Luận văn tốt nghiệp GRADUATION THESIS: FREIGHT FORWARDING OF IMPORTED GOODS BY SEA AT GOLDEN STAR LOGISTICS AND TRADING INVESTMENT COMPANY LIMITED

MINISTRY OF FINANCE
ACADEMY OF FINANCE

GRADUATION THESIS
TOPIC:
FREIGHT FORWARDING OF IMPORTED GOODS BY
SEA AT GOLDEN STAR LOGISTICS AND TRADING
INVESTMENT COMPANY LIMITED
Major
Code

: Customs and Logistics
06

Instructor : Assoc. Prof. PhD. Vu Duy Nguyen
PhD. Nguyen Thi Minh Hoa

Hanoi - 2022


MINISTRY OF FINANCE
ACADEMY OF FINANCE

GRADUATION THESIS
TOPIC:
FREIGHT FORWARDING OF IMPORTED GOODS BY
SEA AT GOLDEN STAR LOGISTICS AND TRADING
INVESTMENT COMPANY LIMITED
Major
Code

: Customs and Logistics
06

Instructor : Assoc. Prof. PhD. Vu Duy Nguyen
PhD. Nguyen Thi Minh Hoa

Hanoi - 2022


Graduation
Thesis

Academy Of Finance

DECLARATION
I hereby declare that this thesis is a report of my own research and
effort and all the data, information provided in this thesis are true and based
on reality.
Graduation Thesis Author

i


Graduation
Thesis

Academy Of Finance

ACKNOWLEDGEMENT
First, I truly appreciate the internship opportunity at Golden Star

Logistics and Trading Investment Co,.LTD. They gave me a chance to
corporate at work and to gain more not only knowledge but also experience.
Besides, I would like to express my profound gratitude to my mentor,
Assoc. Prof. PhD. Vu Duy Nguyen and PhD. Nguyen Thị Minh Hoa who
have helped and encouraged me to develop the understanding of the subject. I
really appreciate his patience in reading and correcting my thesis.
Finally, I wish to show my sincere thanks to all my teachers at
Academy of Finance, who have provided me with worthy lessons throughout
4 years of study.

ii


TABLE OF CONTENTS
DECLARATION...............................................................................................i
ACKNOWLEDGEMENT................................................................................ii
TABLE OF CONTENTS.................................................................................iii
ABBREVIATIONS..........................................................................................vi
TABLE OF FIGURES, TABLE.....................................................................vii
PREAMBLE......................................................................................................1
CHAPTER 1: THEORETICAL BASIS OF FREIGHT FORWARDING OF
IMPORTED GOODS BY SEA...........................................................................5
1.1 Overview of imported goods.......................................................................5
1.1.1 Concepts...................................................................................................5
1.1.2 Characteristics of imported goods............................................................5
1.1.3 Roles of imported goods..........................................................................7
1.1.4 Classification of imported goods..............................................................8
1.2 Overview of international freight forwarding...........................................10
1.2.1 Concept of international freight forwarding...........................................10
1.2.2 Contents of freight freight forwarding of imported goods by sea..........13

1.2.3 Concept and role of forwarder:..............................................................14
1.2.4 Relationship of forwarders and related parties in freight forwarding
imported goods by sea:.....................................................................................17
1.2.5 Duties of agencies involved in the process of freight forwarding
imported goods by sea.....................................................................................18
1.3 Process of freight forwarding of imported goods by sea..........................21
1.3.1 Process of freight forwarding imported goods by sea...........................21
1.3.2 Documents in freight forwarding imported goods by sea......................24
1.4 Factors affecting the process of freight forwarding imported goods by sea
......................................................................................................................... 27
1.4.1 Internal factors........................................................................................27


1.4.2 External factors......................................................................................29
SUMMARY OF CHAPTER 1........................................................................30
CHAPTER 2: SITUATION OF FREIGHT FORWARDING OF IMPORTED
GOODS BY SEA AT GOLDEN STAR LOGISTICS AND INVESTMENT
TRADING CO., LTD......................................................................................31
2.1 Overview of Golden Star Logistics and Trading Investment Co., Ltd 31
2.1.1 Basic information about the company....................................................31
2.1.2 The organizational structure of the management apparatus...................33
2.1.3 Field of business activities.....................................................................34
2.1.4 Overview of the company's business results in the period of 2018 - 2020
......................................................................................................................... 35
2.2 Analysis of freight forwarding of imported goods by sea at Golden Star
Logistics and Trading Investment Co., Ltd.........................................................39
2.2.1 Legal basis in freight forwarding of imported goods by sea..................39
2.2.2 The process of freight forwarding of imported goods by sea at Golden
Star Logistics and Trading Investment Co., Ltd.............................................39
2.2.3 Analyze and evaluate the results of freight freight forwarding of

imported goods by sea of Golden Star Logistics and Trading Investment Co.,
Ltd from 2018 - 2020......................................................................................43
2.3 Assessment of the current status of the process of freight freight
forwarding of imported goods by sea at Golden Star Logistics and Investment
Trading Co., Ltd................................................................................................45
2.3.1 Strengths.................................................................................................45
2.3.3

Opportunities.......................................................................................50

2.3.4

Threats.................................................................................................50

SUMMARY OF CHAPTER 2........................................................................51


CHAPTER 3: ORIENTATION AND SOLUTIONS TO IMPROVE THE
FREIGHT FORWARDING OF IMPORTED GOODS BY SEA AT
GOLDEN STAR LOGISTICS AND TRADING...........................................52
INVESTMENT CO., LTD.............................................................................52
3.1 Development trends of the freight forwarding market..............................52
3.2 Objectives and development direction of Golden Star Logistics and
Trading Investment Co., Ltd..............................................................................54
3.2.1 Objectives...............................................................................................54
3.2.2 Development goals of the company.......................................................55
3.3 Some solutions to enhance the process of freight forwarding

imported

goods by sea at Golden Star Logistics and Investment Trading Co., Ltd

56

3.3.1 Optimizing the quality of existing transport services and providing new
types ................................................................................................................56
3.3.2 Overcoming delays in receiving documents..........................................57
3.3.3 Solutions to improve the quality of human resources............................58
3.3.4 Solutions to attract customers................................................................59
3.3.5 Solutions to improve the relationship with shipping lines and Customs
authorities.........................................................................................................60
3.3.6 Solutions to improve Marketing activities.............................................61
3.3.7 Solutions to promote warehousing business..........................................62
3.4 Recommendations to state management agencies....................................64
3.4.1 For the State...........................................................................................64
3.4.2. For Customs..........................................................................................65
3.4.3. For Vietnam Forwarding Association...................................................66
SUMMARY OF CHAPTER 3........................................................................68
CONCLUSIONS.............................................................................................69
REFERENCES................................................................................................71


ABBREVIATIONS
GSC

Golden Star Logistics and Trading Investment Co.,LTD

CO., LTD

Company Limited

PO

Purchase Order

B/L

Bill of Lading

HS

Harmonized System

INV

Invoice

CFS

Container Freight Staion

LCL

Less Container Load

FCL

Full Container Load

FIATA

International Federation of Freight Forwarder Association

D/O

Delivery order

ROROC

Report on receipt of cargo


TABLE OF FIGURES, TABLE
Figure 1.1: Relationship of forwarders and related parties in freight
forwarding imported goods by sea.................................................................17
Figure 1.2: The process of freight freight forwarding imported goods by sea. .21
Figure 2.1: Organization chart of the GSC management apparatus................33
Figure 2.2: Types of company services...........................................................35
Figure 2.3: Revenue from transportation service business.............................37
Figure 2.4: The process of importing goods by sea of GSC...........................40
Table 2.1: Business results report of GSC.........................................................36
Table 2.2: Revenue from transportation of imported goods by sea of GSC.......43


Graduation
Thesis

Academy Of Finance
PREAMBLE

1. The necessity of the research:
Since our country implemented the open-door policy, the Vietnamese
economy has really made positive and optimistic changes, gradually
integrating and integrating into the regional and world economy. In that
context, import-export business activities have clearly shown an important
role, being the driving force in promoting the country's economy to develop in
accordance with the process of industrialization and modernization of the
country that the Party and State have not been able to achieve. outlined.
Currently, the process of globalization and international economic
integration is taking place strongly in the world. Vietnam officially integrated
deeply with the region and the world after the 1990s with the signing of a
series of FTAs-Free Trade Agreements and became an official member of the
World Trade Organization (WTO) on 11/1/2007. So far, Vietnam has had
diplomatic relations with more than 170 countries, exported goods to about
230 markets, signed over 150 free trade agreements, many bilateral trade
agreements and about 12 multilateral agreements and is still negotiating a
range of other trade agreements. Vietnam has an advantage in trade with the
world because most of its territory is adjacent to the East Sea, a coastline
stretching 3,260 km and many large and small seaports have been built. The
quantity and value of goods delivered and delivered through seaports accounts
for the majority of the total value of Vietnam's international freight
forwarding.
Importing is to serve the development of the country, the problem is how
to be both effective and cost-effective. An important factor contributing to
import efficiency is foreign trade work and organization. To fully implement
a foreign trade contract, it is indispensable to organize the transportation of
goods from one country to another. Import and delivery work plays this
1

important role, so I choose the topic "Freight Forwarding of imported goods
by sea at Golden Star Logistics and Trading Investment Co., Ltd "as my
graduation thesis. My thesis is built on the general process of the business and
learned during the internship at the company, doing specific work. The thesis
has clearly stated a process for freight forwarding imported goods by sea,
specific operations of each step in the process. From that, the advantages and
disadvantages of the process can be drawn, based on that, to make suggestions
and recommendations for the improvement of the process for Golden Star
Logistics and Investment Trading Co., Ltd.
2. Research objectives:
Learn about freight forwarding activities by sea at Golden Star Logistics
and Investment Trading Co., Ltd. to find out the advantages and
disadvantages as well as difficulties in forwarding work at the company,
thereby proposing solutions to improve the delivery service.
3. Research object and scope:
Research object: focus on studying the profession, the process of freight
freight forwarding of imported goods by sea.
Scope of research: the topic focuses on research within the scope of
freight forwarding activities of imported goods by sea at Golden Star
Logistics and Investment Trading Co., Ltd.
4. Research Methodology:
 Data collection methods
- Secondary data collection methods:
• Data collected from theses are all in the field of import and export freight
forwarding, Logistics.
• Report on business results and documents during operation at Golden Star
Logistics and Trading Investment Co., Ltd.
• Data through searching for information on the internet.

• Related articles are published in newspapers and magazines.
- Primary data collection method:
• Primary data is collected by actual observation method through direct
contact with international freight forwarding services at the sales department
and the import and export department of the company.
 Data processing methods
- Statistical method: Statistical method is used to evaluate the current
status of international freight forwarding services of Golden Star Logistics
and Trading Investment Co., Ltd. through internal documents that the
company owns. Offered from 2018 to present.
- Analytical method: An analytical method is a way of using a logical
thinking process to study and compare reliable relationships between
statistical data obtained from internal documents on operational performance.
of the company during the analysis to assess the reasonableness and nonrationalization of these data.
- Comparative method: Comparison between theory and reality;
Compare the processes with each other and draw out the differences to make
them easier to remember.
- Synthetic method: This method is used to summarize the analysis and
comparison to make comments and assessment on the current status of freight
forwarding services by sea at Investment Trading Co., Ltd. Trading and
Logistics of Gold Star, thereby offering solutions to develop the company's
freight forwarding service by sea.
- The SWOT matrix method is used to analyze strengths, weaknesses,
opportunities, and threats in the freight forwarding imported goods by sea at
Golden Star Logistics and Trading Investment Company Limited.
5. Thesis structure:


Chapter 1: Theoretical basis of Freight Forwarding of imported goods by
sea

Chapter 2: Situation of Freight Forwarding of imported goods by sea at
Golden Star Logistics and Investment Trading Co., Ltd.
Chapter 3: Orientation and solutions to improve Freight Forwarding of
imported goods by sea at Golden Star Logistics and Investment Trading
Co., Ltd.


CHAPTER 1: THEORETICAL BASIS OF FREIGHT FORWARDING
OF IMPORTED GOODS BY SEA
1.1 Overview of imported goods
1.1.1 Concepts
Imported goods are goods brought into the Vietnamese territory from
abroad or from a special area located on the Vietnamese territory which is
considered a special area located on the territory of Vietnam and is considered
a separate customs area. according to regulations of the Law.
Imported goods are subject to customs procedures and subject to customs
inspection and supervision.
1.1.2 Characteristics of imported goods
With the approach of imported goods, business is imported goods for the
purpose of profit-making through a sales contract between the importer and
the exporter. Goods imported for trading have the following basic
characteristics:
- Goods being movable property have names and codes according to the
list of imported goods. An asset is movable when, by its nature or prescribed
by law, it is capable of self-moving or can be moved by external influences
but still retains its shape, size and properties. inherent nature of the property.
An asset is a legal movable property identified in specific legal documents.
According to the provisions of the Civil Code 2015, movable assets are assets
that are not real estate. Real estate means assets including: land, houses,
construction works attached to land, including properties attached to such

houses and constructions; other properties attached to the land; other assets
prescribed by law. Thus, the concept of movable property that is approached
as the object of ordinary civil transactions is quite broad, however, goods
imported for business are bound to add certain conditions that are movable
property with a code according to the list. HS or have names and codes


according to the list of imported goods of each country that are imported or
stored in the customs territory. The 2014 Customs Law stipulates that “Goods
include movable property with names and codes according to the list of
Vietnamese imported goods that are imported, transited or stored in the area
of customs operations”.
- Imported goods must be moved across national borders on the basis of
international goods sale and purchase contracts. Contracts for the sale of
internationally imported goods are the legal basis for the movement of goods
across national borders. It reflects and records the agreement between the
parties on the purchase and sale of a certain commodity. International trade in
imported goods is always associated with two basic characteristics:
a. Transfer of ownership of goods:
The outward manifestation of the transfer of ownership of goods is the
movement of goods across national borders or bringing goods in and out of a
separate customs area,...
- The goods are owned by the importing party (the buyer), that is, the
buyer has the full right to possess, use and dispose of the goods. The storage,
management, exploitation of the use of the goods, the decision of the actual
and legal fate of the goods belongs to the buyer/importer.
- Goods are consumed in the importing country, that is, the goods must
be consumed in the importing country or put into production and consumption
in the importing country.
b. Obligation to pay for goods:

- Goods imported for trading are associated with the payment obligation
of the buyer/importer. Because imported goods are traded in association with
the trading activities of merchants, goods are the object of trading activities,
so they are always associated with payment behavior on the basis of using
currency as a means of payment. The currency of payment here can be the


currency of either the buyer's country, the seller's country, or that of another
third country. This feature distinguishes imported goods as gifts, gifts,
movable property, non-payment samples, etc.
- Imported goods are associated with traders' profit-seeking. This is a
very basic feature to distinguish from imported goods for nonbusiness/commercial purposes.
- Imported goods are subject to tax, except cases where tax is exempt or
not collected by law. Specifically, goods are subject to import tax and in
addition to having to pay import tax, based on the nature and characteristics of
goods when imported, they must also pay value added tax, special
consumption tax, environmental protection tax and other taxes if any.
1.1.3 Roles of imported goods
In the economy, the introduction of many different products is
inevitable, products from one country to another are very normal in the period
when the country is open. Therefore, if imported goods appear, it is
understandable. Not without effect, imported goods also bring a lot of
influence to the life and economy of the country, which are the following
effects:
a. Imported goods appear to stimulate the domestic market to develop
Competition will have a positive effect on the economy. Let's look at the
subsidy period, people have labor and still participate in normal production
activities but do not get much efficiency, the reason is that people who work a
lot enjoy as well as those who work little, so they do not develop. Different
from that period, now those who work a lot enjoy more, those who work little

enjoy little, if they don't work, they will not benefit. This labor motto is still
very well maintained.
From this association, it can be seen that competition is extremely
necessary. It helps investors always think and make full use of their gray


matter to find an effective way. On the one hand, investors have to compete
with each other, on the other hand, they have to deal with imported goods, so
they also create increasingly better quality products. In today's market, if
customers find that the goods are not good, they will flatly refuse or even
boycott the product.
Imported goods are strictly inspected by authorities, it is guaranteed to
be safe and therefore not inferior, even better quality than domestic goods,
Having this factor will make the economy The market is more vibrant, strong
units will soon assert their brands to consumers.
b. Imported goods increase people's choices
Although there are many different domestic products, that is still not
enough to meet domestic consumption demand. Customers will always want
to find high quality products with rich and diverse designs. Imported goods
appear to make consumers have more choices, compare, and at the same time
evaluate the quality of domestic products. Once the monopoly is high, the
customers will be the ones who suffer because the product will be priced
higher because there is no competitor. When imported goods appear, this
monopoly will be broken, making commodity prices more stable.
1.1.4 Classification of imported goods:
- Based on the purpose of import, imported goods are classified into two
main groups:
Firstly, goods imported for non-commercial purposes are also known as
non-commercial imports or formerly known as non-commercial imports.
Goods imported for non-commercial purposes are goods brought into

Vietnam's customs territory or brought into a special area located in the
Vietnamese territory, which is considered a separate customs area according
to the provisions of law. for profit purposes (not for profit purposes) but
mainly for the purpose of support, charity, mutual affection or for the purpose


of serving the daily-life and consumption needs of organizations and
individuals. In other words, goods imported for non-commercial purposes are
goods brought into the customs territory but not associated with business
activities of traders.
Goods imported for non-commercial purposes include:
- Gifts and gifts from overseas organizations and individuals to
Vietnamese organizations and individuals;
- Moveable assets of organizations and individuals;
- Personal baggage of passengers on entry; international students in
Vietnam and people working at these agencies and organizations;
- Goods of humanitarian aid;
- Samples are not paid;
- Professional tools and means of work temporarily imported from
agencies, organizations, people on exit or entry with a definite term;
Second, business imports are also known as commercial imports or
formerly known as commercial imports. Business imported goods are goods
imported for the purpose of making a profit. In other words, goods are
brought into the customs territory to conduct business or carry out
commercial activities of merchants.
Commercial activities of traders include: buying and selling of goods;
provision of trade services, investment, trade promotion and other commercial
activities for profit purposes.
With the approach of business imported goods as goods brought into the
customs territory for the purpose of carrying out commercial activities of

traders, business imported goods include many different types corresponding
to each specific commercial activity/act, that is:
- Goods imported under the goods sale and purchase contract;


- Goods imported to serve commercial service provision activities such
as goods processing, goods transit, transshipment of goods;
- Goods imported for investment activities;
- Goods imported for trade promotion activities such as attending fairs
and exhibitions, displaying and introducing products, advertising, promotions,
etc. . .
- Goods imported for other commercial activities.
If approached in a narrow sense, imported goods for business are simply
imported goods under a goods sale and purchase contract. With this approach,
business imports include:
- Goods imported for business;
- Goods temporarily imported for re-export;
- Goods traded in border-gate transfer;
- Goods are raw materials and supplies imported for export production;
- Imported business goods of border residents;
Each type of imported goods has different properties and characteristics,
so customs procedures and customs inspection and supervision regimes also
have different points.
1.2 Overview of international freight forwarding
1.2.1 Concept of international freight forwarding :
 International freight forwarding:
- Concept:
In international trade and in some other special cases, the seller and the
buyer or the sender and the receiver are far apart. The carriage of goods by the
carrier plays an important role in the performance of the contract of

international sale of goods and the purpose of the shipper. In order for the
transportation process to start - continue - finish, that is, the goods reach the
buyer and the recipient, it is necessary to perform a series of different jobs


related to the transportation process such as: place the goods to the port, carry
out customs procedures and other related procedures according to the
provisions of law, organize the loading and unloading of goods, and deliver
the goods to the recipient. All these jobs are collectively known as freight
forwarding.
Freight forwarding is a set of operations related to the transportation
process, for the purpose of transporting goods from the place of delivery to
the place of receipt. There are many different concepts of forwarding service
(Freight Forwarding Service).
According to the model rules on freight forwarding services of the
International Federation of Freight Forwarders Associations (FIATA), freight
forwarding is defined as follows: “Freight forwarding is any type of service
related to the carriage, consolidation, storage, handling, packing or
distribution of goods as well as consulting services in connection with the
foregoing including customs,

financial,

insurance, payment, collect

documents related to goods”. In Vietnam, the delivery service is mentioned in
the Commercial Law 2005. Accordingly, the freight forwarding service is the
act of receiving goods from the sender, organizing the transportation, storage,
storage, and handling of goods. paperwork and other related services to
deliver the goods to the consignee as entrusted by the shipper, the carrier, or

another forwarder (collectively the customer).
- Classification:
• Based on the scope of activities, freight forwarding is divided into:
domestic freight forwarding and international freight forwarding.
• Based on business operations, freight forwarding is divided into: pure
freight forwarding and general freight forwarding. Pure freight forwarding is
just sending or receiving goods. General freight forwarding includes all