Solution to promote the export of handicraft items to the US market of thuy anh co , ltd

ACADEMY 0F POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMIC AND FINANCE GRADUATE INTERN REPORT Topic: “ Solutions to enhance handicrah export activity to us market of Thuy Anh Co.,ltd.” Teacher : Phạm Mỹ Hằng Phương Student : Hoàng Thị Mai Oanh Code : 5063106024 Class : 6.1 Hà Nội, June 6/2019 PREFACE To complete this graduation intemship report, I have received enthusiastic guidance and help from teachers in the School of Policy and Development First of all, I would like to thank the teachers who have devotedly taught me during my studies at the School of Policy and Development! I would like to express my deep gratitude to the teachers in the International Training Department, in particular, Ms THS Pham My Hang Phuong has dedicated and supported me so I can tĩnish this graduation thesis At the same time, I would also like to express my sincere thanks to the members of Thuy Anh Co., Ltd for helping me during the internship Thanks to the intemship and instructions of the teacher and the company's staff, I can this final thesis Although I tried to perfect my graduation thesis, due to limited knowledge and experience, I could not avoid errors Therefore, I look forward to receiving comments from teachers Thankyouỉ Hanoi, 20th March, 2019 Student Hoàng Thị Mai Oanh INTRODUCTION Back ground In the process of industrialization and modemization of the country, Vietnam has determined that exports are a breakthrough in economic restructuring, contributing to the successful implementation of the commune economic objectives Assembly Over the past years, exports of handicraft goods have brought great benetĩts not only in economic terms but also in culture and society, contributing to changing the appearance of rural Vietnam Handicraft Products are the crystallization of physical and spiritual labor, it is created by talented hands and creativity of craftsmen with national cultural values from Products Handicraft goods are no longer merely goods but they become cultural Products with high art Some are considered symbols of national cultural traditions Export of handicraft goods has both high economic efficiency and take advantage of available resources, create jobs and stable income for a large number of rural laborers and contribute to preserving and promoting cultural and social values, preserving traditional skills Over the past years, Vietnam has achieved some encouraging results in producing and exporting handicraft goods, gradually building prestige and brand in the intemational market America is an important economic partner of Vietnam in recent years, especially after Vietnam joined the World Trade Organization (WTO) and negotiated the Strategic Economic Partnership Agreement across Thai Binh Ocean Vietnam's export tumover to the us market has continuously increased in recent years In particular, handicraít items are one of VietnanTs key Products exported to the us market Over the past few years, a number of businesses have íồcused on investment in manufacturing handicraíts for export and have achieved some remarkable successes In which, there is a significant contribution of Thuy Anh Co., Ltd America is considered by the company as a potentialmarket However, the export tumover of handicraft Products of the company to the us market is small, not really commensurate with the potential of exporting handicrafts of the company Therefore, I chose the topic: "Solution to promote the export of handicratt items to the us market of Thuy Anh Co., Ltd." as the research topic for my graduation thesis Research objective - Research Question: How are export situations and what are the Solutions to us handicraft market of Thuy Anh Co., Ltd? - General Objectives: The topic of analyzing and evaluating the export of handicraft Products and proposing Solutions to boost the export of handicraft Products of Thuy Anh Co., Ltd Research object - Company: Thuy Anh Co., Ltd - Action: Export Research Scope - Time limited: 2015 - 2018 Research methods - Literature Review - Data Analysis - Descriptive qualitative research Research Structure Extemal Introduction and Conclusion, the topic has been organized into chapters Chapter 1: LITERATURE REVIEW Chapter 2: EXXPORT ACTIVITIES OF THUY ANH co., LTD Chapter 3: EVALUATION AND RECOMMENDATIONS CHAPTER 1: LITERATƯRE REVIEW 1.1Overview of Export and Import 1.1.1 Some definitions > Export definition According to master Troy Segal from Harvard College, the concept of export (updated Apr 14, 2019 on Investopedia) is defined as follows: “Export is a function of intemational trade whereby goods produced in one country are shipped to another country for future sale or trade Exports are a crucial component of a country’s economy, as the sale of such goods adds to the producing nation's gross output” According to the Commercial Law 2005, the concept of export is defined as follows: “Export of goods means that the goods are taken out of the territory of Vietnam or brought into a special area in the territory of Vietnam, it is considered a zone separate customs area in accordance with the law” In this thesis, I understand export in intemational trade is a good or Service produced in one country that is bought by someone in another country Export of goods often requires involvement of customs authorities Exports, along with imports, are a key element in a country’s trade balance as the sale of exported goods increases a nation’s gross output Many countries encourage exports as a way to increase employment, disposable income, and consumer spending Eurthennore, the more Products a country exports, the greater the competitive advantage as it gains expertise in producing goods and Services that foreign countries want to use > Import definition According to master Troy Segal from Harvard College, the concept of export (updated Apr 30, 2019 on Investopedia) is defined as follows: “Import isa good or Service brought into one country from another The word "import" derives from the word "port" since goods are often shipped via boat to tồreign countries Along with exports, imports form the backbone of intemational trade If the value of a country's imports exceeds the value of its exports, the country has a negative balance of trade (BOT), also known as a trade detĩcit” According to the Commercial Law 2005, the concept of import is detĩned as follows: “Import of goods means that the goods are brought into the territory of Vietnam from tồreign countries or from a special area located in the territory of Vietnam which is considered a separate customs area in accordance with the law.” In this thesis, I understand an import is a good brought into a jurisdiction, especially across a national border, from an extemal source The party bringing in the good is called an importer An import in the receiving country is an export from the sending country Imports, along with exports, are a key element in a country’s balance of trade as the lower the value of imports, the more positive the balance of trade in Import Countries that have high import levels face a trade detĩcit, and they need to increase their reserves to pay for the imported goods Furthermore, there are countries, mostly in the under-developed or the developing economies, which rely on imports of basic commodities, such as oil and industrial materials Generally, countries tend to import goods or Services that they cannot produce at the same low cost or with the same efficiency that other countries can Importation and exportation are the defining financial transactions of intemational trade In intemational trade, the importation and exportation of goods are limited by import quotas and mandates from the customs authority The importing and exporting jurisdictions may impose a tariff (tax) on the goods In addition, the importation and exportation of goods are subject to trade agreements between the importing and exporting jurisdictions > Definition of export promotion As Wikipedia, the concept of Trade promotion is detĩned as follows “Trade promotion is an umbrella term for economic policies, development interventions and private initiatives aimed at improving the trade performance of an economic area Such an economic area can include just one country, a region within a country, or a group of countries involved in an economic trade area Specific industries may be targeted Improvement is mainly sought by increasing exports both in absolute terms and relative to imports When specific industries are targeted, trade promotion policies tend to target industries that have a comparative advantage over their tồreign competitors Trade promotion can also include expanding the supply of key inputs in a country's strongest industries, via import expansion If successful, such a tactic would lead to pro-trade biased growth” As an economic policy with the ultimate goal of increasing domestic welfare, trade promotion comprises a large set of policy instruments One notable tactic is the provision of trade intelligence to domestic enterprises in order to reduce transaction costs and provide them with a competitive advantage vis-à-vis tồreign companies Many countries all over the world have set up special agencies, most of them in the public domain, to implement trade promotion policies and provide support Services to domestic enterprises Some intemational organizations provide assistance to so-called developing countries to help them promote their exports, most prominently the International Trade Centre in Geneva, which is a subsidiary of the WorldTrade Organization and the United Nations with a mandate to providing traderelated technical assistance to those countries 1.1.2 Exportforms > Direct export Direct export methods in intemational trade can be done anytime, anywhere Buyers and sellers directly meet (or via correspondence, telegrams ) to agree on goods, prices, transaction conditions, payment methods without going through intermediaries Buyers and sellers are often based in different countries The payment currency may be a foreign currency for either party, the goods are the object of the transaction, being moved across the border of a country Advantages of direct export: - A direct discussion is easy to lead to unity, less misunderstanding - Reduce intermediate costs - Conditions to penetrate the market, promptly receive customers' opinions, overcome shortcomings - Proactive in the process of production and consumption of goods Limitations of direct export operations: - The surprise in the new market - The company is often forced to reduce prices while selling - The volume of goods that need to be traded, must be large to pay expenses such as papers, travel expenses, investigation fees to understand the market > Entrusted export Profit is always the first goal of any business company Profits help tum around Capital, the company continues to ensure the source of goods to maintain customers, improve the working environment and improve the company's income Studies on the us market and competitors in the field of handicraft exports Besides, the profit target will be to improve the country's GDP as well as strengthen diplomatic relations with the us Secondly, it is also very important to maintain a firm place in the export market of handicrafts As a newly established company, this is essential and can be said to be a vital factor for any company The company's management aims to maintain competitive Products with domestic handicraft export companies as well as other companies from countries exporting handicrafts to the market American school Third, the expansion of new markets helps promote the export of handicraft Products of the company This will help the company's Products become more widely known Sometimes, maintaining relationships with longterm partners will help the company get new partners in the future Finally, it is the quality assurance and safety in exporting handicrafts and is ready to perform any contract with any delivery facility conditions in the Incoterm 2000 and 2010 The number of employees in the company is small, but with a view from the management that the company is capable of fulfilling all the requirements of delivery This can cause a lot of company revenue to change, especially for Group F delivery conditions 3.5.2 Orientation to promote export of handicraft Products to the us market until 2021 Enterprises exporting handicrafts of Vietnam are all oriented to the us market - the largest import market in the world Therefore, the export of handicraft Products to the us market has been explored and prepared, the company has also experienced in exporting this item It can be said that the company does not face any big difficulties affecting the export of handicraft goods to the us market However, competition is indispensable for any business The company has many customers familiar with regular orders For these customers, they often not like the change in partners and suppliers, so thecompany must make positive efforts to improve the quality of Products and Services to support customers positive, increasingly perfect, bringing long-term cooperation relationship In addition, the us market is a potential market for the company during the market economy today, with the advent of more and more import-export companies in the íĩeld of exporting handicratìs That will increase the competitiveness between export companies Therefore, the company's current goal is to increase export tumover to this market to minimize the risk of price competition from the us market The company proceeds to reallocate resources, focus on marketing activities and ensure the quality of exports in accordance with increasingly strict import standards of the us market 3.6Some Solutions to promote the export of handicraft items to the us market ofThuy Anh Co., Ltd 3.6.1 Solutions for company Enterprises should actively seek new export markets, especially Asian countries As analyzed above, the Asian market, especially countries with a distance not far from Vietnam, has become attractive markets for handicratt production and export enterprises’ technology This is clearly reílected in Vietnam's export tĩgures > Marketing Export marketing Solutions are market research and application of product strategies, prices, distribution channels and export support Previously, Thuy Anh Co., Ltd always applied to export goods separately However, to achieve high export efficiency in the us market, the company needs to apply this method meticulously and have specitĩc plans The company needs to improve the efficiency of USA market research In order to this well, the company needs a thorough research investment,effectively penetrating the market In addition, the company needs to synthesize news to provide business orientation and make a right and timely decision Document research is a popular market research method that is currently being used by many companies Although the method has high reliability, it is not expensive and suitable for Thuy Anh Co., Ltd The company can transfer research through modern methods such as research through the Internet, trade promotion organizations or Vietnam Chamber of Commerce and Industry To improve the efficiency of exporting handicraít Products to the us market, Thuy Anh Co., Ltd should pay more attention: • Determining the íồrecast of the demand for handicrt goods of the us market, making speciíĩc plans with unexpected changes • Identiíỷ potential handicrts that us partners need to import through statistical data and íồrecasts, customer surveys, sample Products, • Determine the desires of the us market for our country's handicraít Products in terms of designs, designs, standards and quality, to meet the needs of the us market in a timely manner • Quickly discover new tastes of the us market to promptly produce and respond promptly • Pay attention to the terms of the Vietnam Agreements signed with the us Besides, Thuy Anh Co., Ltd also needs to assess the íluctuation of demand for handicraíts and agents directly affecting that íluctuation to have appropriate export strategies 8 Actively participate in the association of Vietnamese handicraít exports (VIETCRAFT) Vietnam Handicraít Export Association was established on April 2, 2007 At the moment, the association has more than 1000 members As a member of the association, the company will receive many beneíĩts as follows:Vietcraft helps businesses in promoting trade promotion activities The association has supported businesses to participate in many major handicratt fairs in the world over the years Therefore, Thuy Anh Co., Ltd can collect enough information to build its own strategy • Vietcraft Executive Board has built a new product showroom to develop design designs to support handicraft exporters Experts will support businesses in designing their Products • Vietcraft has programs to survey raw materials for export handicratt Products of rattan, bamboo and rattan enterprises, etc to assess the quantity and propose the Govemment's support This is benetĩcial for new companies like Thuy Anh Co., Ltd extremely Besides, Exporters should also coordinate with associations and craít villages to promote connections between artists and artists In particular, in order to increase the ability to connect and spread Products to countries around the world, businesses can join the existing connection programs, typically, the New for Old program of the British Council This program is implemented in Southeast Asian countries, with the aim of supporting and developing handicraft industry, making this industry become sustainable and developed, thereby creating an operating environment for designers, businesses and communities The program has been implemented since 2014, bringing a lot of opportunities to train, coordinate, connect and exchange ideas between artists and artists In addition, businesses can absolutely get support from funds to promote this connection activity better One of the funds that have been and are supporting these activities is the "Future of hands made by hands" fund, Prince Claus With the motto of supporting Creative and pioneering entrepreneurs in Vietnam, artists groups and organizations in Vietnam want to preserve, develop and reimaginetraditional handicrafts, the fund will create things, law whicli suits for businesses, especially enterprises to export handicraft Products to improve design and product designs to meet the increasing demands of consumers > Human resources Human resource development is always considered a key and long-tenn task of every business In the business activities of enterprises, human factors have a decisive meaning Thereíồre, human resource is to ensure the sustainable development of the business Human resource training will be effective in the long tenn In tenns of Thuy Anh Co., Ltd., the training of human resources should pay attention to the following points: • Selecting the best personnel, in charge of the company's departments, helping the director with important jobs of the public main • New human resource training must be associated with the long-tenn strategic goals of enterprises Training needs must be associated with the importance of work Subjects for training must also be classilĩed to siiit the job • The HR department of the company needs to propose the establishment of a fund for training, retraining and developing human resources, creating conditions for the conduct of training to take place smoothly • Human resources should be used in the right position, expertise, and qualiíĩcations to maximize their ability 3.6.2 Solutions for Products Enterprises may pay attention to the export of commodities belonging to the group of Gold and Silver Industries These Products are not new, but are becoming attractive to importing countries, especially in the mid-year period (around May-June) Thereíồre, in order to promote the export of this product,businesses should also pay attention to the time of year to prepare for the product stages Quality is the leading factor in business, so it is necessary to focus on and recognize its importance in business, contributing to building a prestigious brand for Vietnamese enterprises and limited liability company Thuy Anh The company actively improves the competitiveness of Products by increasing the quality of goods, effectively meeting environmental standards when exporting handicrafts to the us market The deployment of IT applications in management business has been implemented within the past few years such as building a LAN or the company's Website These applications have contributed to the saving of transaction costs, creating close and convenient coordination among departments within the company However, the application of information technology in the company still has many restrictions that need to be overcome The company needs to build clear views on Internet exploitation and use, such as using the network to research, provide information, provide training programs, buy and sell Online The company's website is still simple, not yet impressive The company should build an impressive, outstanding website, create attention, readability and complete information to offer a skillful way Advertise your company's image on other sites on the internet, companies need to look at Web sites that target potential customers to make decisions about which ads are most effective 3.6.3 Proposals for the Government > Effective support for handicraft exporters Information plays a very important role in the business of an import-export business Accurate, complete and timely information is always a prerequisite forthe success of businesses, for the ability to grasp market opportunities of enterprises Currently, most enterprises exporting Vietnamese handicraft Products face difficulties in exploiting and seeking information The main cause of this situation is due to: Firstly, the scale of the intemational market is too wide, on the other hand, the market of handicraft goods changes very complicated, requires very high sensitivity, but this is the weakness of the majority Vietnam import-export company Secondly, the effort to learn information through newspapers, mass media, internet, but information about the market, the situation of export and import market is still small and rambling Therefore, in order to create favorable conditions for export business enterprises, the State should support enterprises in the direction: Firstly, the govemment should organize periodic information for businesses, issue publications on the market of handicraft goods in the world, trends of market movements for businesses Secondly, the govemment builts a trade information channel smoothly at Vietnamese business offices abroad If there is any tluctuation in the market, information can be transmitted directly to govemment organizations and then to enterprises in a short time, so that businesses can timely adjust business operations > Support businesses In order to help exporters can boost exports, the govemment needs to support businesses in trade promotion activities because it is a highly effective activity but requires a large cost Therefore, the role of govemment and related ministries is very important The government needs to support businesses in the following directions: Organize more exhibitions and invite íồreign guests to attend This is a good opportunity for businesses to advertise their strengths to tồreign traders, opening new businesses In addition, this facilitates businesses to have the opportunity to bring Products to exhibitions in tồreign markets Here, businesses can introduce, offer and explore customer feedback, help customers have an overview of businesses and Products of the business When customers need, they can contact the business to negotiate a contract The govemment should also provide general development directions for the handicraft industry in the Corning period, especially towards 2030, which claritĩes the support and incentives for the industry Draft decree amending and supplementing a number of articles of Decree No 66/2006 / ND-CP, issued on July 7, 2006 of the Government on rural career development, although it has been introduced, but not yet accepted Certainly, in the context of many changes in the domestic and world economy, the govemment will need to provide more suitable directions for the new period Because this item is associated with craft villages - the origin of Vietnamese tradition and culture, at the same time the production and production of handicraft Products are creating a lot of police jobs for workers, immediate orientation is extremely necessary, especially when craft villages are gradually losing The govemment should create conditions to support more Capital, towards the target of craft villages, production and export units of handicratt Products Therefore, access to Capital sources to continue production, especially to invest in improving designs, forms and improving product quality will be difficult for medium-sized companies and small, or household For that reason, so that producers can maintain operation and competition in the market, as wellas help craft villages survive, the special Capital support for handicratt industry is extremely necessary State guarantees export credit: The State establishes export Insurance funds to ensure the risks of losses to the credit that Vietnamese exporters reserve for tồreign buyers The State never guarantees 100% of that credit because if the State guarantees 100%, the exporter has no motivation to pursue business and does not care about the nature of the risk Therefore the compensation is usually about 70-80% of the credit and depends on the nature of the item, the market and the nature of the risk Vietnam is an exporter of agricultural Products such as coffee and pepper, but agricultural and handicraft Products are characterized by very precarious prices, so there is a great risk Therefore, the Government has established funds for Insurance for these export industries, for example: Export Insurance fund for coffee and pepper The State should facilitate the connection between artisans and artists in the future The interconnection between artists and artists has begun to be done in Vietnam, but it is small and comes from a number of artists and artists In order to be able to build a better connection network in the future, the support of resources, especially tìnancial support, is absolutely essential In addition, companies will need to support the management of specialized ministries such as the Ministry of Culture, Sports and Tourism so that the above activities can be implemented into chains, nationwide, as well as widely spread to other countries around the world ... exporting handicrafts of the company Therefore, I chose the topic: "Solution to promote the export of handicratt items to the us market of Thuy Anh Co. , Ltd. " as the research topic for my graduation thesis... is considered by the company as a potentialmarket However, the export tumover of handicraft Products of the company to the us market is small, not really commensurate with the potential of exporting... Foreign to market research, have attractive salary CHAPTER 2: EXPORT ACTIVITIES OF THƯY ANH CO. ,LTD 2.1 Overvỉew of the company 2.1.1 History and development of Thuy Anh Thuy Anh Co. , Ltd was