LIST OF TABLE Table 2.1 Proportion of revenue by business form from 2018 to 2020 Table 2.2 Sea freight forwarding market structure Table 2.3 Sea freight commodities structure Table 2.
Trang 1ACADEMY OF POLICY AND DEVELOPMENT
INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE
GRADUATION THESIS
Topic: “ Improving sea freight service for import and export at
Bach Viet Transport Co., Ltd ”
Supervisor: MA Doan Anh Tuan Student: Dang Thi Van Anh Student ID: 5083106529 Class: KTĐN CLC 8.2
Hanoi, June 2021
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Trang 2TABLE OF CONTENTS
LIST OF TABLE 1
LIST OF FIRGUES 2
LIST OF ABBREVIATIONS 3
INTRODUCTION 4
1 Reason for choosing topic 4
2 Purpose and tasks of the research topic 4
3 Subjects and scope of the research 5
4 Research Methods 5
5 Thesis structure 5
CHAPTER 1: THEORETICAL BASIS OF IMPORT AND EXPORT GOOD DELIVERY ACTIVITIES 7
1.1 Overview of forwarding 7
1.2 Forwarding of import and export goods by sea 12
1.3 Criteria to evaluate the results of business activities of import and export freight forwarding services 24
1.4 Service quality 27
1.5 Commonly used service quality assessment model 28
1.6 Factors affecting freight forwarding services by sea 29
CHAPTER 2: SITUATION OF TRANSPORTATION BY SEA AT BACH VIET TRANSPORT COMPANY LIMITED 33
2.1 General introduction at Bach Viet Transport Co., Ltd 33
2.2 The forwarding of import and export goods by sea at Bach Viet Transport Co., Ltd 40 luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 32.3 Business results of freight forwarding services by sea at Bach Viet Transport Co.,
Ltd in the period of 2018 - 2020 48
2.4 Factors affecting freight forwarding activities at Bach Viet Transport Co., Ltd 55
2.5 The criteria for evaluating the results of business activities of import and export freight forwarding services 63
2.6 The service quality assessment model that customers often use 68
2.7 General evaluation 76
CHAPTER 3: SOME POWERFUL SOLUTIONS FOR TRANSPORTATION ACTIVITIES BACH VIET TRANSPORT COMPANY LIMITED 82
3.1 Objectives and development orientation of the company in the coming time 82
3.2 Analysis of the company's opportunities and challenges 83
3.3 Some solutions to develop freight forwarding services 87
CONCLUSION 93
REFERENCES 94 luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 4LIST OF TABLE
Table 2.1 Proportion of revenue by business form (from 2018 to 2020)
Table 2.2 Sea freight forwarding market structure
Table 2.3 Sea freight commodities structure
Table 2.4 The company's volume of freight forwarding for import and
export by sea
Table 2.5 Number of orders for freight forwarding services by sea at Bach
Viet Transport Co., Ltd in the period of 2018 -2020
Table 2.6 Percentage of customers using sea freight forwarding services at
Bach Viet Transport Co., Ltd in the period 2017-2020
Table 2.7 Quotation of charges for a shipment of electronic equipment
Table 2.8 The revenue of Bach Viet Transport Company Limited
Table 2.9 Costs of Bach Viet Transport Co., Ltd from 2018-2020
Table 2.10 Profit of Bach Viet Transport Co., Ltd in the period of 2018 -
2020
Table 2.11 Labor structure of Bach Viet company in 2020 Table 2.12 Capital of Bach Viet Transport Company Limited Table 2.13 Some indicators related to business performance at Bach Viet
Table 2.19 Response statistics table
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Trang 5LIST OF FIRGUES
Figure 1.1 Export delivery process
Figure 1.2 Import delivery process
Figure 2.1 Logo of Bach Viet Transport Company Limited
Figure 2.2 Organizational structure of Bach Viet Transport Co., Ltd
Figure 2.3 Revenue by business model of Bach Viet
Figure 2.4 Import forwarding process
Figure 2.5 Export forwarding process
Figure 2.6 Operating expenses of Bach Viet Transport Co., Ltd
Figure 2.7 Bussiness Ratios
Figure 2.8 Company market share
Figure 2.9 Proportion of damaged and delayed goods in
Bach Viet's delivery process, 2017-2020 luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 6LIST OF ABBREVIATIONS
1 B/L Bill of Lading
3 Co., Ltd Company Limited
4 CUS Customer Support Staff
6 DEM Demurrage
7 FCL Full Container Load
8 ICD Inland Container Depot
9 L/C Letter of Credit
10 LCL Less than Container Load
11 OPS Operations
12 ROA Return on Assets
13 ROE Return on Equity
14 ROS Return on Sales luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 7INTRODUCTION
1 Reason for choosing topic
In the current period of international economic integration, foreign trade activities such as international transactions, international trade in goods, export and import of goods are necessary and should be further promoted In particular, it is impossible not to mention the importance of the logistics industry for import and export activities The development of import and export activities has led to the development of freight forwarding and logistics companies, acting as a bridge between import and export enterprises and logistics and increasing competition between businesses
Bach Viet Transport Company Limited is one of the companies in the field of freight forwarding mainly by sea with 16 years of experiences The company is gradually affirming its reputation and service quality to meet the needs of customers in the best way, stand firm and become a leading company in Vietnam in the field of transportation, contributing to building a foreign trade of the country However, Bach Viet also encountered many difficulties in freight forwarding activities by sea such as the unfavorable customs clearance process leading to delayed clearance and delivery time and
lost, broken goods Facing the above difficulties, I chose the topic " Improving sea freight service for import and export at Bach Viet Transport Co., Ltd " for the thesis
topic
2 Purpose and tasks of the research topic
• Systematize the theoretical basis of freight forwarding services for import and export by sea
• Find out the business situation of freight forwarding by sea at Bach Viet Co., Ltd
• Evaluate the operation situation at the company, identify the areas that are achieved, the areas that are still limited
• Offering solutions to develop import and export freight forwarding services by sea
at Bach Viet Co., Ltd luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 83 Subjects and scope of the research
3.1 Subjects
The problems in freight forwarding services for import and export by sea in Vietnam in general and Bach Viet Transport Co., Ltd in particular, then find solutions to develop forwarding services at the Company
3.2 Scope of the research
- About space: at Bach Viet Transport Co., Ltd
- About time: learn about import and export goods forwarding by sea at Bach Viet Co., Ltd in the period of 2018 - 2020
- Comparative method: a method of comparing quantified economic indicators and phenomena with similar content and properties in order to identify trends and volatility levels of indicators
Trang 9Chapter 3: Solutions to promote freight forwarding by sea at Bach Viet Transport Co., Ltd until 2030
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Trang 10CHAPTER 1: THEORETICAL BASIS OF IMPORT AND EXPORT GOOD DELIVERY ACTIVITIES
1.1 Overview of of forwarding
1.1.1 The definition forwarding
According to the model rules of the International Federation of Forwarding Associations (FIATA)1: “Freight Forwarding service is any type of service related to the transportation, consolidation, storage, loading and unloading of goods packaging or distribution of goods and services or in connection with such services including customs, financial, insurance, payment, collection of documents relating to the goods”
According to the Commercial Law of Vietnam, Article 163: “The freight forwarding service is a commercial act whereby the person providing the freight forwarding service receives the goods from the sender, organizes the transportation, storage, warehousing, doing paperwork and other related services to deliver the goods to the consignee under the entrustment of the goods owner, the carrier or other forwarding service provider (collectively, the customer)”
Thus, in summary: "Freight forwarding is a collection of jobs related to the transportation process in order to move goods from the place of dispatch (shipper) to the place of receipt (consignee)
1.1.2 Characteristics
Firstly, because the products of the delivery service are intangible goods, so there
is no uniform quality assessment standard, it is impossible to store and store, production and consumption take place at the same time and the recipient is not satisfied service will feel and appreciate the best quality of service
Secondly, the delivery service does not create a physical product, it only changes
the location of the object in space, but does not technically change the object
1
https://fiata.com/faq.html luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 11Thirdly, this service depends a lot on the needs of the customer, the regulations of
the carrier, the laws and regulations of the government, etc
Fourthly, the forwarding service serves import and export activities, so the volume
of import and export goods greatly affects the forwarding service Therefore, forwarding activities will be seasonal because import and export activities are seasonal and change from time to time
Fifthly, in addition to jobs such as doing procedures, brokerage, and freight, the
forwarder also provides other services such as: consolidating, dividing, loading and unloading Therefore, the technical facilities and experience of the forwarder will greatly affect the completion of the job
1.1.3 Types of forwarding services
1.1.3.1 Forwarding of import and export goods at seaports
This is a form of freight forwarding and forwarding across national borders by sea, goods are transported by sea, is considered the most popular and developed form of forwarding today because of its characteristics suitable for the transportation of goods and services Transporting large volumes of goods over long distances and at an economical cost According to the Vietnam Logistics Report 2019 of the Ministry of Industry and Trade, sea transport will still make the largest contribution to the total volume of global freight movement and is expected to handle about ¾ of the volume of goods by 2050 Sea will grow at a rate of 3.6%/year until 2050, which will triple the volume of sea trade by
2050 For high-volume and high-volume items, this is Optimal solution for businesses to reduce shipping costs However, because the speed of ships is not great, this method will take a lot of time, especially for long transport routes, long distances, and ships still have
to transship through areas to get goods
1.1.3.2 Forwarding of import and export goods by air
Freight forwarding by air is often used for small, high-value, small-volume goods With the characteristics of high operating speed, fast transit time, air freight forwarding is always safer and provides more standard services than other means of transport However, luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 12the disadvantage of this type is that the freight rates are very high, not suitable for transporting bulky goods, goods with large volume or low value and requiring high infrastructure investment Facilities include airports for parking as well as for taking off
and landing of aircraft, an area for import and export goods, transshipment; Airplanes are
transport tools and equipment for loading and unloading goods (aircraft pallets, containers, etc.)
The forwarder will help his or her clients with the following specific tasks (on behalf of the exporter): choosing a transport plane, packing the goods, advising the exporter on the importance of insurance cargo, storage, weighting, transportation to the port, doing customs procedures at the port authorities, monitoring the transportation of goods, helping exporters in claiming for damage, loss or damage of goods
1.1.3.3 Forwarding of import and export goods by road
Forwarding import and export goods by road is the most flexible delivery method but has the least internationalization of the delivery methods Currently in the world there
is only one common convention to unify and standardize rules and conditions governing contracts for the carriage of goods by road, that is: “Convention on Contracts of Carriage
of Goods by Road.” internationalization by land” of Western European countries
1.1.3.4 Forwarding of import and export goods by rail
This is a form that is being invested for development, which can overcome the disadvantages of sea transport, which is the transportation time is too long, and it can transport large volumes of goods and do not cost too much like air freight However, in order to develop this type of investment, it is necessary to invest in building infrastructure systems with high costs and transportation is not as flexible as roads Goods delivered by this method must be sent in batches, goods can only be loaded into one batch when there
is the same recipient, the same departure and loading location, the same destination and
unloading place, and the same time limit transported and received at the same time and
are not prohibited goods to be stowed together The form also has retail shipping and full package shipping When the goods arrive at the station, the railway is responsible for luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 13notifying the recipient, after completing the procedures for receiving goods: paying for freight, administrative procedures, the railway will deliver the goods to the owner
1.1.4 Rights and obligations of the forwarder
1.1.4.1 The definition of forwarder 2
The person doing the forwarding service business is called "Forwading - Freight Forwarder - Forwading Agent" The forwarder can be the goods owner, ship owner, loading and unloading company or warehouse, professional forwarder or any other person
The forwarder has professional qualifications such as: (i)Know how to combine many different modes of transport (ii) Know how to make the most of the capacity and tonnage of transport tools thanks to the service collection service (iii) Know the combination of transport - delivery - import and export and have good contact with organizations related to the process of transporting goods such as customs, ship agents The forwarder also creates favorable conditions for import and export traders to operate effectively thanks to their forwarding services
1.1.4.2 Rights and obligations of the forwarder
In the Commercial Law of Vietnam (2005), article 235 stipulates the rights and
obligations of logistics service providers as follows Firstly, unless otherwise agreed,
traders providing logistics services have the following rights and obligations: They are entitled to service remuneration and other reasonable expenses In the course of contract performance, if there is a legitimate reason for the benefit of the customer, the trader providing logistics services may perform differently from the instructions of the customer, but must immediately notify the customer When there is a situation that may lead to the failure to implement part or all of the customer's instructions, the customer must immediately notify the customer for instructions In case there is no agreement on a specific time limit for performing obligations with customers, they must perform their
2
Phạm Mạnh Hiền (2012), “Nghiệp vụ giao nhận vận tải và bảo hiểm trong ngoại thương”, NXB Lao động – xã hội
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Trang 14obligations within a reasonable time Secondly, when carrying out the transportation of
goods, traders providing logistics services must comply with the provisions of law and transport practices
1.1.4.3 Responsibilities of the forwarder
First of all, when enjoying the right from the forwarding business service to the
customer, the forwarder must also have the appropriate responsibility towards the customer, depending on the case where the forwarder is an agent or the main carrier
Secondly, when the forwarder acts as an agent, he must be responsible for his or her own
mistake or negligence or that of the person employed to perform the service For example, when delivering goods contrary to instructions; forgot to buy insurance or failed to insure the goods despite instructions; mistakes when doing customs procedures; delivery to the wrong address; delivery without collection from the recipient; re-export does not follow the necessary procedures or does not refund taxes, etc., the forwarder is responsible for
the above issues Thirdly, the forwarder is also liable for any loss of life or property that
he has caused to a third party during his operation However, the forwarder is not responsible for the fault of a third party such as a carrier, or another forwarder, etc., if he
proves to have chosen it carefully Fourthly, when the forwarder acts as the main carrier,
as the trustee, as an independent contracting party assumes responsibility on his behalf to perform the services requested by the customer Therefore, the forwarder must be responsible for the negligent acts of the carrier, of other forwarders that he uses to perform the contract Generally forwarders negotiate service prices with customers rather
than taking commissions Fifthly, as a trustee, the liability to the third party, the powers
of limitation of liability and the right to make arrests are the same as if he acted as an agent When taking on the role of the main carrier providing consolidation services, multimodal transport services or transporting goods by themselves by different means of transport, the standard business conditions generally do not apply to which international conventions or rules promulgated by the International Chamber of Commerce apply
1.1.4.4 Service scope of forwarder
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Trang 15Except in some cases where the consignor or consignee himself wants to participate in any formalities and documents himself, usually the forwarder takes care of the transportation of goods on his behalf forwarders can perform services directly or through subcontractors, agents they hire, forwarders can also use their own agents abroad This service includes: (i) On behalf of the consignee (importer), (ii) On behalf of the consignor (exporter), (iii) Other services Depending on each export or import shipment, the forwarder will carry out the appropriate transportation work to get the goods from the place of receipt to the place of delivery
1.1.4.5 Relationship among the relevant parties
In addition to the shipper and consignee, the forwarder must also deal with third
parties in the process of serving his customers Firstly, The forwarder also has to deal
with relevant agencies: (i)Customs office to declare and do customs procedures, (ii) Port
authority for port clearance, (iii) Inspection agency to apply for a certificate of goods quality inspection, (iv) Consular officials to apply for a certificate of origin, (v) Import
control agency, (vi) Transport licensing agency Secondly, the forwarder also has to deal
with private parties including: (i) Carriers or agents such as: Owner of means of transport, Transport traders (ii) Warehouse keeper to store goods, (iii) Underwriters to insure the goods, (iv) Organize packaging to pack goods, (v) Commercial banks to make documentary credits
1.2 Forwarding of import and export goods by sea
1.2.1 Legal basis of principles of import and export goods forwarding at seaports
1.2.1.1 Legal basis
The forwarding of import and export goods must be based on legal bases such as international and Vietnamese laws: (i) Conventions on bills of lading, transport, international conventions on contracts for the sale of goods For example: Vienna Convention 1980 on international trade (ii) Legal documents of the Vietnamese state on freight forwarding; New types of contracts and L/C ensure the interests of import and luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 16export goods owners Example: Law, code, decree, ( Maritime Code 1990, Commercial Law 2005)
1.2.1.2 Principles
Current documents stipulate general principles in freight forwarding
The loading, unloading, delivery and preservation of import and export goods at the port is carried out by the port on the basis of a contract between the goods owner or the person entrusted by the goods owner with the port The person entrusted by the shipper is usually the forwarder
For goods that do not go through the port (not stored at the port), the goods owner
or the entrustee can deliver and receive them directly with the ship, only agree with the port on the place of loading and unloading, pay the costs of loading and unloading and other charges other costs incurred
The loading and unloading of goods within the port shall be organized by the port
If the goods owner brings vehicles and workers into the port for loading and unloading, the goods owner must negotiate with the port and pay relevant fees, if any
When entrusted to receive goods from the ship, the receiving port by any method must deliver the goods by that method
The freight forwarder must present valid documents confirming the right to receive the goods and must receive the correct volume of goods stated in the documents The port
is not responsible for the goods leaving the port
The delivery is carried out on the basis of entrustment of the goods owner, that is, the goods owner entrusts the work to do it
In addition, there are basic rules such as delivery must ensure the loading and unloading norms of the port, goods through the port must have full symbols
1.2.2 Duties of agencies participating in freight forwarding
1.2.2.1 Port's duties
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Trang 17Foremost, the port sign a contract for loading, unloading, delivery, preservation
and storage of goods with the goods owner There are two types of contracts: consignment contract for forwarding and lease contract ( the goods owner hires the port to
load, unload, transport, store and preserve the goods) Secondly, they deliver export goods
to the ship and receive the imported goods from the ship if authorized and delivery of imported goods to domestic goods owners under the entrustment of import-export goods
owners And then, they make an account with the ship on the delivery and receipt of
goods and make other necessary documents to protect the interests of the goods owners
Fourthly, the port carry out loading and unloading, transportation, preservation and
storage in the port area and carrying out loading and unloading, transportation, preservation and storage in the port area They are responsible for the loss of goods caused by themselves during the delivery, transportation, loading and unloading Goods stored in the port's warehouse are damaged or lost, the port must compensate if there is a valid record and if the port cannot prove that the port is not at fault The port is not responsible for the goods in the following cases: the goods when the goods have left the port's warehouse, the goods inside if the package, the seal is still intact and damage caused by wrong or unknown product codes (leading to confusion and loss)
1.2.2.2 Duties of import and export goods cargo owners
Cargo owner signs an entrustment contract with the port in case the goods pass through the port , conduct delivery and receipt of goods in case the goods do not pass through the port or carry out the delivery of import and export goods with the port in the case of goods passing through the port, sign a contract for loading, unloading, transporting, preserving and storing goods with the port, provide ports with information about cargo and ships and provide the necessary documents to the port so that the port can
deliver the goods For export goods, it is included documents: (i)Cargo manifest: made
after the bill of lading for the whole ship, made by the shipping agent and provided 24 hours before the ship arrives at the pilot position (ii) Cargo plan prepared by the first
mate in charge of cargo, provided 8 hours before loading the ship For imported goods, cargo owners need documents such: commodity manifest, queuing chart, details of the
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Trang 18hatch (hatch list), sea waybill in case of consignment to the port of shipment These documents must be provided 24 hours before the ship arrives at the pilot position After completing the above tasks, the cargo owner follow up the delivery process to solve arising problems, prepare necessary documents in the process of delivery and receipt to have a basis to complain to related parties,pay port charges
1.2.2.3 Customs duties
Customs carry out customs procedures, carry out customs inspection, supervision and control for ships and imported and exported goods, ensure the implementation of the State's regulations on import and export, export tax, import tax and take measures to detect, prevent, investigate and handle acts of smuggling, commercial fraud or illegal transportation of goods, foreign exchange, and Vietnamese currency through seaports
1.2.3 Process of forwarding of exported goods
Figure 1.1: Export delivery process
1.2.3.1 For goods that do not have to be stored at the port
Goods that do not have to be kept in warehouses at ports are export goods transported by goods owners from other parts of the country for export, which can be stored in their own warehouses, not through the port's warehouses From the private warehouse, the shipper or the trustee can deliver it directly to the ship Delivery include 2 steps Firstly, the owner or the trustee brings the goods to the port by his own means of transporting the goods to the port Secondly, the owner or the trustee carrying out
Goods not in stock
• Deliver goods to the port
• Export procedures
• Delivery of goods to the ship
Goods in stock
• Delivery to the port
• Port of delivery for ships
• Make a set of documents
Container goods
• Shipping FCL
• Shipping LCL luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 19procedures for exporting and delivering goods to ships in the following order They register with the port about the location, wharf loading and unloading, do customs procedures for export goods, apply for a certificate of hygiene and quarantine if necessary After that, they organize transportation and loading goods on board And then the cargo owner or the trustee contact the captain to get the stowage chart, carrying out the loading of goods on the ship by port workers, the forwarding staff must monitor the process to solve problems, which must be loaded onto the ship and recorded in the tally sheet The ship will make a receipt for the mate to record the quantity and status of goods loaded on the ship (which is the basis for issuing a bill of lading) They provide details of goods for the carrier to issue a bill of lading and give the bill of lading to the carrier to sign and stamp, make a set of payment documents for goods that the contract or L/C stipulates, notify the consignee of the delivery, buy insurance for goods (if specified in the contract) and calculate to penalty for fast loading and unloading (if any)
1.2.3.2 For goods stored at the port
Goods are not delivered directly to the ship but must go through the port Delivery
sequence includes 3 steps Step 1 is delivery to the port The goods owner or the entrustee
signs a contract for storage and preservation of goods with the port The cargo owner provide the port with documents such as: loading instructions (Shipping instruction), list
of exported goods (Cargo list), notice of shipment issued by shipping lines (Shipping
Order) and then delivering goods to the port's warehouse or yard Step 2 is port of
delivery to the ship Before delivering the goods to the ship, the cargo owner must carry out the necessary procedures for export such as customs clearance, quarantine, sanitation, notify the port of the expected date and time of the ship's arrival and deliver to the port a loading chart After that the goods is Loaded and delivered to ships Before loading, organize the transport of goods from the warehouse to the port, arrange the loading schedule, assign the loading tray, arrange the vehicles and workers and escorts (if necessary) Carrying out loading and unloading and delivery to the ship The loading of goods onto the ship is done by port workers The goods will be delivered to the ship under the supervision of a customs representative During the delivery process, the port's tally luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 20officer must record the quantity of goods delivered in the Tally Report, at the end of the day, in the Daily Report and when a ship is loaded, record into the final report On the ship's side, there is also a staff to count and record the situation on the Tally Sheet The tally may also hire staff from another company that specializes in tallying parcels When delivering a batch or the whole ship, the port must take the mate's receipt (Mate's Receipt)
to make a bill of lading on that basis Last step is preparing payment vouchers Based on
the purchase and sale contract and L/C, the forwarder must make the necessary documents to form a set of documents and present them to the bank for payment If payment is made by L/C, the payment documents must be compatible with each other and
in terms of form with the L/C and must be presented within the validity period of the L/C The cargo owner inform the buyer about the delivery and purchase insurance for the goods if necessary
1.2.3.3 For container goods
For shipping in full container (FCL- Full Container Load), the shipper or the
trustee will have to deal with the shipping line or representative of the shipping line to get the container and/or negotiate the price After the two parties have agreed, the shipping company will issue an order to deliver the container The owner takes the empty container back to his hangar location and invite representatives of customs, inspection and quarantine to inspect and supervise the packing of goods into containers After closing the cave, the customs officer will seal and clamp it The goods owner will deliver the container to the driver at the specified container yard within the specified time (closing time) of each train (usually 8 hours before loading) and get a receipt to receive the container for transport After the container has been loaded onto the ship, bring this
receipt to the ship's hangar to exchange for the bill of lading For shipping retail (LCL-
Less than Container Load), owners deal with shipping lines or agents of shipping lines,
providing them with necessary information about exports After being accepted, the two parties will agree on the date, time, and place of delivery The owner or the forwarder brings the goods to the carrier for delivery at the specified CFS or ICD The goods owners invite the customs representative to inspect, inspect and supervise the packing of goods luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 21into the container of the carrier or the consolidator After the customs seals the container, the goods owner completes the procedures to load the container onto the ship and request
a bill of lading The carrier issues a receipt or a master bill of lading (Master Bill of Ladinh) and loads the container onto the ship and transports the goods to the destination
1.2.4 Process of delivery and receipt of imported goods at the port
Figure 1.2: Import delivery process
1.2.4.1 Goods are not required to be stored at the port
The goods owner or the entrustee stands out to deliver the goods directly to the ship In order to be able to carry out unloading, 24 hours before the ship arrives at the port, the goods owner must give the port some of the following documents including: manifest of goods (2 copies), queuing map (Cargo plan - 2 copies), details of cargo hold (2 copies), details of oversized and overloaded goods (if any) The owner presents the original bill of lading to the shipping line representative to get the delivery order (D/O) and directly receive goods from the ship and prepare necessary documents in the process
of receiving goods such as: minutes of survey of the ship's hold (made before unloading)
to reserve the ship's liability for future losses, minutes of discharge (COR) for obvious
Goods not in stock
• Shippers, entrustors stand forward to deliver and receive directly with the ship
• Directly receive goods from the ship and make necessary documents
• Unloading from the ship
• Customs procedures
• Transportation of goods to the warehouse
Trang 22loss, letter of resistance (LR) for unspecified loss, the receipt of goods with the ship, minutes of inspection, certificate of missing goods (made by the shipping agent) When the goods are unloaded from the ship, the goods owner can take them to a private warehouse and invite the customs to inspect the goods If the goods are not sealed, they must be escorted to the warehouse by customs They do customs procedures for imported goods and transport the goods to the warehouse or immediately distribute the goods
1.2.4.2 Goods must be stored in warehouses and yards at ports
The order of receipt of goods includes the following steps The first step is port of
receiving goods from ship Port will unload, receive goods from shipsand prepare the necessary documents during the delivery process with the forwarder and bring goods to
the port warehouse The second step is port of delivery for shippers When receiving
notice of arrival of goods, the goods owner must bring the original bill of lading and the introduction of the agency to the shipping company to receive the delivery order The shipping line or agent keeps the original bill of lading and gives 3 copies of the delivery order to the consignee The goods owner pays the document fee, storage fee, deposit to borrow shell or deposit for cleaning (if any), loading and unloading fee and get a receipt The goods owner brings the delivery order along with the invoice and packing slip to the ship management office at the port to confirm the delivery order and locate the goods The goods owner then brings this set of documents to the CFS warehouse department to make a delivery note This department keeps a copy of the delivery order and makes 3 delivery notes for the shipper The last step is doing customs clearance Customs procedures and present and submit relevant documents such as: declaration of imported goods, import license, detailed list of goods (Packing List), foreign trade contract, an original bill of lading (Bill of Lading), certificate of origin, certificate of inspection (if any), commercial invoice (Invoice) Customs will check documents and goods, calculate and notify tax payable The goods owner signs and receives the tax notice (with a grace period of 30 days) and obtains a certificate of completion of customs procedures After the customs confirms "customs clearance has been completed", the goods owner can take the goods out of the port and take them to their own warehouse
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Trang 231.2.4.3 Container cargo
For importing full container, when receiving the notice of arrival sent by the ship,
the owner brings the original bill of lading, the introduction of the agency or the power of attorney (if any) to the ship to get the delivery order The goods owner brings the delivery order to the customs for customs clearance and registration of goods inspection (can request to bring the whole container to a separate warehouse or ICD for customs inspection but must return the shell on time or else will be fined) After completing customs procedures, the goods owner brings a set of receipts with the delivery order to the ship management office at the port to confirm the delivery order and take delivery notes
and receive goods For the LCL, the goods owner brings the original bill of lading or the
consolidator's bill of lading to the shipping line or the consolidator's agent to get delivery orders, then receive the goods at the specified CFS and follow the procedures like FCL goods
1.2.5 Types of documents arising in the delivery of import and export goods by sea 3
Bill of Lading is a document issued by the carrier to the consignor to confirm that
the goods have been received for transportation It has three main functions as a carrier's receipt confirming that they have received the goods for carriage; the second is a proof of fulfillment of the terms of a contract of carriage by sea and a document of title for the goods, specifying to whom the goods will be delivered at the port of destination, thereby allowing the sale of the goods By transferring B/L
There are many different types of B/L when considering many different aspects There are some commonly used B/Ls such as original and copy B/L, named B/L, surrendered B/L, Master B/L and House B/L Original B/L is the bill of lading used for receipt of goods, payment, transfer, claims, lawsuits, etc., issued by the carrier at the request of the shipper The expression "original - Original" on the sea waybill of each shipping line is also different, each shipping line has its own bill of lading form, so the
3
Đoàn Thị Hồng Vân (2013), “Quản trị xuất nhập khẩu”, NXB Tổng hợp thành phố Hồ Chí Minh luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 24expression is also different Copy B/L is not valid for circulation, people use copy bill of lading for administrative procedures, reference or record keeping
A bill of lading is a type of bill of lading issued to a specific consignee Only the
person named on the Bill can receive the goods, this type cannot be transferred to another person by endorsement If you want to transfer the goods to another person to receive the goods, you must carry out procedures for franchising according to the law or custom at the port of destination Delivered bill of lading (Surrendered B/L) is a bill of lading that requires delivery to be received by the consignee The consignee does not need the original, a copy is okay but must have a telex Master Bill of Lading (Master B/L) is issued by the main carrier to the exporter or to the consignor for freight forwarding services The secondary bill of lading (House B/L) is issued by the forwarder This is the legal basis governing the relationship between the forwarding service provider and the customer
Commercial invoice (Invoice) is the basic document of the payment stage, is the
seller's request to the buyer to pay the amount of goods stated on the invoice The invoice must state the characteristics of the goods, the unit price, the total value of the goods, the delivery conditions, the payment method, the means of transport, etc In addition to the commercial invoice that we often encounter in real life There are also other types of invoices such as provisional invoices, formal invoices, detailed invoices and proforma invoices Provisional invoice is an invoice for preliminary payment of goods in cases where new goods prices are temporarily calculated, payment for each goods, etc Official invoice is an invoice used to pay for goods when performing the entire contract copper Detailed invoice has the effect of detailed analysis of parts of the price A proforma invoice is a document that looks like an invoice, but is not used for payment because it is not a claim for money
Packing list is a document of goods that lists all items and types of goods packed
in packages (cartons, containers, pallets, ) and the entire shipment The packing slip is issued by the producer/exporter when packing the goods The form is usually made in 3 copies The contents of the packing slip include the name of the seller, the buyer, the luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 25invoice number, the order number of the package, the packing method, the type of goods, the quantity of goods packed in each package, the net weight, the total weight of the goods envelope Detail List is a list of goods purchased and sold through the hands of different companies, to specify the origin of goods, often accompanied by sales invoices between companies
Certificate of Quality is a document confirming the quality of the goods actually
delivered and proving that the quality of the goods conforms to the terms of the contract may also be issued by the goods inspection agency, depending on the agreement between the two parties
Insurance Certificate is a document issued by the insurance person/insurance
organization to the insured, in order to legalize the insurance contract and used to regulate the relationship between the insurance organization and the insured dangerous The most commonly used insurance documents are the insurance policy/policy and the certificate of insurance An insurance policy is a document issued by an insurance organization, containing the main terms of the insurance contract and the insured Certificate of Insurance is a document issued by the insurer to the insured to confirm the insured goods according to the contract conditions
Referal is a paper issued by an enterprise to introduce its employees to the
customs office to receive or export goods, on the introduction paper must have the enterprise's stamp, signature as well as the position of the customs authority presenter Customs clearance declaration (Custom Decalration) is a document that the goods owner must declare about the shipment when exporting or importing (entry and exit) into and out
of the Vietnamese territory so that the customs can consider the goods more clearly and based on the customs declaration, businesses can know the amount of tax payable to the State
Arrival Notice is a notice sent by the shipping line to the relevant party requested
by the person booking with the shipping line In the notice of arrival, there will be luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 26information about where the goods are, the expected date of arrival, the number of containers, the number of seals, etc
Delivery Order is when there is a notice of arrival, the enterprise will send staff to
the shipping company to pay the fees for loading and unloading and storage to receive the delivery order and to the customs office to receive the goods applicable to imported goods) Container bet paper: when going to the shipping company to get D/O, if the goods are returned to the container, the forwarder will conduct a container bet The bet paper includes the name of the ship, the number of trips, the date the ship arrives at the port, how many containers are borrowed, etc
Certificate of Origin is a very important and necessary work in international
trade Countries are interested in the origin of goods for tariff preferences, application of anti-dumping and price subsidies, trade statistics and quota system monitoring, etc As the basis for determining the origin of goods chemical There are many different C/O forms such as form A, B, ICO, D, AK, AJ, E, VJ Fumigation certificate is a document to confirm that goods have been disinfected, goods chemicals before exporting and importing goods
Animal product sanitary inspection certificates are documents issued by
competent state agencies to goods owners to confirm that goods are safe in terms of diseases, pests, toxic fungi, etc An animal product quarantine certificate issued by the animal quarantine agency for goods being animals or animal products or their packaging, certifying that they have been tested and treated against diseases Phytosanitary Certificate (Phytosanitary Certificate) issued by the plant protection agency for goods being plants or of plant origin, certifying that the goods have been inspected and treated against diseases and fungi Poison, weeds, etc
Booking Note is information that customers provide to shipping lines to reserve
their cargo on ships for export Booking Note as a basis, reliability and at the same time is information for shipping lines to know the port of loading and unloading as well as related information about that shipment
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Trang 27Equipment Intercharge Receipt - EIR is a document of container delivery
between the port and the customer This voucher is only issued for full containers, retail goods do not have this voucher In addition, sales contracts are all sales contracts in which the contracting parties have their places of business in different countries and the goods are moved from one country to another, or is the exchange of wills to conclude a contract between contracting parties established in different countries
1.3 Criteria to evaluate the results of business activities of import and export freight forwarding services
1.3.1 Criteria of revenue, profit – growth rate of revenue and profit
Revenue can be defined in many ways The Vietnamese Accounting Standards System No 14 defines revenue as “the total value of economic benefits obtained by the enterprise during the accounting period, arising from the normal business and production activities of the enterprise, contribute to the development of equity” The explanation is simpler and easier to understand, revenue is the income that an enterprise has from financial activities, internal activities or business, sales Based on the increase or decrease of revenue, the company determines the business efficiency of the company
Profit is the difference between a business's revenue and the costs that the business invests in production to achieve that level of revenue Profit is considered the final financial result of business activities, production of the enterprise It is also the basis, the foundation to evaluate the economic efficiency from the operation of enterprises The higher the company's operating profit, the more efficient and profitable the company is
1.3.2 Criteria for profitability ratios of revenue , asset and equity
1.3.2.1 Criteria for profitability ratio of revenue
ROS is the profit margin on net sales, which tells us how much profit per dollar of sales and service provision will generate, or in other words what percentage of the business's profit will be collection ROS is determined by dividing profit after tax by sales for the period, the larger this ratio, the better
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Trang 28
The higher the ROS ratio, the better the business is, showing that the company controls costs and generates more profits and vice versa
1.3.2.2 Criteria to return on equity
ROE indicator shows the amount of profit after tax that a business earns after investing 100 dong of equity in production and business activities
If the return on equity is high, the investment capital is well controlled and used, and the business efficiency is high, the higher this indicator is On the contrary, when the value of this indicator is low, it shows that the profitability from equity is low and the business performance of the enterprise is poor
1.3.2.3 Criteria to return on asset
It is determined by dividing the profit after tax of the business in the period by the average total fixed assets of the enterprise in the same period This indicator reflects how much VND 100 dong of fixed assets on average that an enterprise invests in production and business generates, after tax profit for the enterprise in that period
The higher this indicator, the higher the profitability of fixed assets, the efficiency
in management and use of fixed assets of the enterprise in production and business activities and vice versa It is an important factor in assessing the ability of an enterprise
to manage its resources so that investors can analyze and make decisions on an effective investment channel
1.3.3 Customer quality
In any service industry, meeting the needs of customers is always the top priority
of companies And customer service in logistics is also a top concern in the logistics luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 29industry It is customer loyalty and the rate that customers reuse logistics services that are
a measure of the success in customer care of each business and it directly affects business performance There are four key factors that determine logistics success in customer service (i) Time: is the most important factor that directly affects the company's reputation and service quality The shorter the time the customer receives the product, the more satisfied the customer will be (ii) Reliability: this is an indispensable factor in the logistics service industry The more trustworthy the brand of the service a company provides, the greater the chance that customer service has to satisfy customers Customers will feel safe from the worry or pressure of fraud (iii) Service price: is a great advantage
if the service is cheap but the same or even better quality will be prioritized by customers (iv) Flexibility: the ability to flexibly provide products according to customer needs Nowadays, customers always want to use products that can solve their problems So, if possible, always customize the product so that it can best fit the needs of the customer
1.3.4 Commodites safety
Commodities safety is one of the top goals of companies operating in the transportation sector and is one of the criteria to evaluate a company's forwarding activities When the customer delivers the goods to the forwarding company to import or export goods, the company must ensure the safety of the goods during the transportation process Although many businesses have good prices, the transportation of goods is unprofessional, causing damage or loss of goods, affecting the reputation of the company with customers and thereby leading to customers not using the service company's anymore
1.3.5 Level of development of the company
Forwarding companies in Vietnam operate at different levels, including four levels
The larger the forwarding company, the stronger it is, the more rigorous the process is In
level 1, traditional forwarding agents – forwarding agents that merely provide the service
requested by the customer Usually such services are transporting goods by road, on behalf of the goods owner to carry out customs procedures, make documents, store and
deliver In level 2, forwarding agents act as consolidators and issue House Bill of Lading
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Trang 30The operating principle of these companies is to have exclusive agents at major ports to
carry out the withdrawal/packing of import and export goods In level 3, the forwarding
agent acts as an intermodal carrier In this role, some companies have coordinated with the foreign company at the port of discharge with a sub-contract to automatically arrange
the transportation of goods to the final destination according to the bill of lading In level
4, this is a forwarding agent that becomes a logistics service provider This is the
inevitable result of the integration process Some forwarding companies that have not yet been able to become logistics companies are associated with foreign companies to become stronger
1.4 Service quality
1.4.1 Definition quality 4
Quality is a concept so familiar to mankind since ancient times, depending on the object of use, the word "quality" has different meanings As people and cultures in the world are different, their understanding of quality and quality assurance also differs This
is not to say that quality is such an abstract concept that it is impossible to arrive at a relatively uniform interpretation, although it will always change The International Organization for Standardization ISO, in its draft DIS 9000:2000, has given the following definition: “Quality is the ability of a set of characteristics of a product, system or process
to satisfy requirements of customers and interested parties"
1.4.2 Characteristics of quality
Quality is measured by the satisfaction of needs If a product for some reason is not accepted by demand, it must be considered of poor quality even though the level of technology to manufacture that product may be very modern This is a key conclusion and
a basis for qualityists to define their business policies and strategies Because quality is measured by the satisfaction of needs, the needs are always fluctuating, so the quality always fluctuates according to time, space, and conditions of use When evaluating the
4
TS Nguyễn Đình Phan (2017), “Giáo trình quản trị chất lượng” , NXB Đại học Kinh tế Quốc dân.
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Trang 31quality of an object, we must consider all the characteristics of the object that are related
to the satisfaction of specific needs These needs are not only from customers but also from stakeholders, such as legal requirements, needs of the social community Quality is not just an attribute of products or goods that we understand every day Quality can be applied to a system or a process
1.4.3 Definition of service quality
Service quality is what customers perceive Quality service is determined based on the perception or perception of customers related to their individual needs According to Parasuraman, Zeithaml and Berry (1985), quality of service is when the customer's perception of a service has delivered in line with their previous expectations According
to Parasuraman, the expectations in quality service are the desires of customers, that is, they feel that the supplier must fulfill, not will, fulfill the service requirements Crolin and Tailor (1992) argue that customer satisfaction should be assessed in the short term, while quality service should be assessed according to customers' attitudes about that service over a long period of time
1.5 Commonly used service quality assessment model
Models to evaluate service quality or customer satisfaction all see service as a collection of explicit and implicit attributes rather than a discrete structure In terms of service quality, the most popular scale is SERVQUAL (service quality) introduced by Zeithaml VA Parasuraman and L Berry Leonard, which later to be easily remembered by the above authors called 5 RATER criteria (short for the initials: Reliability – Assurance – Tangibles – Empathy – Responsiveness):
Reliability is the ability to perform the promised service reliably and accurately
That is to do exactly what was promised to the customer, to show care and thoroughly solve the customer's problems, to perform the right service from the beginning, to notify the customer clearly when service will be performed
Assurance is the knowledge and conduct of service personnel as well as their
ability to gain trust and credibility It is the trust and confidence of the customer towards luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 32the employee, the peace of mind of the customer when dealing with the employee, the courtesy and courtesy of the employee, the qualification and knowledge of the employee
Tangibles are physical conditions, equipment and appearance of service staff such
as modern equipment, physical conditions with attractive and attractive appearance, equipped employees neatly and carefully, the appearance of the physical condition of the business is suitable for the field of service provided, and the convenience of operating hours for customers
well-Empathy is caring, individual attention for each customer Enterprises pay attention
to each individual customer and consider the customer's interests above all else Employees show personal attention to customers Employees need to understand the special needs of customers
Responsiveness is the willingness to help customers and provide prompt service
such as providing fast, on-time service, staff's willingness to help customers, and quickly responding to customer requests customer
1.6 Factors affecting freight forwarding services by sea
1.6.1 The factors inside the business
1.6.1.1 Human resources of the enterprise
In business activities, people are the most important factor determining the success
or failure of an enterprise Although many argue that the development of science and technology today has made machinery and equipment the main source of labor, we can see that no matter how advanced machines are, they are made by humans create Without people, it would not be possible to have such modern technologies and innovative machinery and equipment, especially in accordance with the organizational structure, technical level and labor level of the enterprise
The development of science and technology leads to the development of the knowledge economy The crystallization content in scientific and technical products is evidence of knowledge The more modern machines prove that the workforce needs to be luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 33equipped with good knowledge and elites Their role in improving business performance cannot be denied Therefore, the training and development of human resources becomes the top concern of many businesses
1.6.1.2 Financial sources
In order for a company to function, a company needs capital to carry out its business activities A company with rich and abundant financial resources has more opportunities to promote business activities The business capital of the forwarding company directly affects the forwarding process of the company
The forwarding company must regularly advance money to carry out goods handling, customs clearance, get B/L, before collecting money from customers Only when the process is finished will the company issue a receipt asking the customer to pay
At that time, the company's money will not be flexible because it has to wait for the advance to be recovered if the customer pays late If the forwarding company has limited financial resources and cash, the ability to perform many contracts at the same time is very difficult, and there may be a capital shortage In contrast, the company has abundant capital and high liquidity, the shortage of capital is rare
1.6.1.3 Facilities
The technical infrastructure provides a competitive advantage to the business because it generates profitability based on the assets of the business These are: offices, equipment to support staff working (computers, printers .), factories, warehouses, yards Whether these materials account for a large or small proportion, the factors This role still plays an important role in promoting business activities, creating conditions for the company's employees to generate revenue for the business At the same time, facilities also have an impact on business costs, which are related to whether the facilities are used
to their full capacity
1.6.2 Factors outside the business
1.6.2.1 Economy
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Trang 34The economy is one of the factors that strongly affect the performance of the forwarding service business A stable world economy will only balance business activities and create a good circulation environment for businesses On the contrary, an unstable economy will cause business activities to stagnate The stability of the Vietnamese economy also creates a premise for businesses to operate more efficiently Inflation and interest rates also contribute to business activities Low inflation rate and stable interest rates create a stable and low-risk operating environment to help businesses stabilize their business; otherwise, will negatively affect business performance The need for fuel, gasoline is also a problem in sea transport Fuel prices have a strong impact on freight rates, which is a sensitive issue in freight rates
1.6.2.2 Natural conditions
Business of freight forwarding services by sea is heavily influenced by nature Vietnam's natural conditions have a long coastline that is favorable for the development
of sea transportation However, due to the nature of sea transportation, it takes a long time
to bear many risks in transportation Natural disasters at sea often occur, so businesses need to buy cargo insurance, which costs money to protect goods
1.6.2.3 Competitors
It can be said that competition is the driving force for development and an important factor in stimulating the development of the market economy Any business entering the business of a product or service that has already entered the market needs to have a thorough understanding of existing and upcoming competitors market (existing and potential competitors) The principle is that the business that has more complete processes and features of products and services that better satisfy consumer needs will win, survive and develop This competitive environment both creates opportunities and brings challenges, forcing businesses to find ways to try to move forward to overcome their competitors Therefore, businesses need to study internal and external factors to have perfect competitive strategies, contributing to improving their business efficiency and competitiveness
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Trang 351.6.2.4 Shipping lines
Shipping lines are one of the important factors that strongly affect the forwarding activities of enterprises The number of shipping lines, number of trips, transit time, reputation and freight rates of each shipping line all affect forwarding businesses Therefore, businesses need to understand the cost to transport at each shipping line to build the best pricing strategy In addition, the storage fee, the number of warehouses and the number of days free of charge also affect the delivery of goods High or low cost of delivery depends on the efficiency of the business's forwarding activities
1.6.2.5 Trade Agreements
Trade agreements are also one of the important factors for freight forwarding activities It will have a positive impact on institutional reform, improving the competitiveness of goods, businesses and the economy thanks to the access to export markets with preferential tariffs, free trade facilitation and facilitation, reducing input costs by transferring technology and importing inputs cheaper under preferential conditions
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Trang 36CHAPTER 2: SITUATION OF TRANSPORTATION BY SEA AT BACH VIET TRANSPORT COMPANY LIMITED
2.1 General introduction at Bach Viet Transport Co., Ltd
2.1.1 Overview about at Bach Viet Transport Co., Ltd
- Company name: Bach Viet Transport Company Limited
- Short name: BACH VIET GLOBAL CO., LTD
- Director: Mr Cao Tung
Office in Quy Nhon: 3rd Floor - Viconship Building - 83 Hai Ba Trung - Quy
Nhon - Binh Dinh
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Trang 37Figure 2.1: Logo of Bach Viet Transport Company Limited
With the motto "Develop with customer", Bach Viet is always committed to providing services with the best quality, prestige and long-term with customers in compliance with domestic and international laws Striving to become the number 1 reliable unit of customers in the field of international freight forwarding In addition, the company also focuses on investing and updating new working methods, combined with improving the quality of human resources to meet the increasing and diversified demands
in the market
2.1.2 Functions and business lines
Bach Viet Transport Company Limited mainly provides freight forwarding
services by sea including 5 funtions and business lines Firsly, Sea freight forwarding
service which provides customers with the service of sending export and import goods by sea from Vietnam to anywhere around the world and vice versa (FCL cargo, door-door,
container yard – container yard, door – container yard, container yard – door) Secondly,
consolidation service which directs weekly collection of retail goods from provinces and cities nationwide to export to countries around the world and vice versa (LCL goods) Some of the ports that regularly import/export such as Shanghai, Shenzhen, Incheon,
Busan, Hamburg, Genoa, Port Kelang, etc Thirdly, it is air freight forwarding service in
addition to sea freight forwarding service The company also provides customers with forwarding services from the warehouse of the goods owner to the airport or the warehouse of the recipient (airport-airport, door-airport, airport- door, door-door)
Fourthly, inland transportation services which undertakes and provides good and on-time
transportation services for all types of domestic transportation such as road (container
trailers, trucks from 1.25 tons to 10 tons), inland waterways Last but not least, customs
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Trang 38services which meets all requirements of customs for goods, the company provides some typical services such as: customs clearance service, price consultation service, entrusted import/export service, refund tax, fumigation services, quarantine, inspection, procedures for certification of origin, consulting customs procedures
2.1.3 Establishment and development
In 2005, Bach Viet was established with only one member Up to now, the
company has 225 employees working in branches in Hanoi, Hai Phong, Ho Chi Minh, Da Nang and Quy Nhon After 1 year since its establishment, BACH VIET has opened a representative office in Hai Phong to issue delivery orders and assist customers in handling import and export procedures at the port In the same year, BACH VIET opened
a representative office in Ho Chi Minh This is a very large market, so the company has approached early to research the market, which is convenient for service development
later Since 2010, after having achieved many successes in the North, BACH VIET
officially opened a branch in the South in Ho Chi Minh to compete directly with freight forwarding companies here BACH VIET has had some great early successes in both refrigerated and dry containers Therefore, the company is confident in continuing to expand BACH VIET was officially present in Da Nang city, Central Vietnam This is proof that there is not any limit in Bach Viet's business in the three regions of North + Central + South of Vietnam to the world At the moment, the company's revenue is nearly
100 billion VND With strong development in the three regions of North+Central+South
Vietnam, BACH VIET has truly become one of the largest companies in Vietnam In
2015, Bach Viet Shipping opened BACH VIET GLOBAL company to create BACH
VIET GROUP to invest abroad The company sees that Vietnam will develop dramatically and in the next 10 years Vietnamese companies will consider investing abroad as normal as Korean and Japanese companies are doing in Vietnam Therefore, the company will use the BACH VIET GLOBAL brand to research foreign markets and
invest abroad in the next few years In 2016, the Company reached 120 billion VND in
both domestic and international transportation services The freight forwarding industry is declining due to oversupply but it is clear that the company has successfully competed luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si
Trang 39with other forwarders The company has always won in any case based on a very professional and constantly trained sales force In mid-2016, the company established one more office in Vietnam, Quy Nhon office to serve three mountainous provinces and from
Khanh Hoa to Phu Yen province In 2017, the Company officially became a member of
WCA (World Cargo Association) with registration number (ID) 94971 WCA is the largest and most prestigious association of transportation providers worldwide Joining this association creates strengths, increases competitiveness and enhances the company's position in both domestic and international markets This is the premise and stepping stone for BACH VIET GROUP to develop and invest abroad Bach Viet's sales in 2017 reached VND 150 billion The company's ambition to reach out to success in the
international market by 2025 is 240 people and sales of over 1,000 billion VND In 2020,
Despite the complicated developments of the COVID-19 pandemic worldwide in general and Vietnam in particular, Bach Viet continues to grow strongly and achieve the largest revenue ever, nearly 250 billion VND copper in both domestic and international transportation services by 2020 Additionally, the company expands its staff to help its revenue grow in the coming years By 2030, the company's revenue will reach 1,000 billion VND to become the largest freight forwarder in Vietnam
2.1.4 Organizational structure
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Trang 40
(Source: Finance - Accounting Department at Bach Viet Transport Company Limited)
Firgue 2.2:Organizational structure at Bach Viet Transport Co., Ltd
Through Figure 2.2, The figures reveal that specialization is a prominent advantage
in the organizational model, along with the ability to control and leadership of the Board
of Directors Because the size of the company is small and medium, so this compact organization model can completely connect between departments and meet the actual needs of the company In addition, this model helps the company to reduce waste in management and inspection
2.1.4.1 Role of Board of manager
Board of Directors: Responsible for the business operations of the company and to authorities The director holds the power to manage and operate the department, directly running the sales department
The management is responsible for assisting the director in managing all of the company's activities, as well as managing all departments within the company
2.1.4.2 Roles of the department
Director
Manager at
Ha Noi
Manager at Hai Phong
Manager at Noi Bai
Manager at
Da Nang
Manager at Quy Nhon
Manager at HCM
General Management
Financial accountant Human resources Business department
Ops department Cus department
Sale department luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si