(Luận văn) solutions to improve the import activities of van bao industrial company

Imports also serve as a bridge between the domestic economy and the world economy, especially in Vietnam during the period of international economic luan van tot nghiep download luanvanf

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Foreign trade activities contribute significantly to the growth of the economy, Vietnam over the past years However, our foreign minister's balance has so far been largely unbalanced, having to regularly trade deficit means that import value is greater than export value This is not necessarily a bad influence on the economy For our country in the early stages of opening the economy, the economy gradually shifted from subsidized mechanisms to a market economy of inadequate facilities, poverty, backward science and technology Import is a solution to overcome these shortcomings, creating a breakthrough that will gradually lead the country's manufacturing industry to catch up with other countries in the region and the world, as a stepping stone

to create a premise for exporting goods Chemical service in the future

The actual business of importing goods companies in Vietnam now is not really effective as desired There are many problems stemming from enterprises and the state that need to be solved in time

Realizing the role of import activities, during my internship at Van Bao Industrial Company , I chose the topic: "Solutions to improve the import activities of Van Bao Industrial Company " with knowledge The knowledge and understanding are still limited, but I would also like to give

my opinion in the hope that the company's import activities will be improved, operate effectively and achieve its goals

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

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2 The role of import activities

In order to successfully implement the policy of globalization integration , on the one hand, it is necessary to know how to bring into full play the domestic potential and advantages, to take advantage of all external resources to improve the competitiveness of the Vietnamese enterprises and commodity economy Men, on the other hand it is also very important is the completion of measures to manage the import of goods to meet the requirements of domestic WTO This shows that the role of importing goods

is very important for the development of a country, which is reflected in the following basic points:

First, thanks to the import activity, domestic consumers have a greater choice for goods and services, it complements the demand gaps due to domestic production which is not able to produce from that meet the needs of the domestic market, improve the living standards of the people, diversify commodities in categories

Secondly, imports will break the domestic monopoly situation, most imported goods are often highly competitive in terms of product quality, designs, prices so domestic manufacturers want to survive Therefore, it is necessary to seek all measures to improve product quality, lower prices to increase competitiveness with imported goods, from which the monopoly status is eliminated and the main beneficiary is the domestic consumer Imports also serve as a bridge between the domestic economy and the world economy, especially in Vietnam during the period of international economic

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integration It is one of the effective tools to help us eliminate the sufficient economy towards a market economy

self-Thirdly, imports help countries improve the level of science and technology and advanced technology of industrial countries in the world Because imports often occur in underdeveloped countries with low levels of science and technology, inability to produce goods with a high content of gray matter, or because of an obsolete level of machinery and equipment should produce at a high cost Before that situation, they had to import Through the import of modern machinery and equipment, technical innovations are transferred between countries so that the least developed countries can keep up with the advanced technology level in the world, contributing to the operation domestic production development

Fourthly, import boosts export activities Through the import of modern machinery and equipment, the raw materials are low cost These factors play

an important role in improving product quality, lowering production costs, thereby increasing the competitive advantage not only in the domestic market but also affecting the export market Especially for underdeveloped countries with cheap labor costs like Vietnam , this is a great advantage

Fifth, importing it promotes a country's faster economic development Because imports will make the competition environment fierce, economic entities must always innovate and improve themselves to stand firm

in the market In the process of competition, weak entities will be excluded from the game, only strong subjects applying advanced technology will survive this, leading to the development of society

Sixthly, through the import of economic entities among the countries, they have the opportunity to exchange and learn from each other's experiences, facilitating the process of division of labor and international economic cooperation at the same time take advantage of each nation's comparative advantage Since each country has a comparative advantage, its import operation facilitates both parties on the basis of mutually beneficial cooperation

Seventh, importing it meets the increasing needs of domestic consumers, contributing to the process of domestic production and consumption occurs regularly and stably because there is not always the domestic market Also provide the inputs that meet the domestic production going on For example, Vietnam has to import billet, so there will be no stagnant imports On the other hand, domestic demand is increasing so imports will overcome the imbalance between supply and demand in the country

In short, import activities play an important role in a country's economic development Through the import activities of international economic

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cooperation has been increasingly expanded, contributing to increasing labor productivity, the level of labor division is increasing, people's lives are improved materially and spiritually This is evident in the poor and developing countries typically Vietnam Nam We have actively carried out import activities to serve the process of industrialization and modernization of the country; promoting agricultural mechanization, promoting irrigation, biochemistry, serving agro-forestry and aquatic product processing industry in order to improve export quality Promote the establishment of the electronic assembly industry, garment industry creating high value products

3 Forms of import

Direct import is a fairly common form of import for businesses but due

to the increasing level of development, due to the impact of business conditions and environmental conditions, businesses have created many import activities to suit the capabilities of the business Each enterprise, depending on its own conditions, selects the appropriate form Here are some forms of imports, but now Vietnam is often applied

3.1 Direct import

Direct import is an independent activity of the company When conducting this import method, enterprises must research on domestic and foreign markets by themselves, calculate costs and ensure profitable import business Comply with national and international law policies In the form of direct import between two parties (the importer and the exporter), the axis of direct transactions with each other, the sale and purchase are not tied together In which the importing party must:

- Must be legally responsible for all activities, must conduct market research, bear all transaction costs, delivery, warehousing, advertising costs, consumption costs of goods and value added tax

- Importing enterprises are directly allowed to calculate import quotas and when selling imported goods, they will be accounted into turnover and subject to value added tax

- To enter into a contract, the two parties often have to go through a process of negotiation and negotiation on transaction conditions

- The risk of this import is usually higher than other imports but the profit is higher

3.2 Import consignment

Entrusted import is the import that has to go through an intermediary The intermediary receiving the entrustment of the enterprise shall conduct transactions and negotiate with the importing partner to carry

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out import procedures at the request of the mandator Entrusted import has the following main characteristics:

The consignee does not have to invest capital, does not have to apply for a quota, does not have to research this job market The authorized party only represents the principal to find and transact with the foreign partner, sign

a contract and carry out the procedures for importing goods, on behalf of the mandator to lodge a complaint or claim against a foreign party Foreign cooperation when there is a breach of contract causing damage

The benefit that the principal has from the principal is the fee Usually, the entrusted enterprise is entitled to a remuneration of 0.5% to 1.5% of the total contract value and must pay income tax on this revenue when importing the entrusted enterprise Only import-export turnover, not the turnover and payment of value added tax

The use of intermediaries helps businesses reduce the level of risk because intermediaries often understand the market, laws and local practices Therefore they have the ability to promote trade to avoid risk to the dealer On the other hand, thong intermediaries have certain facilities, so when using them, the consignor must invest directly abroad However, when using the trust business they were divided profit, losing direct contact with the market

3.3 Parallel import

Parallel import refers to the commercial activity associated with the welding of goods containing the protected industrial property object , the parallel import is understood as an importer without any connection with the owner of the Industrial Property subject , conducting the act of importing a certain goods containing the above mentioned Industrial Property object provided by a licensed distributor or owner of the Industrial Property object Thus, a kind of goods containing objects of Industrial Property will be at least two different houses offered on a market, and only one of the distributors are agreeing that the owners object Public Property now on the implementation of commercial practices, for those industrial property there

Features of parallel imports:

- Industrial owners and importers have no connection

- At least two distributors supply in a designated market owner of industrial property

- Directly related to two important areas of modern trade: free trade and protection of industrial property rights

Parallel imports appear a conflict of interest among stakeholders Due

to a parallel import act, the party having the right to the Industrial Property object has not been able to fully exploit his / her rights to the

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Industrial Property subject But parallel imports offer a very practical benefit

to the market: Encouraging freedom of competition, so allowing parallel imports or not will lead to the possibility of a force to choose between protecting the original principles of freedom of competition and protection

of Industrial Property rights This is an array of modern trade, facing this problem, each country has its own opinion In general, parallel imports are flexibly addressed in different countries

3.4 Import convection

Convection import is a mode of goods exchange transaction, in which import is closely linked to export Payment is not made in cash but on goods

of equivalent value for exchange or also called import under barter method

This type of import has the following characteristics:

- In each contract, there are mutual binding conditions that make the importer also an exporter

- Equilibrium conditions must be balanced in terms of items, prices, balance in terms of total value of goods delivered to each other and balance in terms of delivery

- The importer simultaneously gains interest from two activities: importing and exporting this benefits both sides

- In the process of exchanging goods and services, the two parties must uniformly stipulate the use of a single currency as a common par value for the exchange process

3.5 Import re-export

Re-import is the purchase of goods from abroad, but the purpose is not for domestic consumption but for export to a third country to collect a larger amount of foreign currency This item is unprocessed in its own country and exported directly to a third country Thus, re-export activities always attract three countries: exporting countries, re-exporting countries and importing countries

Features of re-export activities:

- The re-exporting trader must sign two import contracts and one export contract not subject to import and export tax

- Goods can be transported directly from the exporting country to the importing country but the re-exporting country receives money from the importing country and makes payment to the exporting country

- In terms of payment, many re-export contracts stipulate the use of a letter of credit on the back Doing business in this form requires the sensitivity

of the market situation and the price, accuracy and coherence in the contract

of sale

3.6 Import processing

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Processing import means an import in which the importing party imports raw materials or semi-finished products of the processing party for processing out finished products, re-delivers them to the processing party and receives remuneration

Features of this form:

- Importing activities associated with production activities

- mutually beneficial: outsourcing parties help them take advantage of cheap raw materials and processing from the processing country For the processing party to help create jobs in the country, receive new technological equipment

- The processor takes all costs and risks of the processing

- This activity about payment method one can apply many payment methods such as: collection, payment by letter of credit

Above we consider some basic import forms In which direct import is the most popular and oldest activity Undergoing many changes of society, import activities have been created in order to meet those changing needs Which form to apply depends on the conditions and qualifications as well as the capacity of each business and each country Facing that situation, every country and every international organization has given its opinion Because this is a sensitive issue regarding each country's trade, not all countries have a clear, consistent view In general, import problems are handled flexibly in different countries

4 Factors affecting import activities

Trade activities in general and import activities in particular are affected

by many different factors such as: economy, politics, cultural and social laws, etc These factors will have a positive or positive influence Negative to business performance In general, we can divide the group influencing import activities as subjective and objective groups

4.1 Subjective factors

Subjective factors can be corrected by the enterprise itself, it is the enterprise itself These factors have a positive or negative impact on business activities, import activities depend on many factors such as capital, human resources, policy development, on trade infrastructure structure, on the circulation distribution channel, production and business activities and on business organization

Enterprises need to assess their ability to set appropriate goals to achieve and ways to achieve that goal A strategic plan is established and developed for all activities of enterprises in general and import activities in particular

The organizational structure is the basis to ensure effective business and production activities The coordination between parts will take place smoothly

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if the organizational structure is reasonable In which the human factor plays

an important role in the success or failure of a business A staff of highly qualified professional disciplines, with extensive experience in import and export activities helps businesses avoid many shortcomings in the process of conducting import procedures, anticipating the situation beforehand changes

in the import-export market to draw up appropriate import and export policies and measures

A good distribution channel system will help businesses save costs, fast and timely consumption of goods to customers This affects the import situation of the business Because when the consumption of goods is strong, the production will be expanded so that the demand for import for production and consumption is better

For any business to conduct business requires capital Capital that businesses have in many ways: equity capital, contributed capital and loans or reinvestment profits The size of production and business is more or less dependent on the capital that the enterprise has; it is the basis to ensure the solvency of the imported goods

Trade infrastructure ensures goods retain their quality If businesses have good commercial infrastructure and will help businesses avoid damage, risks will occur for goods such as collapse, the impact of the natural environment

4.2 The objective factors

Objective factors greatly affect the business operations of the business It does not depend on the subjective will of the business, which forces the enterprise to find a way to adapt or adhere to rules and regulations Basic objective factors include the following:

* Factors related to the political environment: The impact of the legal system, the system of government policy tools, the governance mechanism of the government

An enterprise engaging in international business activities is subject to the national legal system and the international law to regulate its business behavior All legal documents clearly indicate what goods businesses are allowed to trade in? Prohibit trading in goods? Quality of goods to ensure what? Is it controlled or not?

The system of policy tools of the state has a significant impact on the import and export activities of businesses The numerous policy instruments include common policy instruments for the entire national economy and specific sector-specific policies The typical policies are: financial policy, income policy, monetary policy, import and export policies, market development policies All of these policies are related to promoting or

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limiting import and export activities of enterprises, therefore, they force enterprises to take into account when making decisions on import and export

The governance mechanism of the state also has a great impact on the business activities of enterprises The governance mechanism of the government will directly relate to the effectiveness of laws and economic policy If a government is strong, operating well and standards will encourage legitimate business If not well controlled import and export activities, it will

be disoriented, such as quantity, time, price Imported goods are not well operated, can make the domestic market fluctuate and make it difficult for business

* Competitive rivalry Enterprises conducting business face many domestic and foreign competitors Along with the growth of domestic production, the gap between enterprises is narrowing, many products and sectors of high quality are able to meet domestic consumption demand and domestic goods have the ability to replace imported goods Facing this situation, enterprises must consider the growth of domestic production in order to consider whether the ability to import such categories of goods really competes with domestic goods Not all imported goods can compete with domestic products All of the above factors reflect the country's growing internal economic resources

* Economic environment The previous economic environment is reflected in the general economic growth in terms of economic structure and regional demand That situation creates market attractiveness for different markets Actual imports of firms may be affected by many domestic and international factors When the economy is in a crisis period, rising inflation and tax rates will force businesses to be hesitant when making import decisions because it will affect the output will increase the price of products negatively affecting competitiveness The situation will be the opposite when the economy returns

to the period of recovery and growth

* Natural environment The natural environment consists of a system of natural elements that affect many aspects of the input resources needed for business and production activists The shortage of raw materials, the increase in energy costs is becoming more serious, requiring manufacturers to focus on using alternative sources of raw materials Industrial wastes, solid wastes and non-recycled wastes are a difficult problem for production and business activities Along with strict regulations on environmental protection requires businesses to seek input from other countries that affect the import activities of businesses

* Technical and technological environment

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The technical and technological environment includes factors that influence new technologies, product creation and market opportunities, it is the most important factor that creates opportunities and threatens businesses Competition for new technology not only allows companies to win globally, but also changes the nature of competition Because it has a strong impact on production costs, labor productivity, affecting specific measures of trade activities in general and imports in particular Entrepreneurs must understand and understand the nature of changes in the technical technology environment and the many different ways each new technology can serve the company's production requirements be alert for possible possibilities

* Banking and financial system The banking and financial system is growing strongly on a global scale,

it deeply interferes with the import activities of enterprises that dominate this activity It is the basis for the enterprises to conduct production and business; providing capital for businesses, ensuring the solvency for businesses to take place smoothly and quickly, creating favorable conditions for businesses to seize business opportunities in addition with a strong enough financial banking system Increase the reputation of the business with the customers

II CONTENTS OF IMPORT

1 Market research

The market concept can be viewed from many different angles, words with different definitions From the standpoint of economics, the market is the aggregate of supply and demand for a given commodity in a specific time and space According to this definition, the basic assumption is that the total supply and demand for a commodity in the market move according to its own rules and regulate the market through the law of supply and demand If from the perspective of managing a business, the market concept must be close to the economic actors participating in the market such as buyers, sellers, distributors With their specific behaviors So comparing the above two concepts, the above concept is theoretical and the concept from the perspective of the business does not always follow the rigid rule based on the theory because the behavior of the buyer and seller impact psychological factors and trading conditions So from an enterprise perspective, "the market

is a collection of potential customers of the enterprise"

From the above concept, we can give the concept of an enterprise's international market "the enterprise's international market is a collection of potential foreign customers of that enterprise" According to this concept, the quantity and structure of demand of foreign customers for the products of enterprises as well as the fluctuation of these factors over space and time are

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the basic characteristics of the international market of the business The quantity and structure of demand influenced by many objective and subjective factors, macro and micro, require each business to study meticulously The international market is much more complex than the domestic market due to differences in the political-cultural-legal system and factors defined by the geographical environment, so it contains high risks more than business activities in general and import activities in particular, so requires businesses

to understand the laws, culture and the political system to limit the damage may be encountered

Enterprises conducting business of import and export goods must study the domestic market and must study foreign markets Therefore, the market research content covers both domestic and international markets

1.1 Research the domestic market

When conducting research on the domestic market, enterprises must conduct research on the following aspects:

* Research market needs Enterprises must identify consumer demand for domestic goods, the expected purchase of the customer, the customer needs to study certain characteristics and assess how specific to each bit of each chemical As long

as the trader understands customer needs about the characteristics of the goods , the most important characteristic and the cost of production and the right price, then the business will be effective and profitable

* Research the structure of imported goods The study of import commodity structure is essential for enterprises conducting import business When studying this issue, it is necessary to consider the current situation of domestic goods in terms of: the situation of using such goods, the number of foreign suppliers, the situation of domestic production, policies that the state applies to those imported goods to select the business sector that is most likely to attract customers

* Research prices Study the factors affecting the price of imported goods The very sensitive pricing issue directly affects the profitability of the business, which influences the purchasing decision of customers The pricing step is influenced by many factors including internal and external factors, becoming

an effective tool for the goal of trading imported goods to effectively serve the business strategy of the company

* Researching competitors The impact of competition can be considered in the following aspects:

- The correlation between price between the company and competitors

in the same field of activity

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- The degree of influence of competitors and the supply of goods will apply policies and strategies like?

- Always closely monitor your competitors' business moves in order to have a strategy to promptly respond to those changes, knowing which market they are trading in?

1.2 Researching foreign markets

The foreign market is much more complicated to the domestic market due to the difference in the economic - political - cultural - social - legal system and customs This requires market research people to have a deep understanding of the above factors and it is important to be professional Typically, when researching foreign markets, the focus is on the following key issues:

* Research the availability of foreign markets: These are important criteria Accommodation n g affect the stability of the enterprise business in the business process Each foreign supplier is never a homogeneous supplier , businesses should not choose a single supplier but should find many suppliers to disperse risks in import and diversify sources input materials ensure a stable supply to serve the smooth and uninterrupted production and business process Another important aspect to be studied is the variation in time of the suppliers indicated by the amount of increase or decrease, the prices of goods n hập k Hau of goods It reflects the development prospects of future suppliers so that businesses can determine supply adaptation and sound trade policies

* Study the factors of the economic - political - legal - cultural environment and customs of each country

When researching the market of foreign suppliers, enterprises must conduct research on the above factors Because each country has its own laws, cultural and political culture system applied to exported goods in order to encourage or restrict such export goods that affect the transaction relations between the parties

Cultural differences will affect the way transactions are conducted such

as some countries in cash payment transactions, some countries paying by card This will interfere with the operation Import-export and businesses need to adapt to the cultural environment that intends to import

Factors in the political-legal environment need to focus on the following major issues:

- Political stability: Each country when changing political institutions can entail all other changes such as the application of new trade policies or new tax rates

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- Monetary regulation: The regulations on foreign exchange management will cause difficulties for import-export activities in particular and commercial activities in general

- The effectiveness of the government apparatus: The extent to which the government of the exporting country operates an effective system to assist businesses to conduct exports

- Mandatory and managerial legal regulations need to be scrutinized such as: Prohibition or control of certain goods and services, prohibition of certain modes of commercial activities, type of prohibition control prices

* Research international commodity prices The business that conducts the targeted business is the profit gained Factors affecting profit are many including commodity prices If businesses import goods at high prices means the cost will increase, the profits will decrease At that time, if the enterprise wants to be profitable, it must raise the selling price, which reduces the competitiveness

The requirement for businesses is to study the fluctuation of commodity prices in the world to make appropriate import prices, to avoid excessive price rise compared to market prices Factors affecting international goods include the following basic factors:

- Supply and demand of such goods on the world market: This is a major factor affecting commodity prices If the market demand is large while the supply is scarce, it will push up the price according to the law of supply and demand

- Competition: The state of competition in the supply market helps to determine the price, it affects the supply of suppliers, so depending on the level of competition, prices will be set

- In different geographical conditions, different payment currencies and different payment methods all affect the price of goods Especially the weakening of some strong foreign currencies like USD affects global trade

- Inflation: Inflation affecting the price of goods of a country reflects the devaluation of that national currency

- Law and politics: Some countries aim to encourage the export of goods to your country, and they will provide support to domestic enterprises When the government intervenes in the currency market, the competition situation changes on the other hand, the import and export tariff will also vary from one country to another, which affects the price of goods and products among countries

In short, when researching international prices of goods, it is necessary

to know the combination of factors of the international market and the goals

of the business in order to find an optimal price for the type of goods and services there

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2 Making a business plan

After conducting research on domestic and international markets, enterprises have grasped the actual situation of the market and the enterprises themselves, based on that, formulating business plans to achieve business objectives mine To achieve maximum profit, the business needs to devise the best plan to achieve the desired state

The work to be done in this stage is:

+ Analyzing and assessing market situations and foreign suppliers The goal of this step is to compare multiple supplier markets to select some of the most attractive suppliers for the business First of all, to save time and cost, you need to limit the evaluation by eliminating some obvious markets that are not attractive to businesses because many causes belong to the product itself eliminate some supply markets immediately

After eliminating completely unprofitable supply markets, the remaining suppliers are generally evaluated according to the following aspects:

or from other sources outside the business Karma

* After analyzing the ability of suppliers and enterprises, the next step

is to select imported goods suitable to business conditions This item must meet the requirements set out by the two parties: price, quality, packaging

* Identification of subjects conducting transactions, including:

- Location and transaction time

- Name of the trading representative company

- Trading volume and price

- Delivery method and payment method

* Determining product consumption market The market as a whole always consists of a large number of customers with very different buying needs and financial capabilities, so businesses need

to identify the market segment to consume products effectively You should pay attention to the following points:

- Customers that businesses target must be specific

- Measurable means that the size and efficiency of the market must be feasible,

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- Enterprises must identify and serve segmented markets according to certain criteria

* Determine the transaction price The price of imported goods is agreed by the two sides But the importing party must base on the following factors to set the minimum price

to maximize benefits:

- Analysis of prices of goods of the same type on the domestic and international market at the present time or the price can refer to the competitor's import

- Price must ensure the target set by the business such as: profit target achieved after deducting expenses, taxes

* Assess the effectiveness brought and overcome the limitations that reduce business efficiency

Goods imported for trading in the market may result in loss or profit due to many factors arising in the course of business After consuming goods

at the end of the period, it is necessary to summarize and evaluate the business performance, find out the causes affecting the business situation of the enterprise in order to propose remedies

3 Organizing the import of goods 3.1 Transactions and negotiations

In terms of business transactions, you can choose a high transaction method to suit your own capabilities In foreign trade activities, enterprises often apply the following transaction methods:

* Regular transactions: That is the most common, most common selling methods Divided into two types directly and through intermediaries

- Direct transaction: Buyer and seller directly deal with each other, the purchase and sale are not tied to each other

- Intermediary transactions: All establishing the relationship between the buyer and the seller must be through a third party called an intermediary consisting of an agent and a broker

* Convection trading: A method of trading goods, in which exports are closely associated with imports, sellers are also buyers The purpose of export

is not to collect a foreign currency amount but to collect a quantity of goods

of equivalent value

* Special transaction methods:

- International Auction: This is a special transaction method held publicly at a certain place, where after previewing the goods, those who come

to buy and compete the price and finally the goods will be sold to someone who pays the highest price

In international trade, auctioned items are often difficult to standardize

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- International bidding: is a special transaction method in which the buyer (the caller) announces the buying conditions in advance so that the seller (bidder) quotes the price and payment terms, then The buyer will choose to buy from the cheapest quote and the credit terms are more in line with the conditions stated by the buyer

* Transactions at the Goods Exchange The Commodity Exchange is a special market where, through brokers appointed by the Goods Exchange, people buy large quantities of goods of a similar quality

The Goods Exchange focuses on the supply-demand relation of goods traded in an area, at a given time

* Trade at fairs and exhibitions

A fair is a periodic market that is held at a time and stays at a fixed place for a certain period of time, where the seller displays his goods and contacts the buyer signed sale and purchase contracts

Exhibition is an exhibition showing the achievements of an economy or

an economic, cultural, scientific or technical branch, etc

b) Negotiation Negotiation is a dialogue between two or more parties on an issue involving the parties with both rights and obligations to reach an agreement among the parties Enterprises may choose one of the following forms of negotiation:

- Negotiate via mail

- Discussion stage This is the period when the parties exchange ideas on issues of concern This phase includes the following works:

+ Arranging seats for negotiation + Summary of reasons and exchange ideas

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+ Learn the opponent's intentions and goals + Need to identify people with real rights in negotiations + Presenting the request for the partner to understand and record the content of the negotiation

- Proposal stage This is the stage when the parties make proposals according to the objectives of the negotiations These proposals often have different conditions and the parties negotiate with each other in points to reach an agreement The content of this phase is conditional upon The suggestions are related to each other

- Agreement period

At this stage, if the parties agree on issues, they will sign a contract.If they cannot reach an agreement, the parties will take a rest and entertain themselves in order to create a friendly atmosphere for the jobs that they can

do during the break

+ Give some new approaches + Replace the delegation

- Order of signing contract: Dividing into 2 cases:

+ The parties meet face to face: Taking place shortly, after signing the draft contract, the contract is considered signed

+ The parties do not meet in person must go through two stages:

The stage for requesting signing of the contract At this stage, the party requesting the signing must have an application for signing the contract The content of the application does not violate the prohibitions of law

Acceptance of contract signing requirements: this stage requires the parties to pay attention to some regulations of the operating systems of the countries The terms of the contract need to be clear as the language used in the contract must be agreed between the two parties, the terms of price, quality, delivery terms, time and location delivery…

3.3 Contract performance

Since the import goods sale and purchase contract is signed, the parties must be obliged to perform the contract strictly according to the terms of the contract From the perspective of an enterprise importer, the following steps must be taken:

* Please import license

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Import licenses are a means for the state to manage imports Therefore, after signing the contract, the enterprise must apply for a trip import permit to perform that contract Each license is only granted to one goods owner who imports a certain number of goods The application must be forwarded to the licensing office of the Ministry of Trade

* Carrying out the procedure for requesting the bank to open L / C This behavior must be done in accordance with the contract specified and before the delivery time is about 15 days to 20 days, ensuring L / C to the seller in time and giving the seller time to advance on delivery procedures

* Charter ship chartering: Chartering vessel chartering is conducted based on the following three bases:

- Terms of the contract

- Characteristics of goods traded and transport conditions Chartering vessels require professional experience, information on the market situation and expertise in charter conditions Therefore, companies often entrust the chartering of charter ships to a shipping company If the chartering obligation is on the importing party, it must be based on its actual capacity to hire the ship to ensure that the ship arrives at the place of loading

on time as prescribed

* Buy insurance Goods transported at sea often face many risks and losses Therefore, businesses should consider purchasing cargo insurance to prevent the risk of shipping In order to enter into an insurance contract, it is necessary to understand the insurance conditions: Insurance conditions A

Insurance conditions B Insurance conditions C

- Customs procedures Goods passing through the national border for import and export must

go through customs procedures Including 3 steps:

- Customs declaration + Declare the details of the goods on the declaration + Content of the declaration: type of goods, name of goods, volume, value, name of transport tool

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receive goods through the port or entrust another person to accept goods with the ship or the port on his behalf

* Inspection of goods:

Receiving the goods is the first step and acknowledging the goods can only occur after the inspection of goods Legally accepting goods does not mean they have been acknowledged Therefore it is the responsibility of the buyer to verify that the product is in compliance with the contract The inspection of goods must be inspected promptly and in detail as soon as the ship arrives and unloads the ship

* Payment for imported goods The buyer must pay the goods in full in accordance with the terms of the contract, such as the currency of payment, the amount of money to be paid, the mode of payment place The payment may be made before receiving the goods but this is also limited, depending on the content of the payment terms specified in the contract

* Complain When performing the import contract, if the import goods owner discovers that the imported goods have been damaged, broken, deficient or lost, make a complaint immediately to avoid missing the time limit for complaint

The complainant is the exporter, the transporter, the insurance company

of the complaint must attach evidence of loss, invoice, sea waybill, insurance policy

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CHAPTER II CURRENT SITUATION OF IMPORT ACTIVITIES OF VAN BAO

INDUSTRIAL JOINT STOCK COMPANY

1 I Fire safety industry:

The fire safety equipment and installation is witnessing the steady emerging over the time Growing demand for fire safety for industry business such as petrochemical, mining, coal exploration and

construction is foreseen to drive the market Recent years, our governments have enforced more stringent regulations, which mandate the installment of fire safety systems at industrial, commercial and residential places To support the government norms and regulations, the demand for detection and suppression systems is emerging along with increasing construction of commercial spaces, such as supermarkets, multiplexes, shopping malls, hypermarkets, real estate, and office buildings Technological advances also take the demand further, including wireless alarm systems, higher accuracy smoke detectors and

an addition of merging detection devices into building management Companies and organizations are now more concerned about reducing the damage caused by fire accidents, progressively spending on fire safety and security of infrastructure Nonetheless, high initial investment for the installment of these structures coupled with costly management and replacement services is anticipated to restrain the market growth The fire safety business is listed as a specific field of "Conditional business", in which the products supplied must comply with high technical standards, long-term responsibility and are associated with specific requirements under the equipment package These equipment

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are mainly imported from abroad and suffered long- term contracts In the context of a fluctuating world economy, and the exchange rate is not stable, improving import efficiency becomes more urgent In which, completing the import process is a prerequisite to improve the efficiency

2007, the company took a huge leap by shifting towards equipment for the search and rescue industry and special-use equipment for national security With the trust of customers and many suppliers over the years, the company has become the exclusive representative of many

specialized equipment manufacturers from over the world Now the company’s best known products range are the equipment for fire protection systems and for search and rescue activities

● Head office address: 593 Kim Nguu St, Hai Ba Trung, Hanoi, Vietnam

● International Business name: Van Bao Industries Co., Ltd

● Legal representative/ General Director: Nguyễn Phi Long

● Tel: 04 2212 6383

● Fax: 84-24-36336799

● Email: project@vanbao.vn

● Authorized capital: 10,000,000,000 VND (Ten billions Dong)

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2.2 Objectives of Van Bao Industries Co., Ltd

A Main activities:

● Installation and construction consulting in fire safety

● Wholesale of machinery, equipment and spare parts

● Installing machinery and industrial equipment

● Installing and consulting electrical system installation

● Installing water supply and drainage and air conditioning systems to ensure fire safety

● Agent for renting and repairing, supplying vehicles and fire-fighting vehicles

● Supplying industrial machines and equipments, hand tools and metal structures

B Authorized for:

- Proactively transact, negotiate and sign economic contracts to serve the business of the company within the scope of the Board of Directors authorized

- Being entitled to enter into joint ventures, partnerships and cooperation with other companies in business sectors within the scope of the State's permission

departments in the company:

- Board of Directors

- Marketing department

- Accounting department

- Project and construction department

- Human Resources Department

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● Board of Directors: Director (Mr Nguyen Phi Long) and Deputy Director (Mr Nguyen Binh Duong), is the head office of the company performing the function of administration, direction and administration

of all activities of the company according to regulations of the Law Organize the operation of the service in a way that benefits the company now and in the future

● Marketing department: Having the task of getting to know customers, marketing services and customer care, offering products and services; sourcing and negotiating import

● Project and construction department: supervise construction progress, guide construction quality assurance, technical support and warranty for customers

● Accounting department: Performs accounting tasks, manages and organizes accounting work Collect, process and provide information, synthesize financial statements to help the board of directors make the most optimal plans for revenue and expenditure management in the operation

● Human resources department: Performing human resources, labor contracts, implementing company rules and regulations Plan and implement recruitment, staff training, business rotation, and annual vacation vacations

3 Company performance over the year:

A Business results from 2016 to 2019

Table 2.1 Business results of the company from 2017 to 2019

(Unit: VND)

Tiêu đề	Solutions to Improve the Import Activities of Van Bao Industrial Company
Trường học	Hanoi University of Industry
Chuyên ngành	International Trade and Business Activities
Thể loại	Graduation project
Năm xuất bản	2023
Thành phố	Hanoi

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