VIETNAM GENERAL CONFIDERATION OF LABOURTON DUC THANG UNIVERSITY DEPARTMENT OF BUSINESS ADMINISTRATION SOLUTIONS TO ENHANCE THE EFFICIENCY OF IMPORT ACTIVITIES AT TAM DUONG TRADING AND T
INTRODUCTION
Introduction
Being affected by the economic recession in the world, enterprises have to make special efforts to put forward plans and strategies that help to improve their business activities to minimize the effect of the economic crisis that can happen anytime in the future Especially, after joining in WTO, Vietnam companies have faced much fiercer competition from globalization Along with challenges, many opportunities are opened for enterprises to continually improve and develop their products Nowadays, the quality of people‟s standard living is gradually improved So they incessantly require high quality products that meet their demands as well as their preferences Import and export play an important role in meeting customers‟ demand and the development of a particular country as well
To perceive the importance of import and export, Tam Duong Trading and Technology Service Company Limited made a decision to import products from Japan that obtain high quality and meet the strict customers‟ demand Moreover, the company has also become the exclusive distributor for modern industrial machines originated from Japan After several years doing business, Tam Duong TTS Co, Ltd got an important position in providing machines serving for production of Vietnamese enterprises However, there are some limitations in the management and operation of the company Being aware of these potential products the company provides in the future, I decide to choose the topic “Solutions to enhance the
Rationale
To gain a competitive edge in today’s import landscape, companies must excel across all disciplines, especially in a fiercely competitive environment Tam Duong TTS Co., Ltd aims to increase profit and value from its import activities, yet faces the challenge of boosting import efficiency while maximizing revenue and profit To achieve these objectives, the company will implement targeted, efficient solutions that streamline sourcing, logistics, cost management, and risk mitigation, driving better performance and sustainable growth in its import operations.
Some following questions need to be answered from this research:
How are the current import activities of Tam Duong TTS Co, Ltd?
What are the main internal and external factors that affect the company‟s import activities?
What are solutions to enhance the efficiency of the company‟s import activities?
Research objectives
Examine the current import activities at Tam Duong TTS Co, Ltd Base on this, recognize strengths and weaknesses of the company
Identify the key internal and external factors that influence the company's import activities to uncover opportunities and threats, enabling the development of targeted, effective import strategies.
Give solutions to enhance the efficiency of the company‟s import activities
Research methodology
Research objectives are foundations to begin with examining and analysing the import activities at Tam Duong TTS Co, Ltd
Based on a comprehensive literature review of import activities and the factors that affect them, the theories identified emerge as central references for evaluating a company’s performance in its import operations These theoretical insights explain how internal capabilities, external market conditions, and policy environments interact to shape import decisions, efficiency, and outcomes Together they provide a framework for assessing performance, guiding strategic choices in international sourcing and logistics, and enhancing competitiveness in global trade.
Assessing the current performance of the company's import activities reveals its strengths and weaknesses, while identifying the opportunities and threats arising from internal and external factors that affect its import operations.
Give solutions through appropriate strategies by analysing the strength, weaknesses, opportunities and threats base on SWOT model
Strengths: Attributes of the organization that are HELPFUL to achieving the objective These are the company's core competencies
Weaknesses: Attributes of the organization that are HARMFUL to achieving the objective Weaknesses are conditions within the company that can lead to poor performance
Opportunities: External conditions that are HELPFUL to achieving the objective Opportunities are outside conditions or circumstances that the company could turn to its advantage
Threats are external conditions that can be harmful to achieving your objectives They are current or future factors in the outside environment that may threaten the company, including population shifts, changes in purchasing behavior, significant competitive barriers, and shifts in governmental or environmental regulations, among other risk factors.
Data collection method
Secondary data which is mainly used in this research comes from:
Available information from a department of Tam Duong TTS Co, Ltd including:
Annual business report from 2010 to 2012
Import revenue report from 2010 to 2012
Reference to supervisors at Tam Duong TTS Co, Ltd to get more benefit information served for reinforcing this research
Specialist books, article, dictionary which supply information to prove what is written in this research
Internet is the indispensable means of getting the most benefit and valuable information.
Research structure
Factors Affecting Import Activities Performance
Research arrangement
Chapter 1: Introduction – In this chapter, the reason why the topic for this research is chosen through rationale Besides, this research presents research objectives and research methodology to shape the research structure
Chapter 2: Literature review – In this chapter, the concepts relating to the import such as import process, the factors affecting import activities, roles of import, functions of import, techniques in import activities
Chapter 3: Current import activities at Tam Duong TTS Co, Ltd – This chapter shows the current performance of the company‟s import activities, along with analysing the company‟s operation to find out its strengths and weaknesses
Chapter 4: Solutions to enhance the efficiency of import activities at Tam Duong
TTS Co, Ltd – Base on analysing the SWOT matrix, some solutions will be given to enhance the performance of the company‟s import activities.
LITERATURE REVIEW
Import is the act of bringing a good or service into a country from abroad for use or sale, and it, along with exports, forms the core of international trade Imports shape the basics of international trade and, when compared to exports, determine the balance of trade: a surplus occurs when exports exceed imports, while a deficit occurs when imports are higher than exports The import process usually involves customs authorities in both the exporting and importing countries and is guided by import quotas, tariffs, and trade agreements that regulate cross-border movement of goods.
In international trade, the buyer of goods and services from another country is referred to as the importer, who operates from the country of import, while the seller located overseas is called the exporter.
Imports depend on the importing country's consumers' income and the exchange rate When consumers' income rises, demand for imported goods increases Conversely, when the exchange rate rises, the price of imported products in domestic currency increases, leading to a decrease in import demand.
To meet domestic customer demand, import activity is accelerating rapidly Imports bring a range of benefits, including job creation, improved customer satisfaction, tariff revenue for the government, and the expansion of international relationships with foreign partners.
There are two types of import, including:
Business-owned (direct) import refers to a form of import in which an enterprise holds its own import license and directly signs and executes foreign trade contracts using its capital, then establishes distribution channels to generate profit.
Direct operation places all risks, profits, and losses squarely on the enterprise, making careful, end-to-end management essential To operate efficiently, companies must oversee every step—from market research and product planning to sales execution and cash collection—with meticulous attention to detail, accurate data, and proactive risk control This disciplined approach strengthens market insight, decision speed, and cash flow, supporting sustainable profitability across the business.
For this kind of import, the enterprise only needs to sign contract with foreign enterprise Other relating contracts will be drafted after that
Entrusted import (indirect) is an import activity where the buyer does not directly sign a foreign trade contract; instead, the buyer signs an entrusted contract with a foreign trade enterprise to act on the buyer’s behalf and to sign the contract using the buyer’s funds The importer pays the entrusted enterprise an entrusted fee, typically about 1–2% of the contract value.
Under this import model, entrusted import enterprises do not need to deploy their own capital, apply for quotas (where applicable), or conduct market research Instead, they act on behalf of the entrusting enterprises, signing contracts, handling customs clearance, and pursuing claims or indemnities in case of losses.
Entrusted enterprises have rights to count import quotas, not revenue and turnover Besides, they have to compose two contracts:
- Purchase contract with foreign enterprise
- Entrust contract with entrusting enterprise
Import activity boosts the efficiency of the national economy by enabling the exchange of goods and services and by leveraging the global allocation of labor and the comparative advantages of countries worldwide, allowing economies to access specialized capabilities and resources and improve productivity.
Import activity leverages the capacity and comparative advantages of goods, technology, capital, and labour from regional and global partners to accelerate domestic production and boost consumption Through this exchange, domestic industries gain access to international advances in technology and science, while consumers enjoy high-quality products and services at competitive prices.
Import activity reshapes the structure of the gross national product in sync with production growth and rising living standards It fosters a more harmonious, balanced economy and helps accelerate overall economic development by sustaining higher growth momentum.
Import activity helps developing countries to hasten the process of economic association, market expansion and business partners Besides, it contributes to guarantee stable economy and politics
Developing import activity accelerates the growth of other foreign economic activities, including international telecommunications, international financial credit systems, and tourism In addition, cooperative policies and international investment flows tend to rise as imports expand, creating a more integrated and resilient global economy.
Import activity creates good conditions to attract more big investment This helps to develop domestic production, eventually increase the nation‟s balance of trade and obtain trade surplus
Import is a cornerstone of international trade, directly shaping production conditions and people’s livelihoods By enabling access to modern facilities and advanced technologies, imports strengthen the production process and overall productivity They also give consumers access to products that are not produced domestically or cannot be produced in sufficient quantity to meet demand Import activity serves several important roles, including diversifying supply, facilitating technology transfer, expanding consumer choices, and supporting price and quality competition to enhance efficiency.
Thanks to import activities, countries around the world have opportunities to learn about each other’s customs, cultures, and politics This exchange accelerates economic integration between nations and enables them to fully leverage their comparative advantages By directing labour and natural resources more efficiently through trade, imports support growth and development on a global scale.
Import activity will help to stimulate production and consumption in a country This contributes to increase the world‟s requirements and volume og goods People‟s living standard will be upgraded
Import activity provides undeveloped and developing countries with opportunities to gain management experience and to acquire advanced technical capabilities These gains support their industrialisation and modernization efforts by strengthening managerial capacity, upgrading technology, and accelerating economic development.
CURRENT IMPORT ACTIVITIES AT TAM DUONG
TRADING AND TECHNOLOGY SERVICE COMPANY LIMITED
3.1 The profile of Tam Duong Trading and Technology Service Company Limited
The company‟s name: Tam Duong Trading Technology Service Company Limited
The abbreviation of the company‟s name: Tam Duong TTS Co, Ltd
Tax code: 0304896966, was issued on March 27 th , 2007
Issued authority: Business registration department, service of planning and investment of Ho Chi Minh City
Address: Room 201, Eco Office, 1 Dien Bien Phu Street, Ward 25, Binh Thanh District, Ho Chi Minh City
Legal representative: Mr Moro Isamu
Email: tamduong.co.ltd@cpost.plala.or.jp
3.1.1 The history of the company’s establishment
Tam Duong TTS Co, Ltd was established by Mr Moro Isamu on March 27 th ,
Established in 2007 in Ho Chi Minh City, Vietnam, the company began as the exclusive distributor for Tadano of Japan, specializing in cranes and a full range of spare parts It also imports industrial printing blankets to support the needs of the printing industry, expanding its offerings beyond crane equipment.
Tam Duong TTS Co., Ltd has grown steadily thanks to high-quality products, competitive service, a team of experienced, dedicated professionals, and the steadfast commitment of its board of directors Today, the company serves as the exclusive distributor for numerous renowned Japanese brands in Vietnam, not only importing blankets but also expanding its steel product line through Sanko Co., Ltd., Japan.
The company is making plan to export some products to Japan which is considered a potential market for Vietnam Tam Duong initially gets success in products of chemicals and clothing
3.1.2 The Process of the company’s development
After 6 years of non-stop development, Tam Duong has become the exclusive distributor in Vietnam for many worldwide Famous Japanese companies which manufacture cranes and bag making machines Moreover, the company also imports Blanket, steel…hereafter are the following crucial periods of the company
Tam Duong TTS Co., Ltd, established on March 27, 2007, has its headquarters at 339/1 To Hien Thanh Street, Ward 12, District 10, Ho Chi Minh City, Vietnam, and serves as the exclusive distributor of Tadano cranes.
In May, 2007: The company began to import Blanket which is used in industrial printing
In August, 2008: The company became the exclusive distributor of Sumitomo Heavy Industry Modern Japan
In September, 2008: The company became the exclusive distributor of Fuji Kikai Japan
In October, 2008: Tam Duong opened a branch which is also functioned as a warehouse at 88/3 To Ngoc Van Street, Town 3, Ward Linh Tan, Thu Duc District, Ho Chi Minh City, Vietnam
On June 3 rd , 2010: The company moved the headquarter to room 201, Eco office, 1 Dien Bien Phu Street, Ward 25, Binh Thanh District, Ho Chi Minh City, Vietnam
In March, 2011: The company became the exclusive distributor of Futec company Japan
In May, 2011: The company became the exclusive distributor of Totani Company Japan
In November, 2011: The company began to import Steel from Sanko company Japan
In January, 2012: Established Tam Duong branch in Japan at 2954-1-318 Saitamaken, Misatoshi, Togashaki, Japan to promote exporting to this potential market
In August, 2012: The company exported the first batch of goods of chemicals from Vietnam to Japan
In November, 2013:The company began to promote exporting products of clothing to Japan
Tam Duong is the exclusive distributors of Japanese companies that provide kinds of industrial machines
The company imports industrial printing blankets and steel from Sanko Company in Japan It is promoting exports to Japan of two product categories: chemicals and clothing.
According to the term in business registration, Tam Duong functions as follow:
Being an investment consultant (except for financial and accountant consultant)
Selling and buying alternative accessories, machines and materials in printing industry, blown film machines, plastic bag making machines, stainless steel tin, aluminum can making machines, paper cutting machines, generator,
Repairing and maintaining service in printing industry, Petrol exploiting, generator, air compression engine, can manufacturing machines, carton making machines, hydraulic cranes, hydraulic lifter
Manufacturing communication devices and electrical products Manufacture measuring, checking, controlling devices Manufacture optical devices, motor engines, electrical distributing and controlling devices Manufacture stationary machines and devices
Installing industrial machines and devices
Selling computers, peripheral devices and softwares
Selling electrical and telecommunicating devices
Establishing strategic planning and carry out the company‟s business service following current regulations
Using the company‟s finance appropriately and bringing economical efficiency, guaranteeing for keeping and supplementing the capital based on the initial capital
Keeping, training and developing the human resource, expertise who are well-versed in business and devoted in their job
Maintaining and upgrading the company’s facilities and equipment is essential for stable operations and sustained growth By investing in additional facilities, Tam Duong can broaden brand visibility, expand its market presence, and strengthen its reputation This strategic enhancement will boost the competitiveness of Tam Duong’s products and services.
Doing the procedure and setting up the document for importing and exporting goods
The role involves contacting logistics providers to arrange transportation of the company's cargo, ensuring reliable and cost-efficient shipping It also focuses on identifying, engaging, and maintaining relationships with potential customers who transact with the company and purchase the products it distributes, turning inquiries into sales and strengthening the distributor network.
We arrange comprehensive schedules for meetings between Japanese experts and Vietnamese customers, enabling effective offers and introductions to products and the latest technologies when they visit Vietnam We handle all logistics, including travel coordination, venue setup, product demonstrations, and business discussions, and we arrange comfortable accommodations and meals to ensure a smooth, productive stay This end-to-end service supports clear communication, impactful product exposure, and strong business relationships between Japanese suppliers and Vietnamese clients.
Caring and finding more information about the former customers and potential customers that Tam Duong works as a distributor
Supporting Japan company to organize exhibition and fair and activities to expand their brand in Vietnam
Promoting to export the product of Vietnam to Japan by specific activities such as: Seeking customers and appropriate products, sending the samples and dealing with manufacturing companies
The company specializes in providing some kinds of products belonging to different industries
Figure 3.1: Industrial machines (Source: Suppliers’ website)
This is a kind of material used in metal printing machine
Gravure Printing Machine of Fuji Kikai
Crane of Tadano Crane of Tadano Crane of Tadano
Figure 3.2: Printing blanket (Source: Kinyo’s website) Sanko Steel
Figure 3.3: Sanko steel (Source: Sanko’s website)
Tadano Co, Ltd: Specializes in providing cranes and their spare parts
Sumitomo Heavy Industry Modern Co, Ltd: Specializes in providing blown- film machines and T-die – a machine to laminate 2 films together
Fuji Kikai Kogyo Co., Ltd: Specialize in providing dry laminator machines, metal printing machines, gravure printing machines, viscosity controller…
Futec company: Specialize in providing printed web inspection system, flaw inspection system and X-ray thickness gauge
Totani company: Specialize in providing bag making machines
Kinyo: Specialize in providing rubber blanket serving for printing industry
Sanko: Specialize in providing kinds of steel such as stainless steel
Table 3.1: Import revenue by products from year 2010 to year 2012
Tadano (Crane and its spare part) 4,164,803,158 2,596,981,037 2,706,953,667 FujiKikai (Printing machine) 0 0 1,230,433,485
(Source: Financial department of the company)
From 2010 to 2012, revenue from import products varied year by year, driven by changing customer demand and investment decisions Each year, Tam Duong TTS Co., Ltd adopted different strategies, contributing to the fluctuations in import revenue.
In 2010, Tadano's revenue peaked because the company had not yet diversified into other product lines like Sanko Steel and instead focused on serving its Tadano customers Consequently, Tadano secured more contracts that year than in 2011 and 2012.
In 2011, the company began importing Sanko steel from Japan and focused on securing customers for its steel products As a result, revenue was evenly distributed across all product lines During this period, demand for blankets rose, driven by the company’s strong supplier relationships and strategic marketing efforts.
Figure 3.4 Import revenue by products in the year 2012
According to the chart above, Tadano accounts for the largest revenue share at 55% of the total This figure indicates that Tadano's industrial machines are the company’s main product, contributing more than half of its overall revenue.
Blanket remains a low-value commodity representing roughly seven percent of the company's revenue Despite its lower price compared with industrial machinery, it continues to be a primary product that underpins the company's ongoing development and future growth.
After 1 year of operation, Sanko steel accounts for 13% of total revenue This year is not much as the year of 2011 because of decreased demand of customers in the year 2012 Fuji kikai accounts for 25% - a quarter of total revenue because of its high value
3.2 Organizational structure of the company
3.2.2 The functions and responsibilities of Departments
An overseas Vietnamese professional with a degree in mechanical engineering and a bachelor's degree in business from Japan, he brings deep expertise in hydraulic cranes, bag manufacturing processes, and various industrial printing machines He is fluent in five languages—English, Japanese, Vietnamese, Ede, and Chinese—enabling effective communication across international teams and projects The director takes responsibility for several core tasks, providing leadership in engineering, operations, and strategic initiatives within the organization.
Manage all daily activities of the company Simultaneously take responsibility for do business legally