2.1 A description o f the present situation
2.1.2 The main market activities
Services o f Viettracht include shipping o f goods hy sea, chartering ships, ship chartering brokerage-related services, ships for rent, shipping agency, logistics and forwarding agents for air, sea and land, services o f warehouses and Container, direct import and export o f goods íòr transport industry, transport o f goods by land, consolidation o f goods; intemational express Service (including heavy cargo and goods, technical and scientific material, commercial documents, Products, sample o f goods, commodity), booking agent for domestic and intemational airlines, ship-chandler, entertainment Service for passengers and seam en, pick-up, im m igration and change o f seaman Service, íorvvarding Service o f ship’s spare parts, tallying o f goods, maritime brokerage, real estate business, offìce for lease, shoveling, carrying,
leveling ground suríầce for mineral exploitation and construction, temporary import for re-export; triangle trading, forwarding Service o f export and import goods, customs clearance Service (Vietửacht, 2014a).
In terms o f sea transport, Vietíracht sea transport lleet consisted o f 04 vessels including Vietíracht 01, VF Glory, Thang Long and Blue Lotus and they are presented in table 3. Vietíracht manages and operates 04 fleets vvith the high capability and it is going to invest in its fleet to ensure that it can provide its customers with the best services and improve the business períbrmance (Vietíracht, 2013).
Table 3: The sea transport fleet o f Vietíracht
No Vessels name
Tonnage (DWT)
Vessels type
Year/Place o f being built
1 Vietíracht 01 8,100 General Cargo 1990/Japan
3 VF Glory 8,500 General Cargo 2008/China
4 Thang Long 9,000 General Cargo 1998/Japan
5 Blue Lotus 14,500 Bulk Carrier 1999/Japan
Source: Vietíracht (2013)
As shipping agency, Vietfracht is General Agent for many conventional Container lines around the vvorld vvith various types o f vessels including dry carriers, reefers, bulkers, tankers, passenger ships, Ro-Ro vessels, and crude oil carriers. Moreover, the Corporation provides agency services for vessels that call at all ports in Vietnam and its range o f services covers all aspects including inward and outvvard clearance, stevedoring, crewing, and cargo handling (Vietíracht, 2014c).
In terms o f charting and ship-broking services, two services are traditional Business o f the Corporation. With many years o f experience and strong relationship with charterers and ship-owners, Vietíracht is successíully fixed suitable ships for many shipments in Vietnam. Customers can contact the Corporation for any import or export cargo because it has extended its services
to link its customers and suppliers Corning into transactions in some shipments such as salt, coal, tapioca chip, silica sand, fertilizer, coal, grain, sugar, rice, anthracite, and ore cargo (Vietíracht, 2014 d ).
With respect to forwarding and logistics services, Vietfracht’s employees with experience and knovvledge alvvays understand how to satisíy requirements o f customers and protect their own beneíìts. With its overseas representatives and agencies always take good care o f customers’ interests and cooperate with the Corporation for sm ooth m ovem ent o f cargo to all destinations.
Vietíracht assists its customers in four fíelds including airữeight and sea íreight forwarding services, multi-modal transportation, consolidation and distribution services, and customs clearance, documentation and insurance (Viettracht, 2014e).
In terms o f trucking and vvarehousing services, Vietfracht provides modern vvarehouses and management system in different locations in Vietnam such as Danang City, Binhduong province, Haiphong City, Hochiminh City, etc.
Moreover, it trucks provide timely services with safety o f goods and it supports to stuff cargo into containers at vvarehouses o f customers. The professional services satisfy its customers due to careful and timely services and suitable prices (Vietíracht, 20140.
Places or locations o f Vietíracht are in 8 key provinces and cities in Vietnam that Vietíracht has a strong presence including Hanoi City (its headquarters), Hochiminh City, Vungtau City, Quangninh province, Haiphong City, Danang City, Ọuangngai province and Ọuynhon City. Vietfracht’s key customers are in the 08 markets. With its locations in big cities, Vietíracht can meet most demands o f customers around Vietnam. In addition to the 8 key markets, it starts enter new markets such as Hungyen province, and Dongnai province (Vietíracht, 2013).
Prices o f Vietfracht are reasonable and this helps it create and maintain competitive advantages in the ĩiercely competitive maritime industry in
Vietnam. Hovvever, in the very difficult economy situation, most shipping companies around Vietnam have reduced íreight rates to attract customers and maintain their business operation. Like the shipping companies, Vietíracht also reduce Service prices to survive in the severe com petitive industry. In sea transport o f Vietíracht, the 4 fleets o f the Corporation provided strongly decreasing prices o f renting its vesseỉs in 2013 such as the Thang Long íleet reduced 45.5 percent, and the Blue Lotus reduced 32.4 percent compared to 2012. Therefore, difficult markets are main reasons for reducing prices, revenues and business períormance o f the 4 fleets o f Vietữacht. Moreover, Service prices related to renting offices also strongly reduced because o f custom ers’ demands for renting offices in 2013 (Vietfracht, 2013).
Prom otion or m ark etin g activities o f Vietửacht do still not achieve
efficiency in fmding out nevv customers and introducing services o f the C orporation to customers. Most m arketing activities o f the Corporation only use traditional marketing methods such as advertising in the press and seminars o f introducing services (Vietfracht, 2013). Therefore, new marketing methods such as social media (Pacebook, and YouTube, etc), vvebsites, and other Online marketing methods can be a new marketing orientation for the C orporation in the future to attract n e w c u sto m e rs.