Enhancing the effectiveness of import and distribution channel of vindrink ,JSC

With the characteristics of large, difficult to control market, the payment currency must be foreign currency for a country or both, and different countries participating in import activ

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Preamble

Import and export has been holding the leading position in foreign trade activities Nowadays, not only in developed countries where this activity has been going wild, but also in developing countries, this trend has been growing strongly Incorporating with this trend, many import and export companies in Vietnam have been born which making a new development of foreign trade in Vietnam

Aware of this, after a period of studying professional subjects and as the request of the school about the internship, I applied for 4-week internship at VINDRINK.,JSC According to the knowledge that I have gained through classes as well as the useful information which was accumulated during the internship, I decided to choose project: “Enhancing the Effectiveness of Import and Distribution Channel of Vindrink.,JSC” in order to

understanding and practically learn about the import activity

There are three main parts of the thesis:

Chapter 1: The theoretical basis of Import Activity at VID

Chapter 2: Evaluate Import Department at VID

Chapter 3: Orientation and Solutions to enhance import business efficiency at VID

In order to accomplish this minor thesis, first of all, I would like to thank the Board of Directors and Sales Department of VINDRINK., JSC for creating favorable conditions for me to practice at the company in the past few months I would like to sincerely thank MSc Pham My Hang Phuong – Who has wholeheartedly guided, contributed advices, answered questions for me in the process of writing this graduate thesis

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Despite trying to improve the thesis, but due to the short time of internship and the limited understanding, this graduate thesis cannot avoid errors Contributions from teachers would help me to make this thesis more complete

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Chapter 1 The Theoretical Basis

1 Definitions, characteristics and roles of importation

1.1 Definitions

Importing play a pivotal role of foreign trade, it is one of the two basic

activities that constitute foreign trade According to article no.28 in Vietnam Commercial Law 2005 “Import of goods means the bringing of goods into the territory of the Socialist Republic of Vietnam from foreign countries or special zones in the Vietnamese territory, which are regarded as exclusive customs zones according to the provisions of law”

According to Clause 1, Article 28 of the Commercial Law 2005, the

definition is as follows: "Importing goods means that goods are brought into the territory of Vietnam from foreign countries or from special areas located in the territory of Vietnam to be considered regions Private customs in accordance with the law"

The Market Business News also defines the term “Import” is understood as

“Imports are goods or services of foreign origin that importers bring into a country”

Imports are important for the economy because they allow a country to supply nonexistent, scarce, high cost or low quality of certain products or services, to its market with products from other countries Import also aims to strengthen the economic facilities, modern advanced technology enhance technology transfer, save production costs, labor time, and contribute to the production development of society is a highly effective way

On the other hand, import creates a driving force for domestic manufacturers to optimize production system, create apparatus to compete with

Import activities are organized, perform many tasks and many different stages Starting from foreign market surveys, selection of imported goods, transactions, conducting negotiations and signing contracts, organizing contract implementation until receiving goods and paying Steps and tasks must be thoroughly researched and analyzed to capture the advantages and achieve the results that company wants

Import includes activities of trading transactions between people or corporates from different nationalities With the characteristics of large, difficult

to control market, the payment currency must be foreign currency for a country

or both, and different countries participating in import activities must follow the customs of the locality and international practices

Import activities take place on a very wide range both in space and time It can be carried out on the territory of a country or in many other countries around the world Besides, it can take place in a short or even yearly period depending

on the contract signed between the parties

Import activities take place in all areas Imported goods can be consumer goods or production materials, machinery or high-tech technologies to benefit importing countries

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Import brings benefits not only to the enterprises themselves but also to the economy and people's lives A developed import sector contributes in reducing the unemployment rate as well as improving the economic state of importing country

1.3 The roles of Importation

Importing is an important activity in international trade It directly affects the production state and human life (through consumption of imported goods) Through import, it enhances the technical facilities, advanced and modern technology for the production process and people will also be able to consume products that cannot be produced in their country or production cannot meet domestic demands

Import has the following major roles:

1.3.1 For the World economy

Beforehand, through import activities, countries around the world have opportunities to understand the customs, culture and political of other countries which they co-operate with Thereby contributing to speeding up the process of economic integration among countries, fully exploiting their comparative advantages and using human and natural resources more appropriately

Import activities will stimulate production and consumption in each developed country It makes the volume of goods and demand in the world economy increase, thereby also improving people's living standards

Import will help developed countries or developing countries have the opportunity to learn a lot of experience in managing and acquiring scientific and technical achievements as well as serving the industrialization and modernization process

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Import promotes economic integration between countries and regions It makes the international division of labor take place all over the world, creating a reputation for each member state to be enhanced At the same time, activities such as insurance, tourism, services and trade also developed rapidly

1.3.2 For the State economy

Vietnam is a developing country so that importing goods is indispensable for the process of developing the economy and accelerating the industrialization and modernization of the country Thus, import activities have a huge role for the Vietnamese economy

Importing construction equipment helps process of material and technical construction to shorten time and effort It facilitates the development of the economy with modern equipment lines By importing modern equipment, it helps domestic workers have opportunities to improve their skills and knowledge, managers have conditions to improve knowledge of qualifications and management

Importing goods makes it possible to diversify sorts and types of goods, consumers will be able to choose goods that are more suitable for their income This also makes a contribution in improving people's lives At the same time, import activities also timely replenish domestic goods due to inadequate domestic production

Thanks to importation, the domestic manufacturing industry will be able to eliminate weak production units with no competitiveness Besides, businesses have to face the need to innovate both technology and management in order to maintain profits and improve the competitiveness of their goods, facilitate the dominance of the domestic market and gradually proceed to exportation

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Eventually, importation will create opportunities for our country to expand diplomatic relations with other countries Then enlist their support for our economic development

1.3.3 For the Enterprises

Through import activities, enterprises must innovate and improve quality technology and product services in order to increase the competitiveness of domestic products Thereby, production efficiency is enhanced, workers find jobs, and workers' life is improved

Import activities are complex international activities because of the exchange of many different economies of culture, politics, customs, and languages Therefore, enterprises are forced to perfecting and innovating business management, officials and individuals always have to gain experience and improve professional skills It enhances the professional capacity of members of the enterprise

Importation plays an important role in increasing the position and reputation

of the company both in domestic market and international market The profit from business allows the company to build technical facilities, expand business fields in both depth and width, contributing to solving jobs for workers and improving life of officials and employees, solving problems of society, improving and developing business relationships

Import brings conditions for businesses in connecting between domestic and foreign entities in a self-conscious way, stemming from the interests of both sides, creating the strength of the subject in the enterprise in a practical way Therefore, imports mean very important for a nation's development, it exists

as a necessity

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2 Types of importation

Import business activities can only be conducted in import-export enterprises directly, but in fact, due to the impact of business conditions, Vietnam creates various import and export forms In this section, we only consider a few common and popular forms of import that are being applied at enterprises in Vietnam

2.1 Direct Imports

Definitions: According to the Commercial Law 2005, direct import is

defined “For this form, the buyer and the seller of the goods directly deal with each other, the buying and selling process is not tied to each other Buyers can buy without selling and vice versa Direct import is conducted quite simply In particular, the importer wants to sign an import business contract, must study the market, find suitable partners, sign and perform contracts, self-invest, bear all risks and costs in deal…”

Characteristics: In direct import, businesses must take all the tasks This is

an activity that must be carefully considered accurate from the initial step of researching information to signing the contract The reason for this due to businesses have to invest their own capital to bear all transaction costs, market research, delivery, warehousing, cost to consume goods, taxes payable when businesses Self-trading, enterprises are allowed to import imports and when consuming goods, enterprises are subject to sales tax and item tax As usual, the business only needs to make a contract with the foreign party, and the domestic purchase contract will be made after the goods arrive

2.2 Entrusted Imports

Definitions: According to the Decision no 1172/TM/XNK dated September

22, 1994 which released by the Minister of the Ministry of Trade, entrusted

import is defined “Entrusted import and export is commercial service activities

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in the form of leasing and importing for export or import services This activity

is carried out on the basis of an export or import entrustment contract between enterprises, in accordance with the provisions of the Ordinance on Economic Contracts”

In other words, entrusted import is activity formed between a domestic enterprise with its own foreign currency capital and a demand for import of a commodity but they do not have the right to participate in direct import-export relations, thus they entrust one enterprises with the function of directly conducting foreign trade transactions shall import according to their requirements On the other hand, authorized importers are importers that act as intermediaries to import goods

The entrusted party must negotiate with foreign countries to import goods at the request of the entrusting party Normally, a entrusted party is entitled to a remuneration of 0.5% to 1.5% of the total contract value, also known as a entrust fee and they must pay income tax on this source also, when conducting import Entrusted enterprises only calculate import and export turnover, not include turnover and pay value added tax

Characteristics: In this import operation, the entrusted enterprise does not

have to invest capital, nor apply for quotas, nor study the imported goods market, but only to act as a representative to find and deal with foreign partners, sign contracts and import procedures as well as changing the trustees' claims, claiming compensation with foreign parties when there are damages

When choosing the type of entrusted import, enterprises must set up 2 kinds

of contract:

- A foreign contract (purchase with foreign countries)

- An internal contract (entrusted importation with the trustee)

-

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2.3 Joint Venture Imports

Definitions: According to the Commercial Law 2005, joint venture import

is defined: This kind of importation is based on the basis of voluntary economic linkages between enterprises (of which at least one direct import-export enterprise) with an aims to coordinate skills to jointly trade and set up advocate measures related to import activities, promote this activity to develop in the most beneficial way for both parties to share profits, losses and damages

Characteristics: Compared with self-trading imports, enterprises are less

exposed to risks because each joint venture enterprise only has to contribute a certain amount of capital, the rights and responsibilities of each party also increase with the capital contribution The division of cost and turnover tax according to the ratio of capital contribution, interest and loss depends on the two parties' agreement to divide based on contributed capital plus the responsibility that each party must handle

In joint venture import, enterprises that import goods will be counted for export turnover but when they bring goods to consumption, they only calculate the turnover on the number of goods calculated according to their capital contribution ratio and only pay sales tax on those goods

Direct import and export enterprises must implement 2 contracts:

- A purchase contract with foreign countries

- A joint venture contract with another business

2.4 Processing Imports

Definitions: Processing activities are stipulated in Chapter 6 of the

Consolidated Document 09 / VBHN-BCT in 2017 “Processing import is a form

of import whereby the importing party (the processor) processes the import of

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raw materials from the exporter (the outsourcer) to carry out the processing according to the provisions of the contract signed between two parties”

Characteristics: The relationship between the outsourcer and the processor

is defined in the processing contract In the processing contract relationship, the processing party shall bear all costs and risks of the process of manufacturing processing

In the processing relationship, the processor will collect an amount called processing fee while the outsourcer will buy back all finished products produced during the processing

In processing contracts, it is specified that commercial conditions such as finished products, raw materials, processing prices, acceptance, payment and delivery

2.5 Re-export Imports

Definitions: Based on the provisions of the 2014 Customs Law and Decree

No 69/2018 / ND-CP, the concept of temporary import for re-export is

understood as the fact that a Vietnamese trader imports goods from one country,

is filled enough customs clearance procedures for import into Vietnam, then Vietnamese traders carry out procedures for exporting these imported goods to another country or it may be the country that originally exported At the same time, temporarily imported goods are re-exported in the form of business, there

is time to stay in Vietnam not more than 60 days from the time when Vietnamese traders do temporary import procedures through customs areas

Thus, re-export imports always attract 3 participating countries: exporting country, re-exporting country and importing country

Characteristics: Enterprise in re-exporting country must establish 2 types

of contracts

3 Main content of Goods Importation

Import operations have much more complex tasks than domestic business activities due to differences in subjects and geographical distances Therefore, in order to carry out import activities effectively, import and export enterprises need to clearly define their responsibilities, content and work order Each step, each operation must be studied, fully implemented, carefully and placed in mutual relationships, taking advantage of the advantages to ensure the operation

of the highest efficiency, full service, Timely for domestic production and consumption In this part, I refer to a dissertation written by ms Huynh Ngoc Doan Trang, 2015

3.1.1 Identify Imported Products

The purpose of identifying imported products is to choose the most profitable business item To do this, businesses must answer the following questions:

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- What kind of commodities are needed in the domestic market? Businesses need to identify the goods along with the brand, model, quality, price and quantity of the goods

- How is the consumption of that product in the country? Each type of goods has its own consumption habits, which is reflected in the consumption time, tastes and changing rules of supply and demand relation on that market

- Which stage is the item in the life cycle? Any product has its own life cycle Capturing the commodity that the business is planning to live

in at any stage of its life cycle will determine the measures needed to boost sales and earn more profits

- What is the production status of that item in the country? If the company wants to do business effectively, regardless of any business must pay attention to the relationship of supply and demand for business products The problem that import-export businesses need to consider here are: production capacity, production season, growth rate of that product in the country The selection of imported goods is based not only on the calculations, estimates and specific manifestations of the goods but also on the experience of the market researcher to predict fluctuations in market prices Domestic and foreign schools, the ability to negotiate to reach more favorable trading conditions

3.1.2 Market Capacity Research

For importers, it is important to understand the market volume of goods to import We can understand the market capacity of a good as a commodity traded

on a certain market range, usually a year Market capacity research needs to determine the real needs of customers, including the amount of reserves, the

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changing trend of demand from time to time, regions in each production and consumer sector Besides, along with determining demand capture, knowing the market's ability to supply includes consideration of characteristics, properties, alternative production capabilities and the ability to choose to trade

Market capacity is not fixed, it varies depending on the situation of the situation, the combined effect of many factors in certain periods

3.1.3 Market Prices Research

In the worldwide market, prices not only reflect but also regulate the supply-demand relationship Properly determining the price of goods in imports has a great meaning to the effectiveness of international trade

Prices in import operations are international prices International prices are representative for a certain type of goods on the world market That price must

be the usual commercial transaction price, without a special condition and paid

in freely convertible foreign currency

Predicting the fluctuating trend of commodity prices in the world is very complicated, sometimes it is in an upward direction, sometimes it is in a downward direction, there are times when commodity prices tend to be stable but this trend is only temporary In order to accurately predict the volatility trend in the world market, we must first rely on the research results and predictions about the market situation of such goods, to appreciate the impact of factors affecting movement trend of commodity prices

The factors affecting commodity prices in the world market are many and can be classified in many different ways When predicting the trend of price fluctuations in the long term, it is necessary to analyze and assess the impact of long-term factors such as cycle, value when predicting the trend of price fluctuation in short time, it should be analyzed to assess the direct impact of

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changes in supply and demand and temporary factors such as seasonal or natural factors

3.1.4 Business Planning

Based on market research then proceeded to establish import business plan

A business plan is a specific action plan of a purchase or sale of goods or services Business plan is the basis for professional staff to perform tasks, divide big objectives into specific small objectives to lead and manage business continuously and closely

Creating a business plan includes these following steps:

Step 1: General assessment of the market situation

Analyzing and evaluating the market situation and foreign suppliers, the goal of this step is to compare many supplier markets in order to select some attractive suppliers for the businesses First of all to save time and cost, it is necessary to limit the assessment by immediately eliminating some markets which are obviously unattractive for businesses because many reasons belong to the product itself are also the standard immediately some supply markets

After eliminating supply markets with absolutely no prospects, the remaining suppliers are generally evaluated in the following aspects:

- Political environment

- Economic - Cultural environment

- Competitive environment

Step 2: Evaluate the ability of the company

In front of competitors, company needs to establish a relative assessment of their strengths and weaknesses On the one hand, how does the enterprise have superior capabilities, the current or potential status of the business, the resources

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that company and competitors can mobilize from themselves or from other sources outside of the firm

Step 3: Identify markets, Items and Quantities for importation

After analyzing suppliers' capabilities and business capabilities, the next step is to select imported goods that are suitable for company conditions This item must meet the requirements set out by both parties: price, quality, packaging

Determining the object of the transaction to import including:

- Location and trading time

- Trading representative company name

- Trading volume and price

- Delivery form and payment method

Step 4: Identify markets and Consumers

The market is a whole that always includes a very large number of customers with different buying characteristics and financial capabilities, so that company needs to determine the market segment to consume products so that they can be effective

Most attention should be paid to the following points:

- Customers that company aim at must be specific

- The size and effectiveness of the market must be measured feasibility

- Company must recognize and serve the market segment that has been divided according to certain criteria

Step 5: Determine Domestic prices

The price of imported goods will be agreed by the two parties but the importer must base on the following factors to provide the minimum price in order to maximize the benefits of the company:

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- Analyzing commodity prices of the same type on the domestic and international markets at the present time or the reference prices of competitors entered

- Price must meet the objectives set by the enterprise as the target of net profit, tax

Step 6: Evaluate Effectiveness and Overcome limitations that reduce business performance

Goods imported into firm in the market, the results obtained may be losses

or profits due to many factors arising in the business process After consuming goods at the end of the period, it is necessary to summarize and evaluate the business efficiency and find out the causes affecting the business situation of the enterprise to propose remedial measures

3.1.5 Dealing, Negotiating and Signing Contracts

Dealing

After the market research phase, customer selection, business items and business plan, the next step is that the company needs to approach the partners in order to proceed with the purchase and sale The dealing process is the process of exchanging information about trade conditions between parties The transaction includes following steps: ask for price, offer, order, refund, accept – confirm

Negotiating

This is a negotiation step, exchanging with each other the conditions for buying and selling import-export businesses to come to an agreement to sign contracts Negotiations often take the form of: negotiation by mail, telephone negotiation and face-to-face negotiations

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Signing Contracts

The contract is an agreement between the parties, the seller (exporter) who has the duty to deliver the goods and transfer the ownership of the goods to the purchaser (importer), and the purchaser is obliged to pay the whole amount of money according to the contract

Contracts can be considered as signed only if the parties sign the contract The parties must have legal status and address specified in the contract The contract is considered signed only when the authorized participant signs the documents, otherwise the contract is not recognized as a legal document In many cases, a contract with three or more parties can be done by all parties signing a unified document or by a written contract with a hand-written quote contained in each contract

3.1.6 Preparing for the Import Contracts

This period includes the following tasks: hiring transport vehicles, purchasing cargo insurance, customs clearance, receiving goods, checking imported goods, making payment procedures, making complaints and settling complaint (if any)

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Purchasing cargo insurance

Insurance is a commitment of the insurer to compensate the insured party for the losses or damages of the insured subject to the risks (agreed) caused, only

in the case of insured party has paid a sum called insurance fee for their goods

Customs clearance

Custom declaration: Goods owners must declare details of goods into customs declarations honestly and accurately, and at the same time, goods owners must determine by themselves the goods codes, tax rates and tax calculation prices of each imported and calculate the payable tax amount on the customs declaration

Presenting imported goods: Customs authorities are allowed to inspect goods if necessary

Implementing Customs decisions: After checking the documents and goods, the customs make a decision to allow goods to cross the border (customs clearance) or go through with some conditions or worst, goods are not allowed to

be imported However, goods owners must strictly abide by customs regulations

Receiving goods

Importing enterprises need to perform tasks such as signing a trust contract for transport agencies to receive goods; confirm with transport agency plans to receive goods on ship schedule, goods structure

Making payment procedures

There are myriad of payment methods such as cash payment, payment by telegraphic transfer (T/T), collection of payment, letter of credit (L/C) Any of these payment methods must be clearly specified in the sales contract Enterprises must conduct payment in accordance with the signed contract of purchase and sale of goods

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Complaining and Settling complaints

While import contracts are performing, in cases goods owners find that the goods are damaged or have losses not in accordance with the signed contract, the enterprises shall have the right to file a complaint to the carrier or the seller Depending on the content of the complaint, the importer and the complained party have different solutions If the two parties cannot resolve the dispute together, they can file an application to an economic arbitration or an economic court according to the contract However, the complaint will take a lot of time and money for both parties, so the consideration of the law should be considered carefully

4 Factors Affecting Importation

4.1 Internal Factors

The domestic market is growing along with consumer psychology preferred

to use foreign goods rather than domestic goods, it derived from the difference in quality and design This is a great opportunity for import and export companies

in general and VID in particular

4.1.1 The organizational structure

Import activities need a complete leading organization which is suitable for

a characteristic of an importing company In the case that the organizational structure is fail, it will affect the effectiveness of the company businesses

4.1.2 Human Factor

In import activities and importing companies, starting on market researching to signing and implementing the contracts needs the staff to understand clearly and professionally proficient, especially when they have to work with foreign partners

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Human factor plays a vital role in the effectiveness of the organization and the success of the firms

4.1.3 Capital and Technology factor

Capital and technology directly affects to the business activities of the company as well as import activities Capital and technology decides business area as well as the size of the business These factors help company can smoothly operate and get highly effective

Capital and technology has a strong connection with each other If the enterprise has a solid source of money (capital), they can have the state-of-the-art technology as a result of it and get high level of effectiveness and vice versa

4.2 External Factors

4.2.1 Political and Economic Policy Factors

In general, import and export business activities and import activities, this is

an international trade trading activity, so it is directly influenced by political factors, laws of each country as well as of international Import trading companies are required to comply with the regulations of the relevant countries, international practices and laws

Stable political environment, strict open-air laws that do not change regularly have great influence on the operation of the economy in general and

Along with the trend of globalization, importation has been holding an important position in the country's economy The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) became effective

as from early 2019 and the EVFTA Agreement is expected to come into force in the year 2019 will be an opportunity for businesses in expanding and developing revenue

Since 2007, Vietnam has officially become a member of the WTO, marking

an important milestone in the process of international economic integration, opening a new era for Vietnam's trade The ASEAN-Japan Closer Economic Partnership (AJCEP) which was signed in 2009, help company gain great benefits when VID directly benefiting from 92% of goods in the Thailand will be exempted from tax

In recent years, our country has accelerated the signing of agreements such

as the ASEAN Free Trade Area (AFTA) which was officially accepted in 2012 Thanks to this agreement, import and export enterprises in general and VINDRINK Company is directly benefited from preferential tariffs, import and export tax rates are reduced help company be able to be more competitive than other competitors on the market

4.2.2 Exchange rate and Foreign currency rate of imported goods

The exchange rate between Vietnamese currency and foreign currencies has

a great influence on import and export business It affects the choice of payment

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currency The exchange rate is sometimes not fixed and will often change up and down Therefore businesses need to have research and predict the trend of exchange rate fluctuations to make appropriate decisions for imports such as selection of partners, choice of payment currency

Likewise, the foreign exchange rate may change the direction between commodities, between business plans of import-export businesses

4.2.3 Domestic and Foreign market factors

Situation and volatility of domestic and foreign markets such as changes in price, supply capacity, consumption capacity and market volatility All factors have an effect on import activities

The up and down in price changes will affect the ability to consume imported goods When the price of imported goods increases, the demand for imported goods will tend to decrease, consumers will shift to consuming the same or similar goods in the country, then it will take photos In the case of imported goods of the enterprise, except for imported goods that the domestic market is unable to provide, then the price will fluctuate according to the market The fluctuations in supply and market capacity affect the volatility of import prices, thereby affecting the company's ability to consume and import operations

4.2.4 Infrastructure Factors

Infrastructure elements serving International trade in goods exchange have

a direct impact on imports such as:

Transport system and seaport: if this system is modernly equipped, it will reduce the loading and unloading time, delivery and reception procedures as well

as ensure safety for purchased and sold goods

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Banking system: The more developed the banking system is, the more convenient it is for international payment as well as capital mobilization The bank is a factor to ensure the benefits for traders by payment services through banks

Insurance system, quality inspection: Allowing international trading activities to be carried out more safely and at the same time reducing risks as well as the extent of possible damage to the businesses in international trade

5 Efficiency of Importation

5.1 The nature and Classification of import efficiency

5.1.1 The Nature of Import efficiency

International trade business in general and import operations in particular

do diversify items or increase the volume of value used for the national economy On the other hand, along with exports, import activities also create a balance in the balance of payments Besides, imports also create more advanced facilities for domestic production by importing advanced equipment in the world

In theory, the basic content of economic efficiency in import activities is an effective contribution to accelerating social labor productivity and increasing the volume of use value

5.1.2 Classification of Import Efficiency

Individual economic efficiency and socio-economic efficiency: Individual economic efficiency is the economic efficiency obtained from import activities

of import-export enterprises The general expression for individual economic efficiency is the profit that each business achieves The socio-economic efficiency of import business is a contribution to import activities to develop

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production, renew economic structure, increase labor productivity, increase budget and improve people's lives

Efficiency of cost and aggregate cost: The purpose of business operation is

to maximize profits Therefore, enterprises must base on the market to solve key issues such as: goods, production technology, consumers and product prices The cost is actually the social labor cost But in each enterprise, the evaluation of the efficiency and social labor costs is expressed in the form of specific costs such as:

- Raw materials cost

Comparative efficiency and absolute efficiency: The absolute effect is effective calculated for each specific plan by determining the level of benefits obtained at the cost For example, calculate the profit earned from a co-production cost or a spent capital Comparison efficiency is determined by comparing the absolute efficiency indicators of the alternatives In other words, the comparison effect is the difference in the absolute efficiency of the options, thereby allowing to choose the optimal plan

5.2 Evaluate the effectiveness of Import activities

Import business efficiency is the financial benefit gained through the import performance of goods and services of enterprises by direct comparison of results with expenses

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Accordingly, business performance of enterprises with direct and specific calculation contents and scope is different from business performance, import business efficiency including foreign relations, embracing the international nature of organic attachment to the national situation It is this complexity that requires unification of methods and related conditions to create the basis for assessing the economic performance of businesses

Building a system of criteria for evaluating import business efficiency according to the formula:

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Chapter 2 Evaluate Import Department

1 Introduction

1.1 Introduction of VINDRINK company

Based on the Decision No 4102027734 of the Department of Planning and Investment of Hanoi City, on May 29, 2017 VINDRINK Import Export Trading Joint Stock Company was established by Mr Mai Ngoc Duong as the representative

Full name: VINDRINK IMPORT EXPORT TRADING., JSC

Short Name: VINDRINK., JSC

Head office: Quarter 4, La Khe Ward, Ha Dong District, Hanoi City

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Along with the slogan "Providing what you need with the best quality", VID Company specializes in providing genuine products with the best quality at reasonable prices to help customers feel secure when trading and buying sold with the company

Prestige, quality and competence are the business foundation that the company has set out Therefore, the company has become a reliable address of suppliers, namely becoming the sole agent and exclusive agent of corporations and large companies

The company's staff is highly qualified, knowledgeable about imported expertise Ability to negotiate cooperation and sign contracts with domestic and foreign partners

1.3 The target of company

In the current market economy, any business that wants to survive and develop must define for itself the goals and ways to achieve those goals because the goal is very important in guiding the activities of the whole enterprise

A business that operates without a goal or does not know what it is like a boat disoriented in the vast sea On the contrary, if the business sets out its own objectives in accordance with the existing resources and strives to achieve them,

it is certain that the business will grow and become stronger

With the desire to develop a strong company, right from the start, the Director of the company has established a business policy based on the following principles:

- Get the top credit

- Honest business commitment

- Commitment to meet the requirements of signed contracts

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The company has been investing boldly in market research, customer relations and partners, often for employees to go on business to explore and expand import products gradually prove their position in the international business market

1.4 The Functions and Tasks

1.4.1 Functions

VID trades and distributes food and beverages, especially soft drinks and energy boosters, which are popular from Thailand, England, Australia in Vietnam Joint venture with investment companies with other companies, import and export all kinds of beverages imported from the company to foreign countries to expand the market and promote product image and enrich the country

The company operates under the direct selling method, directly contacting customers to capture information, so the Company also has the function of contacting, creating relationships and reputation with partners, from there The prestige of the Company has increased and there are many people looking to the Company

Marketing and distribution of wholesale quality food and beverage products from well-known foreign manufacturers, VID strives to bring consumers the best quality products to ensure the health of people consumption Thus, VID has built

a dense customer network throughout Vietnam with more than 300 distribution channels of MT and GT and dedicated logistics network, professional distribution team

1.4.2 Company’s Tasks

Managing and exploiting and using the most effective sources of business capital The company constantly improves the efficiency of capital use and

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business efficiency to meet the increasing needs of customers, self-compensating costs and fulfilling obligations to the State budget on the basis of application Best way of trading ability of the Company and promote the application of new technology into business

Doing business in registered industries, for the right purpose to establish the Company and perform the tasks assigned by the State As a domestic enterprise, the Company must comply with the policies and financial regimes in accordance with the regulations of the Ministry of Finance

In addition, the company is also responsible for fulfilling all obligations in economic contracts with domestic and foreign partners, constantly improving product quality, bringing quality and image to the Company new high

Training, taking care of and fostering and fully implementing the State's regimes and policies for employees such as bonuses, fines, remuneration policies, benefits, etc Implementing distribution according to TB social justice and justice, organization to take care of life and constantly improve the cultural and professional level of the employees in the company

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1.5 Company Structure

1.5.1 Company structure’s diagram

Diagram 2.1 Company Structure

1.5.2 Functions and tasks of each department

Board of Directors:

Directly organize and take responsibility for operating the company's activities in accordance with the law and the company's charter Directly participate in signing contracts, participating in foreign affairs At the same time, determine the objectives, build the development direction of the company in all areas of planning, finance, development investment

Director is the manager of operating daily business and production activities

of the Company, appointed by the Board of Directors or signed a lease contract

BOARD OF DIRECTORS

ADMINISTRATION DEPARTMENT

FINANCIAL AND ACCOUNTING DEPARTMENT SALES

IMPORT DEPARTMENT WAREHOUSE

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Directly organize and run the company's activities in accordance with the law and the company's charter At the same time, determine the objectives, build the development direction of the company in all areas of planning, finance, development investment

Particularly, the director of the company is tasked with manpower allocation, monitoring business progress, expanding relationships with agents and commercial brokers to promote import and export activities, bringing more distribution customers to the company

Responsible for the implementation of the plan, directing the execution of agency operations, arranging appropriately for agents, allocating plans to agents, directly participating in negotiating and signing contracts, participating in foreign affairs, taking general responsibility for the operation of the entire agency

Administration Department:

Monitor and observe administrative issues of the agency, carry out the archive of documents, manage warehouses, and distribute equipment for the agencies

Recruit and arrange officials and employees Solving HR issues in the company such as emulation and reward, training of employees in the company Performing administrative tasks according to regulations such as: Regent, reception, repair and preservation of assets

Assignment, staff moderation (driver and assistant) to transport goods to customers reasonably and on schedule

Performing the repair, maintenance and maintenance of the entire system of machinery, equipment, transport vehicles, ensuring the quality for vehicles to be operated in the best way Provide and control the level of fuel consumption

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Financial and Accounting Department:

This department in charge of document fully, update accounting books and records in accordance with the law, accurately reflect the data on the production and business situation of the company

Organize the fulfillment of obligations to pay taxes and amounts payable to the state budget according to the provisions of law, detect and prevent in time the use of capital, properties and supplies for wrong purposes

Manage the budgets of departments, monitor the performance of the company: revenue, costs, profits

The Financial and Accounting Department is responsible for monitoring expenses, revenue, profits of the company, on payment orders and bills of customers' debts, making business reports quarterly and annually

Warehouse Department:

Prepare and deploy packing plans to meet the shipment schedule Implementing and supervising packing, shipment on time At the same time participating in solving problems related to product quality to meet the progress

of goods export

Inventory management of goods according to accurate and neat standards, easy to find and see for inspection Execute quick, accurate and grounded orders for warehousing, warehousing and inventory

Checking the actual state of warehouses in terms of infrastructure and area for timely repair and adjustment, in accordance with warehouse standards Ensuring security, safety, fire protection for warehouse area As well as cargo insurance

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Import Department:

This department in charge of strategic orientation` of import and export business activities of the company; organize and manage market activities, find import and export markets for companies and member units

Develop a policy of traders, direct, monitor and manage import and export work and carry out foreign trade operations and direct production programs under large contracts with the partners; at the same time perform the tasks entrusted by the company leaders

Take care of existing customers, find and develop potential international customers Management of sales staff (management, administration, supervision and training of sales staff)

Import department responsible for the accuracy, time to complete the work

of import and export business department, not to affect prestige and cause material and property damage to the company

The structure of the company is quite reasonable As a small company, sales department is only undertaken by two employees to secure the number of customers and to find new customers in the company's ability to provide services Particularly for document department, due to the large amount of documents to be handled and solved for customers, this department has two staffs, including: 1 employee takes care of imported goods and 1 employee runs for documents (deliver documents) for guests, pick up containers, etc In the accounting department, because the company books are not so much, this job is undertaken by an employee The function of the director as mentioned above ensures that the company's business is stable