Overview of vnm company and the process of collecting information for certicate of origin in aanz form

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS & INTERNATIONAL BUSINESS INTERNATIONAL BUSINESS PRACTICE 1 Major: International Business OVERVIEW OF VNM COMPANY AND THE PROCESS OF COLLEC

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS & INTERNATIONAL BUSINESS

INTERNATIONAL BUSINESS PRACTICE 1

Major: International Business OVERVIEW OF VNM COMPANY AND THE PROCESS OF COLLECTING INFORMATION FOR CERTICATE OF ORIGIN

TABLE OF CONTENTS

CHAPTER 1: OVERVIEW OEF VNM COMPANY 2

1.1 General InOrIT4(ÏOI c0 0o 0 909059 0.50 9.959 9.55 90 9.55 59 5 9.55 09 09999008995 2 1.2 History and Developmenf DFOC€SS cc- dc 0 3 KT TY TH g4 TY HH 00 1g 3 1.3 Business philosophy and mission statement

I0 ai nhe 4 1.4.2 Departments” function - - - c 1 c1 2211121112111 1115115111011 5111111101111 HE k kh ky 5

CHAPTER 2: THE PROCESS OF COLLECTING

INFORMATION FOR CERTIFICATE OF ORIGIN IN AANZ

2.1 The significance of making CO document cscsssscsssscsssssssesssncnescsssnnsnseesssenenaes 12

2.1.2 ¿U< U0-xi0ì13.07- 000 000.s::: ậaàđaiaiiiđiđdiđdđdđddddŸỶ3ŸẦỶẢỶ 12 PIN (002i 00099 15 ằa 12 2.1.2.2 Preferential Cs - c1 01120121 11211211111111 11111111011 11 11 E11 111 1111 01kg kh 12 2.1.3 The importance o£ CÔ 0 2211121111211 1211 1011112111211 2 0111111111111 111 1k1 key 12 2.1.4 The importance of collecting information for CO mm AANZ form - 13 2.2 Components of a CO document in VNM COMpany cssscsccsessescssnecsesesssenesceseaes 14 P000 3)0)01.1ii0iudiaiiaatiâadaâaiỶỶỶỶŸẢẢÝ 14 2.2.2 Commmerclal ÏnVOICG - i- c2 2011211211121 111 11111111211 111 11111111111 111111 1111 01H ng kg 14 2.2.3 PackIng ÌIst L2 0211112112211 1115115211511 11111111 5111k 5111k HH ưu 15

2.2.6 Customs declaration (For imported goods) or VAT ImvolIce for inpufs 16 2.2.7 BIll of mat€T1a̧ - 0 2011211211111 151 12111111111 111 1111111 1111111 11111111 k TH Ea 16

LIST OF ABBREVIATIONS

TABLE OF FIGURE AND TABLES

TABLE OF FIGURES

Figure 1.1: VNM7’s motion SySf€IM - 0 2 2012111211111 11 1111121111111 1 11111111 118111111 nhớ 2 FIigure I.2: VNM”s pedal - L2 201121121 1111111 1111111111111 111 1111111111 K TH KHE kg 3

Figure 1.4: VNM’s organizafional SfTuCfUT€ - - G12 2211211151121 1151211 1181111111 881 011 grkg 4

FIigure 2.2: Packing list of VNM cormpany cv 12112 2 1121119119116 x 11x 15 FIigure 2.3: VAT InvoIC€ ÍOT 11DUÍES Q01 20 211121121111 11111111111 101 1111 11111111111 kh kh 16 FIigure 2.4: BIll of materials for HB - Shifter Plate - VNM”s product - 17

TABLE OF TABLES

Table I.I: VNM Business Model Canvas L2 2c 211121122 222 11H H11 key 6 Table 1.2: VNM revenue SfafISEICS 0 120112111211 12 291111920151 115 kkcHxkrhườy 10 Table 2.1: Number of COs made in VNM m the period of 2023 - 2024 13

INTRODUCTION

Having an opportunity to become an intern in VNM company, within the International Business Practice | course During 4 weeks in internship period, I had the chance to observe company activities, complete tasks in relevant area and apply my theoretical

information and statistics to analyze and review business operations For a manufacturer involving in exporting activities, Certificate of Origin plays an important role for the importing company (customers) and it is suitable for a freshman to take the first step in a profession working environment

Certificate of Origin helps the importing company also known as customers to achieve tax reduction and tariff relief or even becomes an indispensable part of an export document

In VNM company, whenever there are purchase orders from Australia, India and Italy; customers will require them to apply for CO The process of collecting information for

CO in VNM company takes about 2 or 3 days to complete because of an enormous number of documents Whether an CO is approved on time or not will affect the company’s image on customers’ eyes

These are the reasons why I choose “OVERVIEW OF VNM COMPANY AND THE

PROCESS OF COLLECTING INFORMATION FOR CERTIFICATE OF ORIGIN IN

AANZ FORM” as my report’s topic Because of the report boundaries and available resources, I will focus only on CO in AANZ form for Australian customers The report has two chapters:

Chapter 1: Overview of VNM Company

Chapter 2: The process of collecting information for Certificate of Origin in AANZ form

CHAPTER 1: OVERVIEW OF VNM COMPANY

1.1 General information

Global name: VNM SIMULATION EQUIPMENT JOINT STOCK COMPANY (VNM

SIMULATION.,JSC)

Vietnamese name: Công ty cô phan thiét bi mé phong VNM

Head office address: N.55 Binh Doan 12Area, Dai Mo road, Nam Tu Liem district, Hanoi, Vietnam

Tax code: 0109329096

Date of establishment: 2020 — 09 - 03

Representative: Mr Tran Van Hoan — Director

Official website: https://vnmsimulation.com/

Email: sale@vnmsimulation.com

Phone number: +84979068468

Business area: Manufactures simulation driving products for PC (Sim Racing Simulation) Main products: VNM Motion System, VNM Pedals, VNM Handbrake, VNM Shifter Plate, VNM Buttton Box

Figure 1.1: VNM’s motion system

Source: VNM

Figure 1.2: VNM’s pedal

Source: VNM Logo:

Figure 1.3: VNM’s logo

Source: VNM

1.2 History and Development process

Established in 3rd September, 2020 with the beginning authorized capital is 5 billion Vietnamdong VNM Simulation stands at the forefront of cutting-edge simulation technology, driven by a visionary team of industry pioneers Founded and led by CEO

Mr Tran Van Hoan, along with the technical expertise of Mr Dam Phuéc Long — Co- founder and Technical Director, and the strategic insight of Mr Pham Van Minh — Co-

development and manufacturing of advanced simulation technologies (VNM SIMULATION , JSC, 2020)

In the blooming period of the Covid-19 pandemic, the company faces a lot of problems and difficulties because of its immature in operation and fierce competition from reputational company in the world Though being led and operated mainly by a very young generation from directors to workers, who work with a big passion and enthusiasm, VNM company got over the pandemic and gained many new achievements not only from company size but also from revenue and products Revenue from 500 to 700 million Vietnam Dong per year now reach 16 to 20 billion in 2024 Began with just 4 leading people, now company size reaches 30 people, official workers and interns in total VNM also reach a new milestone in production scale from 40m? to nearly 600m’ The final products have also been enriched and improved from only 2 goods to more than 50 goods for exporting and distributing

1.3 Business philosophy and mission statement

Our product range includes high-quality racing simulators and motion platforms designed

to provide users with an immersive and realistic experience

At VNM Simulation, we pride ourselves on our state-of-the-art facilities and a team of skilled professionals dedicated to pushing the boundaries of simulation technology Our products cater to various industries, including gaming, automotive, and virtual reality traming We prioritize customer satisfaction, ensuring that our simulation devices meet the highest standards of performance, durability, and technological advancement Discover the future of simulation technology with VNM Simulation, where expertise, innovation, and passion converge to redefine the possibilities of virtual experiences

(VNM SIMULATION , JSC, 2020)

1.4 Company structure and departments’ function

1.4.1 Company structure

Figure 1.4: VNM’s organizational structure

Caren Chidant eallacte fram fvx=tvat=tzxkei~ infarnnatian

Accounting department

Accountants will record daily transaction for business They receive the request to buy new materials for manufacturing then they start to check with the inventory report to create a complete order list When items are delivered or imported to company, accountants will pay for suppliers and record all transactions and number of goods shipped In VNM company, accountants use Pisa accounting website to assist them with the recording process Besides some distinct activities occurred only in this type of business, accounting function also conducts their common responsibilities

Business development department

This department is in charge of import — export operation task In my internship, I have the opportunity to work im this function with the instruction by Mrs Linh — head of business development department Because of company’s scale and vision, this department involves in preparing an initial documentation to export or to apply for CO For the next steps, they hire some specialized service companies to check the accuracy others of their papers, correct the mistaken information and submit the final official and proper documentation to the authority Business development department is also in charge

of forming an import — export document which includes: contracts, purchase order (PO), commercial invoice, packing list, customs declaration, shipping label, VAT invoice, CO, bank statement

During my internship, I had a chance to learn new knowledge, gain experience, take a closer look into an import - export document and discover every detail of that document Then I also had the opportunity to form a bill of material used to apply for CO

1.5.1 VNM Company Business Model Canvas

Table 1.1: VNM Business Model Canvas

¢ Marketing and Advertising

Stable capital for innovation investment Diverse marketing channels Modern facilities and infrastructures

Key Partners:

Inputs suppliers: VNM act as a PC-driving simulation manufacturer so they have to connect with a variety of suppliers from all over the world for supplying inputs and components needed to produce

Shipping unit With respect to a company involving in export activities, the need to form a connection with one or more specific delivery brands, whether an order is shipped on time

or not and what is happening for an order during delivery time depends on that unit Service companies: For small-sized company like VNM, they would like to hire some service companies for applying CO to the authority or report missing information for an export-import document

Commercial bank: In VNM, most of the payment transactions done through bank transfers from receiving money in advance for an order to paying for inputs purchase Key Activities:

R&D: In the company, they have an R&D department, which is in charge of improving and creating new type and model of products R&D department in VNM has many outstanding technological engineers Those ideas later can be tum into real products through manufacturing process

Manufacturing: This is the main key activities since VNM plays a role of a manufacturer This activity occurs every day and last along working hours Without it, they cannot conduct any further selling activities

Marketing & Advertising: After the manufacturing process, this activity brings final products closer to target customers through social networks advertisement It also promotes brand awareness and customers loyalty

Selling: This is the main revenue stream activities, where the company successes in pursing and attracting customers through advertisements In VNM, they have 2 types of selling: domestic and international trade

Exporting & Importing: Importing is happened when the company buys inputs from oversea suppliers and deliver an order to international customers through export activities Key Resources:

Technical expertise engineers: Mr Dam Phuoc Long — a CO-founder has the technical expertise and is holding Technical Director in the company With a profound experience, they are confident in producing best quality products

Experienced producers: All workers in the company are well-trained and have more than

1 year experience to be accepted as an official member Every month, workers are tested their skill to evaluate whether to hold any specialised classes or workshops

Reputable suppliers: The quality of a product is assessed based on many elements and one of them is inputs’ quality In VNM, both internal or eternal suppliers, they always

research carefully and order from prestige manufacturers and retailers Before delivering final goods to customers, conducting multiple tests is a compulsory requirement Large factory: VNM owns a 600m’ factory for manufacturing process

Stable capital for innovation investment: Gaining a positive net income and cash flow facilitates the business to allow new products to be created

of the final goods fulfills customers’ expectation More than 200 customers trust the product

Customer satisfaction: VNM has a customer service function specializing on handling any error from their products and answering all questions from customers It is reported that 85% of customers return to use the produce from the first purchase

Customer Relationships:

24/7 customers service channels: Customers are cared from the moment they wonder about any product till the end of warranty This service is effective since there are 85% of customers return to use the produce from the first purchase

Discounts: For each specific retailers or dealers, VNM grants the loyal customers a discount ranging from 10% to 35% per each order

Worldwide retailers: For individuals’ demand, such as for gamers who cannot buy VNWM’s products by themselves, they still can purchase through VNM distributors Customer Segments:

Driving simulator market VNM focuses only on manufacturing PC driving simulation products

Racing stimulator accessories retailers: This is the key customers for the company VNM has a wide range of dealers from all over the world Since the market for VNM’s products

is quite strange in Vietnam, a majority of customers are foreigners and retailer is a suitable way to access to customers

Simulation driving tranining centers: This is a smaller market for VNM’s products, where these products can be bought directly by this customer or from retailers

PC-driving gamers: This type of customer is a niche But in the end, they will be the end users of all products It 1s just different whether they buy it by themselves or through retailers

Exporting & Importing: For some small-sized companies like VNM, they sometimes hire intermediaries to be in charge of finishing export-import document so they need to pay for those companies

Salaries: This is a variable cost for the company but it is very important im the operation process Without it, the quality and attitude toward working of workers will be heavily affected

Marketing & Advertising This is also a variable but vital cost If 1t had not been for this cost, sales record will fall down significantly VNM has a wide range of marketing channels so the amount paid for advertisements is quite high

Revenue Streams:

Sales: Selling PC-driving simulation products is the only stream of revenue for VNM as they consider themselves as a manufacturer This sale either comes from directly purchase

of individuals or indirectly through VNM’s retailers

Shipping fees: VNM has a litle revenue from shipping product globally It takes up a minority portion and even it can be recorde as a loss

1.5.2 Operating process

In VNM company, they have conducted 6 steps in total to fulfill and complete an order for customers In the beginning, the company researches potential customers, boosts marketing campaigns through Websites, Facebook, TikTok and send them price quotes Successfully attract a customer, a purchase order will be sent to the company Next, business development department will send a document included: proforma invoice, comercial invoice, packing list back to the customer After that, if there is an agreement for all of the documents above, the clients will finish their payment In VNM, almost 10

every order will be paid in advance by buyers mainly through bank transfer They also offer EXW, DAP, CIP and FCA shipping method

In the firth step, the business will start producing the order In this step, firstly accounting department will receive a purchase request, after that, accountants will compare with their inventory report to form a suitable purchasing order Materials needed for producing will come from both domestic or international suppliers When those items are delivered to the company, accounting department will pay the money, record new inventory and distribute them to the production manager At that time, workers start manufacturing products follow stricly to the bill of material Finish producing the order, final goods are packed and ready to be delivered The business development department then prepare and create export document for oversea customers That document will also be checked and finished

by a specialized service company hired by VNM For domestic purchase order, the buyers can come to factory to collect and deliver products by themselve When oversea clients receive and completely check the order, that order now can be marked as done and the accounting department will recognize revenue and check ending inventory for the next order During the shipping time, business development will have to prepare documents to apply for CO based on customers’ demand

Because of the fact that simulation driving aspect in Vietnam is not common, a very high portion of VNM’s customers are global retatilers 99% of the final goods are for exporting

1.5.3 Business performance

Table 1.2: VNM revenue statistics

(Calculation unit: VND)

Source: VNM’s file provided by instructor

According to the table, VNM has witnessed an upward trend in revenue in the recent years In 2022, the Covid-19 pandemic was severe and it slowed down the whole global demands for some of innecessity goods Therefore, the number of products sold and revenue were affected heavily, especially for an infant company like VNM, established in

2021 Fortunately, in 2023, when the pandemic was controlled and everything was recovering, VNM could gain four times bigger than the previous year Both number of ll

products sold and revenue saw a huge gap, indicating that the company has succeed in attracting customers and mnovating products From that moment till now, the company still presents a positive trend If this situation lasts for the whole year, VNM will eam more revenue than ever

1.5.4 Customer

Mainly working as a simulation driving products manufacturer but VNM has a majority

of oversea customers because that manufactured field in Vietnam is not yet developed and popular Target customers for the business are both domestic and global retailers The company purchases, imports materials and components needed to start producing and assembling the final products, then they deliver these products to their customers also known as distributors Throughout its growth, VNM Simulation has partnered up with multiple credible and respectable sellers in all regions to bring you high quality gear for your simulator at minimal shipping time with quick and easy support - no matter where you are (VNM SIMULATION , JSC, 2020)

Australia: TRAKRACER AU, Racekraft

Brazil: Pro Racing

Canada: Advanced Sim Racing, RA Motorsports

Thailand (Laos, Cambodia): ThinkOfSim

USA: SIM-MOTION US, ARCHANGELSIM, TRAKRACER US

United Kingdom: TRAKRACER UK

Vietnam: HACOM (VNM SIMULATION , JSC, 2020)

12