33 COMPLETING LOGISTICS PROCESS FOR IMPORTING FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY

MINSTRY OF FINANCE ACDEMY OF FINANCE  BUI THI KIEU TRINH Class: CQ53/05.02 GRADUATION THESIS TOPIC: COMPLETING LOGISTICS PROCESS FOR IMPORTING FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY Major : Customs and Foreign Trade Code : 05 Instructor : DR Vu Duy Nguyen Ha Noi– 2019 DECLARATION Bui Thi Kieu Trinh CQ53/05.02 I hereby declare that this thesis is my own work and effort It has not been submitted anywhere for an award Whatever information sources have been used, they have been acknowledged Signature Bui Thi Kieu Trinh ABSTRACTS Bui Thi Kieu Trinh CQ53/05.02 This study investigated the reality of FCL import logistics process at VNLOGS Import-Export Joint Stock Company from the view point of a fourth year student of the faculty customs and trade foreign, the Academy of Finance The paper aims at finding out the drawbacks in the company’s FCL import logistics process and the reasons, and more importantly suggesting the main methods to improve FCL import and export logistics processes in company In achieving these aims, the graduation paper surveys the current situation of the FCL import logistics process and assesses whether it is effective or not From received results, the study argues the most practical implications at VNLOGS Import-Export Joint Stock Company to complete steps in the company's FCL import logistics process next year Bui Thi Kieu Trinh CQ53/05.02 ACKNOWLEDGEMENT I would like to express my deep gratituation to all those who have given me the possibility to complete this graduation thesis In preparing this graduation thesis, I have had generous help and invaluable advices from my teachers, my colleagues, my family and my friends I would like to express my great thanks to all of them First of all, I would like to express my deepest gratituation to my supervisor, Vu Duy Nguyen, lecturer of Academy of Finance, who has given immeasurable help, constant guidance with many careful instructions, comments and valuable advices to me whenever I need Without her support, I am not able to have a complete thesis And I really appreciate her patience in reading and correcting my thesis Secondly, I wish to show my sincerely thanks to all of my teachers at Academy of Finance, who have provide me with worthy lessons throughout years of studying Moreover, I have to thank the staffs of VNLOGS import export joint stock company for their valuable supports during my internship period Without their helps, it would be impossible for me to finish this work Last but not least, I would like to send my loving thanks to my family whose great love and care in both spirit and health encourage me to complete the thesis Bui Thi Kieu Trinh CQ53/05.02 TABLE OF CONTENTS Bui Thi Kieu Trinh CQ53/05.02 LIST OF ABBREVIATIONS A/N Arrival notice B/L Bill of lading CIF Cost, Insurance and Freight CFR Cost and Freight CY Container yard DC Dry container D/O Delivery order FCL Full container load FOB Free On Board FR Flat Rack FWD HC Forwarder High cube HS CODE L/C Harmonized Commodity Descriptions and Coding Systerm Letter of credit OT Open Top Bui Thi Kieu Trinh CQ53/05.02 LIST OF TABLES Bui Thi Kieu Trinh CQ53/05.02 LIST OF CHART Bui Thi Kieu Trinh CQ53/05.02 INTRODUCTION Necessity of the study Any country that wants to survive and grow, its business plays an important role In particular, in the era of economy following the trend of globalization as today, accessing to the world market is an essential thing Foreign trade is a bridge to help exchange goods between domestic enterprises and foreign businesses through trading Import and export activities are among the important activities that have a profound effect on the whole economy and bring significant benefits to each country, especially developing countries like Vietnam In order for export and import activities to take place smoothly and effectively, the import-export process must be carried out logically, scientifically and professionally Along with the continuous development of the economy with the development of technology learning, the process of import and export of goods has been simplified and much easier to implement However, there are still many limitations and barriers in the import and export process In addition, the number of goods is increasing, especially the type of full container loads (FCL), it is necessary to have solutions to improve the import process at logistics companies For the above reasons, I decided to choose the topic: “COMPLETING LOGISTICS PROCESS FOR IMPORTING FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY” Aims of the study and scope of the study 2.1 General objectives Finding out the process for importing logistics FCL at VNLOGS import export joint stock company 2.2 Specific objectives Bui Thi Kieu Trinh CQ53/05.02 Firstly, to systematize the basic arguments about sea logistics import process in VNLOGS Based on that to evaluate the status of the company Secondly, proposing some solutions to improve the financial situation and improve the financial capacity of the company 2.3 The scope of the study - Scope of time: Analyzing data collected about the process for importing logistics FCL at VNLOGS in years from 2016 to 2018 - Scope of study: Researching topic at VNLOGS import-export joint stock company Methods of study Based on knowledge at university, books and self-accumulation and to achieve these above objectives, several methods of studying the thesis are used as follow: Figure collection: Based on the data collected during the observational internship, learn at the departments to make a preliminary assessment of the company's import and export activities Along with the internal data of the company through the financial reports, Income statement, data from departments of VnLogs Import-Export Joint Stock Company in the period 2016- 2018 Descriptive statistics method: As a method of collecting information and data for the purpose of general preliminary assessment of the situation of the company, it helps to make preliminary conclusions for the research topic: assessing the current situation of joint stock companies import and export VNLOGS implements FCL import logistics process through data collected from internal documents in the period 2016-2018 Analysis method: 10 Bui Thi Kieu Trinh CQ53/05.02 The human factor is crucial to the success of the business People are considered central elements in business operations and competitiveness of the company depends on human factors In terms of the company staffs, most of them are young employees, so they always encourage their creativity, giving them an equal working environment to fully express their capabilities Beside the existing reward policies: - For employees with sales exceeding the level of the month, increasing - bonuses by 2-3% of revenue For employees with insufficient sales, there should be policies to encourage employees to well, and have small disciplines to be able to strive for better The company needs to organize company trips, general activities to enhance internal solidarity of the company (Team buiding) Regarding the leadership level, it is necessary to listen to the opinions coming from all levels of staff, which can help the company have a new vision and direction Due to the demand of integration and development of Vietnam's economy in general and of the company in particular, the company should set standards for education, foreign language skills, as well as professional skills Since then, company employees can cultivate and foster their defects, stimulate the development of human resources Modern office equipment makes the remote transaction of the staff convenient and the updating of new regulations and market fluctuations to facilitate the work 3.2.5 Increase capital effectively 77 Bui Thi Kieu Trinh CQ53/05.02 Capital is an important factor to ensure the development and survival of the company To overcome difficulties in capital, the company needs to mobilize and use capital effectively - For capital mobilization: + Mobilizing capital from employees in the company with appropriate interest rates, this can help the company remove the capital bottlenecks, but the question is how to make the workers Believe in the company's ability to pay on time, the company needs to create trust through issuing specific loan regulations +Aslo, priority deduction of profits derived from business activity added to the business capital + Plus, positive relations with foreign partners in order to enlist the credit funds of banks that import sellers seek help arrange company + In case of necessity, it is necessary to take part in entrusted import to take advantage of the capital of import-export service companies or may agree on deferred payment if possible - Effective measures to use capital: + Firstly, strictly abide by the financial management regime and the business accounting regime prescribed by the State + Secondly, calculating the possibility of profit loss, time of capital recovery in business as well as anticipating possible risks to take preventive measures + Thirdly, speeding up the flow of goods so that there is no need to increase the working capital, but the efficiency of use increases + Moreover, selecting a convenient payment method, it must be safe to avoid stagnant capital or pay debts in payment for goods 78 Bui Thi Kieu Trinh CQ53/05.02 + Finally, implementing the regime of material responsibility for the process of capital use, and at the same time, to regularly analyze and evaluate the efficiency of capital use On the basis of effective mobilization and use of capital, the Company will solve difficulties in capital and conduct import business activities more effectively Measures to reduce business costs in general and reduce import costs in particular are an effective measure in improving the efficiency of capital use in import business At that time, the company will have an advantage in sales and the number of sales of the company will increase, leading to increased profits, improving competitiveness In the formula for calculating profits: GROSS PROFIT= GROSS REVENUE- COST We see that if the total cost decreases, the profit of the business will increase in terms of absolute quantity or quantity Regarding to quality, it is an increase in business efficiency, the life of company employees increases In terms of cost reduction, the management of the business and all employees of the enterprise must have a very specific import plan for each stage, for each order, constantly improving and improving the quality of work Avoiding false phenomena during transportation so that no shipping and warehousing costs will result in increased storage and stagnant costs 3.3 Requirements to complete each process of implementing FCL import logistics activities of VNLOGS Import-Export Joint Stock Company Currently, not only for VNLOGS but also for the enterprises that carry out the import process are still very weak Although there are young staff 79 Bui Thi Kieu Trinh CQ53/05.02 with professional qualifications who have basic training but not much experience Therefore, in order to effectively import activities, in addition to improving professional skills for employees,VNLOGS needs to complete import operations more The stages in the process must be clearly and strictly based on the specific scientific research: a Complete the process of finding customers and sign contracts: Market research, understand customer needs to have appropriate access strategies Attracting customers through improving marketing performance, improving service quality, training and guiding employees Since then, the rate of successful contract signing, the company's service has been increased, not only for domestic customers but also for foreign partners Market research: Based on the previous business performance reports, the number of contracts signed so that it can determine who their customers are often, what services they use, their markets, theregion that they often want Based on the results of the report of the local customs, to determine whether Vietnam is strong in the export sector, import for what To see if VNLOGS is strong in the shipping of this goods Information from websites published by research organizations on research results or tools from the internet, specialized journals, Vietnam Association of Logistics services website Refer to the needs of customers through fairs and exhibitions, national and international seminars on import and export forwarding to capture market information Email customers to introduce VNLOGS 80 Bui Thi Kieu Trinh CQ53/05.02 services, let customers know as well as see customer satisfaction with their services Through this information VNLOGS can evaluate and will find customers who are suitable for their services Improve service quality of VNLOGS: Avoiding unnecessary mistakes: prepare well to prepare, need to understand carefully the process of that type of product before making customs procedures for customers, avoiding time and cost Moreover, building satisfaction with customers: with new customers need to consider what customers need, execute customer orders quickly and timely with the customers Creating trust with old customers so they always remember VNLOGS Professionalism: creating a style of service for employees by paying attention to customers, wholeheartedly understanding customers' needs and creating a sense of peace of mind and safety for customers Also, feedback reflects the zeal to help customers quickly fix problems when there are errors or unexpected situations occur Training and development Training and development for new employees, the company should organize training sessions to help employees become familiar with the way of working and company culture Developing job descriptions, guide customs documents, international laws, specify target customers and approach for employees to work effectively Contracting: The drafting of the contract and the signing of import contracts in particular and the foreign trade contract in general are very complicated, requiring that the person directly involved in the drafting of the signing 81 Bui Thi Kieu Trinh CQ53/05.02 contract must have qualifications and knowledge as deep as : business situation, market, national law Furthermore, the content of the contract is very complicated, related to many issues: objects are goods, objects are insurance, transport hire Therefore the rigor of the content of the terms is very necessary set to limit risks that can cause losses to businesses In order to control the profitability of the company, it is recommended to have a book to monitor the signed contract And it is possible that at the same time, the Company performs several contracts, so the documents of the Company need to be numbered according to the business contract or by the time of signing or by a certain order when something goes wrong and convenient for future arrangements Expected results: Market research provides a list of customers who support sales staff and clear target market Attracting better customers thanks to promotion effectiveness, the company's reputation increases as the quality of services increases, making businesses that want to entrust import to seek cooperation Sales staffs understand the business, the target market more thanks to the market information that the company supports Since then, improving the volume of successful contract signing b Complete of the process hire shipping: The hire shipping is based on basic bases: Terms of contract , Selling characteristics, Transport conditions The hire shipping requires professional experience, information on the charter market situation and expertise in hire conditions, good customer relationships so that you can get good prices in favor of the company as well as for its customers 82 Bui Thi Kieu Trinh CQ53/05.02 Expected results: Book with good ship prices is an advantage for VNLOGS, when company ship prices are lower than other service companies, customers will think about using the company service again c Completing the process of customs declaration: Before customs declaration: Firstly, more attention is paid to preparing documents before making customs declarations Before going through customs clearance and delivery with the port, the documents of goods and declarations must be drafted The goal is to help the importer to receive the goods as prescribed By completing the documents and declarations, it will help the company accomplish its goals quickly and effectively Secondly, preparing documents: Check carefully when receiving the documents from customers Prepare fully relevant legal documents and goods voucher forms Go to the monitoring book as a record Moreover, making documents: Check details of relevant documents, lack of department chiefs report and require additional importers (if any) Declare all models on the computer such as contracts, C/I, P/L Print declaration forms and appendices, copy all documents and prepare necessary documents Then send the set of documents to the import and export manager to check and correct if there are errors Send documents to customers to check and seal Finally, limiting errors: because the import and export tariffs are constantly changing, it is necessary to constantly update to avoid customs declaration which takes time and costs Customs declaration: Preparing documents for customs clearance Check the documents: the number of documents, signatures, seals, basic information on the 83 Bui Thi Kieu Trinh CQ53/05.02 declarations, appendices and documents, documents and attached documents Arrange the order Adjust all errors in tax code and translate the wrong name of Vietnamese goods Additionally, opening declaration: Bring documents and identification Follow the procedure and answer all questions of customs related documents, if not answered, report immediately to the your manager for instructions Besides, paying customs fees, pay taxes, make customs clearance cabinets under the guidance of customs departments Receive back the documents attached to the tax notice, check carefully before leaving to avoid affecting the delivery with the port Expected results:Arrangement, preparation of documents before declaring avoid losing documents, or confusing Ensuring fast clearance time for goods Create VNLOGS trust for customers d Completion of the delivery process at the port and delivering goods to importing enterprises: Completion of the delivery process at the port: Preparing the necessary information for delivery and receipt with the port such as a copy of declaration, packing slip, ex-warehousing bill, and cont Contact the shipping and warehousing department of the warehouse Delivery at port: Always presenting at delivery and receipt, tallying, observing goods, monitoring loading and unloading process on means of transport to ensure goods no matter what happens Delivery to importing enterprises: Delivery to importing enterprises: If goods are stored in the ware house: delivery goods to the enterprise warehouse, withdraw goods from 84 Bui Thi Kieu Trinh CQ53/05.02 cont ( if it is cont goods) Before that, the forwarder must notify the warehouse department to arrange the proper arrangement and preservation methods to avoid damage to the goods affecting customers and reputation Moreover, presenting to protect the delivery slip before the goods arrive at the gate Informing to the consignee, performing check, monitoring the delivery and delivery process according to the list of goods Keep a complete record of the goods information in the delivery minutes (3 copies) signed by the recipient and driver Report immediately to your manager if you encounter an unexpected situation, cannot handle it After delivery: the report on the delivery of goods to VNLOGS has been completed and notified to the customer to check the goods Expected results:Minimize compensation when customer goods are damaged by improper storage Bring credibility to VNLOGS e Complete the preparation of documents and request payment of service fees: Gathering all goods documents, delivery documents and original invoices sent to importers requesting payment And back up a copy to make records for archiving and Income Statement of VNLOGS To facilitate the payment, VNLOGS should open accounts in foreign banks with branches around the world, such as HSBC, ANZ bank or linked to foreign banks like VCB, Expected results:The document will not be lost, easily in calculating the profit tthat the company achieved after each completion of the delivery of goods Payment is made easier for both customers and VNLOGS 85 Bui Thi Kieu Trinh CQ53/05.02 86 Bui Thi Kieu Trinh CQ53/05.02 APPENDIX VNLOGS IMPORT EXPORT JOINT financial statements STOCK COMPANY For the fiscal year ended December 31, 2018 NO 8B PHU MINH , CO NHUE WARD, BAC TU LIEM DISTRICT, HA NOI INCOME STATEMENTS Mẫu số 02 - DN For the fiscal year ended December NO: 200/2014/TT-BTC 31, 2018 22/12/2014 CRITERIA Sale revenue and service provision Sale deduction Net sale revenue and service provision Cost of good sold Gross profit Financial income Financial expense Selling expense Administration expense 10 Profit from business activities 11 Other income 2018 VND 25.234.540.04 2017 2016 VND VND 16.076.189.07 19.113.131.746 15.717.00 14.707.643 25.218.823.04 19.098.424.103 16.010.278.33 10.824.292.330 9.208.544.719 8.274.131.773 324.808.45 10.760.17 16.065.428.89 8.824.292.09 7.241.136.802 129.920.08 309.892.88 150.997.020 109.832.21 13.908.189 20.250.20 25.674.000 3.292.037.68 34.090.80 3.664.169.54 5.525.199.943 102.968.23 87 3.559.821.250 4.825.725.354 3.948.936.796 86.790.17 Bui Thi Kieu Trinh CQ53/05.02 12 Other expense 13 Other profit 14 Total profit before tax 15 Cooperate tax cost 97.098.157 18.508.92 15.028.76 17.908.213 84.459.315 79.189.944 71.761.413 5.609.659.258 4.904.915.298 4.020.698.209 1.121.931.85 4.487.727.406 88 804.139.64 980.983.060 16 Defered cooperate tax expense 17 Profit after tax - 3.923.932.238 3.216.558.567 Bui Thi Kieu Trinh CQ53/05.02 CONCUSION In the context of Vietnam's economy is integrating into the world economy, import and export activities are also diversified In order to fully implement foreign trade activities, the forwarders and forwarding business plays a key role Therefore, the delivery service in our country is growing and many logistics companies are set up to serve import and export activities VNLOGS in particular or other forwarding companies in general have contributed to making import and export activities more active, promoting the development economy, meeting the increasing demands of domestic customers as well as foreign And since its establishment, VNLOGS Import-Export Joint Stock Company has also achieved some remarkable achievements, hoping that VNLOGS has more and more progressive steps, so that customers will always remember Vnlogs - The company always keeps the prestige by organizing the implementation of customs procedures quickly and implementing import and export processes by sea and air in a scientific and professional way, more and more sustainable development for future During the internship at Vnlogs Import-Export Joint Stock Company, I have learned a lot of things, directly experienced, directly rubbed with reality compared with the theory and I found that the knowledge equipped in the lecture hall at the Academy of Finance is also an advantage for me in the process of working However, during internship and writing this essay, mistakes are unavoidable, but also logistic activties are many complicated things that take time to learn Therefore, I am looking forward to receiving valuable contribution from the lecturer: Mr Vu Duy Nguyen and other readers 89 Bui Thi Kieu Trinh CQ53/05.02 REFERENCES Vietnamese ducuments: (1) Associate Professor: Nguyen Thi Thuong Huyen (2017),(Chief Author) , " Basic Customs" - Financial Publisher (2) Associate Professor Nguyen Thi Thuong Huyen (Chief author) (2017), “International forwarding and transportation”, Financial Publisher (3) PhDs Nguyen Thi Kim Oanh, PhDs Thai Bui Hai An, PhDs Nguyen Thi Minh Hoa (2018) , "Technical and Professional foreign trade" Financial Publisher (4) M.S Nguyen Thanh Hung (2008), "Curriculum Transport freight forwarders"(5) The Government, Decision 200 / QD-TTg dated February 14, 2017 (6) VNLOGS import export Joint Stock Company, report on business results in 2016 (7) VNLOGS import export Joint Stock Company, report on business results in 2017 (8) VNLOGS import export Joint Stock Company, report on business results in 2018 (9) VNLOGS import export Joint Stock Company, Human Resource Report 2016, 2017, 2018 English documents: (10) Hague Rules (1924), "International Convention for the Unification of Certain Rules of Law relating to Bills of Lading and Protocol of Signature" 90 Bui Thi Kieu Trinh CQ53/05.02 (11) Hague-Visby Rules (1968), " International Convention for the Unification of Certain Rules of Law relating to Bills of Lading" (12) SDR protocol – 1979, Protocol (SDR Protocol) (1979), "Amending the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading of 25 August 1924 (The Hague Rules), as amended by the Protocol of 23 February 1968 (Visby Rules)" (13) Hambuge Rulls (1978), "United Nations Convention on the Carriage of Goods by Sea (Hamburg, 1978) (the "Hamburg Rules")" Website: (14) General Statistics Office website : https://www.gso.gov.vn/Default_en.aspx?tabid=491 91 ... BACKGROUND OF LOGISTICS PROCESS TO IMPORT FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY Chapter 2: CURRENT SITUATION OF LOGISTICS PROCESS FOR IMPORT FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY. .. the status of FCL import logistics process at Vnlogs Import- Export Joint Stock Company, thereby making suggestions and measures to complete improve FCL import logistics process at VNLOGS Import. .. IMPORTING FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY Aims of the study and scope of the study 2.1 General objectives Finding out the process for importing logistics FCL at VNLOGS import export joint