Major international business economics EXPORT PROCEDURE FOR SEAWAY SHIPMENT AT BLUE SEA TRANSPORTATION – TRADING CO , LTD

FOREIGN TRADE UNIVERSITYHO CHI MINH CITY CAMPUS --- ---MID-COURSE INTERNSHIP REPORT Major: International Business Economics EXPORT PROCEDURE FOR SEAWAY SHIPMENT AT BLUE SEA TRANSPORTAT

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FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

-

-MID-COURSE INTERNSHIP REPORT

Major: International Business Economics EXPORT PROCEDURE FOR SEAWAY SHIPMENT AT BLUE SEA TRANSPORTATION – TRADING CO., LTD

Student: Dao Nguyen Hanh Nguyen Student ID: 1701015548

Class: K56CLC4 Supervisor: Vuong Thi Bich Nga

Ho Chi Minh City, August 2020

TIEU LUAN MOI download : skknchat123@gmail.com

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FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

-

-MID-COURSE INTERNSHIP REPORT

Major: International Business Economics EXPORT PROCEDURE FOR SEAWAY SHIPMENT AT BLUE SEA TRANSPORTATION – TRADING CO., LTD

Student: Dao Nguyen Hanh Nguyen Student ID: 1701015548

Class: K56CLC4 Supervisor: Vuong Thi Bich Nga

Ho Chi Minh City, August 2020

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FOREIGN TRADE UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM

MIDTERM PROFESSIONAL REPORT REMARKS

Student’s full name: Student code:

Name of the report:

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Remarks (circle the appropriate one): 1 The student has completed the report properly under the guidance of the supervisor The supervisor is responsible for the title, purpose, subjects, scope and research method(s), and chapters’ titles, and main headings of the report (3 digits): 0.8-1.0 point(s) 2 The student has failed to carefully follow the supervisor’s instructions The supervisor is responsible for chapters’ titles, purpose, subject, scope and research method(s), and titles and main headings of the report (2 digits): 0.5-0.7 point(s) 3 The student has failed to carefully follow the supervisor’s instructions The supervisor is not responsible for the report: 0.1-0.4 point(s) 4 The student has totally failed to follow the supervisor’s instructions The supervisor rejects the submission of the report: 0 point Ho Chi Minh City, … /… /

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Note: This evaluation remark is enclosed with the report, right after the cover page The

student must give this form to the supervisor for comments and scoring of his/her morale, attitude, and diligence and submit the report in accordance with the relevant notice

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Dao Nguyen Hanh Nguyen

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I would like to express my sincere gratefulness to Mr Nguyen Thanh Tuan Director of Blue Sea Transportation – Trading Co., Ltd, Mr Nguyen Tuan Anh -Sales Manager, and all staff members in Blue Sea for their enthusiastic supportduring my internship Especially, I would like to show my deep gratitude toMrs.Vuong Thi Bich Nga Without her conscientious guidance, this report couldhave not been completed Finally, I would like to present a thankful attitude to herschool – Foreign Trade University and all the teachers who have conveyedinvaluable knowledge as a foundation for her to complete this report

-Ho Chi Minh City, August 2020

Dao Nguyen Hanh Nguyen

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Table of contents

LIST OF ABBREVIATIONS

LIST OF FIGURES

LIST OF TABLES

PREFACE 1

CHAPTER 1 INTRODUCTION OF BLUE SEA TRANSPORTATION – TRADING CO., LTD AND INTERNSHIP SUMMARY 2

1.1 General information, brief history, and development of Blue Sea Transportation – Trading Co., Ltd 2

1.2 Functions, missions, organizational structure and personnel structure 3

1.2.1 Functions 3

1.2.2 Vision, missions and values 4

1.2.3 Organizational structure 4

1.2.4 Personnel structure 6

1.3 Current business performance of Blue Sea Transportation from 2017 to 2020… 8

1.4 Internship period summary 10

1.5 Conclusion of chapter 1 11

CHAPTER 2 EXPORT PROCEDURE FOR SEAWAY SHIPMENT AT BLUE SEA TRANSPORTATION – TRADING CO., LTD 12

2.1 Process of exporting goods by sea at Blue Sea Transportation - Trading 12

2.1.1 General process of exporting goods by sea 12

2.1.2 Detailed process of exporting seaway LCL wooden handicraft baskets at Blue Sea Transportation – Trading Co, Ltd 17

2.1.3 Strengths and weaknesses of Blue Sea’s export procedure 20

2.1.4 Strengths 20

2.1.5 Weaknesses 21

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CHAPTER 3 RECOMMENDATIONS FOR IMPROVING THE PROCESS

OF EXPORTING GOODS BY SEA AT BLUE SEA TRANSPORTATION –

TRADING CO., LTD 23

3.1 Recommendations and implement schedule 23

3.1.1 Develop strategy of attracting new customers and improving customer services… 23

3.1.2 Provide consolidation service 24

3.1.3 Expand network of agents 25

3.1.4 Implementation schedule 25

3.2 Personal lessons and experience 26

Conclusion 28 BIBLIOGRAPHY

ANNEXES

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LIST OF ABBREVIATIONS

for Trans-Pacific Partnership

LIST OF FIGURES

2 Figure 1.2 Blue Sea’s operational organization 5

structure

3 Figure 1.3 Blue Sea's business outcomes 2019 - 9

6M2020 and estimated 2020 (billion VND)

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4 Figure 2.1: Process of exporting goods by sea

at Blue Sea

11

LIST OF TABLES

Transportation – Trading Co., Ltd

2017 to 2019

4 Table 3.1: Implementation plan for solution to 24

improve the conduct of export procedure atBlue Sea

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PREFACE

Vietnam is expected to witness very robust growth in international commercialactivities in the coming years, which will support the continued development andexpansion of the logistics industry At the present, the logistics service is among thefastest-growing industry, accounts for 15-20% of GDP in Vietnam

Blue Sea Transportation – Trading Co., Ltd is a forwarding company with 15 years

of working in the Logistics industry During the period of development, Blue Seahas gradually improved the business process and organizational structure in order tomeet all strict requirements from customers

With the orientation of self-improvement in the field of logistic, the author had a greatopportunity to practice at Blue Sea Transportation – Trading Co., Ltd Based on theauthor’s inherent knowledge along with her observation, experience, and learning at thecompany, the author decided to choose the topic: “Export procedure for seawayshipment at Blue Sea Transportation – Trading Co., Ltd” for her mid-course report.This report consists of three main parts:

Chapter 1: Introduction of Blue Sea Transportation – Trading Co., Ltd and internship summary

Chapter 2: Export procedure for seaway shipment at Blue Sea Transportation – Trading Co., Ltd

Chapter 3: Recommendations for improving the process of exporting goods by sea

at Blue Sea Transportation – Trading Co., Ltd

Despite many efforts, due to limited time and knowledge, the report could not avoidthe drawbacks and deficiencies Thus, the author would highly appreciate anyconstructive comments that can help improve it

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2005, under the business code of 0309381590 The Company came into operation

on October 27th, 2005, with the initial capital of 5,000,000,000 VND

Table 1.1: Brief information of Blue Sea Transportation – Trading Co., Ltd Name of organization Blue Sea Transportation – Trading Limited Liability

Head Office 11 Phu Giao , Ward 14, District 5, HCMC, Vietnam

Transaction Branch 49 Le Trung Nghia, Ward 12, Tan Binh District,

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at 03 Le Thanh Tong, Ngo Quyen District, Hai Phong City, nearby Hai Phong Port.After 15 years of formation and development, Blue Sea has gradually improved thebusiness process and organizational structure Such improvement allows theCompany to utilize its best comparative advantage – well-trained, experienced, andqualified staffs Moreover, the Company has also developed an information systemwith all of its global agents, which helps to follow the shipment schedule and solveany problems that might arise Therefore, the Company is committed to provide thebest services and meet strict requirements from customers.

1.2 Functions, missions, organizational structure and personnel structure.

1.2.1 Functions

Blue Sea provides the following services:

Logistics services:

 Cargoes packaging, wrapping and crating

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 Entrusted import and export service

 Customs declaration and other export, import documental services

 Bonded warehouse rental and related logistics services

Trading services:

 Import: raw material, industrial machine, wine, etc

 Export: furniture, article of iron, steel, ceramic, etc

 Sourcing agent for foreign companies

1.2.2 Vision, missions and values

Vision: Become one of the leading Vietnamese forwarders.

Mission: “Provide best logistic solutions and meet all strict requirement from our

customers.”

Values:

 Profession: offer the best value to the Company’s customers at competitive

price

 Security: protect customers’ information and do not interfere with

customers’ business activities

 Integrity: take full responsibility for any loss or damage due to its lack of

due diligence

1.2.3 Organizational structure

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Figure 1.2 Blue Sea’s operational organization structure

Director

Export team

Import team

Inland

Overseas

(Source: author’s synthesis)

Director: managing all departments in the Company; acting as the representative

and taking responsibility under the law; controlling the conduct of strategy and

business plan and the performance of the Company; signing contracts

Sales Department: is responsible for searching for customers, conducting market

research; consulting, negotiating with customers and drafting contracts for the best

of both sides; developing long-term relationships with customers, shipping lines and

other partners

Document Department: is responsible for preparing all required documents for

customers; consulting customers for any issue related with import, export

procedure; storing customer records; keeping informed with the domestic and

international trading environment, news, constitutional regulations, decrees,

circulars, legal documents, etc related to the field of import and export

Logistics Department: following the consignment during the delivery; receiving

and delivering goods from customers' warehouse to the port or vice versa as in the

contract; customs clearance; managing packaging and wrapping and crating of

goods if required; handing over the consignment to carrier and get the necessary

documents; keeping informed with the domestic and international trading

environment, news, constitutional regulations, decrees, circulars, legal documents,

etc related to the field of import and export

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Accounting Department: is in charge of financial control of the Company:

preparing periodical reports, quarterly and yearly financial statements; recordingand managing the use of the Company’s capitals and assets; tracking and managingcosts, debts and financial liabilities; managing the deduction of amounts payable tothe State, storing and preserving confidential document; keeping informed with thedomestic and international trading environment, news, constitutional regulations,decrees, circulars, legal documents, etc related to the field of import and export

Customer Department: is in charge of developing and maintaining long-term

relationships with customers; improving the customer searching process of theCompany

Overseas Department: working with foreign agents to execute contracts or

required procedures; keeping informed with the domestic and international tradingenvironment, news, constitutional regulations, decrees, circulars, legal documents,etc related to the field of import and export

1.2.4 Personnel structure

Table 1.2: Blue Sea’s personnel structure

andcollege

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andcollege

(Source: Blue Sea human records, 2019)Overall, there are 16 employees in Blue Sea, including nine males and sevenfemales They all graduated from university or college and have at least two years ofexperience in the logistics industry

In terms of gender, the number of men outweighs that of women Thosedepartments with the majority of employees are female are Document Departmentand Customer Department In comparison, Sales Department and LogisticsDepartment are predominantly male

In terms of age, the Company has a young workforce Except for Director, allemployees are aged under 30 The average age of male employees is 29, and that offemale employees is 26

In terms of education, the Company has a high-quality workforce All employeeshave graduated from College or University and are well-trained in Logistics As thenature of work requires communicating with foreign customers and partners, allemployees have at least basic English skills

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Blue Sea provides periodic Training and Developing program that is specialized for

each position so as all employees have the best condition for developing themselves

and contribute to the success of the Company

1.3 Current business performance of Blue Sea Transportation from 2017 to 2020

Table 1.3: Blue Sea’s business outcomes from 2017 to 2019 (billion VND)

after tax

(Source: Blue Sea’s financial statements, 2017 -2019)

Table 1.3 illustrates the business performance of Blue Sea Co., Ltd, from 2017 to

2019 In details:

In terms of revenue: In 2007, the Company’s revenue accounted for 3,149 billion

VND There was a growth of 13.2% in revenue to 3,565 billion VND, witnessed at

the end of 2018 From 2018 to 2019, revenue continued to grow by 17.25% into

4,180 billion VND

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In terms of cost: 2007’s cost of 2,142 billion VND increased by 13.7% into 2,437

billion VND in 2008 2009 observed a remarkable increase for 18.75% into 2,894

billion VND

In terms of profit after tax: following the same upward trend, the profit after tax

grew by 10.08%, from 377 billion VND in 2017 to 415 billion VND in 2019 It

reached 450 billion VND at the end of 2019

Overall, the Company was having a steady growth as revenue and profit continued

to rise during the given period Such development can be explained by a variety of

reasons Firstly, Logistics service in Vietnam experiences remarkable growth in

recent years With the successful signing of Free Trade Agreements and the gradual

improvement of infrastructure, forwarding companies have more growth

opportunities in the Vietnamese market Second is the great effort of Blue Sea to

improve its service quality and working process In 2019, the Company invested in

establishing its own fleet of vehicles to facilitate its inland transportation services

Figure 1.3 Blue Sea's business outcomes 2019 - 6M2020 and

Profit after tax Cost Revenue

(Source: Blue Sea’s financial statements, 2019 – 2020)Figure 1.3 compares the performance of Blue Sea in the first six months between

2019 and 2020, and thereby, provides estimated data for 2020

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Blue Sea’s business outcomes are seasonal The Company usually receives the mostvaluable orders in the last quarter of a fiscal year because the time before LunarNew Year is when the market is most bustling In detail, the first six months of 2019attained 1,586 billion VND in revenue, accounted for only 38% of 2019’s revenue

2020 has been and will be a tough time for Blue Sea due to the Covid19 According

to the performance of Blue Sea from 2017 to 2019, the Company has been having asteady growth, as the revenue growth rate was at 17.25% in 2019 However, notonly does it not follow the upward trend, the Company’s performance in the first sixmonths of 2020 witnessed a drop In detail, the revenue and profit after tax in thefirst six months of 2020 declined by 13% (equivalent to 211 billion VND) and 4%(equivalent to 8 billion VND), respectively, compared to the same period of 2019 Italso can be seen from the chart that the Company put a great effort into controllingcosts during a difficult time to minimize the loss of profit

With the forecast that the pandemic situation is likely to continue until the end of

2020, and based on the data of 2019, Blue Sea’s business outcomes are estimated at3,624 billion VND in revenue, 2,402 billion VND in cost and 430 billion VND inprofit after tax

1.4 Internship period summary

The author’s internship lasted for ten weeks, started on June 1 and ended on August

7, 2020 Working in Sales Department, the author had opportunities to be exposed

to a variety of tasks, including:

 Generate, arrange and update databases of customers, shipping lines, global agencies, local charges, etc

 Send inquiries to shipping lines and offers to customers

 Contact to potential customers via email, phone

 Rewrite and translate to English some professional documents

 Research for freight rates and schedule for customers

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The author received guidance and training from Mr Nguyen Tuan Anh, Sales Manager

at Blue Sea At the end of the internship, the author had a great opportunity to supportLogistics Department receiving a shipment from a customer’s warehouse

Details of the internship at Blue Sea are attached in “Internship diary” in theannexes below

1.5 Conclusion of chapter 1

To conclude, chapter 1 provides some general information about Blue SeaTransportation – Trading Co., Ltd and summarizes the author’s 10-week internship.With 15 years of experience as a professional forwarding company, Blue SeaTransportation – Trading Co., Ltd is gradually improving itself and raising servicequality to provide the best value to customers Thus, positive business performanceresulted from the great effort of the entire company Working and learning in such aprofessional environment as in Blue Sea, the author has received a lot of lessons andexperience, which are valuable for not only her study at Foreign Trade University,but also her future career

The next chapter will illustrate the process of exporting goods at Blue SeaTransportation – Trading Co, Ltd

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CHAPTER 2 EXPORT PROCEDURE FOR SEAWAY SHIPMENT

AT BLUE SEA TRANSPORTATION – TRADING CO., LTD

2.1 Process of exporting goods by sea at Blue Sea Transportation - Trading

2.1.1 General process of exporting goods by sea

Figure 2.1: Process of exporting goods by sea at Blue Sea

• Searching for new customers

• Signing contract, receiving customer records

• Preparing, checking, packing deliver cargo to the port

• Customs clearance

• Handing over cargo to the carier

• Issuing House Bill of Lading

• Sending documents to agent and liquidating contract

(Source: author’s synthesis)

Step 1: Searching for new customers:

Blue Sea's orders come from two main sources: one is long-term loyal customers,and the other is new customers Sales Department is in charge of searching forpotential customers and maintain long-term relationships with current customers.According to Mr Tuan Anh – Sales Manager, new customers bring approximately35% of the Company's orders

Sales Department approaches sources of potential customers using three mainchannels Firstly, Sales employees search for customer contacts on the Internet andonline forums After having customer contact, Sales employees will send emails andcall to discuss directly with customers Secondly, a new customer may contact

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