The process of import in containers at cong thanh logistics services and trade co., ltd

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THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD Page i THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD MINISTRY OF INDUSTRY AND TRADE COLLEGE OF FOREIGN ECONOMIC RELATIONS FACULTY OF INTERNATIONAL TRADE INTERNSHIP REPORT Subject: The process of import in containers at Cong Thanh Co., Ltd Instructor: Le Tuyet Van (MA) Student’s name: Thai Thi Tuong Vi Class: TA13A Course: 2009 – 2012 Ho Chi Minh City, 2012 Page ii THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD TABLE OF CONTENTS Chapter 1. The profile of Cong Thanh Co., Ltd ..................................................... Page 1 1.1. General information .............................................................................. Page 1 1.2. Formation & Development history ........................................................ Page 1 1.2.1. Formation history ........................................................................ Page 1 1.2.2. Development history .................................................................... Page 2 1.3. Duties and functions of Cong Thanh Co., Ltd ....................................... Page 3 1.3.1. Duties .......................................................................................... Page 3 1.3.2. Functions ..................................................................................... Page 3 1.4. Organizational structure ......................................................................... Page 5 1.4.1. Organizational chart ..................................................................... Page 5 1.4.2. Duties and functions of each Department and each Section .......... Page 6 1.5. The business situation of Cong Thanh Co., Ltd in the recent years ....... Page 10 1.5.1. Table 1: Some business results (2008-2010) .............................. Page 10 1.5.2. Table 2: Export and Import Logistics Revenue .......................... Page 10 1.6. Comment on the business situation of the company ............................. Page 12 Chapter 2. The process of import in containers at Cong Thanh Co., Ltd .............. Page 13 2.1. The process in detail ............................................................................ Page 13 2.1.1. Process chart ...............................................................................Page 13 2.1.2. Conclude contracts with customers .............................................Page 13 2.1.3. Receive and check portfolios from customers ............................ Page 14 2.1.4. Deal with customs formalities .................................................... Page 18 2.1.5. Receive goods at ports ................................................................Page 23 2.2. Comment on this Logistics process ...................................................... Page 25 2.2.1. Strongpoints ............................................................................... Page 25 2.2.2. Weaknesses .................................................................................Page 26 Page iii THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD Chapter 3. Experience and proposals ................................................................... Page 27 3.1. Development prospects and targets of the company ........................... Page 27 3.2. Some proposals .................................................................................. Page 27 3.3. My practical experience ..................................................................... Page 29 CONCLUSION ................................................................................................... Page 31 REFERENCES ................................................................................................... Page 32 Page iv THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD ACKNOWLEDGEMENT I would like to thank all those who have helped me to complete my internship report. First of all, I owe a great debt to my parents who born and have brought me up so that I can reach what I am having today. Throughout the years while sitting in schools, the parents have been a strong spiritual prop and a great encouragement having supported me to keep my foothold in the path of education. Secondly, I am grateful to Mr. Manh and Ms. Hanh for creating conditions for me to practice at Cong Thanh Co., Ltd. Thirdly, my many thanks to Ms. Le Tuyet Van who has helped and given valuable advice on my internship report so that I can fulfill the report on time. Once again I gratefully thank my parents, Mr. Manh, Ms. Hanh and Ms. Le Tuyet Van for their sacrifices. Wish them health and success. Page v THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD COMPANY’S COMMENTS ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... Page vi THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD INSTRUCTOR’S COMMENTS ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... Page vii THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD PREFACE Our country’s Export and Import Business Operation has been on a strong increase and brought about encouraging steps in the economy. Specifically, Export Turnover got approximately 75 billion USD while Import Turnover 89 billion USD in 2011. Development in Foreign Trade Industries has posed a lot of new issues of goods transportation, especially international transport. In parallel with domestic and international transportation, Export and Import Logistics Operation has become an essentially important link in goods transportation line. Not only has it created conditions to promote and expand trading but made a contribution to the long-lasting business relationship between us and other countries. Before more and more urgent demands in practice, Logistics Operation in Vietnam has been existing positive self-advocacy in the path of completion and development. To meet higher and higher demand for the Logistics Operation, Freight Forwarders must always complete knowledge, master expertise, effectively apply the rules of law and thoroughly understand concerning international practice to make sure that goods are rotated most safely, quickly and least costly. This can not only help fulfill goods transportation link, get high profit in business but also raise the prestige for Vietnam’s companies in particular and for the whole country in general in the international market. For the importance of the Logistics Operation and because Vietnam is a deficit country, the writer has selected the subject for the internship report to be: “The process of Import in containers at Cong Thanh Logistics Services and Trade Co., Ltd”. Due to limitations of knowledge and time, the writer’s researching may be not comprehensive. Expectantly, the writer can receive sincere comments and advice from teachers as well as Cong Thanh Co., Ltd so that the writer will be able to complete knowledge and become aware of the practical subject more rightly. Page viii THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD Chapter 1. The profile of Cong Thanh Co., Ltd 1.1. General information  Full name: Cong Thanh Logistics Services and Trade Co., Ltd  Short name: Cong Thanh Co., Ltd  Logo  Trademark: “Moving with the name you know”  Address: 4th Street, Truong Son Street, Linh Trung Ward, Thu Duc District, Ho Chi Minh City  Telephone: 08 3896 5402  Fax: 08 3896 4341  Email: Info@congthanh.com Field of business:  Inland Transportation of Exports and Imports  Inland Transportation of Types of containers  Customs formalities  Process and production of lure for fishing  Warehouses, container yards and factories for lease  Commercial brokerage 1.2. Formation and development history: 1.2.1. Formation history: After the sixth congress, the political party and the State advocated establishing an open economy, especially, promoted Foreign Economic Business, making this Business become a compulsory mission of the innovation process. During this stage, the economy appeared special changes. The integration into the international market and the expansion Page 1 THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD of trading relationship has been indispensable. Therefore, Export and Import Business has become a specially important tool to promote the national economy. Being discernible the urgent significance of the above matter, our country has increasingly integrated into the world’s economy. Therefore, the Export and Import Operation has become one of the fields of business having the strongest development. It is this demand that has urged the operation of the domestic Logistics to grow quickly and that’s also the reason why Cong Thanh Logistics Services and Trade Co., Ltd was born. 1.2.2. Development history: More than 10 years ago, Cong Thanh Co., Ltd was officially set up under the Decision Number 166/GP – UB signed by Ho Chi Minh City People’s Committee on 27th July, 1995 and under the License Number 051039 issued by Ho Chi Minh City Department of Plan and Investment on 25th August, 1995. It was established on the basis of 100% of private capital and the operational functions in the beginning were goods transportation, sale and purchase of material for production and consumption, and production of lure for fishing. At the initial time of operation, the company’s charter capital was 5.4 billion dongs. After more than 10 years of operation and development, the company now accumulates more than 135 tractors, 25 trucks, 800 trailers and 450 containers. These themselves make a contribution to an increase in the total fixed and circulating capital of the company up to 15 billion dongs. The area of the company is 20,000 m2 and warehouse area is 1,200 m2 and there are more than 400 staff having worked here. At present, Cong Thanh Co., Ltd is one of the domestic companies leading in the Freight Forwarding Service particularly in Ho Chi Minh City and generally in Southeast Vietnam. Cong Thanh Co., Ltd is fifteen kilometers far from the downtown and one kilometer far from the 1A national highway. This is the most advantageous location for transporting Exports and Imports for such industrial zones as Song Than, Linh Trung, Dong Nai, Binh Duong and Tay Ninh to most of the ports in Ho Chi Minh City. Page 2 THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD When approaching Cong Thanh Co., Ltd, the initial differences from any other companies that we can feel are the investment in Human – a professional staff line-up, and an effective mechanism of operation together with the modern technology equipment. With the maxim “Customers’ success is our success”, Cong Thanh Co., Ltd has met customers’ most selective requirements and supplied them with the most effective services strictly complying with the company’s slogan “ quick, accuracy, convenience and least cost”. 1.3. Duties and functions of Cong Thanh Co., Ltd: 1.3.1. Duties: Cong Thanh Co., Ltd is a service company so its main role is to bring about a service quality up to their customers’ satisfaction. The company always assures the business account. They amortize debt themselves and unfailingly fulfill their obligations to the State. They administrate the capital usage reasonably and effectively in order to vouch for their business operation; protect and develop capital; enhance the effect of capital usage ; increase and maintain the investment in material base for the purpose of making a longlasting and sustainable development foundation for the company itself. Moreover, Cong Thanh Co., Ltd has always tried to build and hold business and service plans as well as other concerning plans so as to meet the company’s operational functions. The company has also concentrated on fostering and enhancing levels of education and expertise for staff by quickly approaching the fluctuation of the domestic and foreign logistics service market. The company, in addition, frequently makes staff opportunities to grow by rewarding, increasing salaries and wages and always being interested in solving problems concerning the working environment of the employees. 1.3.2. Functions: o Inland Transportation of Exports and Imports: A combination of a large separate vehicle force plus a driver fleet and numerous workers has helped Cong Thanh build its advantage of transporting goods for domestic customers from Ho Chi Minh City to most of the western provinces. Page 3 THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD o Inland Transportation of types of containers: Thanks to a large number of tractors equipped with the modern radio system and the transport capacity of 100 containers per day, Cong Thanh Co. can take initiative in transporting goods and best serve customers’ requirements. o Export services: - Complete set of Export Documents such as Invoices, Packing Lists, Customs Declarations, etc. - Deal with customs formalities which are to apply for the Certificate of Origin (C/O, inclusively Mexico C/O granted for Garments Industry), Visa, E/C, etc. o Liquidate Customs Declarations at the port. Import services: - Make close relations with storekeepers at ports in order to transport goods into bonded warehouses quickly and avoid loss of goods. o o Apply for kinds of Import Licenses. Customs formalities: - Register Customs Declarations - Inspect goods at ports and airports. - Receive Delivery Orders (D/O) from shipping agents. - Receive goods at ports and airports. Declare Customs Duty: Thanks to a professional staff line-up and an effective mechanism of operation, Cong Thanh Company can completely meet customers’ most selective requirements of all the current forms of Export and Import. o Liquidate and refund imported material tax: these are basic differences between Cong Thanh and most of the other forwarding companies. Cong Thanh Logistics Services and Trade Co., Ltd is one of few forwarding companies responsible for the balance of imported materials to customers. o Process and production of lure for fishing: Cong Thanh Co. has a production workshop basing on automatic lines, which assists the goods processing and production of lure to be smoothly run. Page 4 THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD o Warehouses, container yards and factories for lease: Cong Thanh Co., Ltd has a storage area of up to 21,200 m2 which is able to meet all the needs of production, storage and preservation of goods. 1.4. Organizational structure: 1.4.1. Organizational chart: Board of Directors Board of Control Managing Director Sales Department Deputy Managing Director Accounts Department Administration Department Dispatch Department Vehicle management Department IT Department Transport Department Production Workshop Repairs Workshop Picture 1. The organizational chart of the company Page 5 Trailer Workshop THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD 1.4.2. Duties and functions of each Department and each Section: 1.4.2.1. The Managing Director: monitors and manages all activities of the company, has the duty to relate to business partners. Simultaneously, he is the person responsible for the whole operation of the company before the court and all of the staff. Rights and duties of the Managing Director:  Organize the implementation of the Board of Directors’ decisions  Decide issues concerning the daily business activities of the company  Organize the implementation of the company’s business plans and investment projects  Conclude contracts on behalf of the company except cases under the authority of the Board of Directors  Petition approaches in regard to the company’s organizational structure  Submit yearly financial reports to the Board of Directors  Suggest plans for use of profits or loss treatment in business process  Promulgate regulations to manage the company  Appoint, dismiss, demote managing titles in the company except the titles under the authority of the Board of Directors  Recruit new employees  Other rights and duties stated in the labor contract the Managing Director signs with the company subject to the Board of Directors’ decisions 1.4.2.2. Deputy Managing Director: manages the Export and Import Section, Forwarding and Marketing Section and directly reports to the Managing Director on the operational situation of the aforementioned Sections. Besides, the Deputy Managing Director also looks for customers to exchange, discuss and then come to the signing of the Logistics Contracts. Simultaneously, he also follows and assists the Managing Director to form the business strategies of the company in conformity with each stage. 1.4.2.3. Sales Department:  Make business and management plans and conduct subordinate employees to carry out given plans. Page 6 THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD  Be responsible to the Board of Directors for the whole plans and results of the business operation  Expand market and look for new customers  Report to the Managing Director on signing the contracts with new customers 1.4.2.4. Human Resources Department: Functions  Organize staff management in each Section  Build plans of using Personnel in the whole company  Maintain labor rules  Implement policies and regimes towards employees in accordance with provisions of the company  Pay salaries and wages for all staff  Be responsible for saving data, official documents and data security Duties  Organize recruitment work  Supervise, recommend and carry out such policies and regimes with regard to employees as salaries, wages, bonuses, holidays, insurance, etc.  Manage personal profile  Supervise the training process and update on the changes in Human Resources 1.4.2.5. Accounts Department Functions  Help the Board of Directors manage finance and capital (e.g. liabilities, debts, borrowed funds, etc.) in order to serve the company’s business operation  On behalf of the company, directly deal with banks, tax authorities and customers about the company’s financial situation  Be entitled to sign Documents concerning finance and require other Departments to supply with economic contracts fully, accurately and timely Page 7 THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD Duties  Submit monthly reports on the financial situation and sales results to the Managing Director  Supervise, manage and urge other Departments to use capital effectively  Create capital resources to meet requirements of capital for the business  Synthetize the financial situation to build business strategies and also estimate costs and pay the accounts payable of the company 1.4.2.6. Dispatch Department Functions  On behalf of the shipper, deal with customs formalities for Exports and Imports  Organize the loading and unloading of the goods from the origin of production to the Export/Import border gates and vice versa  Solve complaints about goods during forwarding process and pay costs concerning delivery  Together with the Board of Directors, treat information and give out marketing and cost price strategies in conformity with each customer Duties  Inspect goods and study Export and Import Documents to avoid mistakes and errors which are able to stretch time and arise necessary costs  Carry out the Forwarding Business in agreement with the legal foundation so as to avoid subjectivity and negligence being able to cause damage to customers and the company. 1.4.2.7 Transport Department Functions  Transfer trucks to execute the transportation according to customers’ requirements or the Dispatch Department  Conduct groups of machinists to have vehicle service and maintenance plans in order to ensure transporting plans Page 8 THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD  The truck fleet consists of drivers and assistant drivers. This is a Section directly executing transportation, loading and unloading, arrangements and protection of goods in transit Duties  Take care of goods by supervising the loading and unloading of goods  Take preventable measures in case of perishable goods 1.4.2.8 Vehicle management Department  Take on the handover of tractors  Suggest repairing and buying materials  Inspect oil norm for all of the vehicles and supervise the amount of oil inputted and outputted in each stage  List schedules of servicing and replacing viscosity periodically 1.4.2.9. Production workshop: this workshop majors in producing lure for fishing by Silicon. Staff always improve and enhance the operational procedures of the workshop to get high results. 1.4.2.10. Repairs workshop: majors in servicing and repairing vehicles periodically. 1.4.2.11. Trailer workshop: majors in servicing all of the trailers in the company periodically. 1.4.2.12. IT Department: manages the intranet computer and telephone network; repairs and maintains all of the computers, printers and telephones in all Departments. Page 9 THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD 1.5. The business situation of Cong Thanh Co., Ltd in the recent years 1.5.1. Table 1: Some business results of the company (2008-2010) Target 2008 2009 2010 Revenue 5188.47 5814.29 9220.04 Cost 2660.42 3996.45 5892.05 Profit before tax 2528.05 2817.84 3327.99 Profit after tax 1896.04 2113.38 2346 Unit: million dongs Source: Sales Department According to table 1, the business situation of the company from 2008 to 2010 was quite stable. Specifically, revenue in 2009 compared to the one in 2008 rose by 31.34% or 1,625,820,000 dongs and revenue in 2010 compared to the one in 2009 rose 35.304% or 2,405,750,000 dongs. Sales increase made a contribution to the profit increase; however, the profit increase was only at a relative degree because apart from sales increase, there was costs increase. In short, from 2008 to 2009, the profit increased 217,342,500 dongs and from 2009 to 2010 it rose 382,612,500 dongs. 1.5.2. Table 2: Imports and Exports Logistics Revenue of the company Table 2.1: Export markets Export 2008 markets Export Unit: million dongs 2009 Rate (%) turnover Export 2010 Rate (%) turnover Export Rate (%) turnover USA 774.2 40 1008.35 39.24 1757.20 47.57 Germany 509 26.3 670.18 26.08 953.03 25.8 Korea 269 13.9 504.18 19.62 442.90 11.99 Canada 228.4 11.8 172.17 6.7 285.54 7.73 70.92 2.76 99.74 2.7 China Others 154.8 8 143.90 5.6 155.51 4.21 Total 1935.4 100 2569.7 100 3693.93 100 Page 10 THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD Table 2.2. Import markets Import 2008 markets Import Unit: million dongs 2009 Rate (%) turnover Import 2010 Rate (%) turnover Import Rate (%) turnover USA 636.26 27 782.05 24.89 1056.18 25.82 Germany 419.22 17.79 485.76 15.46 745.30 18.22 Korea 574.99 24.4 580.96 18.49 598.04 14.62 Canada 423.46 17.97 722.67 23 901.97 22.05 China 302.57 12.84 570.59 18.16 789.07 19.29 Total 2356.5 100 3142.04 100 4090.55 100 Source: Sales Department From two data sheets, the USA is the main Export and Import market of the company. The Export and Import turnover in the USA market considerably increased from 2008 to 2010. Specifically, from 2008 to 2010, the Export turnover in the USA rose by 234,190,000 dongs and the Import turnover rose 145,800,000 dongs while the Export density in 2009 was 45.57% and the Import density in 2010 was 25.82%. Apart from America, other markets also played an important role. Potential markets like Canada, China, etc. have been gradually exploited. Notably, German market had a remarkable Export and Import turnover increase. Specifically, the Export turnover in Germany increased 444,020,000 dongs (from 2008 to 2010) and the Import turnover in this market rose by 419,930,000 dongs (from 2008 to 2010). These show that the company has had a structural adjustment in agreement with the market economy. Page 11 THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD 1.6. Comments on the business situation of the company That sale from the above-noted services has soared over years proves that the company has done business more and more effectively. This existed because the company has always kept old customers and tried to look for new customers. Through two data sheets, it is possible to see that the company’s business activities has succeeded and brought about a lot of profit. The objective reason for the company’s success is that the integration path and the need of Exporting and Importing goods must have steadily increased, which contributed to the increase in the number of customers and goods. The subjective reason is that the company must have operated effectively and been credited by customers. Thanks to the experienced and professional employees line-up together with the Marketing line-up’s assistance in searching for customers, Cong Thanh Co., Ltd has increasingly enhanced its prestige on the international market.  List of Typical clients of Cong Thanh Co., Ltd:  Taewang Vina Co., Ltd (manufactures sneakers)  Vietnam Changshin Co., Ltd (manufactures sneakers – Nike)  Viet Vinh – Dona Victor Co., Ltd (manufactures trainers – Nike)  Dona Pacific Co., Ltd (manufactures trainers – Nike)  Dong Phuong – Dona Orient Co., Ltd (majors in trainers – Reebook, Adidas)  Hoa Sen Garments Co. – Trang Bang Industrial zone (manufactures Garments)  Vietnam Tapioca Co., Ltd (majors in wheat)  Vietnam Kenda Co., Ltd  All Super Co., Ltd (majors in Garments)  ShingMark Co., Ltd (manufactures wooden cabinets and beds)  Vietnam Tiger Drylac Co., Ltd (majors in polyester powder) Etc Page 12
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