Fruit and vegetables export activities at thuan phat export and import joint stock company

Frist, I am deeply indebted to all Exportand Import Department officers as well as other Thuan Phat Export and ImportJoint Stock Company for their valuable instructions, corrections, com

TABLES OF CONTENTS

ACKNOWLEDGEMENT 1

INTRODUCTION 2

CHAPTER I: AN OVERVIEW OF THUAN PHAT EXPORT AND IMPORT JOINT STOCK COMPANY 3

1.1 Introduction of Thuan Phat Export and Import Joint Stock Company 3

Tables 1.1: Assets and source of capital 4

1.2 Export and Import department 6

CHAPTER II: FRUIT AND VEGETABLE EXPORT ACTIVITIES AT THUAN PHAT EXPORT AND IMPORT JOINT STOCK COMPANY 7

2.1 Process of fruit and vegetables export at Thuan Phat Imexjsc 7

2.2 Export market 8

Table 2.1 Total export value 2009-2011 9

Chart 2.2 Total export value 2009-2011 10

2.3 Results of fruit and vegetables export 10

Tables 2.2 Thuan Phat's company export value 10

2.4 Competitors 13

2.5 Achievements and limitations of export activities at Thuan Phat company 14

CHAPTER 3: RECOMMENDATIONS TO PROMOTE FRUIT AND VEGETBLE EXPORT ACTIVITIES AT THUAN PHAT IMEXJSC 17

3.1 To Thuan Phat company 17

3.2 To the Distribution Section 19

3.3 To the inputs’ collection Section 20

3.4 To the Section 21

3.5 To Export and Import Department 21

3.5.1 Improving the staffs 21

3.5.2 Establishing trade name for the company's commodities 22

3.5.3 Building firmm relations with customers 23

CONCLUSION 23

LIST OF CHARTS AND TABLES

LIST OF ABBEVIATIONS

Thuan Phat Export and Import Joint Stock Company IMEXJSCHazard Analysis and Critical Control Point System HACCP

I would like to express my thanks to a number of people who support andencourage me to undertake this report Frist, I am deeply indebted to all Exportand Import Department officers as well as other Thuan Phat Export and ImportJoint Stock Company for their valuable instructions, corrections, comments andsuggestions

My special thanks also go to Mrs Nguyen Dieu thuy Director and Mr TranThanh Tuyen the head off Administration Department for their willness to sharethe statistics and data as well as create a good environment during the time Itook my internship They are very kind and helpful to give me the necessarydocuments and ready to answer relevant questions to finish this report

I wish to expess my special thanks to my supervisor, Mrs Tran Thi ThanhHai(M.A) for her enthusiastic support, careful guidance, and helpful feedbackthroughout the process It is her who gave time and thought to correcting myvarious draft with boundless patience and great care Finally, I also would like toconvey my thanks to all of my friends for their constructive discussions,suggestions and timely assistance, especially in finding out the useful materialsfor the report

TRAN THI DUNG

In January 2007, Vietnam became an official member of WTO, the largesteconomic-commercial playing field on planet Taking part in the WTO marked anew step for Vietnam's international integration WTO creates big opportunitiesfor Vietnam's enterprises, beside challenges Vietnam’s agriculture is affectedstrongly by this event

Thuan Phat company is a joint venture company specializing inmanufacturing, processing and trading in fruit and vegetables, agriculturalproducts export Like other enterprises, Thuan Phat company’s producing andtrading activities in general and its fruit and vegetable export activities inparticular are significantly affected by Vietnam’s entry into the WTO Thecorporation has a lot of opportunities to promote manufacturing and exportsbecause markets are expanding; tariff barriers are cut down and demand onfruits and vegetables is increasing However, it also has to face enormouschallenges into the international economic word Those are fluctuation andtough competition of the market economy Simultaneously, it has to accept strictinternational regulations technical barriers, and open market and face difficulties

in raw materials, climate, weather, material and labor prices After my intershipfied study trip at Thuan Phat company, I have a good opportunity to learn aboutits production and trading operation With a desire to have deeper knowledge inthe corporation’s fruit and vegetable export field, as well as a desire to make

some suggestions to improve activity in the future, I chose the subject “Fruit and vegetables export activities at Thuan Phat Export and Import joint stock company” The report is divided into 3 chapters:

Chapter1: An overview of Thuan Phat Export and Import joint stockcompany

Chapter 2: Fruit and vegetable export activities at Thuan Phat Export andImport Joint Stock Company

Chapter 3: Recommendations to promote fruit and vegetable exportactivities THUAN PHAT IMEXJSC

My report was fulfilled in a short time so it does not avoid shortcomings, I hope

to receive suggestions from all readers

CHAPTER I: AN OVERVIEW OF THUAN PHAT EXPORT AND

IMPORT JOINT STOCK COMPANY

1.1 Introduction of Thuan Phat Export and Import Joint Stock Company

Thuan Phat Export and Import Joint Stock Company has abbreviated nameTHUAN PHAT IMEXJSC with head offices 12 number Van Troi NguyenIndustrial Zone, Hung Yen Manufactory Di Su distance, My Hao district, HungYen provincial Email thuanphatjsc@vnn.vn, Website: thuanphatgroup.com.vn,Established 21/ 10/ 2005 Business Registration Certificate number 0103010819

by Department of Planning and Investment Hung Yen first registration21/10/2005 and revised 1/2/2008 Thuan Phat company started in 2005 fromThuan Phat coporation limited The company was initial production andconsumption of domestic goods then expand business exporting goods abroadand renamed the company Thuan Phat Export and Import Joint Stock Companyfrom 1/2/2008

The management system of THUAN PHAT IMEXJSC has advanced qualitymanagement system will ensure quality of products to meet consumers' demand,improve competitiveness of companies It is especially important to exportcompanies Awaking of this, Thuan Phat appllied quality management systemaccording to ISO 9001:2000

Tables 1.2 Scope of application of ISO 9001:200

Designing

products Supply output

Producingproducts

Sellingproducts

Servicesafter sellingISO 9001

( Source: Administrative officer)

In addition, the company carries out HACCP ( Hazard Analysis and CriticalControl Point System ) and has policies on quality such as: Always listens tocustomers' opinion on products, prices, selling services, payment, andcomplaint Improving continuously in awareness and professional ability all

over company on qualityand food safety.

Associating with local and foreign partners and investors for projects in linewith the corporation’s strategic development In the last 3 years on Thuan Phat’sassets and source of capital

Tables 1.1: Assets and source of capital

Criteria

Value (million vnd)

Structure (%)

Value (million vnd)

Structure (%)

Value (million vnd)

Structure (%)

-Fixed assets 2843.54 48 3109.27 40.77 2843.38 34.21-Liquid assets 3079.93 52 4517.11 59.23 5468.15 65.792.Source of

(Source: Account Department at Thuan Phat company)

About nature of capital, liquid capital is more and more, its density is increasing.That is suitable with fact because of being import export company, whenquantity of transaction is more and more, ability in capital stagnant In addition,large capital helps the company invest for modern equipment in order to meetneeds in quality of product to export

The corporation’s main business activities include:

 Agriculture production, processing, import- export and local sales ofvegetables, fruit, agro-forestry commodities, seafood, foodstuff and drinks,essential oils, assorted seeds of tropical vegetables, fruit, flowers; fertilizer andchemical products, material and packaging for agro-production and foodprocessing; machinery and equipments, spare-parts, vehicles, handicrafts,household goods,

 Research and transfer of technology, technical training in processing

of vegetables and fruit, agro-forestry products

 Providing consultant service for investment in agricultural processing

 Financial business and other business related to stock market

 Other business related to services such as logistics, port handling,warehouses, transportation and transport agent, real estate, industrial and civilbuilding, hotel, and office renting

Chart 1.1 Thuan Phat’s structure

(Soure: Administrative department in Thuan Phat company)

Chairmam Board of Director is the legal representative with the highestexecutive authority in the company, stand responsiber for complete theobligations to the state The under Board of Director is managing Director who

is responsible for operations and business of the company and managing all thedepartments There are three Department and one factory of the company

Administration Department manages of human sources for the entire company,solves the problem of planning and managing organises traning courses protectsassets to maintain security and order in the company

Export and Import department is responsible for importing of machinery, serial and the export company's goods

day-Board of Director

Managing Director

Factory

Accounting Department

Export and import Department

Administration

Department

Accounting department is responsible for planning revenues and expendituresthe company's annual financial It’s advising the managing Director for reveningand expendituring of the company.

Factory is the place to bear all production activities of all products Beside, theresearch and technology development produce the most and least cost

1.2 Export and Import department

Establish on since 2007, Export and Import Department was three membersfrom the Business Department The now, it has 8 members whom responsiblefor building import and export activities The Export and Import Department offoreign trade contracts and procedures professional import and exportregulations It’s in the market at home and abroad to plan and organize theimport-export business plan and other relevant plans of the Company

It import and export business, contract sign contracts and brand management ofthe company Beside, Import and Export Department made monitor and report

to the Board of Directors of commercial promotion, brand promotion.Registering trademark in the country and other countries which entry the market.The relevant units introduced, providing the products and services of thecompany The trade fairs, market surveys, professional exchange, collectinformation to expand the international market

CHAPTER II: FRUIT AND VEGETABLE EXPORT ACTIVITIES AT THUAN PHAT EXPORT AND IMPORT JOINT STOCK COMPANY

2.1 Process of fruit and vegetables export at Thuan Phat Imexjsc

The company trades in a lot of commodities, each unit trades some suitableones The company’s commodities include fresh, dry-salt, canned, frozen fruitand vegetables, and condensed juice The company’s products are agricultural sothey have seasonableness, then the business is affected by the characteristic

As other industry exports in maket, Thuan Phat company also carries out exportactivities following a process from researching markets, defining commodities,finding out partners, planning project on export, dealing and negotiating Theexport process will be illustrated in the chart below:

Chart 2.1 Export process

Signing contract

( Source: Export and Import Department)

Then the company signs contracts, purchasing and creating inputs for export,implementing export contract, evaluating export activities Implementing exportcontract is the most complicated and vital Thuan Phat company has to carry outaccording to international customs and law After mobilizing inputs forexporting, Thuan Phat bases on sales contract to implement testing on quantityand quality of goods, in order to adjust suitably for contract Next, preparing

Applying for

a permit for exporting

Checking L/C, open accounting, collection payment

Preparing

procedure

procedure Solving dispute( if not)

export documents, customs clearnce, bringing products to a certain destination.The company often exports by sea (at Haiphong port) or air (at Noibai airport) The company present document and bills eligible commodity for doing customs procedure When the custom agree good export , the Distribution Department check goods before deleveling for customer

The company always export with FOB so has not to charter and selling

insurance for products Almost all the payment transactions of the company are made by L/C If the customer discovered the goods don’t standards and the conditions of the signed contract Customer request and return the goods or discount goods The company accept terms in the contracts when the company accord to the term with the parties

2.2 Export market

So far now, the company exported fruit and vegetables into more than 40

markets all over the world In there, the company's major export markets areUSA, EU, Russia, China, Japan, Singapore, Korea, and Taiwan And themarkets are spreading over areas in the worlds:

In Asia, the company normally export fruit and vegetables to ASEAN nationalssuch as: Singapore, Indonesia, Thailand, Malaysia, Philippine, Laos and othercountries: China, Japan, Korea, Taiwan, Hong Kong, India, Arab, Jordan,Pakistan, Syria, Sri Lanka

In Europe, the company normally export fruit and vegetables to German, GreatBritain, France, Holland, Switzerland, Austria, Spain, Portugal, Italy, Belgium,Denmark, Greece, Ireland

Other countries: Russia, Turkey, Slovakia, Poland, Ukraine, Mondovi, Hungary,Norway, Hungary, Latonia, Latvia, Rumania, America: United States, Canada,Mexico, Australia: New Zealand and Africa: Egypt, Sudan, Morocco, SenegalThe company’s export markets are plentiful and diversified Each market withdistinct characteristics in consumer habits and has different regulations, thiscreate big challenge in expanding and developing markets of the company In allthese cases the export sales continued to increase over the years

Table 2.1 Total export value 2009-2011

Orde

Value (USD)

Percentag e (%)

Value (USD)

Density (%)

Value (USD)

Percentage (%) Total export

( Source: Export and Import Department )

The above chart 2.2 showed that the total export value into 8 major marketsalways was double others, and this number tends to increase Specifically, in

2009 exporting into major markets accounted for 63.9% of the company's totalfruit, vegetables export value, until 2010, this number was 68.9%, and it was73.1% in 2011 That showed, the company focused on enormous-consumed andpotential markets In 2010, exporting into major markets reached 16,930,217USD, increased by 21% against 2009; and in 2011, the growth was not as high

as the last year (9.1%) but attained a biggest export value within three latestprocedure

2.3 Results of fruit and vegetables export

2.3.1 Turnover and export value

In 2011, in total sales turnover (92.8 m USD), fruit and vegetables exportturnover accounted for 27% Thus, fruit and vegetables export played animportant role in the company

Tables 2.2 Thuan Phat's company export value

Year

Value (USD)

Rate (%)

Value (USD)

Rate (%)

Value (USD)

Rate (%)

å Export value 65,552,901 100 76,103,473 100 92,846,237 100Exporting fruit 21,894,669 33.4 24,572,158 32.3 25,258,946 27.2

(Source: Export and Import Department )

Thuan Phat’s export value increased year by year, and exporting fruit andvegetables increased together on value, too Nevertheless, the ratio of turnover

on exporting fruit and vegetables decreased gradually, from 33.4% (2009) to32.3% (2010), and continuously reduced to 27.2% in 2011 In period of 2009-

2011, export value's other commodities increased In there, exportingagricultural products trended to increase (in 2011 agained 53.7 m USD, was132% in comparison with 2010) and this ratio bigger and bigger in total exportvalue (2010, it occupied 55%, 2011 it occupied 57.9)

2.3.2 Exports commodities

In 2011, total export value from exporting fruit and vegetables was 25,258,946USD, increased by 2.8% against 2010 Fresh fruit and vegetables: 2,677,488USD, accounted for 10.6% in total export value of fruit and vegetable Tinned-frozen fruit and vegetables: 18,944,210 USD, accounted for 75% Dry-salt fruitand vegetables: 3,637,288 USD, accounted for 14.4%

Tables 2.3 Total export value 2009- 2011