Solutions to improve the import activities of van bao industrial company

This shows that the role of importing goods is very important for the development of a country, which is reflected in thefollowing basic points: First, thanks to the import activity, dom

Foreign trade activities contribute significantly to the growth of theeconomy, Vietnam over the past years However, our foreign minister'sbalance has so far been largely unbalanced, having to regularly trade deficitmeans that import value is greater than export value This is not necessarily abad influence on the economy For our country in the early stages of openingthe economy, the economy gradually shifted from subsidized mechanisms to amarket economy of inadequate facilities, poverty, backward science andtechnology Import is a solution to overcome these shortcomings, creating abreakthrough that will gradually lead the country's manufacturing industry tocatch 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 isnot really effective as desired There are many problems stemming fromenterprises and the state that need to be solved in time

Realizing the role of import activities, during my internship at Van BaoIndustrial Company , I chose the topic: "Solutions to improve the importactivities of Van Bao Industrial Company " with knowledge The knowledgeand understanding are still limited, but I would also like to give my opinion inthe hope that the company's import activities will be improved, operateeffectively and achieve its goals

2 The role of import activities

In order to successfully implement the policy of globalizationintegration , on the one hand, it is necessary to know how to bring into fullplay the domestic potential and advantages, to take advantage of all externalresources to improve the competitiveness of the Vietnamese enterprises andcommodity economy Men, on the other hand it is also very important is thecompletion of measures to manage the import of goods to meet therequirements of domestic WTO This shows that the role of importing goods

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

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

Secondly, imports will break the domestic monopoly situation, mostimported goods are often highly competitive in terms of product quality,designs, prices so domestic manufacturers want to survive Therefore, it isnecessary to seek all measures to improve product quality, lower prices toincrease competitiveness with imported goods, from which the monopolystatus is eliminated and the main beneficiary is the domestic consumer

Imports also serve as a bridge between the domestic economy and the worldeconomy, especially in Vietnam during the period of international economic

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 andtechnology and advanced technology of industrial countries in the world.Because imports often occur in underdeveloped countries with low levels ofscience and technology, inability to produce goods with a high content of graymatter, or because of an obsolete level of machinery and equipment shouldproduce at a high cost Before that situation, they had to import Through theimport of modern machinery and equipment, technical innovations aretransferred between countries so that the least developed countries can keep

up with the advanced technology level in the world, contributing to theoperation domestic production development

Fourthly, import boosts export activities Through the import of modernmachinery 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 marketbut also affecting the export market Especially for underdeveloped countrieswith 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, economicentities must always innovate and improve themselves to stand firm in themarket In the process of competition, weak entities will be excluded from thegame, 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'sexperiences, facilitating the process of division of labor and internationaleconomic cooperation at the same time take advantage of each nation'scomparative advantage Since each country has a comparative advantage, itsimport operation facilitates both parties on the basis of mutually beneficialcooperation

Seventh, importing it meets the increasing needs of domesticconsumers, contributing to the process of domestic production andconsumption occurs regularly and stably because there is not always thedomestic market Also provide the inputs that meet the domestic productiongoing on For example, Vietnam has to import billet, so there will be nostagnant imports On the other hand, domestic demand is increasing soimports will overcome the imbalance between supply and demand in thecountry

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

cooperation has been increasingly expanded, contributing to increasing laborproductivity, the level of labor division is increasing, people's lives areimproved materially and spiritually This is evident in the poor anddeveloping countries typically Vietnam Nam We have actively carried outimport activities to serve the process of industrialization and modernization ofthe country; promoting agricultural mechanization, promoting irrigation,biochemistry, serving agro-forestry and aquatic product processing industry inorder to improve export quality Promote the establishment of the electronicassembly 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 businessconditions 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 someforms of imports, but now Vietnam is often applied

3.1 Direct import

Direct import is an independent activity of the company Whenconducting this import method, enterprises must research on domestic andforeign markets by themselves, calculate costs and ensure profitable importbusiness Comply with national and international law policies In the form ofdirect import between two parties (the importer and the exporter), the axis ofdirect 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 marketresearch, bear all transaction costs, delivery, warehousing, advertising costs,consumption costs of goods and value added tax

- Importing enterprises are directly allowed to calculate import quotasand 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 conducttransactions and negotiate with the importing partner to carry

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

The consignee does not have to invest capital, does not have to applyfor a quota, does not have to research this job market The authorized partyonly 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 themandator to lodge a complaint or claim against a foreign party Foreigncooperation 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 thetotal contract value and must pay income tax on this revenue when importingthe entrusted enterprise Only import-export turnover, not the turnover andpayment of value added tax

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

3.3 Parallel import

Parallel import refers to the commercial activity associated with thewelding of goods containing the protected industrial property object , theparallel import is understood as an importer without any connection with theowner of the Industrial Property subject , conducting the act of importing acertain goods containing the above mentioned Industrial Property objectprovided by a licensed distributor or owner of the Industrial Property object Thus, a kind of goods containing objects of Industrial Property will be at leasttwo different houses offered on a market, and only one of the distributors areagreeing that the owners object Public Property now on the implementation ofcommercial 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 Propertyobject has not been able to fully exploit his / her rights to the

Industrial Property subject But parallel imports offer a very practical benefit

to the market: Encouraging freedom of competition, so allowing parallelimports or not will lead to the possibility of a force to choose betweenprotecting the original principles of freedom of competition and protection ofIndustrial Property rights This is an array of modern trade, facing thisproblem, each country has its own opinion In general, parallel imports areflexibly addressed in different countries

3.4 Import convection

Convection import is a mode of goods exchange transaction, in whichimport 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 interms 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 mustuniformly stipulate the use of a single currency as a common par value for theexchange process

3.5 Import re-export

Re-import is the purchase of goods from abroad, but the purpose is notfor domestic consumption but for export to a third country to collect a largeramount of foreign currency This item is unprocessed in its own country andexported directly to a third country Thus, re-export activities always attractthree countries: exporting countries, re-exporting countries and importingcountries

Features of re-export activities:

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

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

- In terms of payment, many re-export contracts stipulate the use of aletter of credit on the back Doing business in this form requires the sensitivity ofthe market situation and the price, accuracy and coherence in the contract of sale

3.6 Import processing

Processing import means an import in which the importing partyimports raw materials or semi-finished products of the processing party forprocessing out finished products, re-delivers them to the processing party andreceives remuneration.

Features of this form:

- Importing activities associated with production activities

- mutually beneficial: outsourcing parties help them take advantage ofcheap raw materials and processing from the processing country For theprocessing party to help create jobs in the country, receive new technologicalequipment

- 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 isthe 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 asthe capacity of each business and each country Facing that situation, everycountry and every international organization has given its opinion Becausethis is a sensitive issue regarding each country's trade, not all countries have aclear, consistent view In general, import problems are handled flexibly indifferent 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 tobusiness performance In general, we can divide the group influencing importactivities as subjective and objective groups

4.1 Subjective factors

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

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

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

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 highlyqualified professional disciplines, with extensive experience in import andexport activities helps businesses avoid many shortcomings in the process ofconducting import procedures, anticipating the situation beforehand changes

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

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

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

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

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 theenterprise to find a way to adapt or adhere to rules and regulations Basicobjective factors include the following:

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

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

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

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

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

be disoriented, such as quantity, time, price Imported goods are not welloperated, can make the domestic market fluctuate and make it difficult forbusiness

* Competitive rivalry

Enterprises conducting business face many domestic and foreigncompetitors Along with the growth of domestic production, the gap betweenenterprises is narrowing, many products and sectors of high quality are able tomeet domestic consumption demand and domestic goods have the ability toreplace imported goods Facing this situation, enterprises must consider thegrowth of domestic production in order to consider whether the ability toimport such categories of goods really competes with domestic goods Not allimported goods can compete with domestic products All of the above factorsreflect the country's growing internal economic resources

* Economic environment

The previous economic environment is reflected in the generaleconomic growth in terms of economic structure and regional demand Thatsituation creates market attractiveness for different markets Actual imports offirms may be affected by many domestic and international factors When theeconomy is in a crisis period, rising inflation and tax rates will forcebusinesses to be hesitant when making import decisions because it will affectthe output will increase the price of products negatively affectingcompetitiveness 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 thataffect many aspects of the input resources needed for business and productionactivists The shortage of raw materials, the increase in energy costs isbecoming more serious, requiring manufacturers to focus on using alternativesources of raw materials Industrial wastes, solid wastes and non-recycledwastes are a difficult problem for production and business activities Alongwith strict regulations on environmental protection requires businesses to seekinput from other countries that affect the import activities of businesses

* Technical and technological environment

The technical and technological environment includes factors thatinfluence new technologies, product creation and market opportunities, it isthe 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 onproduction costs, labor productivity, affecting specific measures of tradeactivities in general and imports in particular Entrepreneurs must understandand understand the nature of changes in the technical technology environmentand the many different ways each new technology can serve the company'sproduction 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 thisactivity It is the basis for the enterprises to conduct production and business;providing capital for businesses, ensuring the solvency for businesses to takeplace smoothly and quickly, creating favorable conditions for businesses toseize business opportunities in addition with a strong enough financialbanking system Increase the reputation of the business with the customers

II CONTENTS OF IMPORT

The market concept can be viewed from many different angles, wordswith different definitions From the standpoint of economics, the market is theaggregate of supply and demand for a given commodity in a specific time andspace According to this definition, the basic assumption is that the totalsupply and demand for a commodity in the market move according to its ownrules and regulate the market through the law of supply and demand If fromthe perspective of managing a business, the market concept must be close tothe economic actors participating in the market such as buyers, sellers,distributors With their specific behaviors So comparing the above twoconcepts, the above concept is theoretical and the concept from theperspective of the business does not always follow the rigid rule based on thetheory because the behavior of the buyer and seller impact psychologicalfactors 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'sinternational market "the enterprise's international market is a collection ofpotential foreign customers of that enterprise" According to this concept, thequantity and structure of demand of foreign customers for the products ofenterprises as well as the fluctuation of these factors over space and time are

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

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

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

1.1 Research the domestic market

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

* Research market needs

Enterprises must identify consumer demand for domestic goods, theexpected purchase of the customer, the customer needs to study certaincharacteristics and assess how specific to each bit of each chemical As long

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

* Research the structure of imported goods

The study of import commodity structure is essential for enterprisesconducting import business When studying this issue, it is necessary toconsider the current situation of domestic goods in terms of: the situation ofusing such goods, the number of foreign suppliers, the situation of domesticproduction, policies that the state applies to those imported goods to selectthe business sector that is most likely to attract customers

* Research prices

Study the factors affecting the price of imported goods The verysensitive pricing issue directly affects the profitability of the business, whichinfluences the purchasing decision of customers The pricing step isinfluenced by many factors including internal and external factors, becoming

an effective tool for the goal of trading imported goods to effectively serve thebusiness 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

- 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 tohave a strategy to promptly respond to those changes, knowing which market theyare trading in?

1.2 Researching foreign markets

The foreign market is much more complicated to the domestic marketdue to the difference in the economic - political - cultural - social - legalsystem and customs This requires market research people to have a deepunderstanding of the above factors and it is important to be professional.Typically, when researching foreign markets, the focus is on the followingkey issues:

* Research the availability of foreign markets: These are importantcriteria Accommodation n g affect the stability of the enterprise business inthe 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 astable supply to serve the smooth and uninterrupted production and businessprocess Another important aspect to be studied is the variation in time of thesuppliers 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 mustconduct research on the above factors Because each country has its own laws,cultural and political culture system applied to exported goods in order toencourage or restrict such export goods that affect the transaction relationsbetween the parties

Cultural differences will affect the way transactions are conducted such

as some countries in cash payment transactions, some countries paying bycard This will interfere with the operation Import-export and businessesneed 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 institutionscan entail all other changes such as the application of new trade policies ornew tax rates

- Monetary regulation: The regulations on foreign exchangemanagement will cause difficulties for import-export activities in particular andcommercial activities in general.

- The effectiveness of the government apparatus: The extent to whichthe government of the exporting country operates an effective system to assistbusinesses to conduct exports

- Mandatory and managerial legal regulations need to be scrutinizedsuch as: Prohibition or control of certain goods and services, prohibition of certainmodes 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 businessesimport goods at high prices means the cost will increase, the profits willdecrease At that time, if the enterprise wants to be profitable, it must raise theselling price, which reduces the competitiveness

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

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

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

- In different geographical conditions, different payment currencies anddifferent payment methods all affect the price of goods Especially theweakening 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 ofgoods to your country, and they will provide support to domestic enterprises.When the government intervenes in the currency market, the competition situationchanges on the other hand, the import and export tariff will also vary from onecountry 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 andservices there

2 Making a business plan

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

The work to be done in this stage is:

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

After eliminating completely unprofitable supply markets, theremaining suppliers are generally evaluated according to the followingaspects:

- Political environment

- Economic environment - cultural environment

- Competitive environment

* Analyze the ability of the business

Standing in front of competitors, enterprises need to set up a relativelyassessment of their strengths and weaknesses On the one hand, what businesshas the superior capability, the current or potential status of the business, theresources that the enterprise and its competitors can mobilize from themselves

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 meetthe 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 customerswith very different buying needs and financial capabilities, so businesses need

to identify the market segment to consume products effectively You shouldpay 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,

- 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 theimporting 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 andinternational market at the present time or the price can refer to the competitor'simport

- 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 profitdue 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 businessperformance, find out the causes affecting the business situation of theenterprise 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 transactionmethod to suit your own capabilities In foreign trade activities, enterprisesoften apply the following transaction methods:

* Regular transactions: That is the most common, most common sellingmethods 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 betweenthe buyer and the seller must be through a third party called an intermediaryconsisting of an agent and a broker

* Convection trading: A method of trading goods, in which exports areclosely 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 heldpublicly at a certain place, where after previewing the goods, those who come tobuy and compete the price and finally the goods will be sold to someone who paysthe highest price

In international trade, auctioned items are often difficult to standardize

- International bidding: is a special transaction method in which thebuyer (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 buyfrom the cheapest quote and the credit terms are more in line with the conditionsstated by the buyer.

* Transactions at the Goods Exchange

The Commodity Exchange is a special market where, through brokersappointed by the Goods Exchange, people buy large quantities of goods of asimilar 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 fixedplace for a certain period of time, where the seller displays his goods andcontacts 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 issueinvolving the parties with both rights and obligations to reach an agreementamong the parties Enterprises may choose one of the following forms ofnegotiation:

- Negotiate via mail

+ Prepare the purpose

+ Divide the goals into parts goals

+ Select location to negotiate, time

+ Expected negotiation program +

Offer different scenarios

+ Learn the strengths and weaknesses of the opponent

+ Select members of the negotiating delegation

- 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

+ 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 theobjectives of the negotiations These proposals often have different conditionsand the parties negotiate with each other in points to reach an agreement Thecontent of this phase is conditional upon The suggestions are related to eachother

- Agreement period

At this stage, if the parties agree on issues, they will sign a contract.Ifthey cannot reach an agreement, the parties will take a rest and entertainthemselves 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 partyrequesting the signing must have an application for signing the contract Thecontent of the application does not violate the prohibitions of law

Acceptance of contract signing requirements: this stage requires theparties to pay attention to some regulations of the operating systems of thecountries The terms of the contract need to be clear as the language used inthe 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 partiesmust be obliged to perform the contract strictly according to the terms of thecontract From the perspective of an enterprise importer, the following stepsmust be taken:

* Please import license

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 toperform that contract Each license is only granted to one goods owner whoimports a certain number of goods The application must be forwarded to thelicensing office of the Ministry of Trade.

* Carrying out the procedure for requesting the bank to open L / C Thisbehavior must be done in accordance with the contract specified and before thedelivery time is about 15 days to 20 days, ensuring L / C to the seller in time andgiving 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 themarket situation and expertise in charter conditions Therefore, companiesoften entrust the chartering of charter ships to a shipping company If thechartering obligation is on the importing party, it must be based on its actualcapacity 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 ofshipping In order to enter into an insurance contract, it is necessary tounderstand 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

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

* Inspection of goods:

Receiving the goods is the first step and acknowledging the goods canonly occur after the inspection of goods Legally accepting goods does notmean they have been acknowledged Therefore it is the responsibility of thebuyer to verify that the product is in compliance with the contract Theinspection of goods must be inspected promptly and in detail as soon as theship arrives and unloads the ship

* Payment for imported goods

The buyer must pay the goods in full in accordance with the terms ofthe contract, such as the currency of payment, the amount of money to bepaid, the mode of payment place The payment may be made beforereceiving the goods but this is also limited, depending on the content of thepayment terms specified in the contract

* Complain

When performing the import contract, if the import goods ownerdiscovers that the imported goods have been damaged, broken, deficient orlost, make a complaint immediately to avoid missing the time limit forcomplaint

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

of the complaint must attach evidence of loss, invoice, sea waybill, insurancepolicy

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 torestrain 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

are mainly imported from abroad and suffered long- term contracts In the context of a fluctuating world economy, and the exchange rate is notstable, improving import efficiency becomes more urgent In which, completing the import process is a prerequisite to improve the

efficiency of import activities

2.1 General introduction

Van Bao Industries Co., Ltd was first founded in 2006 from the

restructuring of KCC Vietnam Co., Ltd (established in 1996) The

company's traditional focus was on the distribution of construction and industrial materials, machinery and equipment for infrastructure In

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 thecompany’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

2.2 Objectives of Van Bao Industries Co., Ltd

● 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

2.3 Structure of organization and functions of

departments in the company:

- Project and construction department

● 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 andnegotiating 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

A Business results from 2016 to 2019

Table 2.1 Business results of the company from 2017 to 2019

(Unit:

VND)