Profits and profit enhancement solutions at TOCONTAP sundries import export company

INTRODUCTION When it comes to business and production activities, people often mention its effectiveness Productivity - quality - efficiency is the goal of striving for advanced production, a measure of qualifications in all aspects of the national economy as well as for each production unit A production unit is a cell of the economy in general, the strong development of each cell will create the growth of the economy In our country, State-owned enterprises are the direct creation of material wealth and accumulation of capital for society, it plays a key role in the process of building and developing the country in line with the socialist orientation means In the current period, our country's economy is in a great transition from the central planning mechanism to the macro-regulated market mechanism of the State, fully subsidized by the State to produce business So far, these units have to account for profit and loss business, requiring businesses to make great efforts to survive On the other hand, in the context of fierce competition in the market economy between enterprises of different economic sectors, enterprises have constantly accumulated capital to develop and invest to expand their business This can only be done when the business operation of the highly efficient business earns a lot of profits Profits are now considered as one of the most effective economic leverages to strongly stimulate businesses' production and business activities Profit not only reflects the efficiency of production and business in the market economy condition but it is also an important financial source to carry out reproduction and expand production and business activities and improve the lives of people labor in the business Stemming from the great role of profitability of production and business activities, during the internship at Hanoi grocery import-export company (TOCONTAP) with the enthusiastic help of teacher Nguyen The Vinh and other staffs working in the Accounting and Finance department of my company have completed the graduation thesis with the topic "Profits and profit enhancement solutions at TOCONTAP Sundries Import Export Company" Within the time allowed to study and research, my dissertation was completed but could not avoid the shortcomings and limitations that required further research Therefore, I look forward to receiving the instruction from the teachers, along with all the readers to help me complete the thesis better In the course of completing this essay, I was guided by the enthusiastic teacher Nguyen The Vinh and the support and facilitation of officials in Hanoi grocery import-export company (TOCONTAP) With deep gratitude: I would like to express my sincere thanks to Ms Nguyen The Vinh and the officials of Hanoi Sundries Import Export Company (TOCONTAP) in the past time for helping me with all my heart to complete this thesis TABLE OF CONTENTS LIST OF FIGURES AND TABLES LIST OF ACRONYMS Chapter I: General arguments about profitability I Profits of an enterprise in a market economy Enterprise 1.1 Notion: An enterprise in a market economy is an economic organization organized to conduct business and production activities in accordance with the law for profit Depending on the classification criteria, there exist different types of enterprises, according to the form of capital ownership, enterprises are divided into types:  State enterprises  Private enterprise  Mixed ownership business State-owned enterprises: are economic organizations with capital established by the State and organized production and business activities to serve the state's socio-economic objectives A private enterprise: is an enterprise established, managed, and solely responsible by all of its assets with the debts of the enterprise Mixed-owned enterprise: is an enterprise in which the owner is a collective of individuals or organizations These members conduct production and business activities, share profits and take responsibility for the company's debts as part of their capital contribution This classification specifies the relationship of ownership of capital and assets of different economic sectors, which is the basis for dividing economic efficiency by contributed capital and also the basis for the state to prescribe the main regime Economic policies, development orientations for each type of enterprises 1.2 Characteristics of businesses in a market economy In a market economy, there are many different types of businesses, so there are also different characteristics However, enterprises generally have the following characteristics:  All businesses are constantly seeking ways to improve production and business efficiency  Enterprises are autonomous units in business and financial autonomy  Business activities of enterprises are governed by the laws of the market economy such as the law of competition, the law of supply and demand, the law of value  All economic benefits of the business are distributed fairly Profit of the enterprise 2.1 - Notion: Profits are a quality indicator to evaluate the economic efficiency of businesses in production and business activities That is the final financial result after a process of conducting business and production of the business - In the term of trade (The langugue of trade): Profit is the net income generated by the production or sale of goods and services Means the remaining amount for the entrepreneur after paying all capital (interest), land (rent), labor (including administrative costs, wages, wages), raw materials crude, taxes and depreciation If the business is poor, profits can be negative and in that case they turn into losses - From an enterprise's perspective, profit is essentially the difference between revenue and the total cost of production and business that businesses spend to get that revenue in a given period Accordingly, profit is determined as follows: Profit = Revenue - Cost - Tax - The origin and nature of profit: The study aimed at elucidating the origin and nature of profits was conducted by economists from the early years of the 18th century Although, nearly 200 years later, the origin and nature of profits was only K Marx clarified, he was also the one who exposed the exploitative nature of capitalism towards hired workers Previously the schools of economics and the thinkers of economics had continually studied the origin and nature of profits but could not come up with a clear explanation that profit was being produced from where The first person to study that profit was Adamsmith, who, according to him, "Profit is a deduction from the value of products made by workers", the source of profit is due to the entire investment capital spawned in both field of production and circulation Unlike Adamsmith, David Ricardo said, "Profits are the excess value out of the value of goods created by workers always greater than the amount of wages that workers are entitled to and the difference is profit" Thus, David Ricardo's ideas have improved more than Adamsmith's arguments, he pointed out that the source of profits is the "excess value" in addition to the costs paid to workers and the profits from created by workers, not by all investment capital In the 19th century, the source of profit was properly understood through the analysis of K Marx Based on scientific theories and scientific methods, K Marx pointed out that participating in the process of creating goods value has components: immutable capital, variable capital and surplus value residual  Immutable capital is a part of value that exists in the form of means of production (factories, machines, raw materials, fuels, auxiliary materials, etc.) whose values are preserved and transformed integrity into the product, no change in quantity during production (symbolized c)  Variable capital is the part of capital that exists in the form of labor generated and unpaid by workers, in other words, the capital division used to purchase labor that is not reproduced the value but through the abstract labor of the employee increases, ie the change in quantity (symbolized v)  Surplus value is the value of the excess of the value of labor goods created by the employee and taken over by the capitalist (symbolized as m) From this we find that participating in the creation of surplus value has two elements: invariant capital and volatile capital If the symbol of the value of goods produced in a capitalist enterprise is Gt, then Gt = c + v + m (1) - the actual labor cost of society to produce goods But for the capitalists to hide their exploitation, they thought that the surplus value was not created by the labor of the workers but it was caused by the capital loss created, that is, c and v, c + v create From that point of view, capitalists argue that capitalist production costs generate profits, not the (v) division that generates surplus value If the symbol of capitalist production cost is K (K = c + v) then we have the value of goods: Gt = K + m (2), from which we have K = Gt-m, that gives see capitalist production cost is always smaller than the actual cost of society to produce goods When c + v translates into capitalist production costs, for the capitalist, the surplus value manifests itself in the increase in the appearance of capitalist production costs that the capitalist obtains The surplus value when compared to the total capital advance is in the form of profit If the symbol of profit is p then from (1) and (2) we have Gt = K + p or and especially reducing the overdue debt balance of domestic customers This is considered an important indicator to evaluate the operation of the sales department Fourthly: Strictly implement the slogan "No smuggling, no commercial fraud", always protecting the purity of TOCONTAP's name in the market implementing the contracting mechanism of the company to clearly show the rights and responsibilities of each employee Fifth: Prepare all conditions for equitization in accordance with the provisions of the State Early establishing a research department of the State's regulations on equitization, organizing the study of equitization policies in the whole company Sixth: Continue to well the work of fostering, staff training, improving the business capacity of the company's staff to meet the needs of international integration Consolidating organizations under the company such as Hai Phong, T.P HCM branches, Lao enterprises, TOCAN to meet new requirements Seventh: Take care of building Party facilities, mass organizations, well implementing the regulations on democracy, publicity, attention for other activities that make the material and spiritual life of employees in TOCONTAP family always always harmonious, happy, for the development of the company and the happiness of each member II Advantages and disadvantages in the business process of the company Advvantages: TOCONTAP Company is a large state-owned enterprise, has many years of operation in the field of import and export The company has established trading relationships with over 70 countries The company has a relatively compact administrative apparatus, creative and dynamic leadership, who dare to think and dare to Experienced staff, constantly striving to promote creative initiative, flexible use of all business methods Entering the market mechanism, the Company was given the right to business autonomy with sufficient business results and efficiency of the enterprise, which is really tied to the responsibilities and interests of each individual in the enterprise The Board of Directors has set up a business management mechanism in the right direction, with autonomy in saving, in particular, offering a reasonable contracting mechanism, which has encouraged employees through mechanism control to develop business, make full use of the talented minds and strengths of each division to increase profits for the Company to increase income and improve workers' lives The company has diversified business types The company not only does import and export business but also invests in joint venture to build instant noodle processing factory in Lao PDR, processing exports of paint roller wall paint joint venture with Canada, leasing assets, participating in the financial market through the activities of buying and selling treasury bonds As a result, the Company has improved the efficiency of capital use, minimized losses occurring during capital utilization, and increased capital turnover In line with the global integration trend, Vietnam is now a member of the Association of ASEAN and AFTA These are macro-level efforts to provide domestic enterprises, especially import-export enterprises, the opportunity to expand the market and seek business partners to make the most of this advantage The company has established an import and export business strategy team for 2019 and is directly in charge of the General Director Actively penetrate into new markets through the form of trade fairs There are policies suitable for each customer The Board of Directors always pays attention to the material and spiritual life of the employees, the Company unanimously unanimously strives to complete and exceed the plan In previous years, the Company was profitable but only paid capital tax But since 1999, not only have businesses been profitable, they have also been able to set aside production development funds, financial reserves, job loss allowances, reward and welfare funds In 2018, the company achieved a turnover of VND 288,237 million (a decrease of VND 4,093 million compared to 2017) but the after-tax profit reached VND 1,438 million (an increase compared to 2017) with the previous year The company well implemented the regulations on democracy and publicity The solidarity between the Party - Government - Trade Union very closely always discussed and decided together Especially, through the case of VND 177 billion, it shows the solidarity in leadership, Party Committee and staff Departments in the company always use the contracting mechanism as a measure to show the contribution of each employee The company rewarded fair and fair All employees always love the company, consider the company to be their home The company's brand will be the life of everyone, which is also an important spiritual factor to overcome difficulties Disadvantages: TOCONTAP is a large state-owned enterprise, playing a leading role in the field of foreign trade but the Company has encountered many difficulties in its operation process, among which there are both subjective and objective difficulties brought about During the past time, the Company was still trading in the situation that domestic and foreign customers and commodities were still not stable Therefore, the company is under great pressure from other business members, especially in today's fierce competition environment In addition, Hanoi Import Export Company is mainly in service business, but in the new mechanism, the demand for relationships is increasing so that it can survive and develop in the market mechanism In addition to customers, the source of goods is also a decisive factor in business success Currently, the Company has not had any production facilities or is not closely associated with production units specializing in producing export products for the Company, so the Company has not found the domestic market through import-export business The characteristics of the Company's business goods are sundry goods with too small value In addition, the company is not one of the focal points of agricultural products and footwear The main export product of the Company is paint brushes, which account for 50% of export turnover, but are still the main processed products and are not stable due to fierce competition with the Chinese market Some other exports such as handicrafts, ceramics, rattan and stationery, but the turnover is not stable and not high Like exports, the Company's imports are mostly small groceries, with no focal items To ensure sales and create jobs, the company has received very small contracts worth only a few thousand dollars The company has yet to identify its main business area Despite having trade relations with over 70 countries, it is almost temporary, with small importexport turnover In general, the Company's import-export business is stable, operates in the form of proprietary trading, and imports much more than exports If the manufacturer matures in this field, the opportunity to stand for export and import will no longer exist After years of applying the business contracting mechanism, the positive aspects can be clearly recognized, but it is not possible to admit that the in-depth trend has become increasingly obscured, cooperation and development are overlooked The trend of eliminating unhealthy development in the Company is mainly competing with the same goods, customers, and existing paintings, not actively seeking new customers and new markets This is the opposite of the contracting mechanism in business Continuing to promote the positive aspects and limit the negative in the contracting mechanism is something that the Board of Directors needs to study and solve Formerly one of the monopoly enterprises in the field of import and export but now the government has issued a decree 57/CP that allows all components to directly import and export business to take away the strength of the company Globalization, along with bringing new opportunities in business, are challenges and fierce competition Although Vietnam has been an official member of ASEAN and AFTA, the Company has not really found partners in the region yet yet fully exploited this strength Opportunities will not appear twice and if not take advantage of it will become a risk to the business The company has not yet effectively used resources, especially fixed assets, but mainly leased them for profits The company has no specific plan for using staff Although the staff of the company is large, experienced such as the need to train more information technology and foreign languages to fit the new situation There are also workers who are affected by high-classness, lack of dynamism, dependence, and the phenomenon of "stealing a box and going to steal it" III Some recommendations to improve the profit of Hanoi grocery import-export company 64 years of growth and development, Hanoi Food Import Export Company has constantly strived to overcome all difficulties and challenges to complete the task In addition to the achieved achievements, the Company still has many shortcomings that require the Board of Directors and the Company's employees to take timely measures to ensure that the Company operates effectively in The next years During my internship at Hanoi Import Export Company, through studying the situation of business activities, I would like to offer some suggestions that are expected to contribute to improving the profitability of the business company Improve the efficiency of using business capital When the economy has not yet transformed into a business capital market mechanism, the company is fully subsidized by the State When the company needs capital, it can apply for additional loans or loans from banks with low interest rates Currently the mode of capital allocation is no longer available, the company's main business capital is its own capital gradually supplemented over years of business activities and bank loans Therefore, businesses are always facing the market, the risk of capital in the process of mobilizing is higher, if doing badly, they will lead to losses, or go bankrupt In order to business effectively, the company must constantly manage and supervise capital more closely, improve the efficiency of using business capital to be the top goal, so that business activities with a capital amount certain but the most profitable Therefore, in order to improve the efficiency of capital use, we must simultaneously improve the efficiency of using fixed assets and raising the efficiency of working capital 1.1 Improve the efficiency of use of fixed assets Currently, the company has a number of unused fixed assets (houses, warehouses, …) which are rented for interest, mainly in Ho Chi Minh City This is not an effective solution in business, the Company should have more flexible measures to bring these assets into service, thereby bringing the branch in the South to operate more effectively In addition, the company should renovate the 36 Ba Trieu headquarters, can build BUILDING for rent because the rooms in the company are very few and if available, only a maximum of floors can be used Rent can also earn more than 50 million per month With the business characteristics of the Company, warehousing plays a very important role, the company needs to plan to use this property more appropriately, upgrade, renovate and build new to keep goods safe both in terms of quantity and quality thereby reducing storage costs, reducing costs due to damaged goods Especially, it is necessary to upgrade the TOCAN factory because in 2002, the situation of prolonged flooding, to relocate production, causing serious shortage of raw materials at the end of the year The Company's warehouse is far away from the office, currently in a state of serious deterioration Siblings not manage to work nights and holidays, days off work with a high sense of responsibility to ensure timely import and export of goods, good service attitude towards customers The company should have a reward policy to encourage them to take effective measures to use the warehouse in parallel with the enhancement of material responsibility TOCONTAP has soon modernized its administrative work by equipping computers for office operations However, computers have only played a modest role in replacing typewriter, entertainment, sending e-mail Investment capital for this type of equipment is not small What to to make it really become an effective tool for business activities Continue to invest in new, modernized or based on what has been upgraded to use Should management need to develop a detailed plan for both machinery and manpower Computers only become useful when they are connected to each other, both internally and globally Thanks to that, the administrative management will be more convenient, easier to access and search information, along with a team of qualified computer and computer have been and will become "the key" gold "of the future portal to help the Company integrate into the world In addition to using the phone, the Company should make an internal switchboard to be able to connect the telephones in the company, so that the rooms in the company to call each other will not cost money, this is also is a problem that will save a lot for the Company, because the average import-export room per month takes about 5-6 million for phone costs 1.2 Improve the efficiency of working capital Working capital is an important part of an enterprise's assets, improving the efficiency of working capital as one of the determinants of overall business performance of the enterprise The company needs to organize the use of capital effectively, without wasting by strengthening financial management based on financial regulations and rules, thoroughly saving costs and planning planning is attached to the market The most important thing is to find ways to increase the capital turnover to less than months / cycle by providing more reasonable credit policies for each customer In other words, you have to settle your debts well Selling goods is a way to promote the speed of goods consumption of the business, but before deciding whether to provide commodity credit to customers or not? The company needs to assess the customer's credit position and must regularly collect information about the customer's credit status, through financial statements analysis, direct interviews, from banks or agencies State management Performing well the debt collection will help the Company increase capital turnover quickly, in the coming time the Company needs to accelerate the debt collection by closely monitoring the Company's capital appropriation period This reduces the Company's capital, leading to a decrease in capital efficiency Measures to help the company recover debts are: - Set a specific credit term for each customer so that the term that the company gives customers is always smaller than the credit period that the supplier gives the Company and that term is acceptable at a rate inflation - Penalties for breach of credit contract must always be greater than benefits gained from breach of contract - Applying a discount policy with a satisfactory rate to encourage customers to pay fast, on time Based on the business situation, the Company should calculate accounts payable reasonably in order to keep its reputation with customers and banks and avoid risks for the Company The company needs to take advantage of the credits that are due to suppliers, prepayments and take into account the interest paid on short-term liabilities so that the company is always more profitable than credits provided by the Company to customers - Choose the most convenient secure payment method, avoid the situation of foreign customers refusing to pay or involved in payment of export and import goods - Because the company often transacts via foreign trade bank of Vietnam, the company should focus on payment transactions with customers who open accounts at banks that have relationships with Vietcombank to ask the bank where the company opens its accounts Interventions when there are problems with payment In addition, the company always follows closely and urges customers to pay debts on time so that the company can buy goods in time for export and import activities, avoiding the situation of customer appropriation of capital In addition, the company should provide reasonable late payment interest to customers to limit the payment to push the turnover of working capital even faster, achieving the highest efficiency in business Promote marketing Assessing the importance of the market in this period, the Board of Directors, especially the General Department, has been actively helping the sales offices to study the world economic situation and the market price situation , learn about the laws of economic law and trade practices of other countries but just stop at a general level so each business unit should choose a person with good communication skills Qualifications are responsible for marketing activities about major groups of businesses that they specialize in In addition to focusing on monitoring the price movements of goods in the domestic and foreign markets, marketing personnel need to make accurate forecasts of market trends on the basis of consumer demand, analysis and evaluation of the competitiveness of goods, the stability and supply ability of suppliers under the rules of market economy, and the regulation of the economy at the macro level Thereby the professional staff set out the most effective policy to buy and sell goods for import and export activities Besides advising the head of the department to build a plan to regain the lost export market, combining closely with the general department such as books, newspapers, summary reports, Internet Continuing to send officials' delegations to foreign countries to research and penetrate the market, to create close relationships with Vietnam's trade counselors located in foreign countries to regularly actively participate in trade fairs and exhibitions exhibitions organized by the Ministry of Trade to introduce themselves, introduce the categories of products and goods of the company to sign new contracts, find new business partners In the following years, in order to create a long-term and stable partner to create a firm position for import and export activities, the Company may deploy in the following directions: - Expand the CIS market, especially Russia, in addition to repayment, creating opportunities to firmly grasp this basic and long-term market - Strengthening and developing the EEC market, trying to expand the market to Germany and other European countries For the Dutch market, it is necessary to maintain and develop - For the American market, in addition to the goal of firmly grasping the Canadian market, it is necessary to detect and seek demand in the US market Looking to penetrate deeper into the South American market including Brazil, Argentina, Chile, Uruguay Central America and the Caribbean need to well with Cuba to facilitate entry into this market - Cooperate with regional markets including Southeast Asia and especially China Take advantage of aid and loan goods of developed countries to enter the African market Breaking into the Lebanese market to create a springboard for markets on the subcontinent Import and export is the main activity of the company, but it should not be so that the Company overlooks the promotion, advertising and sales support, the Company's imports are mainly consumer goods, to contribute to speeding up the consumption of goods The Company should coordinate with manufacturers, and agents distributing imported goods, introduce advertising programs, introduce products, in parallel with promotional activities, expanding products, evoking demand from which to attract more and more customers to the product Through agents of imported goods Grasp the tastes of consumers in order to make a reasonable structure of imports Expanding joint ventures and associates Along with the development of a multi-sector economy, joint ventures are increasingly developed and conducted in many different forms such as jointventure, joint-venture, contract, etc because the joint venture will help businesses take advantage of all available resources and share risks and difficulties for joint venture partners such as capital and technology difficulties, as well as reduce business confrontation Moreover, this activity is divided on the basis of "Profit sharing, loss sharing" has partly increased the safety of investment capital But the basic reasons why the Company should develop its joint venture activities are: The Company's main business activities are to provide services, to carry out the circulation of goods from the place of production to the place of consumption The company does not have a stable production base to supply goods for export, or if so, it is currently only smallscale production and processing according to moderate orders Although the organization of good management of goods quality is well organized, the quality depends much on the enterprises that produce those goods Finally, the Government has issued a decree to allow units and organizations and individuals to carry out import and export activities of goods not subject to the State management, taking away many of the Company's customers , entrusted import and export is only temporary when the manufacturing enterprises are immature in the field of foreign trade So what to to remedy the situation The most reasonable answer here is that the Company needs to expand joint venture activities even more The company will gain a lot of benefits when doing this activity For example, with experience and proficiency in the field of foreign trade, the partners will be very confident to assign the Company to perform import and export contracts of the joint venture unit (from importing lines, equipment and materials for production to products for export ) General intangible The company has created specialized units for its exports In addition, the Company is appointed to manage production activities of the joint venture unit, thereby affecting the quality of goods and specifications of goods to better serve exports The joint venture has enabled the Company to take advantage of the science and technology from you, which Vietnam currently needs and is very lacking In 2000 TOCAN enterprises in joint venture with Canada exported a plastic crusher to Canada and utilize domestic mechanics to produce and process fibers according to foreign designs to meet domestic production needs This is an activity the company should maintain and develop, not only contributing to improving profits for the Company but also increasing foreign currency earnings, transferring technology to implement the cause of industrialization and modernization of the country In a nutshell: joint ventures and associates bring customers who have been stable, follow the motto of "trading with friends and selling with wards" to avoid the Company being under strong pressure from the current fierce competition environment now Strive to save costs In order to contribute to lowering business costs, the cost management must be checked more frequently, the director of the implementation of business cost plans, especially for cost items accounted for big weight The expenses must have valid documents to accept payment The company needs to strive to lower the costs of its outside services, water, electricity, telephone, fax and internet At the same time, the Company should also organize the process of purchasing, selling and managing goods appropriately to minimize unnecessary expenses Implementing the contracting mechanism at companies is only internal to the State Therefore, in 2018, the departments did not proactively save delivery, transportation and other expenses in the performance of the contract to the next year, the accountants should closely monitor these costs Avoid wasteful embezzlement to contribute to improving the Company's profits, the expenses of great value should be reported to the director for approval Improve the financial management of the company The Hanoi Import and Export Company has a large scale and re-distributes in a wide area, so the organization of financial accounting under the current centralized model is not appropriate This form of centralized accounting apparatus has the advantage of helping the Company's leadership to keep up with all the information about the Company's operations in time The direction of financial and accounting work was agreed, closely, synthesized data and information in a timely manner, creating conditions in the division of labor, in improving the qualifications and labor specialization, in equipping application of technical means However, this form has the biggest disadvantage is creating a space and time gap between the place where information occurs and the place where information is collected, processed and synthesized The opposite effect makes it difficult for the management Information is often delayed compared to the time of making financial statements because there is no full data from branches transferred Therefore, the Company should conduct independent accounting for TOCAN's branches and enterprises In this way, on the one hand, it will reduce the direct management workload for senior leaders, on the other hand, it will avoid the dependence, promote the initiative, dynamism, self-accounting and selfresponsibility Of units Besides, the sales department has not paid attention to the legality of the documents Therefore, the accounting department needs to be more closely managed, has a plan to guide the accounting departments to make vouchers so that they are valid and reasonable, organize more scientific records and archives to create favorable conditions for internal auditing and inspection by the State As a large-scale company, financial management faces many difficulties In order for the financial management apparatus to operate effectively The company should pay more attention to internal audit as well as regularly pay attention to internal audit, business analysis to get accurate and timely information, serving for business management requirements In the business sector, there is still an unreasonable income, the main reason is that the professional departments have not realized their true weaknesses, did not anticipate the final business performance but still advance a high salary In addition to preventing the risk of capital appropriation, the finance and accounting department must regularly check and control the business plans approved by the director, compare documents to help the accounting units accurately Besides, it is necessary to set up regulations, supervise the use of capital, guarantee bank loans and firmly grasp the capital cycle The company stipulates that the loan must be clearly stated in the contract, the contract must specify the interest rate of the borrower's responsibility to repay the capital A treaty is an important legal document that is not formal Therefore, when signing a loan, all responsibilities must be carried out in accordance with the signed contract (The company calculates interest rate of 0.8% / month) In addition, the company has stricter regulations to preserve loans and attach specific responsibilities to each individual such as: Each business method is decided by the business department Those plans with definitive liabilities must have the opinion of the finance and accounting department (head of the department or deputy head) before submitting it to the director for approval The margin for each contract must be the same as that of the Bank in each period Especially for consigned goods, it must not be below the Bank's level The plan must be true to reality, fully accounting for all factors and methods Once the plan has been approved, the professional department is responsible for implementing the plan already built if the failure to comply with the provisions of the plan and the contributions of the management department to the plan, in order to cause losses, Product managers and professional managers must handle by themselves and overcome the consequences Those plans that have been listed as proprietary traders or professional bureaus must actually manage the goods and rent warehouses themselves Where the money comes from, the delivery of the warehouse must clearly state the responsibility of the lessee to preserve the goods Delivery procedures must be signed by the exporter Must issue a financial invoice to the consignee Transactions where the interest amount has been recorded has been recorded, which means that the operation department is able to handle input and investment independently, pay taxes, self-repay loans and pay interest according to the approved plan Accountants monitor the items and the head of the accounting department is responsible for recovering capital and interests in accordance with the prescribed contract, timely reporting and taking measures to handle the cases of stagnant capital, overdue If due to loose management, failing to remind the debt, the capital is appropriated, the capital is not recoverable, or it is not timely detected, detected and reported, so that the units may not comply with the management policy finance of the State, regulations of the Company cause losses of capital, losses of payment, incorrect calculation of salaries, expenses, expenses exceeding the plan, which lead to losses or losses, the head of accounting and officials Relevant ministries are responsible to the director and jointly responsible to the operations department The plans are approved after the contracting mechanism, if the plan, the contract of the room where the debt is overdue, the Company will suspend the loan from that department to carry on business of the following consignments until when settling overdue debts For self-trading or consigned goods, the commodity professional is responsible for collecting all tax arrears of customers, executing contracts strictly and promptly in accordance with the provisions of the State, if the contract is blank for customers to pay by themselves, occur Tax fraud, failure to pay fines for late payment, the commodity staff must compensate The company does not pay for fines (tax, storage ) the finance and accounting department has the function of regularly comparing the actual bookkeeping and inventory numbers Every month, the sales department is allowed to advance an amount of expenses necessary for business activities according to the estimates for expenses such as business trip expenses, transaction fees, stationery expenses, and other expenses necessary At the end of the month, bring the documents to the accounting department to finalize the financial statements of the previous month The company fully collects capital gains, loan interests, management expenses, advances The rest is only paid when there are valid documents Improving the mechanism of financial and economic management of the state Although the implementation of the VAT law since 1999 is still difficult, the tax refund request still requires many procedures, takes a lot of time, so despite months of negative taxes, Hanoi Import Export Company still could not apply for tax refund, causing capital difficulties The State should set out effective management measures to both shorten the time to apply for tax refund and limit the fraud to protect legitimate businesses Our State is applying the VAT law on imported goods, which means that the taxation on foreign added value of goods and products thus violates the nature of this tax, which is indirect tax, to impose added value of goods products from production to consumption in our country The same goods are imported but the tax code has many different levels This is also an issue that the State needs research and attention In order to protect and encourage the development of domestic industries, our government applies relatively high tax rates to imported goods However, in order to create a healthy competitive environment, promote domestic businesses to improve technology, improve the quality of goods and gradually integrate into the integration process The state should set a more reasonable tax rate The current corporate income tax rate of 32% is too high TOCONTAP Company has a low average rate of return So after paying the corporate income tax, there is very little profit to supplement the funds, no conditions to expand production and business activities The State needs to adjust policies timely to suit the actual situation, encourage enterprises to strive to improve profits in the past few years, the customs sector has actively reformed administrative procedures to create favorable conditions However, the process of customs clearance still faces many difficulties and affects the progress of export contracts Conclusion Profit is considered as one of the most effective economic levers that strongly stimulates production and business activities of enterprises Enterprises in market economy are always concerned about profits It is an important financial source to carry out reproduction, expand production and business activities and improve the lives of workers in the enterprise Above is the situation of implementing the profit plan that has been applied at the Hanoi Import Export Company - TOCONTAP Measures to strive to increase profits of the company have initially brought encouraging results In addition to the advantages and achievements, the company still faces many difficulties that exist in increasing profits, which requires the company to constantly strive to strive more to achieve efficiency in Business activities to improve its profits How to increase profits is a "hot" issue that is now most interested in businesses, so during the internship, I have bravely researched and made some small suggestions for work The company considers to apply, in order to improve the company's profit in the current market economy condition Due to the limited time and qualifications, the issues presented in this article will inevitably be subject to shortcomings I look forward to receiving the comments from the teachers and the leadership of the Hanoi Import Export Company TOCONTAP to help me complete my thesis better ... II: The situation of making profits at the grocery import- export company TOCONTAP I The general points about the company Hanoi Import Export Company is a professional import and export company established... of profit But overall corporate profits include:  Profits from business activities  Profits from financial activities  Abnormal operating profits 2.2.1 Profits from business activities Profits. .. graduation thesis with the topic "Profits and profit enhancement solutions at TOCONTAP Sundries Import Export Company" Within the time allowed to study and research, my dissertation was completed but could