Improving the efficiency of coal importation at vinacomin coal import export joint stock company

NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM - - BACHELOR THESIS MAJOR: INTERNATIONAL BUSINESS MANAGEMENT IMPROVING EFFICENCY OF COAL IMPORTATION AT VINACOMIN JOINT STOCK COMPANY Tran Tuan Kiet HANOI - 2020 NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM - - BACHELOR THESIS IMPROVING EFFICIENCY OF COAL IMPORTATION AT VINACOMIN JOINT STOCK COMPANY Student Major Class Student’s ID Supervisor : Tran Tuan Kiet : International Business Management : International Business Management K58 : 11162633 : Associated Professor, PhD Ta Van Loi HANOI - 2020 ACKNOWLEGEMENT In order to successfully complete this thesis, I would like to express my sincere thanks to the teacher who instructed Dr Ta Van Loi for guiding me enthusiastically during the process of my thesis I would also like to send my sincere thanks to the board of director of Vinacomin Coal Import Export Joint Stock Company and its employees In particular, I would like to thank Mr Dao Xuan Viet, Head of the Coal Import and Export department, for helping me during my internship at the company Thank you sincerely! TABLE OF CONTENTS ACKNOWLEGEMENT STATUTORY DECLARATION LIST OF TABLES LIST OF FIGURES INTRODUCTION .1 Rationale Related literature review Research and objectives ( em ko sửa theo gợi ý, thày sửa bạn tasks and targets rồi? objective khái bên dưới? 3.1 Research goal 3.2 objectives Research object and scopes 4.1 Research object .2 4.2 Scopes Research methodology .3 5.1 Data collection method 5.2 Research methods Research structure CHAPTER 1: THEORETICAL FRAMEWORK OF IMPROVING EFFICIENCY IMPORTATION AT VINACOMIN JOINT STOCK COMPANY 1.1 Overview of import 1.1.1 Concept of import 1.1.2 Characteristics and roles of import 1.1.3 Types of import .6 1.2 Theoretical background of business efficiency and business efficiency of import activities 1.2.1 Conceptual definition of the business efficiency of import activities .7 1.2.2 Business efficiency of import activities classification 1.2.3 Factors influencing the business efficiency of imports 10 1.3 Theorical background on improving the business efficiency of import activities .15 1.3.1 The necessity to improve business efficiency of import activities 15 1.3.2 Measures to enhance the business efficiency of import activities 16 CHAPTER 2: SITUATION OF IMPROVING EFFICIENCY OF COAL IMPORTATION AT VINACOMIN JOINT STOCK COMPANY FROM 2017 TO 2019 21 2.1 Overview of Vinacomin Joint Stock Company 21 2.1.1 Establishment and development 21 2.1.2 Overview of Vinacomin coal import activities .27 2.2 Situation of improving efficiency of coal importation at Vinacomin Joint Stock Company from 2017 to 2019 .31 2.2.1 Situation of coal importation 31 2.2.2 Criteria reflecting the efficiency of coal importation at Vinacomin from 2017 to 2019 41 2.3 Assessment of the situation of improving efficiency of coal importation at Vinacomin Joint Stock Company from 2017 to 2019 44 2.3.1 Highlights .44 2.3.2 Limitations 45 2.3.3 Causes of limitations 46 CHAPTER 3: RECOMMENDATION TO IMPROVE EFFICIENCY OF COAL IMPORTATION ACTIVITIES AT VINACOMIN JOINT STOCK COMPANY 48 3.1 Advantages and disadvantages of improving efficiency of coal importation at Vinacomin 48 3.1.1 Advantages 48 3.1.2 Disadvantages .49 3.2 Goals and Orientations 49 3.3 Solutions and Recommendations to improve efficiency of coal importation at Vinacomin 51 3.3.1 Solutions from Vinacomin 51 3.3.2 Recommendations to the Government 52 ( cân đối? chương có trang, giải pháp không trang mà chuyên đề ? CONCLUSION 54 REFERENCES 55 STATUTORY DECLARATION I herewith formally declare that I myself have written the submitted Bachelor Thesis independently I did not use any outside support except for the quoted literature and other sources mentioned at the end of this paper I clearly marked and separately listed all the literature and all other sources which I employed producing this academic work, either literally or in content Ha Noi, …/ 05/ 2020 Tran Tuan Kiet LIST OF TABLES Table 1.1: Quality standards for coal used in thermal power .35 Table 1.2: Quality standards for coal used in cement plants 36 Table 1.3: Quality standards of coke used for coke production 36 Table 1.4: Some countries and major suppliers supply imported goods to Vinacomin 37 Table 1.5 Import market structure of Vinacomin Import-Export Company 39 Table 1.6: Coal import types structure of Coalimex from 2017 to 2019 40 Table 1.7: Proportion of import formalities in the period 2017-2019 47 Table 1.8 Overall import business performance 48 Table 1.9 Import profit margin of the company from 2017-2019 49 Table 1.10: Efficiency indicators of working capital in the period 2017-2019 50 Table 1.11: Labor productivity of the company in the period of 2017-2019 51 LIST OF FIGURES Figure 1.1: Charter capital structure of Vinacomin 28 Figure 1.2: Organizational chart of Vinacomin Company's governance structure .32 Figure 1.3: Coal importation turnover of Coalimex from 2017 to 2019 41 Figure 1.4: Demand for imported coal products from 2017 to 2019 44 Figure 1.5 Coalimex's market share in three regions in 2018 and 2019 45 INTRODUCTION Rationale The energy industry of Vietnam after 20 years of renovation and development has made remarkable changes through its every step, contributing to building and renewing the country, ensuring fuel resources for manufacturing sectors and consumption sectors In the energy industry, we need to mention the essential fields such as electricity, crude oil, gas, uranium, coal especially among the above areas, we need to pay attention to the coal industry because this is considered as one of Vietnam's strengths when it is ranked 26 th in coal exportation and 23 rd in coal importation in the world Vinacomin coal import-export joint stock company, formerly known as Coalimex, is a company with extensive experience in the field of mineral coal in Vietnam With the constantly growing trend of the economy and also with Vietnam's accession to the World Trade Organization, the company has expanded its business activities in many areas such as coal import and export, importing materials and equipment, exporting labour, offices construction, renting buildings, …but coal importation and exportation is still the number one priority of the company as it contributes 80% of revenue Although the coal importation and exportation sector play an important role for the company, most of the revenue in this field is from Vinacomin's coal exportation, which is understandable given that Vietnam is a country with the 3rd largest coal reserves in the world The company's coal importation efficiency is very limited by many different reasons Facing the difficult situation because of the world economy and the youngness of the domestic economy which is integrating into the world, improving the efficiency of coal importation at Vinacomin is extremely necessary For this reason, when practicing and learning about the business process of the company, I would like to choose the topic "Improving the efficiency of coal importation at Vinacomin coal import-export joint stock company" Through the topic, I would like to offer some solutions and recommendations to help the company import coal more effectively and at the same time help businesses to have an overview and assessment of the status of their imported coal business Related literature review In 2016, the thesis “Improving the efficiency of importing materials at C&T Construction and Trading Joint Stock Company” Ms Nguyen Thanh Thuy analyzed the import activities of at C&T Construction and Trading Joint Stock Company but not in depth In 2011, the thesis “Solutions to improve the efficiency of import and export activities at Phu Mai Fiber Joint Stock Company “Mr Vo Ham Thinh showed some solutions to improve import activities However, Phu Mai Fiber Joint Stock Company is the company operating in the garment industry and the way they import is different with Vinacomin Joint Stock company import In 2012, the thesis “Enhancing business efficiency of Binh Hoa Electronics Joint Stock company” Ms Nguyen Thi Hai Hoa pointed out the organizational structure of the company but it is different from Vinacomin Joint Stock Company In 2015, the thesis “enhancing the efficiency of importing machinery at Mecanimex State-owned Limited Liability Company” Ms Vu Huong Lien provided solutions and recommendations to enhance efficiency of importation but Vinacomin is a Joint stock company which is different from Mecanimex State-owned Limited Liability Company In 2017, the thesis “ Improving efficiency of importing frozen food at Intimex Export-Import Joint Stock Company “Mr Tran Nhat Tan demonstrated the same problem with Vinacomin company but the company size of Intimex Export-Import Joint Stock Company is smaller than Vinacomin company so in my viewpoint I need to make it more accurate with the scale of Vinacomin company Research and objectives 3.1 Research goal The thesis will be focusing on the study of the coal importation performance at Vinacomin, assessing the efficiency of coal importation and therefore proposing solutions to improve efficiency of coal import activities 3.2 objectives Giving statistics on the situation of coal importation of Vinacomin coal import-export company and assessing the status of business efficiency through indicators Through the above criteria and evaluation, propose solutions to improve the efficiency of the company's coal importation and make recommendations to the government Research object and scopes 4.1 Research object Propose solutions to improve efficiency of coal importation at Vinacomin coal import-export company expenses spent, it would earn 0.1868 dong of profits, by 2010 the index dropped to 0.171 and 2019 are 0.144 So clearly here we can see that the business is not operating effectively, the indicators decrease due to the revenue growth rate is less than the cost growth rate, making the business inefficient The reason is that enterprises are applying measures to improve business efficiency is not effective 2.2.2.1.3 Efficient use of working capital This indicator tells us the profitability of working capital is expressed by the profitability of working capital, working capital turnover and working capital - The rate of return on working capital: Indicates how much profit a company spends on working capital Profitability in the years from 2017 to 2019 is unstable and tends to decrease, in 2017, this index is 0.141, meaning that for every working capital that the company spent on import business, it will earn 0.141 This is a very high figure proving that the business is profitable this year, but in the following years 2018 and 2019, this index dropped sharply at 0.114 and 0.071, which proves Enterprises are operating inefficiently and tend to reduce in cost - Working capital turnover: This is an indicator reflecting the management level of the company's import business It shows the number of working capital revolutions during the year to conduct the company's business operations Looking at Table 1.10, we can see that the working capital turnover from 2017 to 2019 of Vinacomin is not large on average at about 3,421, which means that the number of revolutions is the number of days in a cycle is 106, days This is a figure showing that the Company's customers often not pay immediately but on average after 106.7 days of payment, this means that the business will have less capital to invest in other activities that cause poor business performance Table 1.10: Efficiency indicators of working capital in the period 2017-2019 Unit: Million VND No Criteria 2017 2018 2019 Working capital 2.139 2.853 4.231 Total Revenue 9845.27 7456.12 8867.09 Profit 1550.01 1090.1 1279.4 Return of working capital 0,141 0,114 0,071 Working capital turnover 3,589 3,113 3,771 Working capital undertaking level 0,286 0,334 0,291 (Source: Finance and Accounting Department of Vinacomin) 44 - The level of working capital perception: this is the inverse of the working capital cycle It indicates the level of undertaking of working capital in import business This index of enterprises is quite small, which shows that in the process of signing contracts, enterprises use relatively little capital, enterprises often take advantage of the partner's capital by making deferred payment or making a sale to pay the supplier, thereby significantly reducing the amount of capital to improve the efficiency of capital use 2.2.2.1.4 Labor productivity This indicator shows the volume of products produced per capital Table showing labor productivity per capita at Viancomin Company from 2017 to 2019 is unstable The average turnover per capita in the period of 20172019 reached 75.07 million VND, of which the highest in 2017 was 89.05 million VND, the lowest in 2018 was 64.8% Looking at the table 1.11, we see that the profitability of employee in Vinacomin is not high and tends to decrease year by year although the number of employees also increases, indicating that the employment of Vinacomin is still not thorough and ineffective The company needs to take more effective measures to increase labor efficiency to improve the efficiency of its import business Table 1.11: Labor productivity of the company in the period of 2017-2019 N o Criteria 2017 2018 2019 Total Revenue 9845.27 7456.12 8867.09 Profit 1550.01 1090.1 1279.4 Number of labor 110 115 125 profit rate from labor 14.09 9.47 11.32 Average revenue / employee 89.5 64,8 70.94 (Source: Finance and Accounting department of Vinacomin) 2.2.2.2 Qualitative indicators By the above analysis, it can be clearly seen that the efficiency of imported coal business of Vinacomin is not high, it is not yet compatible with the capital that the enterprise currently has Despite being a leading enterprise in the country's coal industry, the import coal business of Vinacomin has not been effective, revenue is not stable and unnecessary expenses are still too much affect the profitability of the business Businesses need to pay attention to this and find remedies to improve the efficiency of their business 2.3 Assessment of the situation of improving efficiency of coal importation at Vinacomin Joint Stock Company from 2017 to 2019 45 2.3.1 Highlights Firstly, the company has made strong changes in business activities after the world economic crisis, the revenue in 2018 dropped sharply to 7456.12 million VND, much lower than in 2017 at 9845.27 million VND and again impressive in 2019 This is a praiseworthy signal that the Company is on the right track and increasingly favorable in its business operations, profits brought a significant contribution to the overall profit of all areas of the company The growth rate of enterprises is also quite stable and has a large growth in 2019, which is worthy and proves that enterprises are investing effectively in the aftermath of the global economic crisis Thanks to the development and progress of the Company, the company's position has changed, the company's market share has been increasingly affirmed in the three regions of the country, accompanied by the cooperation between the Domestic enterprises create strong alliances before major competitors in foreign markets Customers and orders have increased significantly, this is the top priority for businesses as this is the future source of profits for businesses The import markets of Vinacomin have customers with large positions in the market such as Russia, China, Indonesia, and Australia, focusing on developed countries with stable infrastructure systems to ensure the business of Vinacomin is favorable, the supply is strong, this helps Vinacomin to have a stable source of goods, it will be very good if it keeps a long-term relationship Currently, the company has cooperated with over 20 large enterprises in the world, including domestic and foreign enterprises Big partners are now a solid source of supply for the company Coal used in thermal power is currently the best business item accounting for about 50% of the proportion in Vietnam's coal import business, cheap coal source, the demand of the market is large so this is a favorable condition for businesses to conduct business effectively Measures to improve the efficiency of the imported coal business that the company has brought positive results, but there are still many shortcomings 2.3.2 Limitations The business brings average and uneven business performance between years Profits generated between years are uneven As analyzed above, the business performance of the Company plummeted in 2018 to 89%, which adversely affects the revenue and profit of the business The uneven increase in 46 revenue and costs also makes the company's coal trading efficiency not high and needs to be improved The company's labor efficiency is still poor, from 2017 to 2019, the labor efficiency was not high, making the profitability from a worker continuously decreased from 14.09 to 11.32, which is unreasonable when the number of employees increases but the revenue does not increase by affecting labor productivity Enterprises need to take measures to improve business efficiency immediately The number of capital turnover cycles of enterprises is still too large, which affects the capital use demand of enterprises The average capital of enterprises is 3.41, equivalent to 106.6 days, this is a very large number that requires businesses to take corrective measures to improve business efficiency The irrationalities in business activities, the stages of cooperation signing processes are still inadequate and inconsistent, the procedures are still very confusing, especially without the coordination between departments 2.3.3 Causes of limitations 2.3.3.1 Subjective causes The capital of the company is quite small compared to the scale of operation in the field of coal import 48,275,600,000 VND In addition, business in many areas makes it difficult for businesses to gather their capital In addition, it is the competition from other suppliers in the market that makes businesses face difficulties in business This leads to relatively low business performance, profit growth is still not as expected of the Company Although the level of officials and employees in the company is concerned and always has professional training classes, the effectiveness is still not high The management skills are not good yet, there are not the best views about the capacity of officials and employees The level of applying e-commerce is still poor, finding business information, activities, bidding and buying and selling in the market still face many difficulties due to language disagreements and slow communication or due to the capacity of the Company's employees 2.3.3.2 Objective causes The world economy is still facing many difficulties and fluctuations, which significantly affect Vinacomin's business in the field of coal importation and all other commodities in particular The provisions of the law are too ambiguous and difficult to understand, the laws have not been unanimously causing unnecessary misunderstandings from the enterprises, the customs procedures are still complicated, leading to 47 many unexpected costs The direct impact on the business results of enterprises, especially on the issue of time and transportation, is still inadequate and inconsistent The organizational structure of the business is still too small, but there is an ineffective overlap with each department, many departments have the same tasks but there is no department in charge of other jobs A typical example can be mentioned here is that in the organizational structure of the Company there are no departments in charge of sales marketing, the marketing is assigned to each department but especially here is the investment department This creates a disadvantage for businesses because without effective marketing system, enterprises will not be able to clearly grasp the market, which will lead to low business efficiency for enterprises The qualifications of officials and employees are quite limited, although the qualifications of the Company employees are mostly university and postgraduate, but in bidding, the Company is often not appreciated and the ability bid slip up to 30 to 40% This is a very high rate, showing the Company's weak competitiveness with competitors in the same industry when participating in the market, the level of staff needs to be improved so as to grasp the requirements of the market The ever-changing exchange rate also directly affects businesses This factor directly affects the business activities as well as the profits of the business, requiring businesses to always pay attention to conduct business effectively 48 CHAPTER 3: RECOMMENDATION TO IMPROVE EFFICIENCY OF COAL IMPORTATION ACTIVITIES AT VINACOMIN JOINT STOCK COMPANY 3.1 Advantages and disadvantages of improving efficiency of coal importation at Vinacomin 3.1.1 Advantages Joining the WTO provides businesses with many opportunities through administrative reform and legislation to comply with WTO rules to help businesses minimize administrative costs and export procedures, making the goods importation process easier and faster At the same time, the open markets of countries around the world give Vinacomin more choices in sourcing, and selecting partners, ensuring that the Company always achieve high efficiency in business activities In addition, if the business can take advantage of these advantages to expand the market and promote its brand, the Company will have strong and outstanding development steps Simultaneously with the commitment to reduce tariffs when joining WTO, the import tax rate will decrease in the coming years, by 2028 Vietnam will reduce more than 1000 import tariff lines according to the commitment of tax reduction, In which, imported coal also belongs to tax reduction products of this group, which will be reduced to 7.3% in 2028 Due to a large reduction of costs, Vinacomin will improve their competitiveness Not only that, fierce competition in integration will also help businesses increase their competitiveness with rivals in the international market Following the trend of the energy industry and Vietnam's increasing demand for energy, imported coal is the main source of fuel for the thermal power industry, which contributes a major part in energy storage of Vietnam Accompanying that is the supply of this source of coal is at a cheap price, creating good conditions for businesses to make profits in the market Information technology has been and continue to be a very developed field in our country, information technology application help the Company to analyze the situation of the market, capture prices, fluctuations in exchange rates, bank interest rates, and partner information, competitors quickly At the same time, information technology is a solid foundation for development of ecommerce, it is the basis for businesses to find orders, quickly transact between partners and sell goods It is more effective when the Company knows how to 49 apply it in its business Flexible use of e-commerce in business activities will help businesses increase competitiveness in the market 3.1.2 Disadvantages 2018 was a difficult year for the world economy, VND depreciated against other currencies, USD also depreciated, so investing in real estate and stocks allowed the Company to preserve capital and price increases in the volume of assets this year During the recession and global economic crisis, real estate companies also suffered strong impacts due to rising construction costs while the demand for real estate plummeted The real estate freezing situation lasted until the first months of 2019, the projects were not implemented, making the demand for construction materials also significantly reduced The amount of cement, iron and steel has an abundant supply, but the demand is too little, causing difficulties for related companies, especially those that provide burning fuels, such as coal used in cement and steel refining Not only that, this situation still exists until today when the demand for real estate is almost too small compared with the abundant supply from the market, the market of construction materials sluggish, which causes many difficulties in the importation of coal A major difficulty that the Company has encountered is the competitiveness from rival companies both domestically and abroad Up to now, Vietnam has about 250 coal mining enterprises, large and small, most of them rely on self-exploiting and selling their products immediately their supply is limited but the advantage is that the price of the product is quite cheap, in addition to that the price of coal is quite reasonable to meet the needs of industrial plants so this is a formidable competitor for Vinacomin Other foreign coal companies will also be a potential competitor of Vinacomin, Vietnam is a good place for foreign businesses when it is a potential market with lots of opportunities The coal industry is not an exception when there are many businesses from countries with developed coal industry in the world such as Indonesia, China, Russia, these enterprises have modern infrastructure and stable payment, which will be an advantage when competing in the fledgling market of Vietnam According to the cycle, by 2022, Coalimex's estimated output will increase sharply due to domestic demand The Company may import to million tons of coal, this coal import volume will increase steadily in the coming years In 2022, the Company can import up to 40 million tons of coal This proves that 50 Vietnam's coal import demand is increasing while the little capital is added and the weak management mechanism makes this opportunity ineffective and require businesses to take appropriate measures to capture and find ways to improve business efficiency 3.2 Goals and Orientations In order to improve the efficiency of coal importation, Vinacomin ImportExport Company has implemented the following methods: Increasing sales of imported coal: this is the business that necessarily needs to be oriented to improve the efficiency of its business, the company needs to constantly look for domestic business partners, constantly looking for opportunities from the market, capturing the new trend effectively to increase revenue for businesses Reducing the cost of importing coal: Currently, the Company still has high expenses incurred, although this cost has been reduced in three years but still accounts for a significant proportion of the total cost of the company In order to improve business efficiency, businesses need to minimize their own costs and at the same time combine with measures to increase revenue to bring the highest business efficiency Finding a way to make revenue growth larger than cost reduction: In the near future, businesses are looking for ways to operate so that increasing revenues of enterprises are accompanied by reduced importation costs in order to save money and to avoid wasting on unnecessary expenses This is the direction that businesses need to consider appropriately and need special attention because this can be considered as the main method to improve business performance of the Company Vinacomin Import-Export Company is constantly looking for strategic partners with potential sources of supply to ensure an abundant supply, creating good relationships with customers and business partners At the same time, businesses are constantly accepting mining projects in countries with coal mines to increase their supply and export targets to seek profits In addition to current partners in countries with a position to export coal, the Company is actively seeking partners from Central Asian countries, where there is a large but unexploited coal reserve Importing more specific types of coal with a more prominent feature than conventional types of coal and searching for countries with coal resources In addition to common types of coal commonly used, businesses need to constantly research and search for new types of coal with higher quality and 51 features, ensuring technical features and especially requiring low prices to improve the supply of goods and increase the supply to meet market demand and importantly, to improve the business efficiency for enterprises when selling new products with superior features Increasing financial capacity, strengthening strong capital, and promoting other businesses to develop and generate huge revenue to meet the planned projects serving the coal import business In order to have a stable capital, the enterprise has two methods: bank loans and minimizing working capital turnover In these two methods, attention should be paid to the reduction of working capital turnover because this ratio of the Company is still very high, which makes the capital of the Company always lacking when needed Especially when the capital of the company is not large, this will make it difficult for the Company to business in the market Enterprises always have a lot of staff training policies to create a team of technically advanced, quickly capture information from the market, policies to encourage, reward with tourism with the goal to increase the labor productivity of each member of the company These are aimed at increasing the productivity of the company, improving labor productivity to help businesses operate more effectively Implementing the plan to list on the stock exchange successfully, this is also a channel that Vinacomin company aims at because it is a place that can raise capital quickly Vinacomin's stock keeps increasing and is one of the strongest stocks on the stock market 3.3 Solutions and Recommendations to improve efficiency of coal importation at Vinacomin 3.3.1 Solutions from Vinacomin 3.3.1.1 Capital use efficiency enhancement In the process of researching and understanding the demand for imported coal in our country today, it can be seen that the demand for coal energy is increasing in our country's industrial plants In addition, the volume of imported coal will increase dramatically in the following years, it is expected that the import volume is expected to be to million tons by 2022 and 40 million tons by 2022 will increase by 6.5 times This shows that the demand for coal is increasingly needed To be able to these projects, the capital must be certain and stable for payment and import procedures The capital of enterprises is not high, the efficiency of capital use is also at the average level of the years, the ratio of profit to revenue and profit from working capital are not high and tend to decrease from 0.141 to 0.071 through 52 In the survey year, this requires businesses to take measures to overcome this problem The company should increase its charter capital to VND 100 billion to respond to larger orders on the other hand to ensure the money is always enough to handle many orders at once In addition, businesses should also focus on the Central market, increase market share greater than 5% of the company from 2017 to 2019, and also need strategic policies to develop this sector profits for businesses, thereby increasing capital for the company Expand cooperation with banks with strong financial potential both at domestically and abroad so that the company can borrow capital when necessary In 2017 to 2019, the import turnover of the company was quite low, requiring the following years to 2028, the company's goal is to increase the number as well as the contracts, the value brought up to 20 billion The Central market is exploited so the consumption market of the business will increase in the coming years It is expected that the consumption output will reach 20 million tons by 2028, confirming the company's position in the market The increase in the number of imports will increase the company's revenue and profits, along with many import markets that will help stabilize the supply of goods to meet all business needs to help the company create reputation in the market to guarantee supplíe 3.3.1.2 Quality improvement of the company human resource Human resources of the company are quite large, but the quality is still not high, in addition, the number experienced staffs is still small, most of them are young at an average age of 30 years old In the period from 2017 to 2019, the labor efficiency achieved was not high, the profitability of one employee was still quite low, in 2017, the profitability rate for one employee decreased to only 14.09 million / person continuously decreasing until 2019 to 11.32 million / person On the basis of expanding the business scale of the company in the period of 2019-2022, the company needs to add more qualified human resources and constantly send staff to study to improve the productivity of the company Thereby improving business efficiency for the company Enterprises need to recruit employees with good qualifications, from university level upwards with high capacity and practical experience In addition, businesses also need to have appropriate employment incentive policies with high quality labor from the society Create opportunities for employees to take part in courses to improve their professionalism and practicality, and to grasp all the new trends so that they can have an accurate 53 view to making execution decisions Recruiting competent and experienced employees will enable employees to catch up faster with the job assigned by the company, not having to retrain from the beginning will save time training to improve labor productivity The increase in the number of employees will add to the vacancies, thereby reducing the amount of work that an employee must undertake, so the time to perform the job will be faster and more efficient 3.3.2 Recommendations to the Government Completing all import and export tax laws on coal: The import tax policy should be completed based on the integration mechanism of the international economy, at the same time, because it is a specific strategic industry, therefore the coal import tax should always be stable Thus, the Government should not regularly change and amend the laws that have enacted this, which is why the company are quite passive in the business process due to concerns about sudden changes from the Government The strict and unified legal system helps the company to operate more effectively, be more proactive in finding business partners, easy to clear customs, but above all, it is still capable of operating in accordance with the law The current laws of Vietnam are quite overlapping, the laws are contradictory, causing a lot of misunderstandings among businesses, this must be eliminated especially when Vietnam is in the process of integration of the world economy is a time of business cooperation between domestic and foreign enterprises, especially import and export tax laws because it has a direct impact on economic and economic benefits business of each business If these laws are properly amended, it will be a strong step for businesses to rely on and follow Strengthening the management of foreign currencies and exchange rates and interest rates: exchange rates and interest rates of banks are always extremely important factors in the domestic and foreign business operations of all enterprises prices are always high and interest rates at banks are low will create conditions for businesses to enhance business activities in the market, moreover, businesses will tend to invest from abroad, precisely because So the State should have better policies in stabilizing the exchange rate, and the Government should introduce stimulus packages, reduce interest rates for banks to create favorable conditions for businesses In addition, the State needs to attract foreign currency sources, especially the US dollar, to balance the proportion between VND and USD, the exchange rate will benefit the company to increase imports In Vietnam today, the situation of exchange rates and interest rates are still very much aching, this has a significant impact on the 54 business activities of businesses, the interest rate of loans from banks to businesses is always at a level higher than the real interest rate, in addition, the exchange rate between VND and other strong currencies has continuously declined, making investment of businesses increasingly difficult to adversely affect Vietnam's economy Male Therefore, the State needs to constantly further stabilize interest rates and exchange rates so that businesses can have more favorable conditions in the process of doing business Reform of the custom administrative procedures: Customs procedures are always a painful issue in Vietnam today, the cumbersome and complicated procedures cause a lot of difficulties for businesses when conducting import and export The length of time for entry is due to the long wait for the customs officers to clear customs, accompanied by the bureaucracy, the customs staff's responsibility, which are also factors affecting this Because of these reasons, it is necessary that the State should introduce more and more complete and simpler policies to make the goods flow process better, save national resources and at the same time adjust Reasonable for educating ethical qualities of customs officers CONCLUSION Thus, in a growing market economy, every business needs its own directions and decisions for each development direction But the right decision will help the business move forward or the business will slip away from the business trajectory if the wrong decision The issue of improving the business efficiency of enterprises in the field of import is a matter of great concern to the country today because Vietnam is a developing country and is on the way to integrate into the international economy In fact, opening the market helps Vietnam to reach out to the world, but it is also a challenge for Vietnamese businesses Therefore, increasing import-export turnover is a very important issue In the period from 2017 to 2019, Vinacomin Coal Import-Export Joint Stock Company conducted the business of importing coal to meet domestic demand and achieved encouraging success The Company's business performance of imported coal in this period is quite positive It is the impetus for the company to constantly improve its tasks and import skills to improve business efficiency However, apart from the positive results that the company 55 has achieved, there are still many limitations that need to be overcome in order to achieve the goal of improving the business efficiency of the Company It is forecasted that in the following years, there will be many difficulties and challenges for the company, but with the right measures and orientations, the company will overcome difficulties to successfully achieve the set goals Although during the internship, I had a lot of guidance and help from the employees in Vinacomin Import-Export Joint Stock Company but due to limited internship time and limited knowledge about the coal industry and Imported coal, the thesis can not avoid the shortcomings In the future, when I have practical experience in the market, I hope to be able to make more detailed and realistic analysis and offer more insightful solutions 56 REFERENCES I Curriculum Assoc Prof Dr Nguyen Thi Huong (2004), Project management textbook and FDI enterprises - Volume I, Statistical Publishing House, Hanoi Assoc Prof Dr Nguyen Thi Huong, Project Management Curriculum and Foreigninvested Enterprises - FDI Volume II, Statistical Publishing House, Hanoi Assoc Prof Dr Nguyen Thi Huong, International Business Curriculum Volume I, National Economics University Publishing House, Hanoi Assoc Prof Nguyen Thi Huong, International Business Curriculum Volume II, National Economics University, Hanoi II Financial reports of the company Financial reports of Vinacomin Import-Export Company in 2016 Financial reports of Vinacomin Import-Export Company in 2017 Financial reports of Vinacomin Import-Export Company in 2018 Financial reports of Vinacomin Import-Export Company in 2019 III Curriculum 1.Nguyen Thanh Thuy, Topic “Improving the efficiency of importing materials at C&T Construction and Trading Joint Stock Company”, Foreign Trade University, Hanoi, 2016 2.Vo Ham Thinh, Topic “Solutions to improve the efficiency of import and export activities at Phu Mai Fiber Joint Stock Company “, Financial Academy, Hanoi, 2011 3.Nguyen Thi Hai Hoa, Topic “Enhancing business efficiency of Binh Hoa Electronics Joint Stock company”, University of Economics, Ho Chi Minh City, 2012 4.Vu Huong Lien, Topic “enhancing the efficiency of importing machinery at Mecanimex State-owned Limited Liability Company”, Financial Academy, Hanoi, 2015 5.Tran Nhat Tan, Topic “Improving efficiency of importing frozen food at Intimex Export-Import Joint Stock Company “, University of Finance and marketing, Ho Chi Minh City, 2017 IV Articles Vinacomin Joint Stock Company official website: www.vinacomin.com http://vnexpress.net/gl/kinh-doanh/2011/06/lan-dau-tien-viet-nam-nhapkhau-than-cho-nhiet-dien/ 57 http://dantri.com.vn/c76/s76-490301/hap-khau-than-vi-muc-tieu-nangluong-hay-loi-ich-Tap-doan.htm http://cafef.vn/20120126042147438CA51/trung-quoc-vuot-nhat-tro-thanhnha-nhap-khau-than-da-lon-nhat-the-gioi.chn http://kinhdoanhthan.vn/index.php?id=1 http://www.baomoi.com/Xay-dung-nha-may-luyen-than-coke-cong-suat350000-tan/50/2894994.epi http://www.congnghiepmovietbac.com.vn/?main=news&catid=11&id=363 http://vinamin.vn/modules.php?name=Content&op=details&mid=3532 http://www.tinmoi.vn/nganh-than-viet-nam-gap-kho-khan-ve-tieu-thu-sanpham-04857014.html 10 http://www.baomoi.com/Than-dung-cho-nganh-thep-the-gioi-co-the-sut-5do-bao-lut-tai-Uc/50/5547331.epi 58 ... improve efficiency of coal importation at Vinacomin coal import- export company 4.2 Scopes Space: The thesis focuses on research to improve the efficiency of coal importation at Vinacomin coal import- export. .. Situation of improving efficiency of coal importation at Vinacomin Joint Stock Company from 2017 to 2019 2.2.1 Situation of coal importation 2.2.1.1 Marketplace Vinacomin Coal Import Export Joint. .. efficiency of coal importation activities at Vinacomin Joint Stock Company CHAPTER 1: THEORETICAL FRAMEWORK OF IMPROVING EFFICIENCY IMPORTATION AT VINACOMIN JOINT STOCK COMPANY 1.1 Overview of