RECOMMENDATIONS TO INCREASE EFFECTIVENESS OF IMPORTSEA FREIGHT FORWARDING OPERATIONAT SAFI COMPANY

TON DUC THANG UNIVERSITY DEPARTMENT OF BUSINESS ADMINISTRATION SUMMARY RECOMMENDATIONS TO INCREASE EFFECTIVENESS OF IMPORT SEA FREIGHT FORWARDING OPERATION AT SAFI COMPANY Supervisor

TON DUC THANG UNIVERSITY

DEPARTMENT OF BUSINESS ADMINISTRATION

SUMMARY

RECOMMENDATIONS TO INCREASE EFFECTIVENESS OF IMPORT SEA FREIGHT FORWARDING OPERATION

AT SAFI COMPANY

Supervisor: MBA Pham Thi Ngoc Bich

Student: Vo Thy Kieu

Student ID: 082698Q

Intake: 2012

HO CHI MINH CITY, 07 Aug 2012.

COMMENTS OF INSTRUCTOR

Student: Vo Thy Kieu Student ID: 082698Q

Class : 08QQ2D Intake : 12

HCMC,

COMMENTS OF EXAMINER

Student: Vo Thy Kieu Student ID: 082698Q

Class : 08QQ2D Intake : 12

HCMC,

TABLE OF CONTENT

Acknowledgement

List of abbreviations

List of tables and figures

List of attached appendixes

Chapter 1: Introduction 1

1.1 Introduction 1

1.2 Research objectives 2

1.3 Research scope 2

1.4 Research methodology 3

1.5 Data sources 4

1.6 Research structure 5

Chapter 2: Literature review 7

2.1 Concept of Freight Forwarding 7

2.1.1 Definition of Freight Forwarding 7

2.1.2 Definition of Freight Forwarder 7

2.2 Range of Freight Forwarding Activities 8

2.2.1 As Representative of Exporter 8

2.2.2 As Representative of Importer 8

2.2.3 Transferring specific commodities 8

2.2.4 Providing other services 9

2.3 Roles and liabilities of Forwarder 9

2.3.1 Roles of Forwarder 9

2.3.2 Liabilities of Forwarder 10

2.4 The Legal foundation of Freight Forwarding 11

2.4.1 Legal relationship with other organizations 11

2.4.2 Legal documents relating to Freight Forwarding 12

2.5 The benefits of using Freight Forwarding Services 13

2.5.1 For Exporter 13

2.5.2 For Importer 13

2.5.3 For the national economy 14

2.6 The factors influent to Freight Forwarding 15

2.6.1 Internal factors 15

2.6.1.1 The human resources 15

2.6.1.2 The management system 15

2.6.1.3 The business network 15

2.6.1.4 The company Infrastructure 16

2.6.1.4 Marketing Strategy 16

2.6.1.4 Service Quality 16

2.6.1.4 Financial situation 16

2.6.2 External factors 16

2.6.2.1 Economic environment 16

2.6.2.2 Political environment 18

2.6.2.3 Social environment 18

2.6.2.4 Technology 18

2.6.2.5 The natural resources and geography 19

2.7 Performance of Freight Forwarding 20

Chapter 3: Current operation and business result of SAFI Company 21

3.1 History and development of SAFI Company 21

3.2 Mission and function of SAFI Company 22

3.3 Culture of SAFI Company 22

3.4 Organizational structure of SAFI Company 23

3.4.1 Organizational chart 23

3.4.2 Function of Departments 25

3.5 Infrastructure of SAFI Company 28

3.6 Business areas of SAFI Company 30

3.6.1 Multi-modal transportation 30

3.6.2 Shipping agents 31

3.6.3 Customs registration and Freight Forwarding 32

3.7 Human resources 32

3.7.1 Labor structure by age level 32

3.7.2 Labor structure by qualification level 34

3.7.3 Human resources policies 35

3.8 Business performance of SAFI Company 37

3.8.1 Business results of SAFI Company from 2009 to 2011 37

3.8.2 Turnover structure of SAFI Company in 2011 39

3.8.2.1 Turnover structure by operation fields 39

3.8.2.2 Turnover structure by kinds of commodities of Freight Forwarding Operation 40

3.8.2.3 Turnover structure by Freight Forwarding services 43

Chapter 4: Import Sea Freight Forwarding Process at SAFI Company 46

4.1 Signing the Forwarding contract 47

4.2 Contacting the Shipping Line to make booking Ship 47

4.3 Receiving and checking the documents from customers 48

4.3.1 Documents required for Customs clearance 48

4.3.2 Checking the documents 52

4.4 Getting the Delivery Order – D/O 54

4.5 Making procedures for customs clearance 55

4.5.1 Electronic Customs clearance 55

4.5.1.1 Putting the data into computer system 55

4.5.1.2 Receiving feedback from Customs Department 59

4.5.2 Inspecting the commodity 60

4.5.3 Paying Tax 61

4.6 Completing Receiving procedure 61

4.6.1 For Full Container Load - FLC 61

4.6.2 For Less Container Load - LCL 62

4.7 Delivering commodity to customers 63

4.8 Liquidating the contract 64

Chapter 5: Recommendations to increase effectiveness of Import Sea Freight Forwarding Operation at SAFI Company 66

5.1 The objectives and business development strategies of SAFI Company 66

5.1.1 The objectives in 2012 66

5.1.2 Business development strategies 66

5.2 The SWOT analysis on Forwarding operation of SAFI Company 66

5.2.1 Strengths 68

5.2.2 Weaknesses 70

5.2.3 Opportunities 71

5.2.4 Threats 72

5.3 Recommendations to improve Forwarding Operation at SAFI Company 74

5.3.1 Solutions for Human Resources 74

5.3.2 Solutions for Marketing Strategies 75

5.3.3 Solutions for Service Quality 76

5.4 Recommendations for the Government 77

5.4.1 Upgrading the infrastructure of Logistics Industry 77

5.4.2 Increasing the national competitiveness in the international Forwarding market 77

5.4.3 Giving strategic policies to develop Human Resources 78

5.4.4 Completing Legal System and improving administrative procedures 78

5.4.5 Giving solutions to limit impacts of inflation 78

Conclusion 79 References

Appendixes

LIST OF ABBREVIATIONS

APEC : Asia Pacific Economic Cooperation

ASEAN : Association of Southeast Asian Nations

FIATA : International Federation of Freight Forwarders Association

SDR :Special Drawing Rights

B/L : Bill of lading

C/I : Commercial Invoice

C/O : Certificate of Origin

CEPT : Common Effective Preferential Tarrift

CIR : Cargo Interchange Receipt

Co Ltd : Company Limitted

D/O : Delivery Order

EIR : Equipment Interchange Receipt

EU : European Union

FCL : Full Container Load

FIATA : Viet Nam Freight Forwarders Association

GATT : General Agreement on Tariffs and Trade

GDP : Gross Domestic Product

GPS : Generalized System of Preferences

TP.HCM : Ho Chi Minh City

MTO : Multimodal Transport Operator

NOA : Notice of Arrival

ODA : Official Development Assistance

List

SAFI : Sea and Air Freight International

TEU : Twenty-foot Equivalent units

THC : Terminal Handling Charge

VAT : Value Added Tax

TTR : Telegraphic Transfer Reimbursement

VIFFAS : Vietnam Freight Forwarders Association

WTO : World Trade Organization

SWOT : Strengths Weaknesses Opportunities Threats

LIST OF TABLES

Table 3.1: SAFI’s Labor Structure by age level from 2009 to 2011 32

Table 3.2: SAFI’s Labor Structure by qualification level in 2011 34

Table 3.3: SAFI’s result of business operation from 2009 to 2011 37

Table 3.4: SAFI’s Turnover Structure by operation fields in 2011 40

Table 3.5: SAFI’s Turnover Structure by kinds of commodities in 2011 42

Table 3.6: SAFI’s Turnover Structure by Freight Forwarding Services in 2011 43

LIST OF FIGURES Figure 1.1: Structure of Research methodology 3

Figure 1.2: SWOT matrix 4

Figure 2.1: General basic steps of Import Sea Freight Forwarding Operation 20

Figure 3.1: SAFI’s organizational structure 24

Figure 3.2: SAFI’s labor structure by qualification level 25

Figure 3.3: Result of business operation of SAFI from 2009 to 2011 38

Figure 3.4: SAFI’s Turnover Structure by operation fields in 2011 39

Figure 3.5: SAFI’s Turnover Structure by kinds of commodities in 2011 40

Figure 3.6: SAFI’s Turnover Structure by Freight Forwarding Services 2011 44

Figure 4.1: Import Sea Freight Forwarding process 46

LIST OF APPENDIXS

Appendix 1: Purchase Order

Appendix 2: Certificate of compliant

Appendix 3: Bill of lading - B/L

Appendix 4: Commercial Invoice - C/I

Appendix 5: Packing List- P/L

Appendix 6: Notice of Arrival - NOA

Appendix 7: Delivery Order – D/O

Appendix 8: Import Customs Declaration

Appendix 9: Cargo Interchange Receipt - CIR

CHAPTER 1: INTRODUCTION

1.1 Introduction

In the current global integrative trend, Freight Forwarding keeps an important role in international trading activities It is not only the premise which helps ensure and improve the export/import efficiency but also the motivation to develop the exchange

of goods among countries The urgent demand of transferring commodity from domestic to foreign countries has increased requirements of using transportation, storage, package and other supplemental services

In 2007, Viet Nam became a member of World Trade Organization – WTO officially This not only creates many advantages but also brings many challenges for Vietnamese economy It forces the business activities, gives facilities for mechanism operating, promotes the development of domestic production and facilitates to catch the scientific achievements in the world However it also increases the competition in the market

We must compete with many strong foreign enterprises from both developed and developing countries such as American President Lines - Neptune Orient Lines Logistics APL – NOL (America), Maersk Logistics (Denmark), Orient Overseas International Limited OOCL (Hong Kong) and Schenker Company (German)… Most

of Vietnamese enterprises are limited about scale and capacity Besides, the establishment of mass domestic companies such as Tan Cang Logistics, The He Moi Tradimex Co, U&I Logistics… increase the saturation of Logistics market The competition on prices and quality service is more and more fierce So the Vietnamese enterprises must try to improve the quality services, create the trust prestige and ensure credibility with customers to keep their strong position in the market

The Government has given many policies to reform administrative procedures, create favorable conditions for the development of Forwarding sector as well as Logistics Industry However, we still don’t have a legal system to manage these activities effectively It makes the Freight operations become difficult to manage and reveal many negative problems Therefore, we need to propose suitable methods to reorganize business activities of enterprises as well as promote the import and export between Viet Nam and other countries

The Sea and Air Freight International (SAFI) Company is one of the leading companies in the Logistics field at Vietnam With the long history, reputation and experience in forwarding sector, SAFI has kept strong position in market for a long

time and continuously to be top leading in forwarding sector SAFI was classified Top

20 Strong Brands in Viet Nam Logistics Industry from 2009 to 2011 The stable finance is one of the strengths of SAFI In 2011, SAFI’s Freight Forwarding Turnover

is 95.21 billion VND in which Sea Freight Forwarding contributed 41.38 billion VND into revenue structure (45.56%)

This shows that Sea Freight Forwarding occupies a large proportion in revenue structure and keeps an important role in forwarding operation at SAFI Company However, under the impact of inflation during this period, SAFI has exposed some limitations about human resources, marketing issues, customer service These disadvantages could impact to the operation and development of SAFI negatively So SAFI should give right strategies in reforming the organization, improve quality services to satisfy the customers and increase competitive in the market That is reason

why I choose the topic of Thesis is “Some recommendations to increase effectiveness of Import Sea Freight Forwarding Operation at SAFI Company”

Through this research, the following questions must be answered

What is the current situation of Freight Forwarding Operation at SAFI Company? What are the basic steps of Import Sea Freight Forwarding process? What are the external and internal factors that affect to its performance?

How to increase the effectiveness of Import Sea Freight Forwarding Operation at SAFI Company?

1.2 Research objective

The research aims to

Assess the current situation operation and business result of SAFI Company to find out its strengths and weaknesses Assess the situation of Vietnamese economy and current policies of Government to find out the opportunities and threats that affect the enterprise

Describe the Freight Forwarding process for import at SAFI Company Analyze the advantages and disadvantages of this process

Through SWOT analysis and oriented strategies of SAFI Company, giving the recommendations to increase the effectiveness of Import Sea Freight Forwarding

Operation

1.3 Research scope

The scope of this research is to review existing situation of Freight Forwarding services

at SAFI Company from 2009 to 2011 in Ho Chi Minh City For the purpose of this study, Freight Forwarding is defined as local and oversea transportation, making Customs Clearance, storage and handling facilities required for moving goods from origin (shipping place) to destination (delivery place)

1.4 Resea

rch methodology

Figure 1.1: Structure of Research methodology

Data Sources

Literature Review

Import Sea Freight Forwarding Process

Step 1: Starting with the objectives of study as the foundation to consider and

recognize the core issues of the Thesis Collecting, analyzing and disposing the data based on using descriptive and qualitative analysis combine with comparative and statistical methodology

Step 2: Reviewing the literature of the Freight Forwarding with the relevant theories

and factors affecting the export/import activities They are the key concepts that will be used in the framework of this study

Step 3: Analyzing the current operation of the company to find out its strengths and

weaknesses Then, examining and evaluating external environment to find out opportunities and threats of company

Step 4: Describe the basic steps of Freight Forwarding process at SAFI Company

Analyze the advantages and disadvantages to find out the limitations of process

Step 5: Using model of SWOT analysis to assess the above strengths, weaknesses,

opportunities and threats Base on it and oriented strategies of company to give solutions which could help improve Freight Forwarding operation at SAFI Company

Figure 1.2: SWOT matrix

1.5 Data sources

Both secondary and primary data were used in the study

Secondary data were used to evaluate current situation of Freight Forwarding services, including

 The information that already exists in SAFI Company

 Annual report from 2009 to 2011

 Financial Statements from 2009 to 2011

 Human resource statement from 2009 to 2011

 The contract was signed by SAFI Company and customers

 Information which was gathered from Rules, Regulations, Conventions, Commercial Law… is theory foundation for the research

 International journals, articles, books, newspapers, websites, public media are also useful source for this study

Primary data were collected from interview and discussion with people who work

in Freight Forwarding sector, including

 Valuable information on package, warehousing, transportation and delivery system was obtained from supervisors, officers of SAFI Company (Forwarders)

 The relative data for Freight Forwarding process is gathered from performance of Bureau of Customs, Vietnam Chamber of Commerce and Industry - VICC, Shipping Agents and Ports in Ho Chi Minh City (Cat Lai Port, New Port, Tan Thuan Port…)

1.6 Research structure

Chapter 1: Introduction

This chapter gives brief estimation about important role and general situation of forwarding activities Through rationale, we recognize the research objectives and limit the research scope to identify the main purpose of the research Next present research methodology and data sources to explain the methods chosen, the steps to finish the research as well as make sure the trust of thesis Besides, it gives the structure of the research to get an overview about parts of thesis

Chapter 2: Literature review

This chapter includes the basic theories on the definition of Freight Forwarding and Forwarder, the range of Forwarding activities as well as the roles, responsibilities and

liability limitation of Forwarder They are the basic knowledge help to understand the forwarding operation This chapter also mention to the legal foundation and the

benefits of using Freight Forwarding Services to give ways to manage the forwarding

activities and the reason why forwarding become the effective business method One of the most important subjects we must remind is the factors affect to Freight Forwarding

Recognizing the internal and external factors could help to form the SWOT analysis

completely Besides, the basic steps of forwarding process are described to get the

overview about forwarding execution

Chapter 3: Business result of Freight Forwarding Operation at SAFI Company

This chapter provides the general introduction (history, development, organization structure…) and current situation (through analyzing the business result) of SAFI Company Besides, it gives the overview of forwarding market in Viet Nam and over the word in recent years to help us to recognize external factors affecting to Forwarding Operation at SAFI Company

Chapter 4: Import Sea Freight Forwarding Process at SAFI Company

This chapter describes Freight Forwarding Process and analyzes the procedure to

transport and delivery the import/export commodity Then, recognize the strengths and weaknesses of the process to assess the forwarding performance at SAFI Company

Chapter 5: Recommendations to increase effectiveness of Import Sea Freight

Forwarding Operation at SAFI Company

From SWOT analysis and oriented strategies of company, recommendations are given

to improve the forwarding process and enhance the business performance of SAFI Company

CHAPTER 2: LITERATURE REVIEW

2.1 Concepts of Freight Forwarding

2.1.1 Definition of Freight Forwarding

“FIATA model rules for Freight Forwarding Services 1996” mentions that Freight Forwarding Services are any kind of services which relate to the transportation, storage, package, handling, consolidation or delivery of the commodities as well as other consulting and supporting activities which relate to commodities They include making customs declaration, procuring insurance, collecting payment…

According to “Article 233 in Section 4 of Vietnamese Commercial Law 2005”, Logistics Services are actually trading behaviors Traders organize the performance of activities, such as receiving goods, carriage, packing, warehousing, completion of customs procedures, distribution and other services related to commodities based on agreement of customers to get the service fees

Freight Forwarding includes operations and procedures that relate to moving goods from shipping place to delivery place In Viet Nam, this kind of service is one of potential sectors that have many chances to develop However, the serious problems which relate to lack of human resource, poor infrastructure or trouble in current Legal System… cause disadvantages in restructuring this economic sector, developing the foreign trade and international integration So improving activities in this sector is a current urgent requirement

2.1.2 Definition of Freight Forwarder

According to “FIATA model rules for Freight Forwarding Services 1996”, Freight Forwarder is the person who signs a contract with a Customer to perform Freight Forwarding Service Forwarder could be a person, an enterprise or even a co-operation

He signs the contract with his client to transport the cargo from shipping place to delivery place He has the expertise that allows him to prepare the documentation, conduct the procedures and perform the related activities pertaining to shipment

“Article 234 in Section 4 of Vietnamese Commercial Law 2005”assigns that trader provides Logistics Services (Forwarder/ Freight Forwarder/ Forwarder Agent) is obligated to satisfy the conditions for business Logistics services based on law of Government It means that he must carries on business with the Certificate of Business Registration in Freight Forwarding field and follows all rules of Vietnamese Legal System When he signed a contract with a customer, he must complete his job with

hard working and high responsible spirit If the forwarder causes any loss or damage of commodity, he must be responsible for his mistakes

Actually, Forwarder keeps an important role in Foreign Trade and International Transportation In the past, the Forwarder just did some required work, such as loading and unloading commodity, charter ship, storage, making customs procedures or payment procedures… Nowadays, due to the development of International Trading as well as the advantages of technological transport progress, there are many opportunities to expand the forwarding activities Many Freight Forwarding Companies not only provide the retail Forwarding Services (storage, handling, packing, distribution commodities…) but also other value-added services, such as multi-model transportation, maritime broker, consolidation, insurance consulting… Further, they operate a system of offices and agents for export and import to create a wide Logistics Network completely

2.2 Range of Freight Forwarding Activities

2.2.2 As Representative of Importer

The Forwarder could be on behalf of the Owner to receive and deliver goods, receive and check all relevant documents related to commodity, monitor the transportation process, complete Customs Procedures… These help importer to save cost and avoid risks that could happen in forwarding process He is willing to pay in advance the transportation charges, pay Tax and other fees to complete the transportation process quickly He also could represent the importer to make booking ship in case customer require Besides he could make transit warehouse and makes storage or distribution for goods (if need).He also is responsible in conducting complain to the authorities in case the loss or damage happen

2.2.3 Transferring specific commodities

The Forwarder usually provides services for common goods, such as finished products, crude goods or normal commodities exchanged between countries However, he also could provide services for special commodities, such as:

 Transporting commodities for project: this relates to moving the large machineries

or heavy equipment to build infrastructure such as the airport, hydropower factories, oil refineries… It is hardly to transport this kind of commodities They need to use the heavy cranes, oversized trucks special ships and ensure deliver goods on time to avoid influent to the progress of project

 Transferring Exhibition abroad: these commodities are display products for trading purpose When transport this kind of commodities, the Forwarder must be careful in making procedures and follow all instruction of the Owner to avoid loss or damage

2.2.4 Providing other services

Besides those services above, the Forwarder also provides others services which appear suddenly for goods in transit or some special services (such as: consolidate equipment for projects, be broker for purchasing the turnkey projects, investigate current demand

of import/export activities, make plan for trading strategy or provide insurance consultation for customers…)

2.3 Roles and liabilities of Forwarder

2.3.1 Roles of Forwarder

 As a Frontier Forwarder

At first, the Frontier Forwarder just works as a Customs Broker who completes the customs procedures for the imports (includes declaration and registration progress) Next, he provides services for both imports and exports He also expands scope of activities by getting rights to transport goods based on the agreements of customers

 As an Agent

The Owner or Carrier vests the agent to carry out some works, such as receiving goods, forming the documents, storage and customs procedures, delivery goods… He looks like “a bridge” which connects the Owner and Carrier in international transportation process

 Making transshipment and on carriage

For the goods in transit, the Forwarder will complete all relative procedures to transfer goods from this mean of transportation to another mean or transit goods through third country before delivering goods to customers

 Warehousing

In case the commodities are storage, the Forwarder will keep them in the warehouse in good condition before importing/exporting commodities In case he has not own warehouse, he could hire it for storage purpose

 As a Cargo Consolidator

A Cargo Consolidator could be a Carrier or an Agent He collects, arranges, classifies the retail commodities of many owners and packs them in containers This is one of best ways to save transportation cost

 As a Carrier

A Carrier must be responsible for transporting goods from shipping place to delivery place A Forwarder could be a Performing Carrier (actual carrier) or a Contracting Carrier (signs the contract but does not transport commodities directly)

 As Multimodal Transport Operator (MTO)

A MTO provides the Combined Transport Services (uses 2 or multimodal transport means) He is also a Carrier and must be responsible in whole transport process

2.3.2 Liabilities of Forwarder

According to “Article 235 in Section 4 of Vietnamese Commercial Law 2005”, Forwarder could get the remuneration and other reasonable income due to providing the Freight Forwarding services However, he must implement all obligations that come to terms in the contract In case, he cannot implement all or a part of terms in the contract, he should notice to customer as soon as possible to get the instruction The performance of contract could be different with the instruction of customer if it is reasonable and brings benefit for customers If performing period of contract are not defined clearly, the forwarder must implement terms in reasonable time and notice to customer In case the loss or damage happens, Forwarder must be responsible As different roles, liabilities of Forwarder are different:

 As an Agent

The Forwarder must follow his Standard Trading Conditions He is not responsible for the mistakes of others (Owner, Carrier…) He just is responsible for his mistakes in cases he does not follow the instruction when delivering the commodities For example, deliver goods in wrong address or do not maintain goods in good condition…

or commit errors when making customs procedures, such as make mistakes in declaration or do not pay tax before expiration time… Besides, if he causes loss or the

damage for third party when he implement the terms of contract, he also must be responsible for his behaviors

 As Principal Carrier

Forwarder represents to his customer to implement all terms in the contract He must

be responsible for his mistakes not only as an Agent but also as a Carrier in whole transport process However according to “Article 237 in Section 4 of Vietnamese Commercial Law 2005” about Disclaimer case for Forwarder, he is not responsible for any loss or damage of goods in case he fault is made by customers or the person who is vested by customers (for example: package in wrong way or poor quality goods…) Besides he also is not responsible in case damage caused by the injury due to inherent vice of the vessel or machinery, the nature of goods, natural disasters, accidents on sea

or pirates, the force majeure cases (war, strikes or commodity is confiscated by the Government…) or the fire which it isn’t caused by the crew

 As a Multimodal Transport Operator - MTO

The responsibility of a MTO is not followed Standard Trading Conditions It is obligated in International Convention or Rules of International Chamber of Commerce – ICC He works as a Principle (not an Agent) in process of contract’s performance He could get responsibility follow Uniform Liability System or Network Liability System The compensation is limited in 920 SDR/package or 2.75 SDR/kg (Convention of United Nations Organization – UNO about Multimodal Transportation) and 666.67 SDR/package or 2 SDR/kg (Rules of United Nations Organization – UNO about Multimodal Transportation)

 As a Cargo Consolidation

When a Consolidation provides FBL (negotiable FIATA Multimodal Transport Bill of Lading), he must be responsible for the damage or loss of commodities even if the goods still are in the custody of Effective Carrier The compensation does not exceed total value of commodity If we can determine the place and time that the damage happened, the liability of Forwarder is decided follow International Convention or National Law On the contrary, the compensation is limited in 666.67SDR/package or

2 SDR/kg (Hague 1924/ Hague-Visby 1968) and 835 SDR/package or 2.5 SDR/kg (Hamburg 1978) The application of Conventions depends on agreement of parties on the contract for gross weight of damage goods

2.4 The legal foundation of Freight Forwarding activities

2.4.1 Legal relationship with other organizations

 Governmental Agencies, such as The Ministries (Ministry of public health for

supplying health license, Ministry of Economy provides transport licensing and

certificate of origin ), The Customs Office, Quatest III, Vinacontrol…

 Service organizations, such as Shipping Lines (Wanhai Lines LTD, Vinatrans, Transimex SaiGon…), Forwarding Companies (Vosa, Vinatrans, Inter Logistics…), Insurance Companies (Bao Minh, Vinacomin…), Banks System (Maritime Bank, Vietcom Bank, Asial Commercial Bank…)

 Transport organizations, such as FIATA, VIFFAS…

2.4.2 Legal documents relating to Freight Forwarding

The State Documents (Commercial Law, Regulations relate to forwarding activities…)

The contracts (such as Commercial Contract, Insurance Contract, Charter party…) Commercial Customs of each countries

International Laws (Conventions, Treaties, Agreements, Protocols, Status…)

Some international regulations relating to Freight Forwarding:

 Vienna convention 1980

This is about United Nations Convention on Contracts for the International Sale of Goods adopted by a diplomatic conference in Vienna on 11 April 1980 It provides a uniform text of law for the international trading The United Nations Commission on International Trade Law (UNCITRAL) prepared the content of this convention It combines the subject matter of two prior conventions and includes four parts The convention entered into force on 1 January 1988 and the current updated status has ratified by 76 countries that keep significant proportion of world trade on 1 September

2010

 The Hague-Visby Rules

The Hague-Visby Rules are a set of international rules for the international transportation by sea These rules were drafted in Brussels in 1924 The premise of the Hague-Visby Rules is that a Shipper has fewer bargaining power than the Carrier does The law should impose minimum obligations upon the carrier to protect the interests of the shipper In 1968, the Rules were known as The Hague-Visby Rules after they amended by the Brussels Amendments (the "Protocol to Amend the International

Convention for the Unification of Certain Rules of Law Relating to Bills of Lading")

A final amendment (about easing liability limits t of the gold standard) was made in the

Brussels Protocol 1979 (SDR Amendments) and entered into force in 1984

 The Hamburg Rules

The Hamburg Rules are a set of rules governing the international shipment of goods It was adopted in Hamburg on 31 March 1978 and be resulting from the United Nations International Convention on the Carriage of Goods by Sea The Convention was set to form a uniform legal base for the transportation of goods by sea It came into force on 1 November 1992

 Incoterms

Incoterms (or International commercial terms) are a series of sales terms that are using widely in international commercial transactions They are using to divide transaction costs and responsibilities between buyer and seller They were introducing in 1936 and they have been updating eight times to reflect the developments in international trade The Incoterms 2000 includes 13 conditions that divided into 4 groups E, C, D, F The latest version – Incoterms 2010 just has 11 conditions and came into force 1 January

2011

 The Uniform Customs and Practice for Documentary Credits (UCP)

UCP is a set of rules on the insurance and using of letters of credit It utilizes

by bankers and commercial parties in more than 175 countries for trade finance purpose The UCP practice has been standardized by the ICC (International Chamber

of Commerce) by publishing the UCP in 1933 and be updating throughout the years The latest version (UCP 600) formally commenced on 1 July 2007

2.5 The benefits of using Freight Forwarding Services

2.5.1 For Exporter

Using Freight Forwarding Services can help the export company reduce the human resource in case these activities of company are not set on too much value on benefit they bring to the company They also help to reduce risks caused by lacking forwarding experience of staff or even help to save cost and time due to the knowledge and relation of professional forwarding companies The Forwarder often contacts with shipping lines, so he will know which shipping line has good prestige, reasonable costs, suitable schedule… In case the commodity has to transit in third country, the transition from first ship to another ship to final destination is done by the Forwarder

without the representative agent in third country of the export company More than, after the export company authorized forwarding company complete all procedures relate to export commodity, they can avoid troubles, such as complaints about delivery delay or deputation because of denial payment of the customer…

2.5.2 For Importer

The importer also can reduce the human resource, transportation cost as well as avoid risks when making complex receiving commodity process due to using Freight Forwarding services The Forwarder can help his customer complete the all import procedures professionally, receive commodity quickly to avoid the storage cost and protect the interest of importer in case any loss or damage of commodity happens In some trouble cases, such as: the delivery is delayed, lacking of commodities or mistakes in procedures… the Forwarder as the representative of importer will set up the necessary documents for claiming with port, shipping line or insurance company

2.5.3 For the national economy

In recent time, the Forwarding activities have developed quickly It contributed greatly

to trading and transferring commodities between Viet Nam and other countries It also helps to increase transport efficiency as well as change the structure of goods Actually, Freight Forwarding is a part of Logistics Industry It helps to deliver goods in time and maintain reliability of exports/import Logistic efficiency is reflected based on quality

of services provided by the transport operators, freight forwarders, clearing agents and other logistic service providers Efficiency of logistic services may are judged from reliability and timelines of clearance and movement of goods, and amount of hassles prevailed in the process of service delivery Logistic efficiency is also related to marketing environment and quality of transport infrastructure Viet Nam has a strong production with the export and import demand rise frequently So the cost of Logistics services, include Freight Forwarding has a huge sales and got a rapid growth

According to opinion of Mr Nguyen Tuong – senior of United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP), Logistics services in

Vietnam contribute about 15-20% for Vietnamese GDP every year

In recent years, Vietnamese shipping has taking a significant step beyond development Currently there are 90% volume of exports and imports transported through seaway The total volume of goods transported through Vietnamese ports is nearly 140 million tons / year 2010 The high demand of transportation commodity is the first facility to

develop the Logistics Industry Due to the development of port system, the experts also predict that the volume of commodity transported by containers through Vietnamese ports in 2010is from 3.6 to 4.2 million TEU It shows the large potential development

of Vietnamese Logistics Industry

Besides, it is undeniable to mention about great contribution of Sea Freight Forwarding Compare with other transport methods (by air, by train, by land…), Sea Freight Forwarding appeared quite early There are over 85% current total volume of commodities in the world and about 95% current total volume of commodity in Viet Nam transported by sea The development of Sea Freight Forwarding makes the international market become more and more expand as well as improve international relationship in foreign trade Sea Freight Forwarding is using in both international and national transportation It could carry big volume of goods in the long distance However, it should be used in transportation of the low value commodities that do not require the short time delivery because the speed of ships is not fast (about 12-14 nautical miles/hour).So we can see the important role of Sea Freight Forwarding in foreign trading Without transportation, we could not exchange commodities, transfer machines or make the trading activities easily Transportation is changing actively to meet the needs of the international market

2.6 The factors affecting Freight Forwarding Operation

2.6.1 Internal factors

Internal factors affect to the firm’s success strongly They exist inside the enterprise operation and cause the positive or negative impact into business operation of the enterprises However, the company could adjust them by the right strategies to develop the strengths and overcome the weaknesses These factors include the human resources, the management system, marketing strategy, distribution network, infrastructure, location of offices and financial situation

2.6.1.1 The human resources

The human resources play a very important role in business performance They are one

of the main factors that deceive the existence and success of the enterprises because they create and operate whole activities of a company The ability of organization to achieve their goals depends on the creativeness, enthusiasm and professional level of employees The enterprises should focus on training and improving the human policies ensure the interests of each individual That is best way to enhance the labor efficiency

2.6.1.2 The management system

The organizational structure and executive style of leadership keep critical role in the success of organization An enterprise has a reasonable organization decentralization, connection between departments, logic division of labor and good management methods will increase the effectiveness of business It requires the leaders must have ability to plan, organize, direct and control work effectively The complete management system will help employees know their duties and position clearly, know who they must report to and where they come to solve the problems On the contrary, the bulky organizational structure and poor management cause the disadvantages to business performance

2.6.1.3 The business network

The performance result depends on business networks heavily Extensive business network with system of branches and representative offices can facilitate for the business activities, such as transportation, shipping, storage, package… in many places, both in domestic and over the world It could create the completed supply chain to increase the benefit of enterprises The weak business network will eliminate the competitiveness or even obstruct the business activities of company

2.6.1.4 The company infrastructure

The infrastructure of company includes machines, equipment, warehouse system, information system, the agents, branches… and working capital They are the basis for business activities and decide the scale of business operation

2.6.1.5 Marketing Strategy

Marketing activities affect to competitive ability of company significantly It relates to price strategies and promotion activity to build a strong brand It helps customers get the sound awareness and believe in using services of company

2.6.1.6 Service Quality

The quality of service is an important standard to convince customer use services of company It creates competitive advantages to attract customers, increase prestige and expand market share The measurement to assess service quality of a Logistics Company is attitude of employees, professional working-style and ability to finish forwarding process quickly…

2.6.1.7 Financial situation

The financial situation is measurement to assess current business operation of company It decides the scale and payment ability of enterprises The company that has

plentiful capital could be proactive in expanding business scope as well as implementing strategies to develop business On the contrary, company must face with the unexpected difficulties

2.6.2 External factors

Macro environment includes all factors that happen outside the organization and are beyond the control of an organization completely The important factors affect to operation of organization are Economic environment, Political environment, Technology, Natural resources and Geography…

2.6.2.1 Economic environment

 Gross Domestic Product - GDP

The large number of goods will increase commodity turnover rate The demand of using Freight Forwarding services increase frequently This forces the development of export/ import activities and brings many chances for the enterprises However, the enterprises must face with higher competition and dumping issues in the international market

 Inflation

Inflation is an increase in the overall level of price The inflation ratio is the percentage rate of change in price level over time, usually one year The rate of decrease in the purchasing power of money is approximately equal High inflation ratio could cause negative impact to economy, such as unemployment rate increase, Consumer Price Index – CPI decrease, unstable situation of business…

 Economic competition

Economic competition is a rivalry between economic entities (manufacturers, distributors, retailers, consumers or traders ) to gain the strong position in the market There are many methods of competition: competitive price (discount), non-price competition (promotion, advertising) or competitiveness of enterprises to produce products and services that meet the demands of customers

 Human resource

Viet Nam has abundant human resource with the cheap labor price This is a good condition to export kind of products, such as garments, handicraft…and import the machineries, equipments for development of national production

 The infrastructure of industry

The modern infrastructure will increase effectiveness of international trading activities

On the contrary, it will hold back the development of export/import process

The infrastructure includes roads, transport system, information system, banking system… It has great influence to Forwarding activities

 The foreign exchange rate

In the international trading relations, the foreign exchange rate impact to the efficiency

of transferring commodities The change of foreign exchange rate (increase or decrease) will lead to the change of value of commodities and influent to the benefit of enterprises

 The international economic integration

In the trend of globalization, the dependent relationship between countries increases frequently For example, the debt crisis of Greece in 2010 effected the financial situation of other countries in European Union and caused serious damage for the international economy More than, the export/import activities is influenced and governed by the foreign factors directly So any changing about import/export policy, inflation, growth or recession of other countries affect to the operation of our enterprises

2.6.2.2 Political environment

The policies of Government have impact to business operation significantly In which the tax and quota policy has affected to competitiveness of export/import enterprise directly The export tax trends to decrease the number of exports and foreign exchange income However, most of Vietnamese exports are exempt due to the support policies

of Government to develop export activities The import tax trends to decrease the number of imports but increase the foreign exchange income Actually many imports

of Viet Nam are taxed at high ration to protect the national production Since Viet Nam joined WTO, the Government is toward removing some tariff barriers Quota is a form

of limiting the number of exports/imports It helps manage the international trading activities

The changes of policies of the Government also have impact to the export/import activities greatly For example, the 57/1998 decrees of Vietnamese Government about freedom in business made the number of enterprises in Viet Nam increase quickly Specially, follow the statistic data from 1 Sept 1998 to now, more than 30.000 enterprises participated in export/import sector This created the fierce competition in the market Besides, the other policies, such as develop the key commodities, invest to build industrial zones or the change in customs procedures also influent to development of export/import activities

2.6.2.3 Social environment

Social changes when people in the community adjust their attitudes to way they live Businesses will need to adjust their products to meet these changes For example, Vinamilk Company produces no-sugar milk for woman in their diets The business also needs to be aware of their social responsibilities Governments encourage social benefits through using of subsidies and grants (such as regional assistance for undeveloped areas) They also discourage social costs with fines, taxes and legislation

2.6.2.4 Technology

The development of science and technology impact many economic and social sectors including Freight Forwarding It brings many benefits for export/import activities For examples: the businessman contact his customers by email, fax or cell phone to save travel cost, the exporter/importer could catch the change of commodity demand in international market quickly through the computer system, payment through banking services system help to reduce risk, transportation by air is faster than sea

transportation several times…

2.6.2.5 The natural resources and geography

The natural resources are the basic to construct the industry structure It decides the kind of commodities and the volume of exports/imports of each country The geography keeps an important role as the positive/negative factors to development of national economy The favorable geographical position could promote the services, such as traveling, banking, transportation…

2.7 Performance of Import Sea Freight Forwarding

Step 1: Looking for the customers and signing the contract based on the agreement of

parties

Step 2: Making plan to receive goods, include taking note about the instruction for

procedures, contacting to Shipping line to check the schedule of ship, preparing loading and unloading means, storage facilities, employers… (if need)

Step 3: Buying the insurance (if the customer requires) and opening Letter of Credit –

L/C (in case the contract is required payment by L/C)

Step 4: Receiving and checking the documents from customers Next applying the

Import License (if need)

Step 5: Getting the Delivery Order - D/O at Shipping Line and paying a deposit to rent

the container

Step 6: Making Customs Procedure and paying the import Tax (if need)

Step 7: Completing the procedure to receive commodity

+ For Full Container Load – FCL: when the Owner/ Forwarder receive Notice of Arrival, he must bring B/L to get the D/O at Shipping Line and pay a deposit to rent the container After completing Customs Procedures and pay Tax (if need), he brings the documents to Management Office at Port to confirm the D/O and gets the Equipment Interchange Receipt – EIR to receive goods

+ For Less Container Load – LCL: the Owner/ Forwarder bring the Original B/L or House B/L to get the D/O at Shipping Line or Agent of Consolidator Before receiving goods at Container Freight Station, he must pay the storage cost, unloading and get the payment receipt After that, he presents the documents (3 copies of D/O, Invoice, Packing List –P/L, payment receipt) for Management Office at Port to confirm the D/O and find out the position of goods The officer of Port keeps 1 copy of D/O and returns

2 others to the Owner/Forwarder Owner/Forwarder brings 2 D/O to Business Department of Port This department save 1 D/O and give 2 Cargo Interchange Receipt – CIR to get the Owner/ Forwarder Next, the Owner/ Forwarder bring 2 CIR to CFS and complete the procedures to receive commodities After the Customs officer confirms that “complete Customs Procedures”, he could bring goods into his warehouse

Step 8: Delivering commodities to customer The Owner/ Forwarder should set up all

legal documents (such as Survey Record, Letter of Reservation, Cargo outturn

Report…) to protect his interest in case the loss or damage happened

Step 9: Liquidating the contract Customer is required to pay all cost related to Freight

Forwarding activities Collecting the necessary documents to complain to the

authorities (if need)

Figure 2.1: Basic steps of Import Sea Freight Forwarding Operation

Completing

receiving procedure

Liquidating the contracts

Receiving and checking documents

Delivering commodity

Making Customs

procedure

Getting Delivery Order

CHAPTER 3: CURRENT OPERATION AND BUSINESS RESULT OF

SAFI COMPANY

3.1 History and development of SAFI Company:

Company: Sea & Air Freight International (SAFI)

Established: 20 October 1992 by Decision 05/TCCB of Maritime General Bureau

Ministry of Transport and Communication in Ho Chi Minh City

Corresponding Bank: Bank for Foreign Trade of Viet Nam

Type of business: Stock Company

Stock code: SFI

In 1993, SAFI was recognized as a FIATA associate-member and the staff has increased to cope with the fast development of the business In 1995, Ha Noi branch was licensed to operate officially When the demand of sea-freight increased, in 1998, SAFI decided to open a further branch office in Hai Phong port to meet the demand of sea-freight customers Besides sea-freight, SAFI has gained an excellent reputation in Air Freight Forwarding To meet the demand of air-cargo market in the central part of Viet Nam, SAFI’s branch office in Da Nang city was established in 2000.The operation has continued to grow over the years with additional offices opening in Vung Tau, Quy Nhon, Quang Ninh, Lang Son to meet the increasing demand of customers Thanks to dynamic, experienced and dedicated staff & management, SAFI has gained an

excellent reputation in the local market as well as with the oversea partners and customers

3.2 Mission and Function of SAFI Company

SAFI was established to mobilize and use the resources (human, capital…) effectively for the investment activities in business as well as providing the services in maritime transport sector

The most important task now is offering the optimal logistics solutions which help to satisfy specific requirements of customers and partners, ensuring quality international services, create business links between Vietnamese enterprises and foreign enterprises, which focuses on EU, US, ASEAN countries, China and Japan markets…

SAFI also try to manage the implementation of all officials and employees under the policy, the current regime of the State and the assignment of the Company efficiently, continuous improvement of living conditions of employment of staff and workers Besides, regular training human resources and professional working environment can create good conditions for each member to develop their capacity, contribute to the development of the Company as well as the development of the industry

SAFI always catches the information timely and implicates advanced science and technology in business process services organizations to achieve high efficiency By that way, SAFI can help Customers to choose the right service with the low cost and transportation quickly due to their wide ranges and completed chain of services, multi-modal transport, logistics service, ship broking, shipping agency

SAFI always try their best to innovative organization and management to make maximum profits, create jobs for workers, increase return for shareholders, contribute

to the State Budget and develop the business operation of the company

3.3 Culture of SAFI Company

With the corporate culture, SAFI tends to achieve 100 % customer satisfaction and the highest possible quality of service, thus to provide a special benefit for all customers Satisfied customers can only be reached by satisfied employees Therefore, the success

of SAFI Company depends very much on how the employees identify themselves in their jobs and their company Besides SAFI always support employee’s ideas They tend to make employee feel that they are part of the SAFI Company The quality of services is based on the skills and the behaviors of employees They also improve organizational flows through modern management structures, internal and external

trainings and especially through openness to all sides This stimulates creativity and the willingness to achieve goals Additionally SAFI’s corporate culture commits their employees to strive for continuous innovation which is recognized as a part of the added value chain Together, all of these quality measures lead to a continuous high performance execution of service packages for customers

3.4 Organization structure of SAFI Company

3.4.1 Organizational Chart

The organizational structure system of SAFI Company is professional with the model

of line management which permit the superiors manage the subornation directly Decentralize management system brings the effective operation in solving problems promptly The Staff of SAFI Company who get the high standard, competent and experience in Logistics sector can resolve problems in delivery quickly At the end of every month, company opens regular meeting of The Staffs and Board of Directors to review the result of business, discusses the strategies and analyses the advantages as well as the disadvantages that company has met to summarize the experience and offers solutions to develop the operation of company Besides, company also evaluates the working efficient of each staff to give the reward for people who fulfilled the set targets The purpose is creating the effort in working and ensuring the fair in the process of striving The function of each Department is divided reasonably follows their specialization or operation areas This creates the favorable conditions to satisfy customers’ need, helps to increase effective in work and contributes to develop company’s brand SAFI’s organizational structure is described as following figure

Figure 3.1: SAFI’s organizational structure

Source: The Human Resources Department of SAFI

3.4.2 Function of Departments

General Meeting of Shareholders: includes the most seniors who represent the shareholders (people legally own a part of share stock of corporation) This organization has the highest majority to give the end decisions which relate to business policies of company It has following functions:

+ Appraising the Executive Board of Directors' report, discussing and voting on the annual Financial Statements as well as deliberating the allocation of the annual income based on the result of balance sheet and the accounting record

+ Appointing or dismissing members of the Board of Directors, Board of Supervisors and the Chief Executive Officers

+ Deciding any statutory amendments or new oriented strategies of the company + Appraising the Supervisory Board's annual activities report

Board of Supervisors (3 members): chosen by stockholders of company to promote their interest in governance system It keeps an important role in controlling the problem and limiting all risks which could happen during operation The primary functions of the Board of Supervisors are:

+ Overseeing the management policies and the general state of affairs in the company + Supervising the activities of Board of Directors and Chief Executive Officers

+ Detecting the instabilities during operation and report for General Meeting of Shareholders

+ Assisting the management boards by providing the right advices

Board of Directors (5 members): is a group of individuals who are elected or appointed to operate the business of company They represent the stockholders to set

up corporate management system and make decisions on major company issues As representatives of association, Board of directors is the highest manage organization and primary force working to ensure the business performance of company It has functions:

+ Approving the mission, vision and values as well as assessing the changes of business environment to give appropriate adjustments

+ Determining ability of candidates for nomination of management positions through submission of Nomination Committee

+ Controlling all activities and reviewing the performance of Chief Executive Officers The performance is assessed based on the annual report and compare between the

objectives and result of management The advantages and disadvantages are discussed

in the periodic meeting to find out the correct solutions

Chief Executive Officers (3 members): is the highest-ranking of administrators in management system of company, include the head office, the branches, the representative office, the subsidiaries and the joint-venture companies The SAFI’s Chief Executive Officers Board includes 1 CEO, 1 Vice CEO and 1 member

The Chief Executive Officer - CEO is the leader of the firm He may also be the chairman of the Chief Executive Officers Board He is primarily responsible to carry out the strategic plans and policies which are established by the Board of Directors as well as report the business performance to the Board of Directors directly It seems that

he serves as the main link between the Board of Directors and various subordinate parts to ensure the operation of company The Vice CEO is the assistant of CEO in making decision He provides the supports, outlines the business strategy and reports the state operation to CEO directly With the same functions, the managers and Vice managers are responsible in operating and managing the departments which are under his leadership and report business performance to their superior directly

Accounting Department (4 members): it has following functions:

+ Monitoring and inspecting the financial situation of the company

+ Recording initial entries of all financial transactions in account book

+ Balancing the accounts and adjust the differences in accounting(if have)

+ Making financial plan for payment (pay money for suppliers, freight for Shipping Lines, wage for employees, the tax…) or collection (debt of customers…)

+ Estimating the state of budget and business result to report to the manger periodically (month, quarter or year) and giving financial advices for manager in some case

Sales Department (21 members): it’s function includes:

+ Negotiating and dealing with suppliers, customers to get the business contracts

+ Researching and dealing with exporters/importers to expand the trading market + Drafting the terms and concluding the contract with the CEO

+ Contacting with the shipping lines, transport companies, container agents .to register services related to export/import transportation or prepare commodity, payment, insurance documents and related procedures

+ Contacting with suppliers and customers regularly to monitor contract performance and handle the situation in case the problem happen

+ Monitoring the price fluctuations of commodities to report and give appropriate to the leaders of company

Human resources Department (5 members):it gets the following duties:

+ Recruiting employees as the request of other departments under the control of Chief Executive Officers

+ Recording all data related to employees, such as: individual information, hour worked, wages earned…

+ Reporting the human situation to CEO regularly and making human plan based on forecasting the human demand in the future

+ Organizing entertaining activities for employees to maintain the unity and release the stress

Sea Freight Department (15 members): provides and consults forwarding services

by sea both in domestic and over the world, such as: import/export procedures, voucher for goods in quota list, packing and storing for all kinds of goods, consolidation, transportation by container, multi-modal transportation…

Air Freight Department (12 members): providesand consults all forwarding services

by air, include import/export procedures and relevant requireddocuments, receiving and packaging goods in warehouses, transportation by container, cargo ship planes Logistics Department (19 members): provides Freight Forwarding services, such as: transportation, declaration procedures and customs registration or work as a distribution agent which has duties: receiving, packing, storing and deliver goods as required by customers

Chamber of Business Agency (8 members): provides shipping services for domestic and foreign ships, include making procedures for entry and exit at port, providing maritime services (supply fuel, clean water, foods, screw…for ships) and maritime broker (build trade relationship between exporter and importer to get benefit)

Asia Youth Agency (5 members):provides the package of shippingservices for container ships, making procedures and Sea Freight Forwarding for import/export in Northeast Asia and Southeast Asia routes

The branches and representative office: provide the maritime transport services, storage, package, Sea and Air Freight Forwarding services…They are located on the cities and provinces spread throughout Viet Nam, such as: Ha Noi, Hai Phong, Quy Nhon, Da Nang, Vung Tau, Can Tho They play role as representative organizations of SAFI Company in dealing with domestic and foreign partners to expand market

Hai Phong enterprise: provides container service (lease, preservation…) or Sea and Air Freight services for foreign company in Southeast Asia routes

Yusen Joint Venture Company: was set up as the request of Nippon Yusen Group – Japan to expand the market share of Japanese investors as well as increase competition ability in Viet Nam market It’s one of main agent which distributes products of Nippon Yusen Company Besides, it provides the Logistics services

KCTCJoint venture Company:provides transportation, warehousing and Logistics services mainly in Ho Chi Minh market

COSFI Subsidiary: is an agent of COSCO Shipping Line (of China Ocean Shipping Group - China) It provides the Freight Forwarding services, transportation by container, export commodity mainly from Viet Nam to United States and Canada SITC Subsidiary: provides the Freight Forwarding and Shipping services in Hai Phong Port, Hai Phong City, Viet Nam

3.5 Infrastructure of SAFI Company:

Due to the establishment and development in nearly 20 years, SAFI achieved relatively facilities in the Logistics sector The delivery service network is expanded in many areas throughout internal and abroad The branches and representative office are located in big cities such as Ha Noi, Hai Phong, Quang Ninh, Da Nang, Quy Nhon, Vung Tau, Can Tho Current facilities and equipment include

 4 tractors and romooc system with shipping capacity from 25 to 400 thousand tons