2.4.1.1. Human resources
People are always one of the factors that directly affect the success or failure of each enterprise. As a resource of the development process, human resource is the human resource capable of creating material and spiritual wealth for society, which is expressed as the quantity and quality of work. And at Bach Viet, with the development of the company, the company has expanded its employee network, increased both the quantity and quality of officers and employees, and expanded the scale of operations.
Table 2.11: Labor structure of Bach Viet company in 2020
Total
Sex
Level
Age
(Source: Accounting - Human Resources Department, Bach Viet Transport Company Limited) According to statistics from the accounting department of the above table, by the end of 2020, the number of employees of Bach Viet Transport Co., Ltd. is 215 people. There are more female employees than male employees. This can also be considered as a characteristic of the service industry that has more female employees to easily reach customers. Most of the company's human resources are in the business room, so calling customers to offer prices as well as solve arising problems of customers is more preferred.
With a staff of highly qualified staff (receiving employees with university degrees is 6 times higher than employees with college and intermediate degrees). We can see that the workforce selected for the company is carefully screened and qualified. This is also a necessity because of its influence and 15 years of experience in the transportation service market. In addition to the high level of staff, the company's labor structure still has Bach Viet and mainly young staff. In the labor structure by age, more than 73% have working age from 20 to 35 years old, only 20% of employees are aged from 36 to 45, the rest only 6% are over 45 years old. Young staffs show enthusiasm, passion, enthusiasm in work, easy to exchange and learn. However, this is also a limitation when these employees do not have much experience, sometimes they will be confused when dealing with problems arising from shipments when working with customers. Besides, young workers who are
56
are old, experienced workers who have many great partnerships in the industry. The industry brings great profit for the company. From 2018 onwards, the Board of Directors has always paid attention to and focused on human resource training by organizing internships, training courses, and seminars to share skills for you. final year students studying at universities and colleges in Hanoi city in order to improve their working ability and find potential employees for the company. In addition, summer time travel activities, programs related to teamwork, skills training sessions at the office.
2.4.1.2. Financial sources
As a private company in Vietnam, Bach Viet's capital is mainly based on loans.
However, with a 15-year history of development and large profits that the company earns every year, it also forms a sufficient capital for the company to be financially self- sufficient.
Table 2.12 - Capital of Bach Viet Transport Company Limited
2017
Target Value
(million VND)
Capital 210.835
1.Liabilities 135.714
a.Short-
64.467 term debt
b.Long-term
71.247 liabilities
2. Equity 75.121
(Source: Accounting - Human Resources Department, Bach Viet)
From the above report, it is clear that the company has an increase in equity in the period 2017-2020 in terms of both value and proportion, which proves that the company has the ability from funding, financial autonomy, increasing day by day, although the percentage of increase is not much. 2018 and 2020 have not changed much but still have an upward trend. Total capital in 2020 is 226 billion, accounting for 51.33%, increasing nearly 2.5 times compared to 2016 accounting for only 35.71% of total capital.
Through statistics, it is also clear that the total liabilities of the company has gradually decreased. The proportion of liabilities in turn from 2017 to 2020 is 64.36%;
63.43%; 55.65%, 48.54%. This proves that the company has partly effectively used business capital and helped increase profits over the years. However, it can be seen that the change in the proportion of loans and equity is not much, although the total capital has increased over the years (more than 2 times in 2020). It proves that the control of the company's receivables is not really effective.
2.4.1.3. Facilities
Bach Viet's office (headquarters) is located at 195 Kham Thien building, Hanoi - central location, convenient for travel. In the company's office, the departments are seated in a common space, each employee will be equipped with a comfortable personal desk, personal computer and desk phone. The management board as well as the employees all work in the same space, the meeting room is separated by glass, making the working atmosphere extremely comfortable, there is no distinction between superiors and subordinates. a large family. In addition, the office system is also fully equipped with necessary equipment for the staff: fiber optic network, printers, fax machines, scanners, photocopiers….All are guaranteed. timely maintenance, repair and replacement to
maximize business efficiency. In particular, the company equips a separate dining room for all company employees with full microwave ovens, refrigerators, hire services to provide lunch for all company employees, clean rooms….help ensure the health and improve the productivity of workers.
In general, the company provides a full range of equipment and services for its business. The air conditioner and machinery are stable, there are always technical staff of the building to repair promptly if there is a problem, so the company does not take much time and cost for the repair. However, the company's computer system is many and diverse, but only one IT department staff is responsible for repairing when there is a problem, so the processing speed is slow, causing a lot of downtime for employees in the future. while waiting for the process of handling technical errors, affecting the results and business performance of the company. The information exchange and processing system is fully equipped.
2.4.2. Factors outside 2.4.2.1. Economy
The economic development of Vietnam is also one of the factors affecting Bach Viet's ability to operate. The stability of the exchange rate has a significant impact on the company's business activities. When the exchange rate increases, the accountant will invoice the customer in Vietnamese dong at that time to collect more money, for the unpaid customers. But when the exchange rate increases, the cost of getting B/L and taking delivery orders at shipping lines will also increase and vice versa. Therefore, exchange rate fluctuations are both positive and negative. Bach Viet is required to keep abreast of the changes in the exchange rate.
In the period 2018-2020, the world economy has experienced many difficulties, affecting import and export growth. It was only in the third quarter of 2020 that there were signs of recovery and positive developments due to the strong impact of the Covid 19 pandemic. The growth rate tends to increase and the financial situation shows signs of recovery. According to the General Statistics Office, in the first nine months of 2020, GDP is estimated to increase by 2.12% over the same period in 2019, which is the lowest increase over the same period in the 2011-2020 period. However, Logistics is still a growing and profitable industry in the future.
Bach Viet can seize opportunities from the market to expand its customer base due to the increasing import and export volume of Vietnam's goods. In particular, the US- China trade war has had a great impact on Vietnam's import and export market. The US taxed imports from China are all in Vietnam's export strength, which can be considered a good strength for Vietnam to gain market share. Therefore, Logisics enterprises in general and Bach Viet in particular, if they take advantage of this opportunity, will boost the company's revenue and improve their competitiveness with domestic and international competitors.
2.4.2.2. Trade Agreements
Vietnam Logistics Forum 2020, Minister Tran Tuan Anh said that new-generation free trade agreements such as CPTPP, EVFA and RCEP will have a positive impact on institutional reform and capacity building. competitiveness of goods, businesses and the economy thanks to the access to export markets with preferential tariffs, trade liberalization and facilitation, and reduced input costs by technology transfer and cheaper imports of inputs under preferential conditions.
In 2020, thanks to the efforts of the entire political system, people and businesses in realizing the "dual goal" of preventing and combating the Covid-19 pandemic while taking advantage of opportunities from free trade agreements. new generations such as CPTPP, EVFTA, ... quickly recover economic activities, Vietnam's macro-economic situation continues to be stable, inflation is controlled, and financial and monetary balance is large. , credit is secured, interest rates are reduced; exchange rate, stable foreign exchange market, guaranteed market liquidity. In general, the commitments to open the market for logistics services in new-generation free trade agreements such as CPTPP and EVFTA are not too far from Vietnam's commitments in the WTO and are basically in line with Vietnam's commitments. applicable laws and policies. Particularly for logistics services, these Agreements can affect development prospects in two ways: (i) commitments to open markets in the field of transport and transport services; (ii) commitment in the areas affecting the logistics service market volume on the scale perspective due to increased service demand, service quality, demand for capacity
expansion, investment and service implementation. service. In both these aspects, the opportunities and challenges are quite large in the context of domestic logistics enterprises with low competitiveness.
2.4.2.3. Natural conditions
On the world maritime map, Vietnam is located right next to the East Sea - a particularly important trade "bridge" on the world maritime map.Of the 39 currently operating maritime routes in the world, there are 29 Among the 10 largest maritime routes in the world, one route passes through the East Sea and five related routes, on average, 250-300 times a day ships transit through the East Sea. In which, there are more than 50%
of ships with a tonnage of over 5,000DWT, about 15-20% of ships with a tonnage of 30,000DWT or more, accounting for ẳ of the ship traffic operating in the world's seas.
For Vietnam, along the 3,260km East coast, there are many seaport construction areas, in which, some places can build deep-water ports such as: Cai Lan and some points in Ha Long and Bai bay areas. Tu Long, Lach Huyen, Tan Vu, Dinh Vu, Cat Hai, Do Son, Nghi Son, Cua Lo, Hon La, Vung Ang, Chan May, Da Nang, Dung Quat, Van Phong, Cam Ranh, Vung Tau, Thi Vai …
In addition, along with the formation of a network of seaports, roads and railways along the coast and connecting to inland areas (especially trans-Asian routes) allow Vietnam's sea and coastal areas to capable of transporting imported goods to all parts of the country quickly and conveniently. Export and import goods of Vietnam will not need to transit through neighboring countries.
Although there have been many projects and plans to upgrade and renovate the state's seaports, Vietnam has not yet fully exploited the profit-generating potential of our seaports. The major ports of the three regions have all been upgraded to be able to receive ships of up to 30,000 DWT. However, only Cai Mep - Thi Vai port can handle up to 194,000 DWT, so large ships do not transport directly to Vietnamese ports but have to transship through other countries. For the same reason, plus objective reasons such as weather, military (military exercises at sea), many ships do not arrive at the port at the
right time, leading to customers having to pay extra fees. storage or, more seriously, delay in production due to untimely arrival of goods, which may lead to the cancellation of contracts with business partners. In this case, Bach Viet will work with related parties such as ports, warehouses, shipping lines, coleaders to apply for exemption or maximum cost reduction for customers. This takes time and can be more costly, reducing the company's business efficiency.
2.4.2.4. Competitors
With the strong development of the transportation industry and international trade activities, international forwarding services are developing more and more strongly in the world in general and in Vietnam in particular. The reason is that the demand for export and import of goods is increasing, in addition, the forwarding service business does not need to invest too much, but if the company operates well, it will generate high profits Therefore, many organizations and businesses are flocking to this service industry, especially during the time of the epidemic that is developing intensely around the world.
Currently, in Vietnam, the number of new competitors entering the industry is increasing. According to statistics, there are more than 3,000 enterprises operating in the logistics service industry, of which more than 88% are Vietnamese enterprises, only 10%
are joint ventures and 2% are enterprises with 100% foreign capital. 70% of them mainly exploit freight forwarding services by sea. One of the direct competitors to Bach Viet Transport Company Limited is Con Ong Logistics Joint Stock Company (Bee Logistics).
This company has advantages in package services, forms of intermodal transport, transportation of construction goods, super-heavy goods, especially consolidating services. In addition, Bee Logistics has a nationwide network and associated joint venture companies, representative offices in Thailand, India, Taiwan, Korea, China ....and
strategic partner system on Currently, with over 20% market share, Bee Logistics is a potential leading company in Vietnam's freight forwarding market. Some leading logistics enterprises in Vietnam such as: Gemadept, Indotrans, Transimex, TBS Logistics, Sotrans, Tan Cang Logistics (TCL), Vinalink Logistics, Vinafvo... are also competing strongly to maintain and increase the market. part.
2.4.2.5. Shipping lines
Due to its long experience in freight sales, Bach Viet has a very good and sustainable relationship with partners such as: major shipping lines: MCC, SITC, YML, NAMSUNG, ZIM, COSCO…, and domestic service providers in all 3 regions of the country. This factor plays a very important role, giving Bach Viet an advantage over other competitors in the market because in the field of transportation, especially by sea, shipping lines are capable suppliers. pressure on customers. Meanwhile, Vietnamese logistics enterprises mostly do not have facilities, mainly outsourced, the service scale is small, so it is difficult to get a negotiating position with shipping lines. Due to the good cooperation with partners, the process of handling goods for customers of the company also goes more smoothly (there are less cases of lost, broken or dropped goods), the company always asks get good service charges that few parties can do. Thereby helping the company improve the efficiency of international logistics service business.