THE PROCESS OF IMPORT IN CONTAINERS AT CONG THANH CO., LTD
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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
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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
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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
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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.
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COMPANY’S COMMENTS
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INSTRUCTOR’S COMMENTS
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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.
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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:
[email protected]
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
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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.
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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.
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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.
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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
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Trailer
Workshop
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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.
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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
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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
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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.
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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
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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.
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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
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