HO CHI MINH CITY CAMPUS ---***---MID-COURSE INTERSHIP REPORT Major: International Business Economics PROCESS FOR EXECUTING THE EXPORT SALES CONTRACT OF DRIED ANCHOVIES AT NGHI SON AQ
INTRODUCTION OF NGHI SON AQUATIC PRODUCT
Establishment and development
Nghi Son Aquatic Product Exim Co., Ltd, established in 2014, is part of Nghi Son Foods Group, a family-owned company with extensive expertise in the seafood industry The company's vision is to become a leading manufacturer and exporter of high-quality seafood in Asia and Vietnam As a prominent player in the seafood export market, Nghi Son Aquatic Product Exim Co., Ltd is committed to delivering premium seafood products and expanding its presence in international markets.
Legal name: NGHI SON AQUATIC PRODUCT IMPORT EXPORT COMPANY LIMITED
Abbreviation name: NGHI SON CO.,LTD
Head office: Floor 7th, 85 Nguyen Huu Cau, Tan Dinh Ward, District 1, Ho Chi Minh City
Legal representative: Nguyen Van Minh
Main business fields: Processing and trading Marine fish, Freshwater fish and Dried seafood
Leveraging family tradition and expertise in the seafood industry, our company efficiently manages the entire supply chain, from sourcing raw materials to freezing and drying, packaging, and delivery Continuous improvements in these processes have enabled us to meet the demands of extensive retail distribution, serving both domestic markets in Vietnam and international markets abroad.
Positive consumer recognition in the home country validates the company's efforts to enhance its services, serving as a testament to quality and reliability This success has enabled the firm to leverage its reputation for expanding into international export markets, including China, Japan, Korea, the Philippines, Malaysia, Spain, Thailand, India, Indonesia, and Egypt.
Functions, missions, organizational structure and human resources
Nghi Son Aquatic Product Exim Co., Ltd specializes in processing and trading a wide range of fishery products, including marine and freshwater fish, dried seafood, Pangasius, Yellowfin Tuna, and Shrimp The company processes fishery products at its dedicated factory in Binh Thuan Province, ensuring high-quality production It exports its own processed products as well as aquatic goods ordered from other factories under strict sales contracts Additionally, Nghi Son imports frozen fishery products, though import volumes are minimal compared to exports With a clear vision to become a leader in supplying and exporting high-quality aquatic foods, the company is continuously enhancing its processing systems and supply chain management to deliver excellence at competitive prices.
Nghi Son is committed to complying with both domestic and international laws and regulations, ensuring responsible and lawful business practices Upholding integrity is at the core of the company's mission, guiding all its operations The company’s dedication to legal compliance and ethical conduct exemplifies its commitment to sustainable and trustworthy business growth These principles reflect Nghi Son’s ambition to operate transparently and responsibly in the global market.
Nghi Son operates legally under business license number 0730103446345, engaging in the processing and trading of fishery products while fulfilling all tax obligations The company is committed to providing high-quality seafood that complies with both Vietnamese and international regulatory standards To support growth, Nghi Son continuously conducts market research to expand its trading markets and meet the rising demand for aquatic products in various regions.
Nghi Son places a strong emphasis on human resources management and human capital development The company not only complies with Labour Law but also encourages employee growth and advancement Its core values promote a corporate culture rooted in humanitarianism, aiming to motivate employees to work diligently and contribute to the company's success.
1.2.3 Organizational structure and human resources management
Nghi Son Aquatic Product Exim Co., Ltd is structured around specialized departments, including Documentation, Sales, Accounting, and Human Resources & Administration, to efficiently manage its operations The company adopts a functional organizational structure, with each department responsible for specific tasks and responsibilities This clear division of roles enhances operational efficiency and organizational clarity The company's organizational chart illustrates its functional management approach, clearly defining departmental roles and reporting lines.
(Source: Human Resources & Administration Department)
The functional structure features a clear hierarchy, with each department led by a dedicated head responsible for maintaining quality and consistency in employee performance Clearly defined roles and repetitive responsibilities within each department enable employees to enhance their skills and achieve higher levels of performance The Board of Directors and departmental functions work together to ensure efficient organizational operations and strategic oversight.
Board of Directors includes three people One General Director, the firm’s legal representative, oversees the overall performance of the company and directs
Nghi Son's organizational structure includes a financial director and a manufacturing director, overseeing respective finance and manufacturing activities The Board of Directors is responsible for setting the company's objectives and strategies, establishing partnerships with economic organizations domestically and internationally, ensuring compliance with Vietnam's laws and regulations, and promoting employee involvement in the business management process to optimize performance.
The Documentation Department consists of four team members, including a supervisor overseeing all tasks, a logistics executive responsible for booking arrangements, a documentation executive handling the preparation of essential documents such as Commercial Invoices, Packing Lists, Certificates of Origin, and Health Certificates, and a staff member managing customs procedures and outdoor activities This department plays a crucial role in ensuring accurate booking, seamless document preparation, and efficient customs formalities to support smooth logistics operations.
The Sales Department, led by a dedicated head and comprising eight skilled sales staff members, specializes in identifying potential customers through various channels such as trade fairs, conferences, seminars, partners, the Internet, and social media Their key responsibilities include building customer relationships via phone, email, and direct communication, negotiating transactions, and preparing contracts Additionally, they coordinate closely with the Documentation Department to ensure smooth contract execution and successful sales processes.
The Accounting Department, consisting of a chief accountant, a warehouse accountant, and a treasurer, is responsible for managing key financial functions They handle recording transactions, preparing comprehensive financial reports on a monthly, quarterly, and annual basis, and ensuring timely tax payments in compliance with legal regulations Additionally, the department oversees business budgeting, monitors revenue, costs, and profits to support informed financial decision-making and ensure the company's financial health.
The Human Resources & Administration Department is led by a dedicated female professional responsible for managing internal communications and overseeing human capital activities Her role includes recruiting new employees, organizing and maintaining essential documents, and handling various administrative tasks to ensure smooth department operations.
Since the company is small-sized, one person is enough to undertake the above mentioned things
The Sales, Accounting, and Human Resources & Administration departments have an adequate number of employees to fulfill their specific job requirements However, the Documentation Department appears to be understaffed, particularly during peak shipment periods According to the department head, the team faces hectic days when multiple shipments arrive simultaneously, as only one person is responsible for each task—such as booking, documentation, and customs-related activities—leading to workload challenges during busy times.
Nghi Son Aquatic Product Exim Co., Ltd employs a total of 23 directors and staff members The company's workforce is primarily female, with women constituting the largest proportion of employees In terms of education level, the majority of employees hold a bachelor's degree, making it the most common qualification among the staff.
Table 1.1 Human resources by gender and education level of Nghi Son
Aquatic Product Exim Co., Ltd
(Source:Human Resources & Administration Department)
In terms of gender, the vast majority of human resources are female, which is
Women make up approximately 69.75% of the workforce, with 16 women compared to 7 men, who account for 30.43% There are twice as many females as males Outdoor roles, such as operations staff requiring physical strength, are predominantly held by men Conversely, all employees in the accounting department are female, highlighting the gender segregation in specific roles Additionally, many sales and documentation executives are women, as these positions require carefulness and attention to detail, with minimal outdoor activity involved.
Over 50% of employees hold university degrees, adequately meeting the company's task requirements Individuals with master’s and bachelor’s degrees combined with extensive experience typically occupy managerial roles Non-managerial positions are filled by college-educated professionals with practical skills and experience, as well as recent graduates eager to learn despite limited hands-on knowledge.
Business outcomes
Nghi Son Aquatic Product Exim Co., Ltd's three-year financial performance from 2017 to 2019 highlights key business outcomes, including revenues, costs, and profits The analysis compares these variables across consecutive years, providing both absolute figures and relative changes to assess growth and efficiency This comprehensive overview enables a clear understanding of the company's financial trends and operational success over the specified period.
Table 1.2 Business outcomes of Nghi Son Aquatic Product Exim Co., Ltd between 2017 and 2019
Currency: USD (United States Dollar)
Table 1.3 Comparison of business outcomes of Nghi Son Aquatic Product
Exim Co., Ltd from 2017 to 2019
Currency: USD (United States Dollar) Comparison
Between 2017 and 2019, the company's revenues, costs, and profits after taxes experienced growth in both absolute and relative terms Profits increased at the highest rate during the periods 2017-2018 and 2018-2019, indicating strong financial performance, while the growth rate for costs remained comparatively the lowest Based on the business outcomes provided by the Accounting Department, the company's situation during this period will be analyzed further to understand the key factors driving these changes.
In 2017, total revenue increased by USD 1,034,606.41, rising from USD 10,943,935.85 to USD 11,978,542.26 in 2018 The company's revenues continued to grow in 2019, reaching USD 13,279,268.16, marking an increase of USD 1,300,725.90 compared to 2018 During this period, costs also increased by USD 846,583.29 between 2017 and 2019, reflecting overall business growth.
Between 2018 and 2019, the company experienced a significant increase of USD 1,107,578.14 During this period, revenues grew at a faster rate than costs, resulting in higher profits compared to previous years Specifically, profits in 2019 and 2018 surpassed those of 2018 and 2017 by USD 188,023.12 and USD 193,147.76, respectively, highlighting a strong upward financial trend.
Between 2018 and 2019, revenue growth accelerated to 10.86%, up from 9.45% in the previous year, driven by Nghi Son’s successful establishment of long-term customer relationships after five years of operation, leading to numerous large contracts Conversely, the growth rate of costs increased by 10.27% between 2018 and 2019, surpassing the 8.52% rise seen between 2017 and 2018, mainly due to the company’s expansion of its fishery-processing factory in Binh Thuan Province and the hiring of more sales staff to target new markets aligned with its five-year growth strategy Although profits increased more in absolute terms between 2018 and 2019 compared to the previous year, the growth rate of profits was higher during 2017-2018 than in 2018-2019, partly due to rising raw fishery product prices from fishermen, which impacted profit growth.
The importance of documentation department in Nghi Son Aquatic
The documentation department at Nghi Son Aquatic Product Exim Co., Ltd collaborates closely with the sales and financial accounting departments to manage export and import documentation, with a focus on export activities Their responsibilities include preparing necessary documents, handling customs formalities, and tracking shipments to ensure all information is accurate and complete Once contracts are finalized, the documentation team begins their crucial role in executing the contracts, ensuring seamless export operations and compliance Accuracy and thoroughness in documentation are essential to facilitate smooth transactions and customer satisfaction.
Summary of internship period
From 13 July, 2020 to 14 July, 2020, I worked as an intern in the Documentation Department I have had the opportunity to learn and understand practical knowledge regarding import and export, especially the process for executing export contracts at Nghi Son during the last five weeks My internship period at the company can be summarized as follows:
Tasks: Read up on the company; having been taught about the general export process at the company; copied and scanned some documents
Results: Learned of the establishment and development of Nghi Son, got acquainted with how the company works, gained general understanding about the process for exporting a shipment
Tasks: Read documents of previous shipments; , observed how Customs declaration, Health Certificate application and Certificate of Origin registration were conducted online
Results: Understood information included in the documents, improved the grasp of practical export process
Results: Understood how to draft documents, such as Invoice, Packing List, Shipping Instruction (SI), Verified Gross Mass (VGM)…
Week 4 and 5 (3 August – 7 August and 10 August – 14 August, 2020):
Under the supervision of Mr Thong, Head of the Documentation Department, ongoing tasks include preparing and finalizing essential shipping documents such as invoices, packing lists, Shipping Instructions (SI), Verified Gross Mass (VGM) documents, health certificates, and certificates of origin These documentation procedures are crucial for ensuring compliance with international shipping standards and facilitate smooth logistical operations Proper drafting and accuracy of these documents help streamline the export process, reduce delays, and support effective communication between all parties involved.
Results: Enhanced carefulness and skill in preparing documents, having been familiar with process for executing export contracts.
PROCESS FOR EXECUTING THE EXPORT SALES
General process for executing an export sales contract at Nghi Son
Nghi Son Aquatic Products Exim, Ltd follows a structured process to execute export contracts, starting from signing the sales contract to completing the shipment The process involves seven key steps that ensure smooth and efficient export operations This overview highlights the company's systematic approach to managing export orders and maintaining high standards in international trade During my internship, I analyzed a specific shipment to gain deeper insights into the company's export procedures and operations.
Figure 2.1 General process for executing an export sales contract at Nghi Son
(Source: The author’s collecting data through observation)
Upon receiving an importer’s email notifying of deposit payments to Nghi Son’s bank account or submitting the original Letter of Credit as per the sales contract, the Sales Department forwards this information to the Accounting Department for verification The Accounting Department then checks whether the bank account has been credited (in the case of advance deposits via Telegraphic Transfer) or confirms the issuance of the Letter of Credit.
4 Stuffing empty containers with cargo
7 Completing and sending the set of original documents to the Buyer the Letter of Credit has been issued, the incharge sales person of such contract will then email Purchasing Team based in Binh Thuan province for their preparation of the goods There are two main ways which the goods are prepared First, the goods are processed within the company’s factory in Binh Thuan Second, Purchasing Team is responsible for purchasing fishery products from fishermen, or ordering them from other factories in accordance with requirements of Buyers under specific contracts
Nghi Son's aquatic product exports undergo safety testing by NAFIQAD (National Agro-Forestry-Fisheries Quality Assurance Department) to ensure food safety compliance When products are processed internally or purchased directly from fishermen, designated representatives in Binh Thuan Province, such as Mr Long for marine fish, freshwater fish, and dried seafood, or Mr Phi for catfish, are responsible for submitting samples to NAFIQAD for testing For products ordered from third-party factories, the Documentation Department manages communication by coordinating required documentation—such as sample details, certificates of origin, and shipping addresses—with the processing factories to facilitate safety testing and certification.
Factories located near NAFIQAD can have samples tested on-site without the need for sending them to NAFIQAD centers For standard quality checks, testing results are typically issued within five working days from the date samples are received Tests involving antibiotics and heavy metals may take up to seven working days to receive results, starting from the same receipt date.
NAFIQAD’s testing primarily aims to ensure food safety and to issue a Health Certificate upon request by the importing country This certificate is only granted when the samples meet strict export standards If samples fail to satisfy these criteria, they undergo re-testing or may be excluded from further analysis, ensuring compliance with international health regulations.
Most export trade terms in sales contracts between Nghi Son and buyers are CFR and CIF, which are predominantly C-term Incoterms Consequently, Nghi Son primarily bears the responsibility for arranging the vessel in these transactions The documentation team is tasked with handling vessel booking to ensure seamless shipping processes.
When NAFIQAD testing results confirm food safety, Mr Cuong, responsible for vessel bookings, communicates via email with selected forwarding agents to negotiate freight rates, vessel schedule, and terms The company typically works with forwarders like Headway Logistics, TMC, Oscar Logistics, Advantage Logistics, Golden Line Transport Corp., and NYD Logistics Corporation to ensure competitive pricing and optimal scheduling Once the best option is identified, a booking confirmation (for FCL shipments) or a booking note (for LCL shipments) is sent to Mr Cuong's email, who then shares it with trucking companies, warehouse staff, and packing employees Additionally, this information is shared with the Documentation Department’s Viber group to verify and coordinate logistics activities, streamlining the entire food safety clearance and shipping process.
2.1.4 Stuffing empty containers with cargo
After sending the booking confirmation to the trucking company, Mr Cuong contacts them by phone to instruct them to pick up empty containers from the shipping line’s designated location and transport them to the stuffing warehouse in Hoang Lai, Long An Province, for Nghi Son’s cargo loading, ensuring all conditions and temperatures specified in the booking confirmation are met The trucking company takes photos of the container information and seal numbers, which are then sent to Mr Cuong via Zalo upon container receipt Once the containers and seal details are verified, Ms Hanh, the documentation executive, prepares the Shipping Instruction (SI) and Verified Gross Mass (VGM), and forwards these documents to the forwarder to facilitate the issuance of the draft Bill of Lading.
Once the goods are ready for loading, our operation staff carefully pack containers using appropriate techniques, utilizing reefers for dried and frozen products After loading, they set the reefers' temperature to -10°C for dried goods and -18°C for frozen items, ensuring optimal preservation The loaded containers are then transported by trucking companies to the port of loading If any issues arise during stuffing, such as container conditions or product quantities, our warehouse operation team in Long An promptly informs the Documentation Department to resolve these problems efficiently.
Draft documents are created based on sales contracts, with Ms Hanh responsible for preparing them and Mr Thong verifying and sending them to the Sales team for the Buyer’s review and confirmation The two contract parties negotiate the draft content via email, and the Documentation Department at Nghi Son makes reasonable adjustments The essential documents include the Commercial Invoice, Packing List, Health Certificate (if applicable), and Certificate of Origin (if applicable) For CIF Incoterms® 2010 sales contracts, the Documentation Department must send the confirmed draft Bill of Lading and Invoice to the insurer before the vessel departs from the loading port, ensuring compliance with shipping and insurance requirements.
Mr Thong or Ms Hanh are responsible for customs and e-port declaration, ensuring accurate and timely processing Mr Lam handles customs clearance, liquidation, and vessel records before port closing times to facilitate smooth cargo flow E-port declaration is conducted online at eport.saigonnewport.com.vn, allowing for streamlined container lifting-on and lifting-off procedures and online payment of associated fees Customs declaration is performed via the VNACCS system, with immediate access to channelling results from Customs Authority upon shipment data submission After completing the declaration, the customs declaration form is printed, and Mr Lam completes customs clearance, liquidation, and vessel records at the port Importantly, there are no export duties required for fishery products Approximately 80-90% of the company's fishery products are classified in the green channel, 10-20% in the yellow, and 1-2% in the red; the red-channel products are categorized randomly by Customs Authority, facilitating expedited processing for most shipments.
2.1.7 Completing and sending the set of original documents
Once the Buyer’s documents are confirmed, the Documentation Department will review and complete the necessary paperwork, including the Commercial Invoice, Packing List, Health Certificate (if applicable), and Certificate of Origin (if applicable) This ensures all shipping documents are accurate and compliant with international trade standards.
For telegraphic transfers, both scanned and original documents are provided to the Buyer to ensure smooth transaction processing The Sales Department promptly sends scanned documents via email, while the Documentation Department arranges for DHL express delivery of the original documents The remaining payment is typically received once the Buyer has received the complete set of scanned documents When payments are made through a Letter of Credit, the Documentation Department facilitates by sending the original documents to Nghi Son’s bank as specified in the sales contract, ensuring compliance and secure transaction flow.
Detailed description of process for executing export sales contract of
On July 13, 2020, a contract was signed to order Dried Anchovies from Workshop Dried Marine Products - Phu Hai Sea Products Factory, despite the contract being dated July 12, 2020, with no deposit required Given the previous successful shipment of Dried Anchovies to the same buyer, the new order was placed within just one day The export contract was managed directly by the General Director, who communicated any requirement changes via phone and email with Ms Rose, the sales representative of Nghi Son, and the responsible staff at Phu Hai Factory.
The total net weight of dried anchovies is 52,000 kilograms, packed in 4,000 cartons with 13 kilograms each, and labeled according to specifications provided via email by Ms Rose The goods are stored at a temperature of minus 10°C to ensure freshness There are two lots named NS0004 and NS0005, each weighing 26,000 kilograms; the production dates are June 1, 2020, for lot NS0004 and June 2, 2020, for lot NS0005, with a shelf life of two years from their respective production dates.
Nghi Son prepares goods either through processing in its own factory or by purchasing from fishermen or other factories For this contract, goods were ordered from a third-party factory, not Nghi Son’s own Fortunately, the shipment preparation was quick thanks to prior orders from Phu Hai Factory, avoiding delays that would have arisen from establishing a new processing contract The main changes in this order involved adjustments in quantity and price, facilitated by the existing relationship between Nghi Son, Phu Hai Factory, and long-term cooperation with Yin Qing Company However, Nghi Son lost control over ensuring sufficient goods for loading on the scheduled departure date, necessitating revisions to the Booking Confirmation Proper planning, supplier relationships, and contractual flexibility are key for timely shipment preparedness in manufacturing and logistics.
On July 13, 2020, after completing an order of dried anchovies processed by Phu Hai Factory in Binh Thuan Province, Ms Rose verbally instructed Mr Thong from Nghi Son’s Documentation Department to contact Phu Hai’s documentation officials by phone to confirm that the goods had been tested and met NAFIQAD standards Since Nghi Son had a similar prior order from Phu Hai, the confirmation process was quick, taking only five to seven minutes Additionally, as the buyer was from China, where import regulations require a Health Certificate for fishery products under Circular No 16/2018/TT-BNNPTNT, Nghi Son was responsible for obtaining the Health Certificate for the dried anchovies exported to Yin Qing Company The application for the Health Certificate was made after receiving quality results, on Nghi Son’s Documentation Department’s account.
On July 24, 2020, Mr Thong applied for a Health Certificate online via the Vietnam National Single Window (vnsw.gov.vn), submitting required documents including the Bill of Lading, Health Certificate Registration Form, and a Detailed Packing List in accordance with NAFIQAD’s specifications After completing the health certification declaration, he received guidance from NAFIQAD 4 to obtain the certificate by email at chungnhanonline@nafi4.com.vn Subsequently, on July 27, 2020, Mr Lam received the issued Health Certificate by post from NAFIQAD 4, with reference number YD14354/20/CH.
Comments: Like preparation of the goods, the previous order of Dried
Anchovy significantly streamlined Nghi Son’s quality testing process with Phu Hai factory, saving valuable time According to NAFIQAD 4’s Health Certificate issuance procedures, companies typically receive the original certificate one working day after registration In this case, since the application was submitted on a Friday, the original Health Certificate was issued the following Monday, ensuring a swift and efficient certification process.
The Dried Anchovies contract specifies a CIF Huang Pu, China, trade term under Incoterms® 2010, making Nghi Son responsible for booking the vessel On July 13, 2020, after Mr Thong confirmed that safety checks met NAFIQAD standards, he communicated with Mr Cuong via Skype regarding freight services with forwarders A booking confirmation was sent to Mr Cuong on July 14, 2020, confirming the shipment as a full container load.
Conditions of containers were required to be new, clean, in good conditions,
The shipment of 34 MTs of dried anchovies at a gross usage weight set at minus 10°C was initially scheduled to depart from the loading port on 22 July 2020 However, Phu Hai factory was unable to supply the required quantity of dried anchovies to meet the original export contract, necessitating a revision of the departure date Consequently, Mr Cuong issued a new booking confirmation on 20 July 2020, with an updated ETD of 25 July 2020 This revised booking was communicated to the Documentation Department via Viber, shared with warehouse and operations staff via email, and coordinated with the trucking service through a phone call to confirm pickup details and container conditions, ensuring smooth logistics adjustments.
The booking process was smooth and efficient due to the company's established relationships with trusted forwarders and Mr Cuong's expertise in managing bookings Additionally, Phu Hai factory was expected to supply sufficient dried anchovies as agreed with Nghi Son before July 22, preventing the need for booking revisions Although no charges were incurred for the booking adjustments, the revisions caused unnecessary delays There is also a potential risk of late delivery under the export contract between Nghi Son and Yin Qing Company.
2.2.4 Stuffing empty containers with cargo
On July 22, 2020, the trucking company was tasked with transporting two empty high-cube reefer containers from G-Fortune Depot in Binh Duong to Hoang Lai Warehouse in Long An for stuffing Throughout the process, logistics staff (Mr Cuong) and operations staff (Mr Quang) maintained close communication and supervised the loading to ensure compliance with requirements Photos of the containers and Equipment Interchange Receipts with container and seal numbers were documented and shared for record-keeping.
Mr Cuong shared information via Zalo and transmitted it to the group chat on Viber Ms Hanh completed and sent the Shipping Instructions (SI), Verified Gross Mass (VGM), alongside the Export Contract and Booking Confirmation to NYD Logistics Corp to secure a draft Bill of Lading from Evergreen Line The draft Bill of Lading was issued around 2 P.M that day, with Mr Thong and Ms Hanh reviewing and confirming its accuracy Communication between the Documentation Department and the forwarder was conducted via email Additionally, in the afternoon, the containers were moved to Cat Lai Port in Ho Chi Minh City and stored there.
During this stage, employees across different functions collaborated smoothly, facilitated by a common understanding of procedures within departments Communication extended beyond emails to include Viber, Zalo, Skype, and phone calls, demonstrating flexibility The contract for dried anchovies was based on CIF Incoterms® 2010, which proved unsuitable for container shipments because, under these terms, risk transfer occurs "on board the vessel," whereas in container shipping, risks actually transfer at the exporter’s warehouse after containers are loaded.
On the afternoon of July 22, 2020, the Documentation Department received a draft Bill of Lading from Evergreen Line via email from the forwarder Ms Hanh prepared the necessary documents, including the Commercial Invoice, Packing List, Health Certificate, and Certificate of Origin After completing the drafts, Mr Thong reviewed them to ensure accuracy Upon approval, Mr Thong emailed the documents to Ms Rose for submission to the Buyer, ensuring smooth documentation processing.
On 23 July, draft documents confirmed by the Buyer were sent to Mr Thong There were some formatting mistakes The contents were acceptable Therefore, Ms Hanh did not need to substantially change those documents On 24 July, Commercial Invoice, along with draft Bill of Lading were sent to the Insurer to obtain insurance for the shipment
Thanks to experienced documentation professionals like Mr Thong and Ms Hanh, document drafting and verification are completed efficiently An attached Excel file with sample templates for Commercial Invoices, Packing Lists, Shipping Instructions, and Health Certificates significantly streamlines the process, allowing documentation staff to quickly complete major sections based on Contracts and Booking Confirmations, with only container and seal numbers requiring additional input.
General comments on the current procedure of the company
The company's export sales contract process is generally standardized, ensuring that each employee has a clear understanding of their tasks and responsibilities, which streamlines execution and saves time However, this uniform process is flexible and adaptable, with each step adjusted as needed based on the specific circumstances of each contract.
Documentation executives in Nghi Son are highly experienced, ensuring smooth and timely preparation of documents that meet deadlines Effective communication and negotiation among departments during contract execution help streamline processes and save valuable time Additionally, any discrepancies or differences are promptly addressed through collaborative adjustments, enhancing overall efficiency.
Utilizing multiple communication channels demonstrates operational flexibility, especially through online applications for Certificates of Origin and Health Certificates, as well as electronic customs declarations These digital systems minimize the need for staff to travel to physical locations, enhancing efficiency and safety During the Covid-19 pandemic, such online solutions have proven to be particularly valuable in maintaining smooth customs and certification processes while adhering to health protocols.
Nghi Son effectively leverages strong relationships with regular customers to strengthen business partnerships, resulting in repeated contracts that demonstrate long-term trust This approach significantly reduces negotiation time and costs for both parties, streamlining the transaction process For example, the dried anchovies contract omits the goods description, referencing the previous agreement, which simplifies the current contract and enhances operational efficiency.
The contract between Nghi Son and its buyers does not specify any reference to Incoterms® revisions, such as Incoterms® 2010, although the long-term relationship with one buyer implies use of Incoterms® 2010 However, the use of Incoterms® 2010 as the standard is uncertain when dealing with new buyers, and since the latest version is Incoterms® 2020 effective from January 2020, parties can freely choose any version, which may lead to misunderstandings and disputes Most export contracts from Nghi Son involve container shipments with trade terms like CFR or CIF, where risk transfers “on board the vessel,” as exemplified in the analyzed contract where shipments were full containers under CIF Incoterms®.
2010, but risks actually transferred at the warehouse in this real case
In typical sales contracts with regular customers, especially when payment is made via methods other than Letters of Credit, deposits are usually not required The analyzed contract exemplifies this scenario, where Yin Qing and Nghi Son maintain a long-standing business relationship However, even with established partnerships, there is a risk that the exporter may not receive payment from the consignee Additionally, the exporter might incur return fees or need to sell cargo at lower prices if the buyer refuses delivery Although negotiations can occur if delivery is refused, such processes often lead to delays and resource wastage.
When goods are ordered from factories outside Nghi Son’s facility, the company cannot guarantee sufficient stock at the stuffing point, risking delays Inadequate inventory may force booking staff to revise departure estimates, which, while free of charges, lead to wasted time and potential late delivery Delays in goods’ preparation can significantly impact shipping schedules and customer satisfaction.
During peak seasons, the insufficient number of documentation staff causes delays and increases the risk of mistakes in preparing shipment documents One executive responsible for handling a wide variety of goods—such as marine fish, freshwater fish, and dried fishery products—struggles to manage the workload effectively This staffing shortage leads to errors, wasting valuable time and resources, and impacting overall operational efficiency.
REVIEW OF INTERNSHIP PERIOD AND
Comparison between current procedure of the company and that of
The fundamental steps and order for executing export contracts at Nghi Son generally align with standard theoretical procedures Key documents typically include the Sales Contract, Commercial Invoice, Packing List, and Certificate of Origin However, practical deviations from these theories are inevitable, and these differences will be elaborated upon in the following sections.
Real-world operations at Nghi Son differ from theoretical models in several key aspects Notably, the company uses CFR and CIF terms instead of CPT and CIP when negotiating export contracts, aligning with practical preferences Additionally, Nghi Son does not require an export permit for fishery products, as these are not on the export permit list, simplifying the export process The company conducts customs declarations electronically via the VNACCS system at its office, avoiding port visits While theory often recommends using Letters of Credit for payments, Nghi Son primarily relies on TTR accounts due to long-standing business relationships with its buyers Moreover, besides quality testing, the firm frequently applies for Health Certificates, as many importing countries require them for fishery product imports, ensuring compliance with international standards.
Lessons learned from the internship
3.2.1 Lessons learned regarding practical knowledge
Over the past five weeks at Nghi Son, I have gained valuable hands-on experience in executing export contracts and drafting shipping documents My academic background in International Commercial Transactions and International Transportation helped me understand and actively participate in the company's sales contract processes, making the experience familiar and smooth This internship has complemented my university knowledge with practical insights into real-world export procedures, logistics, and documentation necessary for successful international trade.
In Nghi Son, CFR and CIF are the primary trade terms used in export contracts involving container shipments According to Mr Cuong, a booking staff member, the transfer of risk occurs once the operation staff finishes loading containers with goods and these containers are transported by a trucking company to the designated port When asked whether CPT and CIP terms are used in container shipment contracts, Mr Thong, Head of the Documentation Department, confirmed that these terms have not been applied Overall, the choice of specific trade terms and contract conditions largely depends on the customary practices and mutual agreements of the contracting parties, with negotiations taking place to resolve any conflicts and reach consensus.
This internship proved to be a valuable experience, reinforcing my academic knowledge through practical application I had the opportunity to draft documents such as the Certificate of Origin, which enhanced my understanding of international trade documentation For example, Certificate of Origin Form E is issued for shipments to China, while Form D is used for shipments to Singapore Additionally, I learned that quality checks vary by product type—agricultural commodities undergo phytosanitary inspections, whereas aquatic animals may require a Health Certificate to certify their health status, depending on the importing country's regulations.
While I was familiar with key shipping documents like Commercial Invoice, Packing List, Bill of Lading, Certificate of Origin, and Letter of Credit from university, real-world experience introduced me to many additional requirements Our Documentation Department maintains an Excel template library for essential documents, including Commercial Invoice, Packing List, Shipping Instruction, Verified Gross Mass, Health Certificate, and Certificate of Origin Although I initially thought filling out these templates was straightforward, understanding the context—such as reading related documents like Contracts and Booking Confirmations—was crucial to ensure accurate information I learned that preparing Shipping Instruction is necessary for issuing draft Bills of Lading, and that compliance with deadlines like cut-off dates for booking, shipping instruction, and VGM is vital for accurate documentation These processes require strict attention to detail and adherence to procedures to ensure smooth international shipping workflows.
3.2.2 Lessons learned regarding attitudes and soft skills at workplace
A positive attitude during my five-week internship greatly contributed to my achievements beyond expectations Maintaining a can-do mindset enabled me to learn proactively and adapt quickly Facing new challenges outside academic knowledge, I actively asked Mr Thong and colleagues for guidance to avoid mistakes and clarified differences between theory and practice I seized every opportunity to inquire about specialized topics, maximizing practical learning An open mind towards diverse environments and cultures helped me acclimate swiftly to the business setting at Nghi Son and prepared me for future work in multicultural multinational companies Additionally, embracing feedback without fear allowed me to identify strengths and areas for improvement, fostering continuous professional growth throughout the internship.
Working in the import-export industry requires strong soft skills, particularly proficiency in English, as most documents such as sales contracts, commercial invoices, packing lists, and shipping instructions are in English; therefore, continuously improving English skills gives a competitive edge Time management is essential to meet strict deadlines and ensure shipments are not delayed, especially when handling multiple shipments simultaneously; punctuality demonstrates professionalism and dedication Effective workplace communication, both written and verbal, is crucial; clear, appropriately toned messages in emails and communication apps like Zalo, Viber, and Skype help avoid misunderstandings Active listening and polite, humble face-to-face interactions are vital for successful verbal communication, with techniques such as maintaining eye contact and summarizing understood points to ensure clarity Learning to get straight to the point respects colleagues’ time, and guidance from senior staff, like Mr Thong, has provided valuable practical knowledge and support during the internship, enhancing overall communication and professionalism in the workplace.
3.2.3 Lessons learned regarding carreer orientation
My internship experience with Nghi Son provided me with valuable insights into real-world export-import practices and the key responsibilities of a documentation executive This hands-on role enhanced my practical skills and understanding of import-export operations, helping me envision my future career in the industry As a documentation intern, I learned that essential qualities for success include the right attitude, relevant attributes, and thorough knowledge of export-import procedures.
Working with documents can be a high-pressure task that requires employees to be responsible for every detail, including figures and wording A documentation executive must be meticulous and detail-oriented to ensure accuracy These attributes are often associated with females, making documentation positions particularly well-suited for women.
Documentation tasks are often repetitive, which can lead to boredom, emphasizing the need for staff to maintain long-term commitment Maintaining professionalism and adherence to ethical standards is crucial, as documentation personnel handle sensitive business secrets that require high levels of confidentiality.
Having solid knowledge of international trade, including transportation, commercial transactions, and payments, gives documentation employees a significant advantage Academic background in these areas enables quick adaptation to export contract processes, reducing onboarding time While documentation roles may not involve frequent outdoor activities like operations staff, it is crucial for documentation professionals to stay updated on changes in import/export duties and quality testing requirements to ensure compliance and efficiency.
Recommendations for the export contract of fishery products at Nghi
3.3.1 Choosing and incorporating Incoterms® rule appropriately
The absence of a specified Incoterms® version in Nghi Son's sales contracts poses significant risks in case of disputes, as newer versions do not invalidate previous ones Additionally, although all export shipments are containerized, the contracts specify CFR or CIF terms based on Incoterms® 2010, with risk transfer at "on board the vessel," which differs from the actual point of transfer "at the warehouse" for container shipments at Nghi Son.
Detailed recommendations: It is advisable that the year of Incoterms® should be referred in the contract, for example, Incoterms® 2002 or Incoterms®
To prevent conflicts during sales negotiations with both new and regular buyers, it is essential to select appropriate trade terms for container shipments Instead of CFR or CIF, which are often used for general freight, CPT and CIP are recommended for export container shipments due to the differences in the point at which risks pass, ensuring clearer risk transfer and smoother transactions.
3.3.2 Including deposits in every payment term regardless of Buyers
Under long-term sales contracts with customers, the absence of deposits poses significant risks for exporters like Nghi Son, especially if the buyer refuses to accept the goods Negotiations after such refusals can be time-consuming and resource-intensive If negotiations fail, Nghi Son may face loss of payment from the consignee, along with additional costs such as cargo return fees or selling the goods at reduced prices.
It is recommended that deposits be included as part of the payment terms between the Seller and Buyer, excluding Letter of Credit arrangements The required deposit amount varies based on the nature of the business relationship but should always cover at least the return shipping costs for goods in cases where the shipment is refused by the importer’s country Ensuring that deposits cover these return fees helps mitigate potential financial risks and enhances transaction security.
3.3.3 Keeping close track of preparation of the goods ordered from other factories
Inadequate preparation of goods regarding quantity can lead to significant delays, as time is wasted on revising bookings and adjusting estimated delivery dates This inefficiency not only causes delays in shipment but also increases the risk of late deliveries Additionally, for goods ordered from factories other than Nghi Son’s facility, the company faces higher risks of losing control over stock availability during container stuffing, potentially jeopardizing supply chain reliability and overall operational efficiency.
Immediately after finalizing the sales contract, the company must ensure that the prepared goods meet the agreed quality standards and are in sufficient quantity at the time of loading onto containers The Purchasing Team should actively monitor and remind processing factories—including those outside Nghi Son’s facility—using multiple communication channels like phone, email, Zalo, and Viber to ensure timely delivery of quality goods At the outset of processing contract negotiations, Nghi Son should clearly specify all requirements regarding timing, quantity, and quality, and include contractual penalties for shortages or delays These measures help ensure that goods are prepared and delivered in line with contractual commitments, minimizing risks of quality and quantity discrepancies.
3.3.4 Providing internal employees with training for back-up purpose
When managing a high volume of shipments, the Documentation Department experiences significant stress due to insufficient staffing Limited personnel handle critical tasks such as booking, operations, and documentation simultaneously, leading to operational bottlenecks Addressing these staffing shortages is essential to ensure smooth workflow and improve efficiency in handling multiple shipments effectively.
As a result, it is certain that those employees are put under pressure during peak seasons, leading to unexpected errors in documents
Preparing documents is manageable with the help of sample templates, but attention to detail is essential To ensure accuracy and consistency, the Human Resources Department should organize training sessions where the Documentation Department educates other departments, especially the Sales Department, which regularly interacts with clients Familiarity with documentation processes enables sales staff to assist during peak times, potentially serving as backup documentation executives Offering bonuses and incentives for exceptional performance encourages staff to develop their skills and supports smooth operational workflows.
During my five-week internship at Nghi Son Aquatic Product Exim Co., Ltd, I gained valuable practical knowledge of the export process and essential skills, which enhanced my understanding of the industry This experience allowed me to reflect on the differences between academic learning and real-world application, helping me clarify my career path in import-export Nghi Son Aquatic Product Exim specializes in processing and trading fishery products, including marine fish, freshwater fish, dried seafood, and shrimp, with a smoothly managed supply chain rooted in its parent company's longstanding fishery tradition Despite being established only six years ago, the company has shown increasing revenues, costs, and profits from 2017 to 2019 as it expands into new export markets while maintaining strong relationships with existing customers The company employs 23 staff across five departments, including the Board of Directors, meeting general human resource requirements for its operations.
The export sales process at Nghi Son involves seven key steps, closely aligning with standard theoretical practices The company leverages long-term relationships with customers to successfully conclude sales contracts However, despite its achievements in contract execution, the process faces common challenges, particularly regarding Incoterms® rules and payment issues, highlighting areas for improvement.
During my internship, I gained valuable lessons in practical knowledge, attitudes, soft skills, and career orientation, which have significantly contributed to my professional growth Additionally, this report discusses recommendations to address current drawbacks, aiming to minimize risks for Nghi Son when executing future sales contracts I hope that Nghi Son continues to develop positively in the fisheries industry, ensuring sustainable growth and successful business expansion.
Hoàng Văn Châu, 2009, Logistics và Vận tải quốc tế, NXB Thông Tin Và Truyền
Nguyen Tien Hoang, 2013, International commercial transaction, VNU-HCM
Phạm Duy Liên, 2012, Giáo trình giao dịch thương mại quốc tế, NXB Thống Kê Đinh Xuân Trình, 2011, Giáo trình Thanh toán quốc tế, NXB Khoa Học Và Kỹ Thuật
Key resources for understanding international trade and fisheries include Vũ Hữu Tửu’s 2007 "Giao trình Kỹ thuật nghiệp vụ ngoại thương" published by NXB Giáo Dục, and Đoàn Thị Hồng Vân’s 2005 "Giao trình Kỹ thuật ngoại thương" published by NXB Thống Kê, both offering comprehensive insights into export techniques Additionally, the VASEP 2020 Fishery Profile provides essential online data on the seafood industry, accessible at http://mseafood.vasep.com.vn/685/onecontent/fishery-profile.htm, which is a valuable resource for industry analysis and market trends.
In June 2020, seafood exports continued to decline, experiencing a 10% decrease compared to previous months, reflecting ongoing challenges in the industry during that period (Lê Hằng, 2020).
Bảo Ngọc, 2020, Xuất khẩu thủy sản VN từ 1/1 đến 15/6/2020, [online] Available at: http://vasep.com.vn/Tin-Tuc/123_61358/Xuat-khau-thuy-san-VN-tu-11-den- 1562020.htm [Accessed 14 July, 2020]
Ha Thanh, 2020, Seafood exports gained momentum after Covid-19 pandemic,
[online] Available at: https://customsnews.vn/seafood-exports-gained-momentum- after-covid-19-pandemic-14582.html [Accessed 15 July, 2020]
Recent reports highlight positive developments in seafood exports, signaling strong performance from key products, according to Kylie Nguyen (2020) These improvements suggest increased competitiveness and growing demand in international markets, benefiting stakeholders across the seafood industry Additionally, NAFIQAD (2019) provides detailed procedures for registering and issuing certificates for exported seafood batches, ensuring compliance with international standards and facilitating smoother export processes Together, these insights underscore a promising outlook for seafood export growth and the importance of adhering to certification protocols.
[online] Available at: http://www.nafiqad4.gov.vn/hoat-dong/kiem-tra-chung- nhan/thuy-san-xuat-khau/quy-trinh [Accessed 16 July, 2020]
Lec Group’s 2019 guide provides a comprehensive overview of the sea freight export process, detailing each step from preparation to shipment The article emphasizes the importance of proper documentation, efficient logistics planning, and adherence to international shipping regulations to ensure smooth exports It highlights key procedures such as booking cargo space, preparing customs paperwork, and coordinating with freight forwarders, all vital for successful maritime export operations Following these structured processes helps businesses optimize their sea freight activities and ensure timely delivery of goods worldwide.
Nitoda, 2019, Export process by seaway (FCL), [online] Available at: https://www.nitoda.com/lp/export-process-by-seaway-fcl.html [Accessed 20 July,
Seller(卖方公司): NGHI SON AQUATIC PRODUCT IMPORT EXPORT COMPANY LIMITED
Buyer: Invoicing Company (买方) GREAT HAND CO., LTD 深圳恒瑞喜供应链有限公司
Contact person(联系人): Emily Xu Phone NO(电话): +86 755-83191703
Address( 地址 ): Room 1633 International Culture Mansion Futian Road, Futian Dist Shenzhen City,
For the end user/ consignee: 昆明冬冬食品有限公司