Developing international services of vietnam maritime agency joint stock company branch hai phong ORIMAS branch

ORIMAS – branch of Vietnam Shipping Agency Joint Stock Company wasestablished to meet the demand of maritime forwarding and services.. ORIMAS hasbeen engaged in freight forwarding for ov

1 The urgency of the subject.

In the period of global integration, free trade facilitates domestic and foreignenterprises to be free to produce and trade in the framework of law Maritimeservices are growing strongly, along with the development of multilateral tradeamong countries around the world, which is a bridge between buyers and sellers,creating specialization in the global supply chain

ORIMAS – branch of Vietnam Shipping Agency Joint Stock Company wasestablished to meet the demand of maritime forwarding and services ORIMAS hasbeen engaged in freight forwarding for over 40 years, making an importantcontribution to the development of the corporation in particular and Vietnam'smaritime industry in general with international services such as airfreight agency,seafreight agency (LCL & FCL), shipping agent, door to door transportation,packaging service, warehousing and distribution services However, internationalservices are still quite monotonous, not yet fully exploit logistics, and have notreally competed with private enterprises and foreign enterprises with reputation inthe world for many years

The result of integration is a series of foreign logistics enterprises andshipping agents opening together with a wide system of offices, therefore, ORIMAShas lost the advantage of freight forwading services, reduce competitiveness,gradually lose the market shares as well as customers

From the above reality together with the accumulation in the learning andworking process, the author decided to choose the topic: “Developing internationalservices of Vietnam Maritime Agency Joint Stock Company Branch -Hai Phong ORIMAS Branch

2 Goals and missions

2.1 Goals

The graduation paper examines the theoretical and practical issues about thedevelopment of ORIMAS international services, thereby proposing orientations,solutions and recommendations to develop ORIMAS's services by 2024

3 Research subject and scope 3.1 Research subject

The international services of ORIMAS

3.2 Research scope

- Content: International services of ORIMAS

- Space: Branch of Dai Hai Hang Hai Viet Nam Joint Stock Company - ORIMAS Branch.

- Duration: The period from 2017-2019 and orientation to 2025

4 Research Methodology

To implement the paper, the author mainly uses the following researchanalysis methods: collecting data, data from which statistics, synthesis,comparison, comparison Based on the data and analysis results, this papertakes into account some directions for developing international services inthe company

5 Structure of the paper

Chapter 1: Introduction of Vietnam Maritime Agency Joint Stock Company and Hai Phong ORIMAS Branch.

iii

Chapter 2: Current situation of the development of international services of branch

of Vietnam Maritime agency joint stock company – ORIMAS Hai Phong

Chapter 3: Orientations and solutions for developing international services of Branch of Vietnam Maritine Agency Joint Stock company- ORIMAS Hai Phong

CHAPTER 1: INTRODUCTION OF VIETNAM MARITIME AGENCY JOINT STOCK COMPANY AND HAI PHONG ORIMAS BRANCH

1.1 Overview of the Vietnam Maritime Agency Joint Stock Company

1.1.1 General information about the company

- Trading name:VIETNAM MARINE AGENCY JOINT STOCK COMPANY

- English name: VIETNAM OCEAN SHIPPING AGENCY CORPORATION

- Business Registration Certificate No.: 0300437898

- Charter capital: 128.149.940.000 dong

- Invested capital of the owner: 128.149.940.000 dong

- Address: Petroland Tower 5th Floor, Số 12 Tân Trào St., Tân Phú

- Website: http://www.vosa.com.vn -Stock code: VSA

1.1.2 Summary of the Company's formation and development

On March 13, 1957, the Ministry of Transport and the Ministry of Post andTelecommunications officially issued Decree No 50-ND establishing the VietnamShipping Agency (Vietnam Maritime Agency) at the present time , its trade name isVietnam Ocean Shipping Agency, abbreviated as VOSA) At that time, theVietnamese shipping agent with the head office located in Hai Phong started its firststeps in the maritime service industry On August 8, 1989, Vietnam ShippingAgency was renamed Vietnam Shipping Agency under Decision No 1436 QD /TCCB-LD of the Ministry of Transport On 12/5/1993 Vietnam Maritime Agencywas re-established under Decision No 885 / QD / TCTB-LD of the Ministry ofTransport, an independent accounting member enterprise of Vietnam MaritimeCorporation, operating under the Business Registration Certificate No 102726, firstregistered on June 1, 1995 and registered for the 16th change on September 16,

2005 Right from the first days of establishment, VOSA has strongly developed inthe North with three

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branches located in Hon Gai, Cam Pha and Hai Phong.

Currently VOSA has 14 agent branches located at important ports andairports such as: Vosa Hanoi, Vosa Quang Ninh, Vosa Hai Phong, North Freight,Orimas, Vosa Ben Thuy, Vosa Da Nang, Vosa Quy Nhon, Vosa Nha Trang, VosaSaigon, Samtra, Vitamas, Vosa Vung Tau, Vosa Can Tho With the relationship andscope of work permitted by the State and in order to meet the increasing demands ofcustomers along with being able to stand firm in an increasingly competitive marketeconomy, VOSA Being a shipping agent is also involved in certain goods tradingand brokerage for all types of goods Vietnam Maritime Agency through 60 years ofconstruction and development, with a main office in Ho Chi Minh City and 14branches spread throughout the country, has become a reliable partner of shipowners as well as domestic and foreign customers

1.2 Introduction of Orient Maritime Service - ORIMAS Hai Phong

1.2.1 General information

ORIENT MARITIME SERVICE -ORIMAS is located at 54, Le Loi Street,Ngo Quyen District, Hai Phong On March 13, 1975, Vietalco HaiPhong (currentlyOrimas) was established and is one of 14 branches of VOSA CORPORATION.ORIMAS is also member of BIMCO, FIATA, VIFFAS, VISABA, VCCI

With a team of diligent, experienced and well-trained employees, ORIMAS

is proud to meet the high demands of customers in Vietnam and around the world toserve in the areas of Freight Agents , Freight forwarding, Tally As a result, thecompany has been appointed as shipping agent, freight forwarder, and cargomonitor by Sinotrans Container line, East Harbor Navigation Co., ltd

1.2.2 Organization

Director

Deputy director

Source: The administration dept

1.2.3 Functions and duties of the company

- Acting as an agent for all types of ships

- Changing crew members, medical examination and repatriation

+Maritime brokerage:

- Find goods for ships, charter ships, maritime brokers

- Agents air transport, sea, retail

- Customs clearance, transporting construction goods

- Package services, inland transport and other services

+ Commerce :

- Direct import, export, commission and temporary import for export

re Rent bonded warehouses, crossre border goods, freight

+ Tally :

- Types of goods at ports, at construction sites, warehouses and yards

- Withdrawing goods or packing in containers, forwarding of all kinds

- Containers from ships to ports and vice versa

1.3 Characteristic of ORIMAS in developing international freight forwarding services.

1.3.1 The ability to provide international freight forwarding services legally

ORIMAS is one of the branches of Vosa Corporation established underVietnamese law so it has the legal conditions set out in chapter one to provideinternational forwarding services, maritime agents: agents shipping lines, agents ofinternational freight forwarding, customs agents, warehousing business, portoperation, supporting customs clearance and applying for licenses for import andexport goods, commercial business

ORIMAS was established in accordance with the law of Vietnam

Agency Department in charge of exploiting agency and legal services ofVosa Corporation

Agents are experienced agents, requiring at least 02 (two) years for newrecruits, maritime, transportation, commerce or economics

Signed an agent contract for each shipment, each specific customer or within

a certain period of time

1.3.2 Human Resources

Human resources or labor are always an important resource in creating

competitiveness for businesses, determining the existence and long-termdevelopment of each enterprise, based on the purpose and development strategy ofthe enterprise to build for itself Company regulation which specifies the labor 4

regime, wages, rights and obligations of the company and its employees in

accordance with the law

2018 an increase of 1 employee compared to 2017 The staff fluctuations are mainly

in the transport agency and sales offices With the goal of business development, theCompany always has policies to recruit and attract sales staff, every year the

business staff of the business increase Transport agency room in 2018 decreasedcompared to 2017 due to ORIMAS no longer undertook issue orders to NYKVietnam when NYK Vietnam opened a branch in Hanoi In 2019, to ensure to serve

6 new sales staff, the shipping agency department has recruited 4 new employees

The table above shows that the number of sales staff accounts for themajority of ORIMAS's workforce, the sales staff is the direct division, this is thedirect labor division responsible for business, bringing profits for Company

- Labor qualifications

With the characteristic of intellectual and international labor, companyworkers are knowledge workers from intermediate level upwards, there is nosimple manual labor, in which workers have a high degree The largest proportion

is workers with university degree at 65,625% The company regularly organizesand creates favorable conditions for employees to study, train and improve theirqualifications and skills To meet the needs of the work, often in contact withinternational factors, documents International business such as contracts,commercial invoices, goods packing vouchers, letters of mail, internationalconsignments bill, etc, the company put labors with foreign language fluency onpriority for recruitment.The company also provide extra language classes onweekdays to improve foreign language skills, deal with customers, agents, shippinglines at home and abroad

The age of 31-40 accounts for the largest proportion of 53,125%, followed

by the age group of 18-30 accounting for 31.25% It can be said that ORIMASowns a young, dynamic and enthusiastic staff, which is a favorable condition tocatch and solve work quickly and smoothly With the current policy of staffrejuvenation, selective recruitment, ORIMAS has built up its strengths in foreignlanguage, enthusiasm, ability to react, respond quickly and promptly to difficultiesand troubles in the process of creating the trust and confidence of customers, thoughnot really perfect

However, at a young age, most employees have not accumulated long-termexperience in solving all difficulties and unexpected problems arising in the course

of working Employees holding key positions in the company are often aged 41-50who have been devoted to the company since its establishment or recruited frombusinesses in the same industry with long-term management and managementexperience Since then, business strategy and corporate governance have beendeveloped

Regardless of the age, ORIMAS employees with the motto of providing thebest service and creating the most satisfaction for customers, always trying toimprove more and more to be able to serve all fastidious customers.

1.3.3 Facilities

As one of the branches of SOEs (State-owned Enterprises), enjoying stateincentives and sponsorship In 2019, ORIMAS and other subsidiaries of VOSACORPORATION have been equitized After the equitization process, ORIMAS hascertain advantages and difficulties such as: ORIMAS is more proactive inmobilizing and using business capital to improve the quality and expand its businessactivities according to its capabilities According to the 2018 financial report, totalassets reached nearly 20 billion; in 2019 increased to 25 billion VND ORIMAS has

a representative office at room 709, 7th floor of Ocean Park building, No 1 DaoDuy Anh, Dong Da, in the center of Hanoi city and is also home to many offices ofother BRANCHES, shipping lines, companies operating in the same maritimeservice industry create favorable conditions for dealing with partners; easy toapproach, capture and assess market fluctuations ORIMAS representative officeprovides maritime services, ICD services, so the company's facilities are mainly 5computers that are always connected 24/7 as well as software systems foraccounting and business activities: updating cargo information, train schedules,flights; customer management, issuing orders, bill, debit transactions, updateprices, process goods with customers, shipping lines, agents in the country andinternationally

1.3.4 Experience, brand reputation of the business

Experience, prestige and brand, reputation of the business plays an important rolefor every business that needs to be fully exploited and must be properly invested.The VOSA brand has been built for nearly 60 years up to date and will beconstantly asserted in the future It is an advantage, creating a great competitivepower in maritime activities in Vietnam by VOSA CORPORATION VOSA brandvalue is assessed at 7 billion VND in 2014 and about 10 billion VND in 2019

when it comes to shipping, shipping agents, forwarding agents always recognizeVOSA with enthusiastic, experienced staff ORIMAS needs to exploit thisadvantage from the parent company to promote and develop business Factorscreated by an individual or a small group of individuals may fade away under theinfluence of those individuals and small groups of individuals but with respect to thebrand, honor and reputation of the company cannot be muddled In the face offierce competition today, in order to maintain and promote the competitiveadvantage from VOSA, ORIMAS brand as well as branches, subsidiaries andassociated companies, it is necessary to take measures, short and long-termstrategies to foster and enhance the brand value of VOSA.

1.3.5 Service delivery network

ORIMAS is a branch of Vosa Corporation with a system of 14 subsidiaries spreadacross the north and south in the cities of seaports, border gates and the city ofbustling foreign trade activities Therefore, ORIMAS can provide services to allcustomers in need of freight forwarding services anywhere in Vietnam to othercountries and vice versa Vosa has a network of foreign agents everywhere dealingwith Vietnam, so it can support the logistics services abroad, the service "door toport" and "door to door" with competitive prices andgood quality As an agent ofshipping companies such as NYK, Sinotrans, Nam Sung and systems of affiliatesand reputable companies in the industry such as: Yusen logistics, China shippingline, Thai Airline, Vinaline and many other domestic transport companies

1.4 Internship diary

1.4.1 Time and location

- Time: From 3-2-2020 to 15-3-2020

- Location: ORIMAS representative office in Hanoi

Address: Room 709, Ocean Park Building, No 1 Dao Duy Anh, Dong Da, Hanoi

1.4.2 Tasks

- During the internship at the company, I worked at the position of a voucher officer

of the shipping agency of SINOTRANS and specific work is done as follows:

1 Send train schedules to guests Usually the train takes place every

Thursday

2 Receive booking from customers

3 Contact OPS to get an order for an empty container

4 Fax the order to supply containers to customers

5 Monitoring the loading and unloading on time according to container orders

6 Receive SI (Shipping Information) and VGM (Verified Gross Mass) for

shipment information Then prepare the contract, invoice, invoice, packing list, DO, C / O

7 Make BL or Surrendered Bill at the request of the guest and send the draft

to the customer for checking and approval Print the original BL for guests

8 After the train arrives, send a notice of payment for guests to pay

9 Saving the file: HBL or Surrendered bill, Invoice, packing list, C/O, contract

1.4.3 Lessons

After a period of 2 months of internship in the shipping room ofSINOTRANS shipping agents, I have a fairly good understanding of the specificcharacteristics of the work of documentary personnel at a shipping line facing.Details are as follows:

- Documentation staff have to handle a lot of work because the XNL is the job of handling transport and situations

- Absolutely focused as well as logical thinking at work because eachsituation will take place differently requiring employees to understand the nature ofwork and be flexible in handling unexpected situations when they arise

- Need to be careful and display good attitude at work

- Time management is vital as work pressure is very high

CHAPTER 2: CURRENT SITUATION OF THE DEVELOPMENT OF INTERNATIONAL SERVICES OF BRANCH OF VIETNAM MARITIME AGENCY JOINT STOCK COMPANY - ORIMAS HAI PHONG

2.1 General issues about international services of shipping companies

2.1.1 Defination of freight forwarding agent and international service development

a Defination of freight forwarding agent

According to Article 233 of Vietnam's Commercial Law 2005, “freightforwarding or logistics service is a commercial activity whereby traders organizeone or more jobs including receiving, transporting, storing goods warehousing,storage, customs clearance, other paperwork, customer advice, packaging, codesigning, delivery or other services related to the goods as agreed with customers toenjoy remuneration ” Organizations dealing in freight forwarding services orlogistics services are considered FREIGHT FORWARDING agents with thecommon transaction name is Forwarder, Frieght forwarder

b Defination of international service development

To understand what international service development is, we first need tounderstand it:

Services are one of the social products to meet a huge array of human needs

in life, including all the support that customers expect in line with market prices.According to the 2000 dictionary of economic publishing house, services are

an economic activity that creates intangible products (which are products andservices that ensure the image of products and the trust of the following enterprises).sales and buyer satisfaction), directly or indirectly contributing to the satisfaction ofhuman needs such as consulting services, insurance (Dictionary ofeconomic,2000)

According to Marx, "Services are the offspring of a commodity-producingeconomy, when the commodity economy is thriving, requiring a smooth,transparent, continuous flow to meet daily needs The higher the need of humanbeing, the more the service develops "

Services are jobs that directly serve the needs of a large number of people, in

an organized and paid manner International services are all service activities related

to international and international nature International service development is abusiness form of expanding services internationally to improve the quality ofservices provided to meet the needs of the market and improve the competitivenessand business efficiency of enterprises

2.1.2 The role of international service

International service development plays an extremely important role,determining the survival of enterprises, it is reflected in a number of specific roles:

- Ensuring the existence and development of enterprises It is also expressed

by the presence of services provided or the name of the enterprise businesses on themarket Service development is always a prerequisite factor determining the existenceand sustainable development of enterprises The fixed resources invested initially will

be amortized during the manufacturing process, reproducing over a planned longperiod Therefore, improving business efficiency requires rational and efficient use offixed resources to pursue the target in today's extremely competitive market

-Products and services development, thereby attracting and expanding,diversifying customers As an indispensable requirement at the moment of rapidchange of customers in branches, we have created extremely useful alternativeproducts and services with increasingly higher and stricter requirements in bothcontent and form Not only that, product diversification also helps businesses meetmore customer sets from which to expand, diversify customers, increase sales andprofits

- Distributing risks, improving competitiveness and position of enterprises.Business development, service development in the direction of developing existingproducts and services, new products and services, diversifying business products andservices not only serve development goals, maximize profits but it is also an

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optimal measure to disperse and minimize risks for businesses Risk will be sharedfor each type of service, each customer and sets of customers It is the fiercecompetition and the goal of survival and development that promote businesses toexplore, invest in researching and applying progress to make a difference, diversity

of types, service quality, trade development brand and reputation in domestic andforeign markets

- Profit maximization is a long-term and key goal of every business.Therefore, throughout the process of existence and development, businesses mustalways uphold the most effective and most economical service development strategy

to provide the best products and services to the market while ensuring profitmaximization Therefore, developing services is an objective requirement forbusinesses to realize the goal of maximizing profits

- Promote cooperation, international integration In order to survive anddevelop in the trend of integration, globalization, and cooperation happening sostrongly, enterprises cannot help but be immersed in that trend Not only areenterprises competing with domestic competitors, but they are also facing strongcompetition on services of foreign competitors, foreign investors in the host countries.For their survival and development, businesses must explore, learn, research anddevelop products that are competitive in quality, type, price research and captureinformation about foreign competitors, international law, relevant internationalpractices from which appreciate the competitor's capacity, maximize the advantageand at the same time provide products and services of businesses to internationalfriends

2.1.3 The content of international services of marine agency companies

a Agency service

The customers that hired dealers are mainly shipping companies, airlines, andfreight forwarding firms

After signing the dealer contract, The freight forwarding agent will be

authorized on behalf of the owner to perform the designated services and then

charge the agent fees, agent commissions, or share a portion of the profit with thetenant agent depending on the signed agreement The tenant of the agent may directthe service and pay the fee according to the agreement of each trader in case ofcontract of signing agent for the nature of the frame contract The close agent doesnot have the right to self-determination on the price of the customer directly, thewhole is appointed or agreed with the agent for these services Usually the dealerroom or transport agent will directly charge: transaction, supply, support service andcare, advise the customer.

Here are some of the international services that should be provided when theagency is a dealer for the owner:

*International Vessel Agency

- Supplying marine services for ships in port and offshore

- Loading and unloading of goods and containers; tally and control of cargo

- Ship support services at sea: loading and unloading of cacrgo, anchorage and ship support

- Resolving complaints related to a vessel as a dealer in your country

- Registrating, changing and applying visa to the crew and repatrior

- Supplying raw-fuel and food for ships

- Procedures for transit

*Foreign freight forwarder:

- Shipping agent services and aviation such as receiving orders, releasing bill, releasing delivery order or collecting agent fees as specified

- Service is customs clearance for cargo on board as specified

- Support goods project as assigned by the agent

- Package service includes of tally, packing, loading and unloading, customsclearance, delivery, authorization, inspection, warehouse leasing for import and exportgoods

- Inland transportation services as assigned by the dealer

- Consolidation services under the signed agreement, good separation

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and bonded warehouses storage andordinary warehouses for

specified goods

b Self-provided services

The self-supplying services are provided by the enterprise to non-intermediatecustomers, which allow enterprise to self-determine the pricing and service policyfor each type of customer and sets of customers It depends on the demand ofcustomers and the entreprise’ability to negotiate and sale or do the self-trading onimport and export trade goods

Normally the sales office of the enterprise’ freight forwarding agent is directly

in charge of caring and providing services to customers

Here are some of the major international services that ENTERPRISESdirectly supply:

* International Freight Logistics Agency

- International freight forwarding by sea and air routes

- Provide services for customs formalities, permit, inspection for import and export goods

- Package service includes tally, packing, loading and unloading, customs clearance, delivery,authorization, inspection and warehouse leasing for importand export goods

- Supplying domestic transportation services, for IMPORT AND

EXPORT goods and international transport by road

- Packaging for domestic and international personal baggage

- Goods transit procedures and immigration… c.Agent rental service

This is one of the international services that the freight forwarding enterprises

of developed countries, the leading countries of FREIGHT FORWARDINGactivities, active logistics activities such as the U.S., European countries, Japan,Singapore, Korea, China to focus on thriving to create cohesive and unifiedcooperation in international freight forwarding activities to save cost , improveoperational efficiency However, FREIGHT FORWARDING businesses inVietnam have not yet ultilized this kind of service, most of which have notdeveloped and exploited the agency system, leading to waste of resources

Normally, agents will be directly supported by the agent department or agentstaff of the freight forwarding agency The performance and growth of agents aremainly influenced by the number and demand of services So the sales departmenthas the main influence, deciding on the development of agents

Here are some key international services of freight forwarding

enterprises hire agents:

- Agents transport by sea, by air: issuing orders to collect agents for goods exported from host countries to foreign countries; provide prices, transport foreign goods to the host country

- Services of customs clearance, licensing, inspection for import and export goods

in foreign countries

- Service "door to port" or "door to door": package from packing, loading,

unloading, customs clearance, forwarding, applying for licenses, inspection,

warehouse leasing for imported and exported goods in foreign countries

- Inland transport services for overseas exports and imports, international transport

by road

- Packing, transporting personal luggage in foreign countries

- Services of leasing bonded warehouses and common warehouses in foreign countries

- Procedures for goods in transit, exit and entry abroad

2.1.4 Criteria for international service development of shipping companies

a Increasing the number of services

that businesses provide in each period The more diversified the products and

services, the greater the number, the scale and the quality assurance, the more

advantages the company develops In order to effectively diversify products and

services, enterprises need to have great resources, businesses must always invest,

apply modern research as well as research and forecast market demand to launch

b.The number of customers

Currently, in order to survive and develop in a fiercely competitive open

market economy, carriage service providers are still seeking ways to approach

customers Therefore, businesses must always appreciate customer management,

take care, create good relationships, not only build and implement strategies to

retain existing customers but must always seek, exploit, continue, approach more

new customers, turn them into potential customers, loyal customers of businesses in

all markets Here are some indicators to evaluate the increase of customers of

businesses

Absolute index:

Relative index:

Nunmber of customersincreasing in periodRateof customers

in the period

Number of customers in previousperiod

The above criteria assess the increase in customers that businesses support

In addition, businesses can research concentrately to develope in each group of

customes such as customers bring high profits; loyal customers

c Annual revenue and profit

The revenue of an enterprise is the source of income from the operating activities

of international service provision

Absolute revenue targets:

The total increase

=

period

Relative revenue targets:

The total increase

Growth rate ofrevenue

turnover during theperiod

in the period

Total revenue inthe previous periodProfit is one of the criteria for evaluating operational efficiency, determining the

development of enterprises Including profit before tax and profit after tax Profit

before tax is the difference between revenue and expenses (wages, input costs, cash,

depreciation of assets ) Profit after tax is the profit before tax after deduction of

payable taxes (CIT, VAT, SCT, Import-Export Tax if any).Chỉ tiêu Profit tuyệt

in the period

Total profit inprevious period

Developing revenue and profit is the revenue of the next year higher than the

previous year, the above indicators are positive and have a high positive value

Business development in the long term must aim for a high growth of profit after

tax, not merely increase in revenue or profit before tax

d Service quality

- Quality of service is one of the criteria for customers to choose a supplierand become a long-term partner Service quality is rated by customers based on theirsatisfaction before, during and after using the service This is reflected in the ability toaccess, exchange information and the ability to advise; update information tocustomers; ability to handle problems that occur quickly

- Prices and service charges: Prices and service charges are better and morecompetitive than the criteria to evaluate quite accurately the quality of services provided,this is also one of the criteria that customers interested goods, sometimes the top criteria

of interest for a number of customer groups in the face of economic difficulties and fiercecompetition today Therefore, to survive and develop, businesses must always ensure toprovide services with the best prices, best prices, the most competitive, the mostreasonable to customers

-Time of service provision: In the era of economic market, time and progressare always respected so with the same service provider and the same level of safety,the provider's service has time to perform Fast service will be preferred bycustomers, sometimes slightly higher prices do not matter when customers need toprioritize implementation progress

Customer care: this is also the criterion that businesses doing business offreight forwarding, international carriage aim to promote development in order toincrease competitiveness As one of the perfect competitive criteria for the industry,service prices become perfect and uniform Businesses who take care of customersbefore, during and after sales well will keep customers, sometimes it is also anadvantage in attracting and finding new customers because customers are alwaysinterested, shared and advised , supporting all matters of work and sometimespersonal life

In short, developing international services with better quality services to meet thediverse and increasingly needs of domestic and foreign customers Constantlyincrease the level of satisfaction about the services provided by the customer

create jobs and income for labor; pay state taxes; contributing to the stabledevelopment of localities, regions and countries creating a good image ofenterprises in particular and the country in general.

e Brand reputation of the business

Brand reputation can be understood as the reputation of businesses in themarket of freight forwarding, domestic and international logistics market Prestigeand brand are criteria for customers to choose and evaluate the development ofbusinesses The popularity of businesses in the market will create initial trust withcustomers, businesses need to prove their credibility by providing perfect servicesfrom every stage of a deal

2.1.5 Factors affecting international services of shipping companies

Any business activity is influenced by many factors, businesses must clearlyidentify their position in the market in order to give strategies, business plans, mostappropriate, effective.There are many factors affecting the development ofinternational services of carriage enterprises such as policies, developmentstrategies; cost, price; power; marketing activities, market research, economic andpolitical factors

a Internal factors:

a1. Development policies and strategies

Every year, each enterprise must consider and evaluate the business results togive development strategy policies, short-term and long-term implementationmethods for the company and each type of service, customer group, specific marketfor developing international services Policies and strategies for developinginternational services include: customer policies, policies on products and services,pricing strategies, foreign policies Customer policies include orientations on theobject, customer groups, customer care policy Policies on products and servicesinclude a variety of services provided; focus on developing deep potential services,creating high value; improve service quality to make a difference in the serviceprovided The pricing strategy determines a part of the customer's choice, including:

a competitive, flexible pricing strategy for each customer Foreign policy plays animportant role in creating and expanding service business relations to domestic andinternational markets.

a2. Resources of the business

- Tangible resources: including financial potentials and material facilities ofenterprises such as computer systems, technology software, means of transport,warehousing systems, means of handling and handling

Stable financial potential is an important factor determining the development

of enterprises, the choice of customers is becoming especially important in difficultand volatile times of the economy Enterprises will easily support customers in case

of necessity with strong financial potentials; ensure investment in modern facilities,human resources training, business expansion business development

The system of modern facilities ensures efficient service delivery to improvelabor productivity, creating competitiveness for businesses

- Intangible resources: deciding on long-term and stable developmentstrategies of enterprises, is a major factor in determining competitive advantages.Some intangible resources of SMEs can be mentioned as reputation, brand, image,business reputation, relationships, operational experience in the industry, know-how ofenterprises

- Human resource: is an important resource because it provides enterpriseswith skills, knowledge and ability to make decisions and realize development goals If

we consider the company to be a big chain, every employee can be considered as alink of that large chain, just a certain link is not good quality, damage will affect thewhole line because So labor is a factor to ensure the success of the business Currently,technology and technology are becoming more and more modern, improving,increasing productivity and labor efficiency, but these modern technologies are allcreated by humans to serve people Labor must always study and practice to improvetheir qualifications and skills to maximize the efficiency of modern machinery andtechnology

a3.The ability of the business

- Management ability: including activities and efficiency of financialmanagement, control of enterprise strategy, effectiveness in creating motivation andcoordination among departments in the enterprise, and management of resources.force, business administration to determine the right direction, effective for businesses

- Sales marketing ability: promotion and management, brand advertising,meeting the market trends that fluctuate day by day and hour to sell effectively Forexample, accessibility skills and customer care, diversify sales channels througheffective salespeople and sales associates

- The ability to exploit information: in order to survive and develop in adigitalized economy now requires businesses to carefully reaearch market information,laws, policies and customer information , information on goods,

science and technology, information about competitors, domestic and foreignsuccess stories… The effectiveness and quality in the ability to exploit informationwill support the decision, orientation, accurate and timely solutions that are

conditions for businesses to identify and build effective business strategies

- Ability in research, product design and service product development.Certain products or services always have a certain cycle or life cycle; New products,services, trends, and consumer tastes are the result of thorough research, design,testing and effective development investment, showing a long-term vision, the lifecycle will be long over and vice versa

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services, agents of carriage companies are aimed at serving customers ofinternational goods trading in international trade activities Therefore, economicfactors directly affect the business of providing fixed income services, in whicheconomic growth rate, interest rate, exchange rate and inflation rate are especiallyimportant factors Researching and assessing reality and understanding thefluctuation trend help businesses make the right business decisions, exploit the bestopportunities and minimize risks.

* Politics and law

As a system of policies, laws and political orientations of a country, it isexpressed and synthesized in the system of legal documents and internationaltreaties that allow businesses to operate within the framework The nation'spolitical-legal system plays an important role in regulating and orienting activities

of businesses and organizations; can encourage or inhibit A stable political systemalong with a uniform, unified, clear, equal and internationalized legal system willcreate special favorable conditions for business activities that are linked and co-operated and vice versa; Foreign investors, partners, and joint ventures will be veryafraid to work with businesses, countries with political instability or inconsistentlegal system, lack of uniformity and transparency

* Natural condition

Factors of natural resources, ecological environment and geographicallocation Fluctuations of natural factors significantly affect the production andbusiness of businesses operating in the fields related to crops, water, and directimpacts of weather such as the maritime industry, the transport enterprises.Especially, the issue of the position of an agent determines the efficiency ofshipping business, international aviation… The favorable geographical position is thebridge for trading and development to develop not only serving domestic but alsocan exploitation and development of international leasing services

* Technology

As a result of one of the world economic movement trends, it is the maindriving force of globalization and integration Modern technology is a prerequisite

to provide forwarder services with higher quality standards, faster time andcompetitive prices The easy access to good technology and modern technology willcreate favorable conditions for businesses to invest and develop business activities

In contrast, it will reduce the demand for transport infrastructure, leading to adecrease in business efficiency due to unfocused import and export goods andunsecured facilities; High transportation and operating costs

b2 Industry environment

* Competitors

Understanding your customers is not enough to succeed Enterprises need to

be knowledgeable about their current and potential competitors to make effectivebusiness strategies The more competitors, the more difficulties for business in term

of competition in price, service quality

Current competitors: mainly enterprises providing the same type of productsand services, in addition, businesses providing alternative services compete witheach other To come up with an effective competitive business strategy, businesses

need to carefully research the competitors, find out the current goals, strategies,strengths and weaknesses as well as how the opponent responds.

Potential competitors: According to Michael Porter (1980), potentialcompetitors are enterprises that do not currently join the industry but can join theindustry at any time, in order to gain market share Normally, it will enter themarket with special advantages and special incentives of the Government after thethorough monitoring and analysis process However, because it is a new competitor,the experience is still weak, when competing with long-term enterprises in theprofession, they will face many difficulties Therefore, businesses need to buildthemselves a solid barrier through investment, constantly improving the quality,diversifying services in various forms of business, customer care creating a biggap which is hard to replace

*Supplier

Suppliers will have a great influence, especially for service providers that mainlyoutsource input from suppliers The strength of the provider is greater when they arethe monopolies or provide scarce service, or need to have certain cooperationbetween suppliers The suppliers themselves can also exclude businesses from thesystem when they bring ineffective results or do not decide to use services of

customers Enterprises should avoid excessive dependence on one or several

suppliers, actively seeking alternative suppliers and materials

2.2 Current situation of development of international services of ORIMAS

2.2.1 General situation of international service operating activities at ORIMAS

Operating in the maritime industry, shipping agents since 1989, ORIMAShas relied on the reputation of the VOSA brand, which has been a leader in the field

of maritime, aviation, freight forwarding agents, customs agents, cargo exploitation

to customers in Vietnam and countries on every continent At the beginning, withthe advantage of being a leading enterprise in maritime industry, ORIMAS acted as

an agent for most foreign shipping lines or forwader companies operating GNVTservices in Vietnam such as China Shipping, Sinotrans , Nam Sung, Cosco,Vinalines, Syms, NYK, Sumimoto, Yusen logistics, means synonymous withforwarding companies, world logistics companies in Vietnam, they also provideOverseas agency services for ORIMAS help the two sides develop the mostfavorable business, diversify services provided: from freight (sea freight, air freight,road freight) to warehousing services , packaging, storage of goods, import / exportprocedures to the most perfect service door to door For door-to-door service,customers will be completely assured not to participate in any stage, just deliver andreceive goods at the warehouse to export, send goods to foreign countries, andimport and receive goods in the host country

As the legal system becomes more open to foreign businesses, shipping linesand forwarders have opened many subsidiaries in Vietnam This has reducedORIMAS's competitiveness as the company no longer acts as an agent for foreignshipping lines

The author will conduct an in-depth study of ORIMAS's international servicedevelopment in the period 2017-2019 based on three criteria: self-provided service,

Table 2.3: ORIMAS's business results according to the international service group for the period of 2017-2019

Source: ORIMAS’s accounting dept.

Looking at table 2.3 above and figure 2.1 below we see a large variation In 2017,Profit reached nearly 950 million VND with Revenue of over 85.36 billion andExpense of nearly 84.42 billion The main revenue is from agent services with45.32%, self-service accounts for 39.56% Both services accounted for nearly 85%

of total revenue in 2017 Profit in 2017 also reached the highest proportion of 0.95billion, of which agency and self-service services accounted for the majority of49.89%, respectively and 17.28% of the total profit

In 2018, there was a sharp decline in revenue and expense, resulting in a sharpdecrease in Profit compared to 2017 In 2018, Revenue reached over 23.03 billion,down 71.85%, equivalent to over 61.33 billion compared to the year 2017 Alongwith the decrease in revenue, expense is only at over 23.67 billion VND, down71.96%, equivalent to 60.74 billion VND As a result, Profit dropped to only VND

356 million, down 62.47%, equivalent to over 593 million over the same period in

2017 The cause of this sharp decline was the partial withdrawal of some shippinglines , separated to open an office or branch as NYK, or narrowed to services such

as Sinotrans shipping lines, the process of restructuring and merging with othershipping lines The proportion of revenue from agency services accounts for only15.03% of the total revenue, expense and profit respectively 14.45% and 53.17%.Business is oriented to develop towards focusing on the services of the remainingtwo groups, leading in pevenue and profit belongs to self-service services with theproportion of 16.94% and 10.38% respectively

With efforts to improve, invest and develop business, ORIMAS's Revenue in

2019 has been improved and significantly increased compared to 2018 Revenue in

2019 reached more than 51.66 billion, increasing more than 27.63 billion VND,increased by 114.98% compared to 2018 ORIMAS's services mainly focus on self-supply and agency services; On the other hand, most of them are outsourcedservices, leading to an increase in expense, the expense in 2019 is more than 51.15billion, up 116.08% compared to 2018, profit in 2019 increased in the samedirection as revenue and expense, nearly doubled profit in 2018 In 2019 ORIMAS

only supports agents for shipping lines SINOTRANS and forwarder agency serviceswith the lowest proportion of revenue and profit, followed and agency leasingservice with 26,465 profit accounted for 19.34% and led the private service sectorwith nearly 67%, profit accounted for 62.52%.

Looking at this, we can see the fact that although the company has an annualprofit, the service business efficiency of ORIMAS in 2019 is not high, although it ismuch higher than in 2018 Profit accounts for less than 1% of Revenue, Expense has

to spend to get a Profit is quite high while in 2017 accounted for over 1.1%;accounting for 1.48% in 2018 despite 2018 having a sharp decrease in Revenue,Expense and Profit compared to 2017 The cause of the low business performance

in 2019 is due to the competitive market, the price decreased sharply while expensetends to increase because many roads upgraded to national highways open up manytoll stations, bridges cost and roads increase leading to increases in transport costwhile selling prices do not increase but tend to decrease This is a tough problem forthe carriage industry that businesses in the industry face, need appropriate measures

to develop business

DV đại lýDV tự cung ứng DV thuê đại lý

100

80 60

0

Tỷ trọng lợi nhuận

of 2017-2019

Source: Designed based on ORIMAS accounting dept.

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ORIMAS's business activities depend on the nation's business and trade activities,especially international trade, international movement of investment and labor,which has a strong impact on service business activities GNVTQT_ activities arethe main sources of income for ORIMAS Therefore, when the domestic andinternational economy grew well, international trade and international investmentactivities took place strongly, creating favorable conditions for the development offorwarding Although experiencing a lot of fluctuations, many major recessions inthe world,by the end of 2019, ORIMAS had 279 customers using internationalservices, increasing by 120% compared to 2018, after the number of customers in

2018 decreased sharply compared to 2017 with a proportion of 59.16%

Table 2.4: The number of customer using international service group in the

Source: ORIMAS’s accounting dept.

ORIMAS customers who are provided self-service, specifically in 2017 therewere 221 customers accounting for 71.06%, in 2018 there were 49 customersaccounting for 38.58% and in 2019 there were 188 customers accounting for

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profit of the year, the largest revenue in 2018 The decline of shipping lines causedthe agency service to decline sharply.

Despite these difficulties, ORIMAS with continuous efforts in developingthe service business, improving competitiveness and affirming its brand withcustomers so far and in the future With staff from leading universities in economicsand foreign trade, ORIMAS always aims at the best service to customers along withthe strategy of expanding the market to all continents To better understandORIMAS's international development of services, the author will delve into each ofthe company's service groups

2.2.2 International agency service

With the advantage of being a branch in Hai Phong of the Corporation - leading inthe field of shipping agency and the support from the Corporation ORIMAS is anagent of many shipping lines and forwarders with a lot of services provided in thebeginning when, logistics have just grown and developed over time in Vietnam

2.2.2.1 The number of services

The quality of life increases, the demand for goods and services is higher andhigher in quality, quantity and type the maritime industry, freight forwarding arenot out of the general trend As trade and investment activities between countriesincreased with the stricter requirements on prices and services provided In order tostand firm in the international market, ORIMAS must regularly update newrequirements to improve quality, expand services to meet the needs of manycustomers, and reduce the dependent risk

Agents for forwarders and international shipping lines: ORIMAS representsshipping lines, forwarding company named on consignee, shipper on master bill oflading (master airway bill or master bill of loading) perform the delivery of goodsfrom the port to the port, from the warehouse to the port or from the port to thewarehouse depending on the service that customers use in accordance with thedelivery conditions and specific delivery agreements ORIMAS is obliged to issuehouse bill of lading (house airway bill or house bill of loading) for goods exported

to customers and send notice of shipment (pre-alert) to the agent or receive notice ofshipping agent, issue a delivery order (cargo delivery order or Container deliveryorder) and return the POD to the agent (proof of delivery) confirming the delivery iscomplete.

Table 2.5: Quantity and proporion of agency services from 2017-2019

Unit: Number of: Services

Source: ORIMAS’s accounting dept.

ORIMAS mainly provides agency services for shipping lines and forwarders

- Agency services for international shipping lines:

In 2017, international shipping agency services with 5 services, accountingfor 41.67%, namely: receiving and issuing delivery orders; consolidating exportgoods as agreed in the agency contract; collecting and paying agent fees and order-issuing fees as designated; register, change and apply for a visa for crew members;decentralize the detailed declaration of goods to the national monitoring system

"National one-stop portal" In 2018, only 3 services accounted for 27.27%, thatservice was to collect goods according to the agreement committed in the agencycontract; register, change and apply for a visa for crew members; customs

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