Import activities of goods and equipment of green energy technology joint stock company current situation and solutions

Realizing the importance of importing, with the knowledge learned in the classroom and the useful information accumulated during the internship, I would like to select the topic “Import

INTRODUCTION

1 Reasons of choosing the research:

In line with the trend of regionalization and economic globalization, with the strong development of the market economy, with the deepening economic and trade interdependence between countries, Vietnam has and is constantly trying to promote the cause of industrialization and modernization of the country to integrate the economy with the dynamism of Southeast Asia, or more broadly, the Asia-Pacific belt Starting out as an outdated agricultural country, with many limitations on the level of science and technology, the fastest way to conduct industrialization and modernization of the country is the need to quickly access advanced technologies and foreign engineering To do this, import and export play

a very important role Imports allow maximum use of domestic resources and take advantage of the world's scientific and technological advances Imports promote continuous and efficient expansion of production and encourage development of production

Realizing the importance of importing, with the knowledge learned in the classroom and the useful information accumulated during the internship, I would like to select the topic “Import activities of goods and equipment of Green Energy Technology Joint Stock Company: Current situation and solutions” to understand and put into practice the forwarding activities of imported goods, but more specifically the process of importing goods from abroad into Vietnam

2 Objectives of the research:

In order to contribute more ideas, Green Energy Technology Joint Stock Company has more solutions to overcome the limitations of the goods import process Besides, I hope import business enterprises can enter the hierarchy of completing this activity, increasing business efficiency

3 Object and scope of the research:

All activities of importing goods and equipment at Green Energy

Technology Joint Stock Company

4 Scope of research:

Import activities of goods and equipment of Green Energy Technology Joint

Stock Company in the last 3 years

5 Research method:

Using qualitative, quantitative, synthetic, logical inference and generalized

methods based on the Company's actual data and situation

6 Structure of the research:

In addition to the introduction and conclusion, the topic is presented in four

chapters as follows:

Chapter I: Rationale for importing goods and equipment

Chapter II: Actual situation of importing goods and equipment of Green

Energy Technology Joint Stock Company

Chapter III: Solutions and recommendations to complete the process of

importing goods and equipment at Green Energy Technology Joint Stock

Company

I would like to sincerely thank the guidance and enthusiastic guidance of

MA Pham Thanh Ha and the enthusiastic help of the entire leadership, the

colleagues at Green Energy Technology Joint Stock Company helped me to

complete this graduation thesis Due to the short internship time and not much

practical knowledge, my graduation essay could not avoid mistakes So I look

forward to receiving the enthusiastic advice and suggestions from teachers

CHAPTER I: THEORETICAL BASIS ON ACTIVITIES OF IMPORT OF

GOODS AND EQUIPMENT

1.1 Import activities of goods

1.1.1 Import concept

“Import is an international trading activity, a process of exchanging goods between countries based on the principle of equal exchange for currency as a broker It is not an act of individual trade but a system of trading relations in an economy that has both an internal and external organization” (Truc, 2009)

“Import of goods means the goods brought into the territory of Vietnam from abroad or from special areas located on the territory of Vietnam are considered is a separate customs area as prescribed by law ” (Decree G , 2005)

1.1.2 Target of import business activities

Import business is the efficient use of foreign currency sources to import materials, technical equipment and services for the expanded production process, improve labor productivity, and increase the daily value and address the scarcity

of goods and supplies on the domestic market

On the other hand, import business ensures the stable development of key economic sectors of each country where domestic production ability does not ensure supplies and technical equipment to meet development needs In addition, the import activities fully exploit the country's competitive advantages, contributing to the specialization of international labor division, harmonizing and effectively combining import and improvement balance of payments

1.1.3 The role of import activities

“The role of import activities is extremely important Firstly, import activities will increase the quantity and quality of goods on the domestic market to meet the increasing demands of consumers Secondly, imports bring domestic

goods that cannot be produced, items that are more imported when they are produced domestically and domestically The production is not sufficient to meet the increasingly diverse and diverse needs of consumers Thirdly, import activities bring a nation a modern and advanced science and technology to serve the process

of industrialization and modernization of the country Fourthly, the export activities help the domestic production growing, constantly improving designs and product quality to be able to compete with imported goods Therefore, if the import

is adjusted appropriately, it will contribute to increasing the speed of development

of an economy, increasing incomes for people, effectively using domestic production capacity, and settling well social labor policies, ” (Ha, 2014)

1.2 Basic issues about importing goods and equipment

1.2.1 Import forms

Based on the business conditions and the creativity and dynamism of the businessmen, so many import forms have actually appeared Depending on the different criteria, we can divide the import forms into different groups

There are three main types of import

In this form, there are transaction steps such as asking price, ordering, refunding, accepting, confirming Importing enterprises must directly conduct domestic and foreign market research activities, seek partners, negotiate and sign

contracts and invest capital to organize import goods business, and must bear all expenses such as: market research, transactions, contracting, delivery, storage, consumption of goods When imported directly, the import-export enterprises are allowed to calculate the business quota and when consumed, they must bear value added tax, corporate income tax Businesses importing in this form must bear full responsibility for their business activities, from collecting market information to signing import contracts The risk of direct import is higher than that of intermediaries, but it is more profitable for businesses

This form of import is commonly used in our country today Because of the declining trend of State-owned enterprises and the increase in small and medium-sized enterprises, enterprises have conditions as well as desire to be imported directly to increase revenues Moreover, this type is applied in importing ordinary goods so the volume is large and continuous

In this activity, the business entrusted importer will have to make two contracts, the import contract signed with the foreign partner and one contract of entrusted import with the other entrusted party

When conducting entrusted import, the trustee will only calculate import turnover, not sales Entrusted import contracts usually apply to specialized goods and technical equipment

1.2.1.3 Temporary import for re-export

A form applied when an enterprise imports goods but not for domestic consumption but exports it to a third country for profit These are items that are not processed or processed at the place of re-export

Goods must go through both import procedures and export procedures afterwards

1.2.2 Process of organizing the implementation of import contracts

Obtaining import license (if any)

Procedures for opening L / C (if paying by L / C)

Renting a vehicle

Buying insurance

Payment procedures

Customs procedures

Receiving imported goods

Inspection of imported goods

Dispute and complaint settlement (if any)

(Sources:www.thuongmai.vn )

Figure 1.2.2 Process of organizing the implementation of import

contracts

1.2.2.1 Obtaining import license (if any)

The state uses import licenses to manage import activities Therefore, after signing a contract with a partner, the enterprise is required to apply for an import license to perform that contract

“Traders being enterprises of all economic sectors, which are established under the provisions of law and are allowed to import / export goods according to the registered business lines ” (Decree G , 23/1/2006)

As such, all businesses with legal status are allowed to import goods according to the registered business lines and enterprises only need to register their import-export business codes with their local customs authorities Headquartered However, for goods on the list of goods banned from import, subject to conditional import or temporarily suspended from import, enterprises need to apply for import licenses

To apply for an import license, an enterprise must produce a dossier of application including a license:

 Import contract

 Quota card (if the goods are managed by quota)

 Import consignment contract (if it is consigned import)

The granting of import permits is assigned as follows:

 The Ministry of Trade (licensing offices) issues import licenses for trade if the goods are under the control of the state

 General Department of Customs issues licenses to import non-commercial goods (sample goods, gifts, exhibition goods)

Each permit is only granted to a goods owner to import one or several goods items with certain countries, transported by a mode of transport and delivery at a certain border gate

1.2.2.2 Procedures for opening L / C (if paying by L / C)

Letter of credit (L / C) is a legal document in which a bank opens an L / C undertaking to pay the exporter if they present a complete and valid set of payment documents with the content of L / C Payment of goods by L / C is a reasonable, convenient and safe payment method, limiting risks for both buyers and sellers

When the import contract specifies the payment method as L / C, one of the first tasks that the importing party must implement to perform the import contract

is to open L / C

About L / C opening time: L / C is normally opened before delivery from 20-25 days unless the contract specifies But for the contract to be tight, it is often specified in the contract to open L / C

Bases for opening of L / C: are terms of the import contract When opening

an L / C, the company must rely on this basis to fill in the printed form of the L / C opening bank called "Application for opening of import letter of credit"

How to open L / C in Vietnam: Enterprises must carry out the following steps:

 Apply and apply for L / C opening

 Deposit to open a letter of credit account

 Payment of L / C opening fee

When informed by the bank that the L / C has been opened, the importer contacts the bank to check if the details of the L / C are in accordance with the contract, and then ask the bank to forward it to the exporter If there is anything inappropriate that needs amendment, the importer makes a request to the bank to

amend the L / C (in agreement with the exporter), including all the details that need

to be amended After that, notify the amended results

For the importer, the chartering of a ship to the carriage of goods only arises when the contract of sale specifies that this obligation is on the part of the buyer (under the terms of delivery of Group F and EXW)

The importer will progress into its chartering service based on the following grounds:

 Terms and conditions of the sale contract

 Characteristics of goods traded

 Transportation conditions

Currently in the world there are two modes of hire for importers to choose:

Mode of chartering a ship: chartering a ship (booking freight / Booking

Shipping Space) is that a shipper who through a broker or on his own contact with the ship owner to rent goods from one port to another

Ship chartering method: The shipowner leases the charterer wholly or

partly of a ship to carry cargoes from one or several ports to one or several other ports The relationship between owner and charterer is governed by a charter party contract (C / P - Voyage Charter Party)

1.2.2.4 Buying insurance

To ensure business safety, importers and exporters often buy insurance for their goods through an insurance contract The insurance policy may be either an

insurance policy (Open policy) or a trip insurance policy (Voyage policy) Currently cargo insurance by sea is the most common type of foreign trade insurance

The importer should buy insurance for goods in the case of import under trade terms of group E, F and group C (except CIF and CIP)

The process of buying cargo insurance:

 Selecting the appropriate conditions to buy insurance

 Making paper to request insurance

 Paying the premiums and get a certificate of

1.2.2.5 Payment procedures

In international trade, there are 3 common forms of payment:

 Collection

 Money transfer

 Letter of credit (L / C) (this is also the most widely used form)

If the contract prescribes that the payment is made by the method of collection together with the documents, after receiving the documents at the foreign trade bank, the importing enterprise must compare the documents with the contract and, if appropriate, pay them In the case of a draft collection, after receiving a bill of exchange from the bank, the importer may pay or refuse to pay This method is somewhat unfavorable for exporters because it depends on the wishes of the buyer

If payment by money transfer method, when receiving the goods sent by the seller and documents from the bank, after the prescribed time, the importing enterprise shall write a bank transfer order requesting the bank to transfer money to

export party There are two forms: Telegraphic Transfer (T / T) and Mail Tranfer (M / T) In particular, Vietnam often uses Telegraphic Transfer, which is faster than money orders but higher

If the contract stipulates payment by L / C when the original set of documents from abroad arrives at the foreign trade bank, the enterprise must check the documents and, if found valid, carry out the procedures for payment to the bank

1.2.2.6 Customs procedures

Customs procedures are a tool to manage acts of international trade in accordance with the law: in order to prevent illegal import and export across borders, to check documents for errors, to forge fraud, to make statistics on goods import and export chemistry

The process of carrying out customs declaration procedures consists of the following three main steps:

 Declaration - submit the declaration

The goods owner shall declare the imported goods according to the customs declaration form, then return the declaration to the customs office together with a number of necessary documents: import permit, invoice, packing slip, detail declaration,…

 Presentation of goods

For a small volume of goods, the goods owner shall transport the goods to the customs warehouse to check the quality, carry out the customs procedures and pay taxes (if any) when the goods come ashore

For large import consignments, the inspection of goods and customs documents takes place in 2 places:

 At the border gate / port: Customs officers check the goods and paperwork at the port of import of such goods

 At the place of delivery and receipt of final goods: Customs officers shall check the seal seals and contents of goods

All costs are paid by the shipper

1.2.2.7 Receiving imported goods

“Transport agencies (stations, ports) are responsible for receiving imported goods from means of transport from water in addition to, preserving such goods during the process of loading, unloading, warehousing, and delivering to the ordering units according to the orders of the foreign trade units which have entered the goods” (Decree t P., 1973) Therefore, when the goods arrive at the port, the shipping company will directly take delivery of the goods with the port, and then return the goods to a safe position The shipper must sign a consignment contract for the port to do this

Before the ship arrives, the shipping agent or shipping company will send the "Notice of Arrival" to the consignee, so that they can come to receive the

"Delivery Order" (D / O) at the shipping agent

When receiving D / O, there should be:

 Original bill of lading (Original B / L)

 Letter of introduction of the unit

Procedures for receiving goods are as follows:

The importer receives Less than Container Load (LCL): the owner needs to

do the following to receive goods

 Going to the port or ship owner to pay storage and handling fees and get a receipt

 Taking the receipt of storage, 3 copies of D / O, Invoice and Packing list to the shipping agent's office at the port to sign for D / O confirmation, find the location of goods

 Bringing back 2 D / O to logistics department for delivery This department holds a D / O and makes 2 delivery notes to the owner

 Bringing 2 delivery notes to the warehouse to see the goods, carry out the warehousing procedures, separate goods to wait for the customs to check, to the port customs, port customs officers supervise the receipt of goods

 After customs confirm "completion of customs procedures", the goods will

be released from stock, the importer will bring the goods to the designated place

The importer receives Full container load (FCL), customs checks at its own warehouse

 Applying for goods inspection at a separate warehouse, submit the same set

of customs procedures registration documents

 Carrying out procedures for borrowing containers from shipping lines, importers pay the handling costs and shipping costs of containers from ports

to separate warehouses

 The importer carries a set of documents including: D / O (3 copies) signed

by the customs officer and stamped "received declaration"; Receipt of collection and handling fees of the shipping line; Receipt of container

storage charge; Application for borrowing container to go to shipping agency's office to get permission to export containers from the yard The shipper and warehouse staff find the container, check the integrity of the container and the Seal The shipper receives two "Transport orders" and brings the entire dossier to the customs warehouse After customs officers check, sign for confirmation of container number and seal number, Declaration and Transport Order The goods owner leaves the container out

of the yard, submits a Transport Order to the port customs, then takes the container to a separate warehouse The goods owner welcomes customs to the private warehouse to check the goods After checking, if there is no problem, it will be confirmed "completion of customs procedures"

The importer takes the whole ship or bulk cargoes

After entering D / O, submit documents to customs, receive NOR (Notice of readines) and notice of loading and unloading Before opening the hold, a representative of the following agencies is required:

- Receiver

- Representative of seller (if having representative office in Vietnam)

- Goods inspection agency

- Ship representative, ship agent

- Customs supervision, customs inspection

- Port representative

- Insurance (if the case is suspected to be damaged)

In the process of receiving goods, the delivery staff must regularly follow the scene, updating data every hour, every shift, every day Timely detect errors to take appropriate handling measures

1.2.2.8 Inspection of imported goods

According to Government regulations, imported goods need to be carefully inspected The purpose of this inspection is to protect the legal rights of the buyer, prevent in time negative consequences, divide the responsibilities of the purchaser and the seller, and ensure the reputation of the business units and the basis for later complaints (if any)

The importer, as the undersigned on the bill of lading, must prepare a Letter

of reservation, if in doubt or perceive that the goods are damaged, deficient, asynchronous or inconsistent with the contract, request the agency have authority

to prepare Survey report

1.2.2.9 Dispute and complaint settlement (if any)

A complaint is one of two ways to resolve disputes that arise in foreign trade By making a complaint, the two parties to the dispute proceed to negotiate with each other to resolve the dispute

In the course of performing the import contract, if the importer finds that the goods are damaged, broken, missing or lost, he / she must file a complaint within the prescribed time limit Because if past the deadline, the complaint is not valid A complaint file includes:

Completed records must be immediately sent to the object that the importers complain about Depending on the extent of the loss, the claimed object may be the seller, the carrier or the insurance company Specifically:

- The object of complaint is the seller if the seller violates the contract such as: not delivery, slow delivery, wrong delivery or missing delivery, inappropriate packaging,

- Claimed object is the carrier if the goods are lost during transportation or such loss is caused by the carrier (full B / L but damaged goods, )

- The object complained about is the insurance company if the goods - the object of insurance is damaged by a natural disaster, unexpected accident or caused by a third party that these risks are specified in the insurance

If the loss is not clear, the aggrieved person has the right to complain In case the importer is complained about the delay of receiving the goods, late payment, then the importer must be responsible for resolving those complaints

In this case, the importer has the right to prove that he is not at fault or that the error is caused by a third party If it cannot be proved, the importer must take serious and cooperative attitude and give appropriate compensation form

If a dispute occurs and the two parties cannot resolve it themselves, they may seek a judgment of the arbitral tribunal (specified in the contract) The dossier set for suing must be complete with the documents (made in the complaint file), the complaint letter and the complaint reply of the parties and the complaint Submit this set to the Court or Arbitration Council The decisions of the Court will

be final and legally decisions that the parties must seriously execute

1.3 Factors affecting import activities

1.3.1 Some state regulations on import of raw materials

The State uses tools and policies to regulate the economy, regulate the activities of entities participating in that economy In particular, the import management policies and tools issued by the State are to regulate import activities The main import management measures currently applied by the Vietnamese government are:

 Import Tax

 Import quotas

 Exchange rates and policies

Importing businesses need to know the specific regulations and characteristics of the government's import management policies to ensure business

in the right direction, policies and national laws

1.3.2 Characteristics of goods affecting the professional process of importing raw materials

Each commodity has its own characteristics If agricultural products - which are perishable, easy to change quality, machinery and equipment are often bulky, large in volume and size, etc Due to such specific characteristics, the goods will specify packaging , unloading in accordance with the specifications, suitable to each type of goods to ensure quality during import and transportation

1.3.3 International payment terms

International payment is one of the bank's operations in settling the value of

a shipment between the buyer and the seller in the field of foreign trade The current popular international payment methods are:

 Transfer money by: TT (Telegraphic Transfer Remittance) or by MTR

(Mail Tranfer Remittance)

The buyer will transfer the money through the local bank to the seller, in part

or in whole the value of the shipment (subject to foreign trade contracts)

In this way, Remitter orders the Remitting bank to transfer to a bank whose seller has an Beneficiary bank account After receiving the money, the seller proceeds delivery

 Collection: seller after delivery will authorize the bank, ask the bank to

collect money from overseas buyers There are 2 types of collection:

of credit and in accordance with International Standard Banking Practice for the Examination of Documents under Documentary Credits (ISBP)

1.3.4 International trade conditions

The global economy has opened up unprecedented opportunities for businesses to access markets around the world Goods are sold in more countries, with an increasing number and variety of types As the volume and complexity of international trade increases, and if the contract of sale of goods is not carefully drafted, the likelihood of misunderstandings and costly disputes increases

Incoterms, ICC's official rules on the use of domestic and international trade conditions, facilitate the development of international trade The reference of

Incoterm 2010 in the contract of sale of goods will clearly identify the respective obligations of the parties and reduce the risk of legal trouble

Key terms of Incoterm 2010

Picture 1.3.4: International trade conditions

(Source: www.nghiepvuxuatnhapkhau.com)

EXW

Delivery at warehouse: Ex Works

The seller ships to the buyer at the seller's warehouse The seller is not responsible for loading, unloading or paying for export customs All costs and risks, the buyer is responsible

FCA

Delivery to the carrier: Free Carrier

The delivery location is one of: ex-work, terminer or warehouse

Seller assumes all responsibility after completing customs procedures and delivering to the recipient

FAS

Delivery along the ship: Free Alongside Ship

The seller assumes all responsibility when fulfilling the customs obligations and delivering the goods to the recipient at the wharf of the exporting country

FOB

Delivery on board: Free on board

The seller assumes all responsibility when fulfilling customs

obligations and delivering the goods to the recipient on board the exporting country

CFR

Price includes: Cost and Freight

The seller has no responsibility when the goods arrive at the port of import The buyer assumes all costs and losses when the goods are transferred via the ship's rail at the port of discharge

CIF

Price includes: Cost, Insurance and Freight

The seller has no responsibility when the goods arrive at the port of import

(CIF = CFR + Insurance cost)

CPT

Price includes: Carriage Paid To

All costs in the process of transporting the goods to the location specified by the buyer in the contract

CIP Price includes: Carriage and Insurance Paid to

All costs of shipping to the destination specified by the buyer in the

contract and insurance

(CIP = CPT + Insurance cost)

DAT

Delivery at the terminal: Delivery at the terminal

Seller completes the liability when the goods are unloaded at the port

of discharge

DAP

Delivery to the seller indicated: Delivery at Place

The seller fulfills the responsibility when the goods are delivered at the designated buyer warehouse (Excluding customs obligations, unloading at the warehouse and tax costs in the importing country)

DDP

Tax-paid delivery: Delivery duty paid

The seller becomes responsible when the goods are delivered at the warehouse designated by the buyer (Including customs duties and payment of taxes in the importing country)

The buyer is not liable for any obligation during the shipment

CHAPTER II: GOODS AND EQUIPMENT IMPORT ACTIVITIES OF GREEN ENERGY TECHNOLOGY JOINT STOCK COMPANY:

CURRENT SITUATION AND SOLUTIONS

2.1 Green Energy Technology Joint Stock Company

2.1.1 Overview of Green Energy Technology Joint Stock Company

 Company name: GreenTech Green Technology Joint Stock Company

 Director: Nguyen Minh Chien

 Head office address: 631 La Thanh Street, Thanh Cong Ward, Ba Dinh District, Hanoi

 Phone number: (04) 8352460

 Fax: (04) 8352460

 Website: http://www.greentech.vn/

Green Energy Technology Joint Stock Company is a company specializing

in chemicals and water treatment equipment, providing customers with a comprehensive and advanced water treatment solution for issues of water supply, public water technology and wastewater for various technology industries

The management team of the company are experienced people in their specialized field as well as experience in business investment environment in Vietnam

The customers of GreenTech are extremely diverse and diverse, from large corporations to small and medium-sized companies (SMEs) or state-owned units

Founded on February 29th 2008, the company has been in operation for more than 10 years with two main businesses: chemicals and water treatment equipment The company owns charter capital of 4 billion VND (225,000.00 USD), revenue in 2017 over 3 million USD GREENTECH has 01 warehouse with 620m2 and 28 employees

In the next 10 years, the company will continue to expand the market With the determination and unremitting efforts of the General Director, the Board of Management and all employees, the company will continue to change and improve

to become one of the leading businesses in the countries in this areas

2.1.2 Organizational structure of GreenTech

Administration Staff

Technical Staff

Accounting Department

Administration Department

Technical staff

Export - Import Department

Technical Department

Sales -

Project

Department

Administration Manager

Technical Manager

Export – Import Manager

Technical Manager

Board of directors

Sales –

Project

Staff

Figure 2.1.2 Organizational structure diagram

(Source: Administration department, GreenTech company)

 Director: The head office of the company performs the function of managing all activities of the company in accordance with the law Organize the operation of the service in a way that benefits the company now and in the future

 Sales - Project Department: Task of finding and taking care of customers, coming up with ideas for new projects, planning sales for the next year

 Technical Department: Designing and deploying technical supervision, installation and acceptance of product quality

 Accounting Department: Performing accounting tasks, managing and organizing accounting work in the company Conducting the acquisition, processing and provision of information, synthesizing reports, planning financial status to help the board of directors make the most optimal plan in the operation

 Export - Import Department: Implementing procedures to import and export goods Sometimes each employee can find customers on his own, not passively by designation

 Administration Department: Performing human resources, labor contracts, implementing company rules and regulations Plan and deploy work on hiring, staff training, work rotation

2.2 Summary of business activities in 3 years from 2017 to 2019

2.2.1 Business report 2019

BUSINESS REPORT Year: 2019

Currency : VND

4 Cost of goods sold 11 39.359.846.235 62.395.136.882

5 Gross profit on goods sale and service

6 Revenue from financial activities 21 3.129.595 1.370.015

7 Financial expenses 22 907.412.919 614.028.385

8 Enterprise management expenses 26 8.162.726.054 8.158.061.778

9 Net profit from business activities (30 =

14 Current corporate income tax expenses 51 38.900.330 41.849.400

15 Deferred corporate income tax expense 52 0 0

16 Profit after tax (60 = 50-51) 60 155.601.318 167.397.599

(Company, 2019)

(Currency :million VND)

Graph 2.2.1 Fluctuations of some indicators in the Company's business report

in 2019

(Source: adjusted from the accounting department’s report)

From the company's business report in 2018 and 2019 of Green Energy Technology Joint Stock Company, we can see the company's net sales of goods and services after 2019 minus the revenue deduction 54,727 .800 VND due to the return of sales of VND 48,384,336,536, a decrease of approximately 30% compared to 2018, cost of goods sold also decreased by more than 30% to VND 39,359,846,235 In addition, expenses increased very high compared to 2018, in which financial expenses increased by nearly 50% to VND 907.41,919 and other expenses were recorded as VND 8,036,329 However, other income in 2019 was VND 245,057,054 (up 255% compared to the same period last year), this is the core factor leading to the results: although after a volatile year, profit after tax The company's revenue only decreased by 10% from VND 167,397,599 in 2018 to VND 155,601,318 in 2019

BALANCE SHEET 31/12/2019

(300=100+200)

300 35.699.746.818 30.751.373.416

II OWNER’S EQUITY 400 10.118.021.312 10.067.567.258

Undistributed profit after tax 417 118.021.312 67.567.258

(Currency :million VND)

Graph 2.2.2 Fluctuations of some indicators in the company's Balance Sheet

2019

(Source: adjusted from the accounting department’s report)

Through the Balance Sheet, we see that the company's total assets in 2019 did not fluctuate too much, up more than 15% compared to 2018 Besides, short-term assets increased by nearly 18% mainly due to the increase of inventories, while long-term assets also increased slightly by 8.5% Liabilities increased by nearly 25% due to borrowing and financial leases Besides, equity is almost unchanged The company allocates funds at 71.65% (1) of debt and 28.34% (2) of equity, indicating that the company is using a lot of financial leverage, occupying a lot of capital of Investors Moreover, the company's cash inflow is very high (10 times compared to the same period last year) which helps to have high liquidity but also means that the company does not have many items to invest The ratio of net profit

to total assets (ROA) is 33% (3)> 0 indicating that the company has sufficient financial capacity to pay interest on loans, but 33 dong of assets used for business

generates 1 Interest / year is not high Because the company uses well financial leverage, the net profit on equity is very high, reflected by ROE = 116% (4)

2.3 Current situation of importing goods and equipment of Green Energy

Technology Joint Stock Company

2.3.1 Overview of the company's imports of goods and equipment

by air

Indirect import: The company employs a third party as a trade

intermediary, takes delivery of goods and transports goods to the company's warehouse

Content: The Board of Directors negotiates and signs a contract with the exporter at Cost, Isurance and Freight (CIF) or Free Carrier (FCA)

 With CIF price (including insurance, cost and freight), the exporter proceeds

to deliver the goods to the agent of the shipping company (Forwarder) at the beginning of import Here, the exporter is no longer responsible after completing the customs procedures for importing, unloading and delivering goods at the port

 With FCA prices (including cost and freight), the exporter proceeds to deliver the goods to the agent of the shipping company (Forawrder) at the beginning of export Here, the exporter is no longer responsible after completing the customs procedures for export, unloading and delivery at the warehouse of the exporter

After importing the goods, Forwarder company transports the goods and returns the goods to the importer at the importer's warehouse This method is usually used when the company imports large shipments by sea

2.3.1.2 Structure of imported goods

Table 2.3.1.2 Structure of imports by commodity groups over the years

Rate (%) Composite flask 4.502 2,49 3.678 1,76 1.622 1,30 Filter material 3.360 1,86 5.776 2,77 2.754 2,20