế hoạch, cung cấp quản lý việc chu chuyển lưu kho có hiệu hàng hố, dịch vụ thơng tin liên quan từ nơi xuất xứ đến nơi tiêu thụ mục tiêu đáp ứng nhu cầu khách hàng (World Marintime Unviersity- Đại học Hàng Hải Thế Giới, D Lambert 1998)  Thực Logistics áp dụng rộng rãi nhiều ngành không Quân từ lâu, hiểu hậu cần, mà áp dụng sản xuất tiêu thụ, giao thông vận tải vv  Các loại container đường biển:  Container khô 20'  Container Cao 20'  Container mở nắp 20'  Flatrack Container 20'  Container lạnh 20'  Container khô 40'  Danh mục cảng: cảng Hải Phòng  Các loại vận đơn: Vận đơn đường biển (Ocean Bill of Lading B/L)  Các chứng từ hải quan:  Sales Contract - 01 Bản Sao y  Commercial Invoice - 01 Bản gốc & 01 Bản y  Packing List – 01 Bản gốc & 01 y  Bill of Lading : 01 gốc ( Nếu toán L/C) 01 (Nếu T/T ) 24  C/O ( Nếu form E form D ) : 01 gốc & 01  Hóa đơn cước biển ( Nếu nhập FOB EXW ) : 01 Bản      y Chúng từ toán ( L/C ; T/T ) : 01 Bản y Giấy giới thiệu : 03 tờ gốc Tờ khai Hải Quan : 01 Bộ gốc Tờ khai trị giá tính thuế : 02 gốc Phụ lục tờ khai Hải Quan (Nếu nhiều mục hàng ) : 01 Bộ gốc  Các giấy tờ liên quan đến giấy phép quan chủ quản  Biểu thuế xuất nhập 2014 (Thông tư 30/2014/TT-BTC ban hành ngày 07/03/2014.)  Chuỗi cung ứng phân phối sản phẩm:  Tóm tắt viết báo cáo nộp cho chị Hòa Tuần thứ 3:  Tìm hiểu xuất hàng hóa:  Các mặt hàng: o Gumrosin o Maleic Resin o Tube Cinnamon o Damar Batu Resin o Gum turpentine oil  Khách hàng tiềm năng:  Khách hàng lâu năm: Philipines, Singapore 25  Tìm kiếm khách hàng tiềm thơng qua website XNK (http://www.moit.gov.vn/vn/chuyen- muc/34/xuat-nhap-khau.aspx,http://unionlogistics.vn, http://www.baohaiquan.vn,http://www.vietnamtradefair.co m/dn/kt_xnk.htm, http://xttm.mard.gov.vn/Site/vi- vn/64/260/15394/Default.aspx, http://www.itpc.gov.vn/exporters/FAQ/2008-0913.188196/view, http://thongquan.com.vn), báo, phương tiện truyền thông đại chúng, …  Các bước quy trình xuất nhập khẩu: o Bước - Gửi Email o Bước - Gửi hàng mẫu o Bước - Đàm phán o Bước - Gặp đối tác o Bước - Ký Hợp đồng o Bước - Mở toán Quốc tế o Bước - Sản xuất o Bước - Vận tải nội địa o Bước - Vận tải Quốc tế o Bước 10: Gửi chứng từ tốn o Bước 11: Nhận tiền  Tóm tắt viết báo cáo nộp cho chị Hòa Tuần thứ 4:  Thực hành:  Viết offer cho khách hàng tiềm năng: “ Hello Mrs Bosworth, Good day to you! Facebook, 26 I'd like to share with you our special product offerings for the month of July We have the following items available on retail at our HA Noi branches: Our Agriculture Products : Gumrosin Maleic Resin Tube Cinnamon Damar Batu Resin Gum turpentine oil The line is exclusively produced bythe best quality for the House of bag collection All the detailed information about goods and services are also included in the attached catalogue Please kindly share his news with your friends and family The product series is perfect for those who want to be enjoy the best quality For more information, please call or email me: Black 0966067882 Black.dili@info.com Thank you very much Truly yours, Black “  Giải đáp thắc mắc khách hàng cung cấp cho khách hàng lựa chọn tối ưu hạn chế rủi ro 27  Khai thác nguồn khách hàng thông qua hệ thống Internet, làm bật ưu điểm công ty để thu hút khách hàng  Tổng hợp kết doanh số đạt cho chị Hòa ... Currently, in Vietnam, there are many businesses operating in the field of export ing farm products including the NGHEAN Container Joint Stock Company - a business has many contribution in enhancing exports... after a period of internship in operation service deparment, I came to decision that choosing the topic "Procedure and status of export activities in Vinhconship" for my reporting practice On... mould and no knot shape Maleic Resin Maleic Resin product is mainly used in Paint industry, especially be applied in Polyuria than paint, Nitrocellulose paint, printing ink with the following applications: