Solutions to enhance handicraft export activity to US market of thuy anh co ,ltd

Characteristics of on-spot export: The signing contract is a foreign trade contract; Goods and materials are objects of sale and purchase of contracts, not exported out of Vietnamese ter

ACADEMY OF POLICY AND DEVELOPMENT

INTERNATIONAL SCHOOL OF ECONOMIC AND FINANCE

PREFACE

To complete this graduation internship report, I have received enthusiastic guidance and help from teachers in the School of Policy and Development

First of all, I would like to thank the teachers who have devotedly taught

me during my studies at the School of Policy and Development!

I would like to express my deep gratitude to the teachers in the International Training Department, in particular, Ms THS Pham My Hang Phuong has dedicated and supported me so I can finish this graduation thesis

At the same time, I would also like to express my sincere thanks to the members of Thuy Anh Co., Ltd for helping me during the internship Thanks to the internship and instructions of the teacher and the company's staff, I can do this final thesis

Although I tried to perfect my graduation thesis, due to limited knowledge and experience, I could not avoid errors Therefore, I look forward to receiving comments from teachers

INTRODUCTION

1 Back ground

In the process of industrialization and modernization of the country, Vietnam has determined that exports are a breakthrough in economic restructuring, contributing to the successful implementation of the commune economic objectives Assembly Over the past years, exports of handicraft goods have brought great benefits not only in economic terms but also in culture and society, contributing to changing the appearance of rural Vietnam Handicraft products are the crystallization of physical and spiritual labor, it is created by talented hands and creativity of craftsmen with national cultural values from products Handicraft goods are no longer merely goods but they become cultural products with high art Some are considered symbols of national cultural traditions Export of handicraft goods has both high economic efficiency and take advantage of available resources, create jobs and stable income for a large number of rural laborers and contribute to preserving and promoting cultural and social values, preserving traditional skills Over the past years, Vietnam has achieved some encouraging results in producing and exporting handicraft goods, gradually building prestige and brand in the international market

America is an important economic partner of Vietnam in recent years, especially after Vietnam joined the World Trade Organization (WTO) and negotiated the Strategic Economic Partnership Agreement across Thai Binh Ocean Vietnam's export turnover to the US market has continuously increased

in recent years In particular, handicraft items are one of Vietnam's key products exported to the US market Over the past few years, a number of businesses have focused on investment in manufacturing handicrafts for export and have achieved some remarkable successes In which, there is a significant contribution

of Thuy Anh Co., Ltd America is considered by the company as a potential

market However, the export turnover of handicraft products of the company to the US market is small, not really commensurate with the potential of exporting handicrafts of the company Therefore, I chose the topic: "Solution to promote the export of handicraft items to the US market of Thuy Anh Co., Ltd." as the research topic for my graduation thesis

2 Research objective

- Research Question: How are export situations and what are the solutions

to US handicraft market of Thuy Anh Co., Ltd?

- General Objectives: The topic of analyzing and evaluating the export of handicraft products and proposing solutions to boost the export of handicraft products of Thuy Anh Co., Ltd

Chapter 1: LITERATURE REVIEW

Chapter 2: EXXPORT ACTIVITIES OF THUY ANH CO., LTD

Chapter 3: EVALUATION AND RECOMMENDATIONS

CHAPTER 1: LITERATURE REVIEW 1.1 Overview of Export and Import

According to the Commercial Law 2005, the concept of export is defined

as follows: “Export of goods means that the goods are taken out of the territory

of Vietnam or brought into a special area in the territory of Vietnam, it is considered a zone separate customs area in accordance with the law”

In this thesis, I understand export in international trade is a good or service produced in one country that is bought by someone in another country Export of goods often requires involvement of customs authorities

Exports, along with imports, are a key element in a country’s trade balance

as the sale of exported goods increases a nation’s gross output Many countries encourage exports as a way to increase employment, disposable income, and consumer spending Furthermore, the more products a country exports, the greater the competitive advantage as it gains expertise in producing goods and services that foreign countries want to use

 Import definition

According to master Troy Segal from Harvard College, the concept of export (updated Apr 30, 2019 on Investopedia) is defined as follows: “Import is

a good or service brought into one country from another The word "import" derives from the word "port" since goods are often shipped via boat to foreign countries Along with exports, imports form the backbone of international trade

If the value of a country's imports exceeds the value of its exports, the country has a negative balance of trade (BOT), also known as a trade deficit”

According to the Commercial Law 2005, the concept of import is defined

as follows: “Import of goods means that the goods are brought into the territory

of Vietnam from foreign countries or from a special area located in the territory

of Vietnam which is considered a separate customs area in accordance with the law.”

In this thesis, I understand an import is a good brought into a jurisdiction, especially across a national border, from an external source The party bringing

in the good is called an importer An import in the receiving country is an export from the sending country

Imports, along with exports, are a key element in a country’s balance of trade as the lower the value of imports, the more positive the balance of trade in Import Countries that have high import levels face a trade deficit, and they need

to increase their reserves to pay for the imported goods

Furthermore, there are countries, mostly in the under-developed or the developing economies, which rely on imports of basic commodities, such as oil and industrial materials Generally, countries tend to import goods or services that they cannot produce at the same low cost or with the same efficiency that other countries can

Importation and exportation are the defining financial transactions of international trade In international trade, the importation and exportation of goods are limited by import quotas and mandates from the customs authority The importing and exporting jurisdictions may impose a tariff (tax) on the goods

In addition, the importation and exportation of goods are subject to trade agreements between the importing and exporting jurisdictions

 Definition of export promotion

As Wikipedia, the concept of Trade promotion is defined as follows

“Trade promotion is an umbrella term for economic policies, development

interventions and private initiatives aimed at improving the trade performance of

an economic area Such an economic area can include just one country, a region within a country, or a group of countries involved in an economic trade area Specific industries may be targeted Improvement is mainly sought by increasing exports both in absolute terms and relative to imports When specific industries are targeted, trade promotion policies tend to target industries that have a comparative advantage over their foreign competitors Trade promotion can also include expanding the supply of key inputs in a country's strongest industries, via import expansion If successful, such a tactic would lead to pro-trade biased growth”

As an economic policy with the ultimate goal of increasing domestic welfare, trade promotion comprises a large set of policy instruments One notable tactic is the provision of trade intelligence to domestic enterprises in order to reduce transaction costs and provide them with a competitive advantage vis-à-vis foreign companies Many countries all over the world have set up special agencies, most of them in the public domain, to implement trade promotion policies and provide support services to domestic enterprises

Some international organizations provide assistance to so-called developing countries to help them promote their exports, most prominently the International Trade Centre in Geneva, which is a subsidiary of the World

Trade Organization and the United Nations with a mandate to providing related technical assistance to those countries

Advantages of direct export:

- A direct discussion is easy to lead to unity, less misunderstanding

- Reduce intermediate costs

- Conditions to penetrate the market, promptly receive customers' opinions, overcome shortcomings

- Proactive in the process of production and consumption of goods

Limitations of direct export operations:

- The surprise in the new market

- The company is often forced to reduce prices while selling

- The volume of goods that need to be traded, must be large to pay expenses such as papers, travel expenses, investigation fees to understand the market

 Entrusted export

In trust export - a form of intermediary trading, the relationship between the seller and the buyer and the terms and conditions of the sale must be through a

third party This third party is called a middleman The popular intermediaries in the world market are agents and brokers

The use of commercial intermediaries (agents and brokers) has the same benefits:

- The intermediaries often have a clear understanding of the local market, law and culture situation, so they are able to promote trade and avoid risk

of export is not to collect foreign currency, but to collect another commodity of equivalent value Counter- trade has long appeared in the history of goods-currency relations, in which the earliest "barter"

There are many types of trade such as: barter, compensation, purchase, offset, buy-backs

counter- On-spot Export

This is a form of local export enterprises to collect foreign currency through delivery or sales to businesses that are operating in the territory of Vietnam under the designation of foreign parties; or selling goods to export processing zones which are operating in the territory of Vietnam

Characteristics of on-spot export: The signing contract is a foreign trade contract; Goods and materials are objects of sale and purchase of contracts, not exported out of Vietnamese territory; Enterprises must fully carry out customs procedures for on-the-spot export (opening customs declarations on-the-spot) and other procedures for a tax refund

 International outsourcing

International processing is a method of commercial business in which one party (called the outsourcer) assigns (or sells) materials or semi-finished products to another party (called the processor) for processing the finished product is re-delivered (or resold) to the processes and receives remuneration (called processing fee) For outsourcers, this method helps them take advantage

of cheap raw materials and labor of the country that receive processing For outsourced parties, this method helps them to create jobs for domestic workers or receive new equipment or technology in their countries, in order to build a national industry

 Re-export transactions

Re-export is a form of export of goods previously imported and unprocessed in the country of re-export Re-export is a method of trading that the re-exporter does not aim to serve domestic consumption but only temporarily import and then re-export to make a profit Participating in the re-export

transaction method, there are always 3 countries that are exporting countries, importing countries and re-exporting countries

1.1.3 Role of export

 The national economy

Export of goods is an international trading business, not a single trade, it is

a system of trading relations in a comprehensive organized trade to sell products domestically produced products and goods; develop and transform the economic structure to gradually improve people's living standards Therefore, export is an external economic activity that has brought positive effects to a country's economy

Firstly, export activities create an important source of foreign capital to ensure import demand

Secondly, export activities promote the country's advantages

Thirdly, export activities contribute to shifting production structure, production orientation, promoting economic growth

Fourthly, this creates jobs for workers, creates income and increases living standards for people

Fifthly, export activities enhance Vietnam's prestige in the world market and help strengthen external economic relations

Secondly, increasing sales: The market is expanding, the number of customers increases leading to increase sales

Thirdly, learning from experience: Companies have the opportunity to learn about business experiences of partners, businesses in developed countries and have the opportunity to change the business structure accordingly to meet the trend of globalization when international competition increased

In summary, export activities bring a lot of benefits to businesses This is the first step for businesses to conduct international business activities Therefore, costs, as well as risks when there is fluctuation related to the business environment, will be lower than other international business activities

1.1.4 Factors affecting export

1.1.4.1 The objective factors

The business environment can create favorable conditions to promote the export of enterprises, but it can also be barriers to create difficulties and inhibit the development of export activities In international trade, the factors that depend on the business environment are very rich and complex Factors affecting export promotion such as:

- Local economy and international economy

- Legal politics

- Natural conditions

 Local economic factors and international economy

Economic factors such as economic growth rate, inflation rate, exchange rate, monetary and credit policies, policies to encourage economic development, of host countries are weak The factor has a direct impact on the business activities of enterprises and exporters of handicraft products in particular Besides, the international economic factors will also have a great

impact on the company's operations, affecting the demand and ability to import goods of international enterprises, and impacting prices export of goods:

 Exchange rate policy

The exchange rate is the price of one currency of this country expressed in the number of currencies of another country

In international trade, the payment currency is usually foreign currency for either party or both parties Therefore, when the currency serves as a means of payment, the benefits of either party will be damaged When the exchange rate increases, the price of exported goods becomes expensive, the competitiveness

of such goods on the world market will be reduced, which will affect the export promotion activities of enterprises On the contrary, when the exchange rate falls, the depreciation of the local currency against the foreign currency will benefit businesses when promoting exports

 Quotas and technical standards

Quotas are state regulations on the maximum quantity of goods allowed to

be exported or imported for a specific market for a certain period of time usually

1 year Quotas are often used to avoid oversupply, which damages producers and exporters It is applicable to exported goods of natural resources and at risk of being depleted or polluting the environment

Stemming from the real needs of life, the need for hygiene and safety, quality A series of standard systems are in place, including regulations on packaging, packaging for safe and hygienic hygiene products, hygiene and epidemic prevention This greatly affects the export promotion activities of enterprises Because products of enterprises that want to penetrate into markets, they must fully meet quality standards quantity, environment, of the importing

country and the standards of each country are different Therefore, quotas and technical standards will be barriers for businesses that are trying to promote their products and services to different markets in the world

 Political elements - law

The legal policy system has a strong influence on all activities of export enterprises Preferences or barriers on tariffs, technical barriers, regulations for goods that are allowed to export or other policies of the exporting country and the country of import have the effect of promoting or limiting exports goods These conditions affect the business decisions of enterprises by taking advantage of state incentives and limiting obstacles that the above provisions can bring

Politics needs stability for economic development This factor is a factor promoting the export of goods and services The stable political environment creates comfortable psychology, confidence in production and business thereby promoting export development Each country has its own legal system to regulate its import-export business Therefore, enterprises must have a certain understanding of these factors to create a safe legal framework for export activities and export promotion

The exporting country can be successful in the international market if they have a certain understanding of customs, practices, tastes, and habits that differ from country to country Therefore, an understanding of the cultural environment will help in the adaptation of the country to the market so that it has the right strategy in expanding its market and promoting its export activities

 Natural condition

Natural conditions have a great influence on promoting the export of handicraft products of enterprises Natural factors affect the input of production

activities Any country with rich resources will have advantages and potentials to well implement export promotion activities

1.1.4.2 Subjective factors

Subjective factors are the characteristics and potentials of enterprises that directly affect the operational efficiency of enterprises

 Capital and financial capability

This is a factor that reflects the full power of the business through the amount of capital that businesses can mobilize into business, the ability to effectively distribute investment capital Mobilizing all the capabilities of the enterprise's capital helps businesses carry out business activities more easily In fact, most businesses use a huge portion of their loans, not equity Therefore, when assessing the ability to mobilize capital, enterprises must take into account the mobilization of capital from different sources such as credit, mortgage If an export enterprise has abundant capital and financial resources, businesses will have advantages in the market All research and market expansion, product quality improvement to export, application of science and technology in production and business, communication, sales contact in export business, It is necessary to use capital and financial resources of enterprises

 Human factors

Export promotion is an important activity of export enterprises Therefore,

it requires a high professional level of human resources in the market research and marketing phase to produce products Wanting to promote export activities with high efficiency, businesses need to take care and training to foster knowledge for employees Enterprises need to recruit business employees

through recruitment exams that are done scientifically and objectively and only select those who have the standard such as: sufficient professional skills, creativity, ability to speak guess, the ability to adapt to the company's working environment and culture Besides, the company needs to send experts to study and study at professional training courses organized by other agencies If possible, the company should send experts to study and study abroad to improve the professional level, understand the market reality and help export

1.2 Content of Export promotion

 Rapid increase in output and export turnover

The aim of businesses is to promote exports to foreign markets by increasing export volume to that market to actively exploit import markets, spreading the appearance of products on the export market However, enterprises need to predict the demand as well as the volatility of export products in the world market so that they can promptly cope with possible business risks In addition, in order to increase export output without leading to an increase in non-essential costs, businesses need to calculate production scale accurately

 Diversifying export products

Enterprises can promote exports by implementing diversification of exports by the psychological preference for innovation and novelty of people Enterprises can diversify by creating new designs or using a variety of different materials to create differences and abundance for products, evoking new and interesting from customers

 Research and expand export markets

Market expansion can be good exploitation of the current market, promoting the export of existing products to the current market and expanding its market share in that market or searching for markets The school has a need for

the company's business products, with potential that the company can exploit Market diversification also helps businesses avoid risks when the situation of the domestic market where businesses are doing business faces political risks or economic recession

 Complete the market research system

We need to study the business environment, customs, consumer culture, interests, beliefs, and level of payment so that we can correctly determine export goods and match them consumer trends The market research here includes market research by country and specific commodity research Enterprises must analyze the domestic market forecasts, competitors in the export market plan and forecast market fluctuations Thereby, take advantage of opportunities and limit possible risks

In a fiercely competitive market, the company must choose market research methods, carry out effective market research before making a final decision on which market to choose If the company determines exactly this, the company will make a right decision

Businesses can gather information on both Vietnamese and foreign books and magazines along with information on the Internet Appointing staff to conduct market surveys, participate in trade fairs both at home and abroad to capture market information Enterprises conduct analysis and synthesize information, take seriously to make a rational and feasible decision

Market research requires a lot of effort and must be taken seriously If the company incorrectly assesses market demand or misjudges market fluctuations,

it can lead to serious consequences for the company Therefore, this work requires qualified and professional staff to perform with complete, accurate and highly reliable information

 Expanding new markets, building close relationships with the old market The world market is very large but because there are certain limitations, in addition to focusing on improving the quality of goods, lowering product prices

to increase the competitiveness of goods The company must improve marketing capacity, actively carry out export promotion activities to markets, seek partners and offers through fairs and seminars that are held in Vietnam or in foreign markets

Besides expanding new markets, maintaining the existing market is also very important In order to retain these customers in addition to improving the quality of goods, there should be reasonable incentives such as promotions for customers or discounts when purchasing large quantities and incentives for long-term customers

 Complete and develop distribution channels

Enterprises that want to promote exports need to improve and develop product distribution channels A distribution channel is a way that an enterprise carries goods from its place of production to a consumer or final consumer Therefore, it needs to be designed in a balanced way to perform the tasks of bringing goods from after production to consumption Distributors must well handle the problem of choosing the source of goods to buy and sign a contract to buy products, choose a means of transport and a contract to transport and arrange

a warehouse system to serve the storage of goods and convey transportation, especially the handling of international logistics information systems

Distribution channels greatly affect the company's business costs and profits Distribution needs to follow the experts' assessment to be of secondary importance to exporters after prices Therefore, an enterprise that wants to succeed in promoting exports must build and choose, perfecting the distribution system for products of their businesses

 Communicate and promote sales in export business

To promote exports, businesses need to make good communication and sales in business This is essential to bring the company's image and brand to the minds of consumers

However, there are many factors that influence promotion when there are international factors such as language, cultural, social, economic, regulatory and legal differences but businesses need to be knowledgeable to avoid unnecessary risks To accomplish this task, business executives must master the characteristics of advertising tools, promotion, public relations, personal sales, direct marketing, etc to apply for each market to achieve the best performance

+ Advertising: It is the propaganda about products and services to attract the attention of buyers, make the goods and services interesting and eventually make them potential customers of an organization dealing in such products and services Advertising forms and means are very rich The company can use such means as presentations, newspapers, radio, televisions, movies, exhibitions can use one of those forms and means, or can combine such forms and means of advertising, directly dealing with customers or through an intermediary, a celebrity to advertise

+ International fair and exhibition activities: Uneven economic development among countries is inevitable The exchange of goods between countries is an indispensable condition To expand the business and production development arena, countries have organized exhibitions to display and advertise their goods on a large scale At the same time, this is also a gathering place, meeting with businessmen to negotiate and sign contracts

+ Sending a gift: A very small part of export goods is used as a gift for the advertising object or agency to sell their goods Attached to these items may be explanatory notes, introduction to the item In recent years, developed countries

have applied these forms very much This can quickly get the sentiment of the advertised person to stimulate or quickly cause his habit of using goods

+ Through long-term old customers (not only in their business fields) to advertise and introduce their export products to other customers This method has both saved costs for the company and brought about high efficiency

 Promote the application of market information technology and organize international information activities

Today, the information technology revolution has developed at a high level and spread throughout the globe It creates the ability to quickly collect information about economic and commercial activities Businesses need to use appropriate electronic tools to conduct business between two or more companies

It facilitates customers anywhere in the world to have a chance to look at deals and deals wherever they want

Today, the information technology revolution has developed at a high level and spread throughout the globe It creates the ability to quickly collect information about economic and commercial activities Businesses need to use appropriate electronic tools to conduct business between two or more companies

It facilitates customers anywhere in the world to have a chance to look at deals and deals wherever they want

 Improve product quality to promote exports

Export enterprises that want to promote exports must focus on improving product quality in order to compete with products of countries around the world

In order to improve the quality of products to suit the needs of importing countries, enterprises need to base on research information from that market, then establish required product improvements to meet response to market demand

Improve product quality associated with the technological development of businesses and especially with cost factors Improving product quality with minimum cost is a measure that every business wants but to implement it, businesses need to weigh a lot of problems and have effective solutions Currently, the direction for export enterprises is to apply the international standard system to confirm their product quality and control production costs, then give reasonable prices for products to meet the high demand of consumers

1.3 Lessons from other countries

a) China

On the external front, the factors combined to give rise to China's success: adoption of an aggressive pro-export strategy by central authorities, active participation of local authorities and the presence of Hong Kong and Taiwanese investors looking for a source of cheap labor With the beginning of the open-door policy, the central authorities began sending clear signals in favor

of an export-oriented trade regime A variety of instruments were employed to promote what may be called an "export culture": geographical targeting, sectoral targeting, a liberal foreign investment regime, and liberal provision of export financing

China set up the so-called Special Economic Zones (SEZs) and Open Cities within which economic activities manufacturing, banking, exporting and importing, and foreign investment took place in a more liberal environment that

is available in the rest of the economy The SEZs offers many economic incentives to investors not available in the inland provinces The corporate income tax, normally 33 percent for foreign-funded enterprises and 55 percent for state-owned enterprises, is 15 percent for all enterprises in the SEZs Duty exemptions for assembly type operations combined with rapid processing of

imported inputs and materials by customs authorities made a significant contribution to China's export growth

b) Philippines

Handicraft products have been an export winner for the Philippines because of the comparative advantages it enjoys in terms of: the artistry and creativity of Filipinos, the availability of a large pool of well educated, skilllful and highly trainable workers in the countryside; a vibrant, cohesive and articulate national association of handicraft producers and traders, and the existence of Filipino-owned export trading companies that have spurred expanded production by small, widely scattered handicraft producers It is not unusual for companies to send their designers and artists to Europe and the US just to check out the latest trends in design The Product Development and Design Center of the Philippines (PDDCP), a technical agency of the Department of Trade and Industry, was organised to help companies come up with new designs It provides invaluable assistance in product research and development, design education, design promotion, package design and design resource and technical formation

A lot of credit for the success of Philippine handicraft exports goes to the Center for International Trade Expositions and Missions (CITEM), the main government marketing arm for these products CITEM has not only exposed Philippine handicrafts to the global market through locally held fairs and permanent showrooms, it has also assisted several exporters in joining international fairs and exhibitions, the most prominent of which is the Ambiente

in Frankfurt, Germany Locally, CITEM holds fairs three times a year These fairs are called the Manila Furnishing Apparel Manufacturing Exchange (FAME) Week and they are held in February, April and October So far, results of the local fairs have proved to be encouraging These results are not bad at all

considering that the government spends less than US$300,000 to prepare these fairs For each local fair, CITEM coordinates with the commercial attachés at the Philippine embassies in the target countries to send invitations to potential as well as past importers of Philippine goods According to CITEM officials, they usually try to select as diverse a group of firms as possible to participate in foreign trade fairs

The government has developed a Preshipment Export Financing Guarantee (PEFG) Programme which provides guarantees to banks lending to small and medium-sized exporters The PEFG is administered by the Philippine Export and Foreign Loan Guarantee Corporation (PHILGUARANTEE) The Development Bank of the Philippines also has a financing package offered to SME'S However, the common problem with all of these lending schemes is the voluminous paper work required and the various technicalities involved for a loan application

c) Lessons for Vietnam

Therefore, Viet Nam could learn valuable experiences and lessons from China In particularly, Vietnam should adopt the central government's export advocacy strategy, active participation by local authorities Artisans, craft villages that produce handicrafts should be paid attention to and paid attention to income so that people can stick to the profession and maintain the national culture for a long time Vietnam can send artisans to European countries, check the trends and preferences of importing countries to improve products according

to the latest trends The Government of Vietnam invests heavily in handicraft exhibitions, which is a very effective form of advertising Vietnamese products to the world The state needs to have more handicraft groups to support companies and artisans Government of Vietnam can encourage the establishment of businesses that export handicrafts State-owned banks can raise funds and

support packages for handicraft enterprises, artisans and villages with preferential prices Teaching and training of artisans to create these products should be focused, using human resources effectively, with many policies and advantages, for those who are third-class artists such as being sent Foreign to market research, have attractive salary

CHAPTER 2: EXPORT ACTIVITIES OF THUY ANH CO.,LTD

2.1 Overview of the company

2.1.1 History and development of Thuy Anh

Thuy Anh Co., Ltd was established on September 26, 2015 with a tax code

of 0108001094

 Full name in Vietnamese: Thuy Anh Co., Ltd

 Transaction name: Thuy Anh CO.,LTD

 Charter capital: 25.000.000.000 VND

 Legal representative: LƯU THỊ NGỌC THUỶ

 Address: Hoàng Đạo Thúy street- Cầu Giấy district- Hà Nội city

The company has just been established in a short time, but the company team consists of a lot of highly qualified personnel, has a lot of experience in the field of goods export, especially in the field of crafts exports, crafts In addition, the company's products are carried out under strict procedures in the hands of skilled craftsmen, which has brought great success to the company over the years Handicrafts are not only decorative items, they also contain culture, and souls of producers Therefore, with sources from famous skilled workers such as Chang Son, Bat Trang, Nga Son, are the items that have affirmed their position

in the country and increasingly affirmed their influence on the world market ,

the company has a strong position, compared to the leading handicraft export companies in Vietnam

By creating good relationships with customers in the international market, the company always has the support of customers, facilitating the capital of the company quickly turn around, finding new customers, happening quickly Since then, the company has created an extensive customer network for companies worldwide Founded in 2015, initially, the company met many difficulties and challenges, but the company has made great efforts to assert its position in the export market of handicrafts At the present time, the company is planning to expand its exports as well as seeking new markets around the world to carry out its exports

2.1.2 Business field

Thuy Anh Co., Ltd is a company specializing in exporting handicraft products to foreign markets such as the United States, EU and Japan Handicraft products that the company exported such as bamboo, rattan, ceramics, Lacquer Besides, the company also provides transportation and warehousing services such as:

 Freight transport Road transport of passengers in urban and suburban areas (except for transportation by bus)

 Transporting goods by road/ by sea

 Transporting inland waterways

 Warehousing and storage of goods

 Direct support services for water transport

 Loading and unloading goods

 Other support services related to transport

 Export handicrafts

2.1.3 Organizational structure of the company

In the beginning, the company only consisted of 10 members But up to now, with good development, the company's personnel system has reached 40 people Here is the structure diagram of the organization of Thuy Anh Limited

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Diagram2.1: Organization structure chart of Thuy Anh Co., Ltd

Thuy Anh Co., Ltd operates with the leading organizational structure of the company as the director The director is responsible for running the company and is responsible in all areas:

 Planning and developing a general plan for the company's strategy

ACCOUNTING

DEPARTMENT

HUMAN RESOUCES DEPARTMENT

BUSINESS DEPARTMENT EXPORT

DEPARTMENT

for the effectiveness of the assigned tasks The Deputy Director has its own function of recruiting personnel for the company

The organization company 4 function rooms are the finance-accounting department; Business Department; Import and export department and HR department The duties and functions of each room are shown as follows:

d) Accounting Department

The function of this department is to carry out the accounting of the business process for the company, to assist the Director in managing activities, economic calculations, using assets, materials and capital to ensure the rights proactive in production and business and financial initiative in the company In addition, the department should check the implementation of the State policies, regulations on the field of accounting and finance, making reports and financial plans

f) Export Department

Export Department carries out international trade transactions, import and export operations; expand markets, promote activities of buying and selling goods Not only that, the department is responsible for delivering goods to partners, handling cargo from the company's warehouse to the port The staff of the import and export department must meet the high requirements of the professional level of import and export, foreign language ability and other operations related to import and export work

g) Human resources Department

Human resources department is responsible for recruiting personnel for the company and training new personnel, connecting members of the company together The HR department encourages employees in the organization to work together to help them reach their full potential while providing suggestions for employees to improve work efficiency The HR department is also responsible for communicating with employees to provide them with the necessary feedback

on job performance Social activities also bring a lot of effects in stimulating the work of company personnel

2.1.4 Target in the future

Our strategy for 2020 includes all dimensions of acting sustainably and successfully By challenging the status quo in the logistics industry, Thuy Anh strive toward economic, social, and environmental harmony in logistics and supply chain management

- Economic:

By 2020, Thuy Anh will be profitable quality leader and hold top positions

in company’s target markets Building on the long-term financial stability, the company will continue to invest in growth markets, new business, and the

expertise of our employees Schenker will deliver innovative products, based on high performing processes and cutting-edge IT systems In doing so, company’s customers remain completely satisfied with company’s leading networks and industry solutions

- Social:

By 2020, Thuy Anh will be the top employer in logistic industry The company is a diverse and international, inspiring and attracting people of all ages and professions The company support the development of employees and offer them local and international career opportunities Thuy Anh relationships are based on mutual trust and the common leadership philosophy The company offers a working environment that respects individual needs and values everyone’s contribution

- Environment:

By 2020, Thuy Anh will be the eco-pioneer of our industry The green product portfolio and expertise in eco-consulting are at the heart of our sustainable strategy These features deliver a clear competitive advantage for customers and for company Thuy Anh will be considered the benchmark in terms of carbon and energy efficiency The company is also striving to reduce other emissions, such as noise, in order to increase society’s acceptance of our future growth

2.2 Exporting Procedure

To ensure that export activities are carried out safely and smoothly, the company proceeds with the following stages of the general export process In a multi-step process that is closely related, the previous step is the basis and premise to take the next step Usually, a commodity export process consists of several steps:

Negotiate and sign contracts

Implementation of contracts (products, insurance, transportation…)

Customs clearance Shipping

1 Market research, search for partners

Foreign markets include many complex factors, different from the domestic market Therefore, it is necessary to master the market factors and understand the rules of movement of foreign markets Market research has important implications in developing and improving economic efficiency

Diagram2.2: Export process of Thuy Anh Co.,Ltd

Market research must answer some of the following questions: what to export, which market, who the trader is, which way of trading, business strategy for each stage to achieve the goal suggests

For companies, market research is extremely important In the study, the company had to master a number of contents such as general political, commercial, legal and trade policies, conditions for money and credit, transportation conditions and price situation In addition, the company also needs

to master some content related to business items in that market such as market capacity, customs and consumer tastes of people, price fluctuation, the level of competition of that item

Moreover, in order to be able to export goods during the study of foreign markets, the company has to find customers Selecting traders should be based

on some of the following characteristics: your reputation in the market, time of business operation, financial ability, technical facilities, distribution network, products so, the company can export goods and avoid risks in international business

1 Identify business items

The identification of business goods must first be based on the needs of production and consumption in terms of specifications, sizes, prices, seasons and tastes as well as consumer habits of each region and each domain manufacturing Since then, the company reviewed aspects of goods in the world market The most important issue in this period is to determine the export volume and the time of export to sell at a high price in order to achieve the maximum profit

2 Prepare a detail business plan

Based on the results obtained during the study of market access abroad, the company set up a business plan This plan is the unit's operation plan to achieve

the defined objectives in the business The construction of a business plan includes the following steps:

 Evaluate the market situation and traders

The company must provide an overview of the foreign market and a detailed assessment of each market segment At the same time, it must also give specific comments about foreign traders that the unit will cooperate with

 Selecting items, business methods

From the product line, the company must select the export product that the company has long-term potential, has a stable source of goods to meet the appropriate export opportunity: suitable time, amount, restock,… for exporting depending on the ability of the company, the company chooses appropriate business methods

 Set goals

On the basis of an assessment of the foreign market, the ability to consume such export products that the export business unit sets a target for each specific period

Stage 1: Sell products at low prices to compete with similar products, enabling consumers to have a chance to try and gain market share

Stage 2: Gradually raise the selling price to earn profits At the same time, the company continues to improve product quality, diversified models, sales channels and attractive incentives for agents

 Propose measures to implement

Implementation solution is a tool to help business companies implement the objectives set out in the most effective, fastest, most profitable way for business companies

 Evaluate the effectiveness of the business

This is an activity that helps the company evaluate business performance after business contracts At the same time, the effectiveness of the stages of trading companies has been well done and the periods are still weak Since then, the company has completed the export process effectively

In this step, the director and deputy director of the company directly direct the search for potential markets that have import support policies In particular, these are extremely interesting markets for handicraft goods shown In addition, the sales department will assist in finding customers for the company

In order to negotiate well, the company must prepare the market, economic, cultural, political, legal information of countries, or information about partners such as development, reputation, as well as the potential financial ability

of the enemy Requiring professional staffs who need to know information about goods, markets, customers, politics and society accurately and quickly will help negotiate the signing of contracts effectively

Currently, trade negotiations often use three basic forms of negotiation: mail negotiation, telephone negotiation, negotiation by the direct meeting But in Vietnam today, the two forms of negotiation through correspondence and telephone negotiation are most commonly used

 Sign a contract

Whether the contract is carried out depends on the terms that the two parties have committed in the contract When signing an economic contract, it must be based on conditions such as planning orientations and economic development policies of the state, market demands, orders and sales leads

In this step, the sales department is responsible for self-advertising to find customers, then negotiate and advise customers to sign contracts The business department consists of 12 employees, which is an important part of the company that makes a lot of profit and maintains the company's growth

2 Implementation of export contracts

After signing an export contract, the enterprise needs to organize a contract that has been signed Based on the terms stated in the contract, the enterprise must arrange the tasks into a table to monitor the progress of contract performance, promptly grasp the situation of sent documents and receive information feedback from partners

 Prepare export products

Foreign trade is usually conducted on a large number basis Packaging for handicrafts should be carefully organized and marked with the correct number The organization of packaging, packaging, and coding is an important step in the process of preparing goods because the goods are packed in the process of transport and storage If you want to do a good job in packaging, you need to understand the requirements of the type of packaging to suit and in accordance

with the regulations in the contract, and at the same time have high economic efficiency:

- Type of packaging: often used as boxes, barrels

- Symbol code: Symbol code with numbers or letters or drawings written on the outside of the package to inform necessary information for delivery, handling, and storage

 Quality inspection of goods

Before delivery, the exporter must be obliged to inspect the goods in terms of quality, weight, packaging this is a necessary job that helps the customer benefits to be ensured, avoiding risks, and assigning responsibilities of the steps in production as well as creating a source to ensure credibility for exporters and manufacturers in trade relations The inspection of export goods shall be carried out immediately after the goods prepared for export packing at the border-gate inspection establishments, which are directly inspected by customers or inspected by competent agencies, shall be subject to agreement of both sides

 Buy insurance for goods

Transportation of export goods often presents risks and losses, so the purchase of insurance for export goods is the best way to ensure the safety of exported goods during transportation

 Renting transportation

In the process of implementing a contract for export of goods, the hiring

of a means of transport is based on the contract: the condition of the quantity or quantity of the delivery facility is based on the characteristics of exported goods such as weight, size, material goods

The compilation and execution of contracts, is handled by sales staff The business staff combined with the accounting department (including 3 people) and the export department (including 5 people) The accounting department is responsible for receiving money, spending on orders, making documents to circulate cash flow to the company, keeping financial resources transparent In addition, the sales staff also combined with the export department to choose the mode of transport, insurance and agreements in the contract

3 Customs clearance

This is a mandatory rule for any kind of goods, this work is conducted through 3 steps:

- Customs declaration: the company is responsible for declaring full details

of the goods honestly and accurately on a declaration form for the inspection agency Contents include a type of goods, goods name, the quantity, the value of goods, means of goods, import country Customs declarations are presented along with a number of other papers such as export contracts, permits packing invoice

- Presentation of goods: export goods must be arranged in a convenient way for control

- Implementing customs decisions: this is the last job in the process of completing customs procedures

4 Shipping

The company fulfills the conditions of delivery of goods in export contracts, in time of delivery, enterprises must carry out delivery procedures, currently, most of our exported goods are transported by sea and rail

 If export goods are delivered by sea, the company does the following: