báo cáo tiếng anh thương mại Machinery import activities at Việt NamPhat Co., Ltd Situation and suggestions.doc

báo cáo tiếng anh thương mại Machinery import activities at Việt NamPhat Co., Ltd Situation and suggestions

First and foremost, I sincerely thank teachers of the Faculty ofBusiness English at Foreign Trade University, especially Mrs Nguyen BinhLan for her enthusiastic guidance throughout the writing of this field stydyreport I would also like to express my gratitude to Vinh Nguyen Phatcompany’s staff who have helped me to complete this report.

I am deeply indebted to Mr Nguyen Van Chung and Mr Nguyen VanHoan whose materials, support, stimulating suggestions and encouragementhelped me in all stages of writing this report.

My classmates supported me a great deal and I want to thank them forall their support, cooperation and valuable suggestions.

Finally, I cannot fully express my gratitude to all the people whosedirect and inderect support helped me complete my report in time.

Nowadays, globalization is a general trend Not a single nation can beprosperous with closure policies since international trade plays the key rolein promoting domestic economic integration into the world economy.Moreover, international trade can also help a country develop it comparativeadvantages, taking advantage of potential capital, technology, science andadvanced management skills from outside, as well as maintain and developnational culture, acquiring the quintessence of human culture

Imports help domestic consumers to have a diversity of products atlower prices Also for the entire economy, imports increase the efficiency ofproduction and enable it to concentrate on producing those goods which ithas competitive advantages, increasing labor productivity through importedequipment, technical science, and modern production methods With thetrend to strengthen international cooperation, the Vietnamese governmenthas allowed various business types, including state-owned enterprises, joint-ventures, business cooperation and private sector to participate in import andexport business Therefore, improving the efficiency of import-exportbusiness in general and import business inparticular is extremely important

Like other commercial enterprises, Vinh Nguyen Phat Trading andService Company is also very interested in improving its import businessperformance During her internship at the company, the writer has tried tostudy how the company does business and decided to choose the topic

"Machinery import activities at VNPhat Co., Ltd: Situation and

suggestions" for her field stydy report.

This report was finished with the aim to study the status and ability toperform business activities on international trade of a medium company, to

understand the process of importation and how to use available resources toachieve the highest efficiency The report includes the following sections:

Chapter I: An overview of VNPHAT Co., Ltd

Chapter II: Machinery import activities at VNPHAT Co., Ltd

Chapter III: Sugesstions to improve machinery import activities atVNPHAT Co., Ltd

Because of the short practice time and limited knowledge, this reportshould have some inevitable errors The writer would like to receivecomments from readers in order to improve her report.

CHAPTER I: AN OVERVIEW OF VNPHATCO., LTD:1.1 Establishment and development:

VNPhat Co., Ltd was set up from a store specializing in tradingmechanical equipment in Hanoi After a period of operation, realizing thepotential market for mechanical goods in Vietnam, and the limitations of afamilly business, the store owner decided to set up a limited liabilitycompany called VNPhat Co.,Ltd VNPhat Co., Ltd was officialy establishedin March 2001 with the initial capital of 5,000,000 VND Its headquarterswere then at No 37/4, Phuongmai Road, Hoangmai, Hanoi Arepresentative office was opened at No 21, 152 A Caolo Road, 4 Ward, 8District, Hochiminh City in 2005

In september 2005, VNPhat Co., Ltd was relocated to 30/192 Giapbat,Hoangmai, Hanoi During its operation, the company has tried to expand themarket in Hanoi and Hochiminh city while increasing the ability to graspand manager new markets by opening branches in various provinces Thecompany estiblished a representative office in Hai Phong in 2004.Representative office in Danang - the largest industrial city Center ofVietnam in 2007 March 2008, it opened a branch in Thainguyen – anindustrial city of Vietnam Thus, so far the distribution network of thecompany has expanded across the country.

Initially the company’s major sources of import were from Russia andEastern Europe However it has now transferred to sourcing goods fromTaiwan and China because of their good quality and competitive prices.

With the expanding market, the company has diversified its lines ofbusiness Its initial major business items included hydraulic presses,

broaching machines, compressors, welding machines and lathe Currently,the company's products range from handheld machines for small operationsuch as welding machines, drilling machines, to the machines for productionand business processes of large factories such as drilling machines and two-stone grinding machines.

Experiencing the rises and falls of the country's economy, especiallythe serious economic crisis wordwide in 2007-2008, like other companies,VNPhat co.,Ltd, faces with more and more difficulties but its brand has wonmarket acceptance, customer trust and reputation Futhermore, along withthe efforts of the entire management and employees in the company, VinhNguyen Phat has overcome the difficulties, maintaining growth andexceeding the targets set The company's motto is: "prestige accompaningbrand” Vinh Nguyen Phat brand is developing and will surely grow with thegrowth of the national economy.

Technicaldepartment

1.2.1 Board of Directors

The directors are responsible for general planning and strategicdirection for the entire company; they are also responsible for all activitiesof the company, ensuring profitability, growth and development of the entirecompany, achieving the objectives of the company on sales growth, profit,personnel development and others.

1.2.2 Sales department

The salesforce is responsible for sales, services provision throughdirect transactions with customers in the areas assigned On the basis of theoverall business plan given by the directors each year, the sales departmentwill work out plans and specific methods of implementation, distribution,and revenue goals that each salesperson must complete The salesdepartment must carry out all necessary market activities to win customers(mainly dealers, shops, mechanical plants), to sign contracts, and to takecare of customers, commodity distribution and other related activities

The results of the sales department operation are reported monthly tothe directors, which will be the basis for business planning and import planfor the folowing years.

1.2.3 Marketing department

This deparment’s function is to determine the market demand for eachtype of products in quantity, quality, distribution methods etc Themarketing department's quarterly report on market will be the basis for thedirectors to make plans for importing goods or business plan, and orientationfor the marketing department on market approach accordingly.

The department also implements programs to build and promote thecompany’s brand such as promotion, advertising and customer conferences.For some goods that the company is a sole distributor in Vietnam for a short

time (about 3-5 years), the construction of brand names plays an importantrole in the busines activities of the company.

1.2.4 Accounts department

The duties of this department are to advise the directors on corporatefinance, making sure it is in line with the State policies on business,financing, investment, and management so as to effectively use all sourcesfor business development.

1.2.5 Technical department

The technical deparment is in change of installing machinery andintructing customers on how to operate them, repairing the machines whencustomers request It also organizes professional training, and coordinateswith the sales department to train workers for the implementation ofprojects.

1.2.6 Import department

The import department plays an important role in the search for inputgoods for the company It conducts organized import activities as plannedunder the direct leadership of the directors, such as finding partners, makingcontractual arrangements, implementing contracts etc

1.3 Main business fields and achivements

Vinh Nguyen Phat Trading and Service Limited Company is aprofessional importer of metal processing equipment with over 10-yearexperience in Vietnam’s market With a team of mechanical engineers ofhigh levels and many years of experience working in large factories, who areconstantly updated with technical information and technology through thecooperation with foreign experts, VNPhat Co.,Ltd provides customerswith program packages including: technical advice, equipment selection,technology suitable for technical requirements and capabilities, technology

transfer package, installation instructions, workers training, maintenance andtechnical support.

Items of equipment provided by VNPhat Co., Ltd include: lathe,universal lathe screw, CNC lathes, drilling machines, milling machine, two-stone grinding and surface grinding machines, grinding holes, grindingmachine tools, hydraulic shearing machine, brake machine hydraulic,hydraulic presses, sawmill, welder, air compressor, etc.

During its development, VNPhat Co., Ltd has established solidrelationships with many domestic and foreign partners.

The company’s domestic customers are mainly mechanical plants whoneed to purchase machinery and equipment for their production Thepurchasing power of the mechanical plants in Viet Nam is huge Heavyindustry is growing, so the market for all kinds of electrical machinery andmetal processing is potential Some of its domestic customers are Duyen Hacement plant, Bai Bang Paper Factory, Bach Dang shipyard, Lilama7,Engineering Factory 19-5, Mechanical and Chemical Company 13 Thecompany's foreign partners are mostly manufacturing plants who have donebusiness with the company for a long time, such as ARSENAL Group (EU);Rostselmash, Kamas, Irkut, Mikron (Russia); Annn Yang, China Jiangsu,Nanton Donghai, Shanghai (China); etc.

CHAPTER II: MACHINERY IMPORT ACTIVITIES AT VNPHATCO., LTD

Factors affecting import activities

In fact, there are many factors affecting the import activities ofenterprises and thereby affecting their business performance They can bedivided into two main groups: factors outside the company (objectivefactors), and factors within the company (subjective factors)

Therefore, before conducting import, enterprises must clearlyunderstand international laws and the laws of the exporting countries.

- Fluctuations in the domestic market and international market: likeother types of businesses, import businesses are influenced by inputcommodity markets and output commodity markets However, for

businesses specializing in imports, the input markets are internationalmarkets influenced by the changes happening on the world market Whencommodity prices on the world markets increase, the prices of imports alsoincrease, so do the costs of imported goods This may reduce thecompetitiveness of imported goods on the domestic market, reducingconsumption and thereby reducing business efficienery.

- Fluctuations of exchange rates

The exchange rate is an important factor affecting import prices or thecost of imported products, thus affecting the efficiency of the importbusiness When the exchange rate increases, the cost of one unit of importedgoods increases accordingly and therefore reducing the competitiveness ofthe goods, their consumption and business efficiency Conversely, when theexchange rate falls, the price of one unit of imported goods also declines,and thereby increasing the competitiveness of the products, theirconsumption and business effectiveness.

- Competitors

For a business, competitors include current competitors and potentialcompetitors Enterprises must study the current competitors and potentialcompetitors to find out their strengths and weaknesses so as to look forsuitable orientations, especially suitable marketing programs This will makebusinesses and their goods not be confused with other businesses’, andincrease their competitiveness in the market.

- Other factors

Other factors in domestic and international markets includedemographic factors, culture, traditions, and natural conditions Thesefactors will affect production practices and consumption habits of eachcountry.

Law and business environment are objective factors that individualbusiness cannot change They must comply with them and take steps toadjust their operations, organizational structure in accordance with the rulesin the markets they operate in.

2.1.2: Subjective factors

In contrast to objective factors, subjective factors are those that thebusiness can change, and adjust the level of their impact on their businessactivities They are:

- The size of the business: this is shown in the company’s potentialfinancial resources and annual revenue Businesses specializing in importsmust have strong financial resources

- Human resources: these are reflected in the number of employees,their qualifications and working ability and management level Humanresources are the determining factor in every business The qualificationsand capabilities of human resources must be consistent with the type ofbusiness.

- Target customers: The target customers and the types of goods acompany offers can have effect on the level of price elasticily of demand.For example, when there is inflation or price increases, the demand forcommodities aiming at high incomes group will decrease less than that forlow and middle income groups On the other hand, different target clientswill have different requirements for the same product category, andtherefore, the marketing strategy, and product introduction for each type ofcustomer is different.

2.2 Current situation of machinery import activities at VNPhat Co., Ltd

2.2.1: Main imports

Currently Vinh Nguyen Phat Trading and Service Limited Company specializes in the field of electrical machinery, which has great potential inVietnam's market because we are in the process of industrialization andmodernization Industrial economy is a target we are aiming at.

Machinery import business has generated income for the company.Table 2.1 gives information about import value of its main importedproducts.

Table 2.1: Import value by products

(Source: Import Department)

2.2.2: Main customers

Our country is in the process of industrialization - modernization so industry is developing fast Industrrial enterprises are Vinh NguyenPhat’s customers.

With a country-wide network of distribution agents, Vinh NguyenPhat aims to meet the demand for mechanical machines across the country.The main targeted customers are heavy industry companies, and factoriesoperating in the field of metal processing.

2.2.3: Main suppliers

The company's foreign partners are mostly manufacturing plants withwhich, the company has been doing business for a long time, such as