organizing the ocean freight forwarding process of exporting fcl wooden furniture at viet hoa transport service trading joint stock company

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VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

PROFESSIONAL INTERNSHIP REPORT YEAR 2Organizing the ocean freight forwarding process of exporting

FCL wooden furniture at Viet Hoa Transport Service &Trading Joint Stock Company

Instructing Lecturer: PhD. Lê Minh HiếuStudent’s name: Nguyễn Đăng QuangStudent’s ID: 721K0453

Major: Business AdministrationAcademic Year Code: K25

HO CHI MINH CITY 08/2023

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With the consent and assignment of the Business Administration Department of Ton Duc Thang University, I’ve completed my internship in Viet Hoa Transportation and Trading Joint Stock Company after approximately 2 months. During that period, I’ve been able to witness a more practical view about my current major and the future career striving for, through the passionate help of friends, teachers and seniors in the company.

I would like express my sincere thanks and deep gratitude to my instructor, Mr Le Minh Hieu who have provided assistance and guidance throughout the process of writing this internship report; Mr Phan Thanh Truc and everyone at Viet Hoa Transportation and Trading Joint Stock Company for hosting and providing me a wonderful experience during my internship and provided me with necessary information, knowledge, motivation to complete this internship report.

Due to my lack of experience and insufficient knowledge in the major I'm studying, I’ve produced a faulty result that has a sizable number of errors and flaws. I'm open to feedback from teachers so that I can improve my report-writing skills in the future.

Finally, I want to wish you and your teacher a lifetime of good health and professional success. We send our best wishes for good health to the team of Viet Hoa Transport and Trading Service Joint Stock Company so they can succeed in their work on helping the business to continue growing and making great strides.

Thank you and best regards.

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Table of Contents

Organizing the ocean freight forwarding process of exporting FCL wooden furniture at Viet

Hoa Transport Service & Trading Joint Stock Company...1

EVALUATION OF INSTRUCTING LECTURER...4

EVALUATION OF COMPANY FOR INTERNSHIP...5

LIST OF ABBREVIATIONS AND ACRONYMS...6

1.2.3 Areas of operation of the company:...6

1.3 Organizational structure and personnel situation of the company...8

1.3.1 Organization chart and management apparatus of the company...8

1.3.2 Functions and tasks of departments:...8

1.4 Present Human Resource situation of the company:...9

1.5 The company status and business result from 2019-2020...10

Chapter 2: Organizing the ocean freight forwarding process of importing FCL goods at Viet Hoa Transport Service & Trading Joint Stock Company...13

2.1 Diagram of the relationship between Viet Hoa Transport Service & Trading Joint Stock Company and other related parties:...13

2.2 Diagram of the process of delivering exported goods by sea of Viet Hoa Transport Services & Trading Joint Stock Company...14

2.2.1 Receipt of customer documents...14

2.2.2 Research the products and foreign trade contracts related...15

2.2.3 Apply the tax code and calculate tax value...15

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2.2.4 Making a reservation, get Booking Note and borrow empty containers for packing

2.2.5 Custom clearance...16

2.2.6 Deliver goods to the port and carry out procedures at the port...18

2.2.7 Finalize delivery costs with shippers and keep records...18

2.3 Review and evaluation...18

2.3.1 Pros...18

2.3.2 Cons and reasons...19

CHAPTER 3: RECOMMENDATION TO IMPROVE THE EFFECTIVENESS OF ORGANIZATION AND PERFORM DELIVERY OF IMPORTS BY SEA OF VIET HOA TRANSPORT SERVICES & TRADING JOINT STOCK...19

3.1 Several suggestions to enhance Viet Hoa Trading and Transport Service Joint StockCompany's seaborne export of goods...19

3.2 Personal lessons gained...20

REFERENCE...28

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EVALUATION OF INSTRUCTING LECTURERStudent’s name: ______________ Student’s ID:__________Class:____________Academic Year Code: ________________

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EVALUATION OF COMPANY FOR INTERNSHIPStudent’s name:__________________Student’s ID:_________Class:_____________ Academic Year Code: ________________

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LIST OF ABBREVIATIONS AND ACRONYMS

ABBREVIATION FULL WRITING

FCL ^{Full container load}

FOB ^{Free on board INCOTERMS}

LLC ^{Limited liability company}

C/I ^{Commercial Invoice}

P/L ^{Packing list}

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LIST OF TABLES

Table 1.1 ^{Report on business activities for the period of 2020-2021}

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LIST OF FIGURES

Figure 1.1 ^{Development process of Viet Hoa Transport Service and}_{Trading Joint stock Company}

Figure 1.2 ^{Organizational chart of Viet Hoa Transport Service &}_{Trading Joint Stock Company}

Figure 1.3 ^{Staffing level of Viet Hoa Transport Service & Trading Joint}Stock Company

Figure 2.1 ^{Diagram of relationship between related parties and Viet Hoa}Transport Service & Trading Joint Stock Company

Figure 2.2 ^{Flowchart of the procedure for export products delivery and}receiving via sea

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In an era of increasing economic globalization, with the access to many trade agreement is a major turning points, favorable condition for Vietnamese enterprises in general and Vietnam import companies in particular to international integration. This has a positive impact on the economic development of our country, is a great opportunity to expand relations with countries in foreign trade activities, especially import and export activities with more goods. strong development step. Import and export freight forwarding activities have also had many opportunities for development,especially sea freight forwarding activities because of the large quantity of goods and cost savings.

With these advantages, our country's freight forwarding industry has once again reached high level of competition. Having favorable geographical position, especially where there are a number of ports serving import process, plus the volume of goods through ports is getting relatively more and more bigger. We are clearly showing the potential for development in our import and export field.

The problem for import businesses, meanwhile, is to solidify their place in the global market and fully integrate into the global economy in order to draw in foreign investment. We want to successfully prepare everything because facing challenges during the integration process is inevitable. Must be able to adapt, establish credibility,win over foreign partners' trust, and be an expert in their field. Because every stage will have an impact on the company's success or failure. The forwarding actions of service providers are another crucial import and export activity that we must not forgetto highlight. Presently, the delivery of goods is a crucial and essential step in the worldof import businesses. Companies will not be able to carry out buying and selling activities both domestically and abroad without it. Stemming from this reason, I chose the topic "Organizing the ocean freight forwarding process of exporting FCL wooden furniture at Viet Hoa Transport Service & Trading Joint Stock Company " to report on my first internship.

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CHAPTER 1: INTRODUCING AN OVERVIEW OF VIET HOA TRANSPORT SERVICES & TRADING JOINT STOCK COMPANY

1.1 Process of formation and development of the company:1.1.1 Process of formation:

The country confronted numerous fresh chances and significant problems in the years 1994–1995, which can and must be transformed into a new phase of progress. After many years, the sectoral economic structure has not yet changed, but it has started to go forward. Theeconomy has emerged from the crisis in many ways, escaped from stagnation, and entered a new phase of development. Inflation has also slowed down, and foreign direct investment has kept growing quickly. Particularly, external economic ties are developing quickly. Vietnam is viewed as a prospective market by many foreign businesses. Since then, we have encouraged trade activities to exchange products with our nation. Foreign trade outpaced the abrupt drop ineconomic and trade links with the traditional market by quickly increasing both turnover and trade. As a result, the workload for imports and exports starts to rise dramatically, necessitatinga shift in logistics to keep up with demand. Vietnamese forwarding and logistics have made timely adjustments to fulfill both the demand for goods to be transported and the demand for forwarding services, helping to advance economic growth and the expansion of the freight forwarding sector. Under license No. 410200086 given by the Department of Planning and Investment in September 1995, Viet Hoa Transport Service & Trading Joint Stock Company was founded and put into operation.

International transaction Name: Viet Hoa Transport Service & Trading Joint Stock Company.

Head Office: 284 Nguyen Tat Thanh, Ward 13, District 4, Ho Chi Minh City.Date of Operation: 09/1995

Tax Code: 0301972094

Tel: (84-8) 39402520/Fax: (84-8) 39402601Website: www.viethoagroup.com

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Honour Lane Shipping LTD is a shipping company that transport goods from Vietnam to Australia,

2.2 Diagram of the process of delivering exported goods by sea of Viet Hoa Transport Services & Trading Joint Stock Company.

Figure 2.2. Flowchart of the procedure for export products delivery and receiving via sea

The author would like to provide specific examples for the export shipment of "wooden furniture" from Vietnam to Australia that Joint Stock Company Viet Hoa Transport and Trading Services performs services for J Furniture Company Ltd in order to illustrate the process of forwarding and receiving goods for export by sea at Viet Hoa Trading and Transport Service Joint Stock Company.

2.2.1 Receipt of customer documents

Sales Department negotiates and signs a service contract with J Furniture Company Ltd includes terms on:

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- Receipt of customer's set of documents- Research products and foreign trade contracts- Apply tax code and calculate tax

- Book with shipping lines, get Booking Note and borrow empty containers for packing- Customs clearance for export

- Deliver goods to the port and carry out procedures at the port- Finalize delivery costs with shippers and keep records

- Time of cooperation, service provision: within 01 years from the date of signing, if anyarising terms will be “additional contract addendum” at that time.

- Prices of delivery services.

- J Furniture Company Ltd is directly responsible for paying the costs in the process delivery (customs fees, container bets, container storage, yard storage, ...)- The level of representation (scope of authority) of Viet Hoa Company during the

period performance of the service contract (in its sole discretion to complete the service contract under legal support of J Furniture Company Ltd).

After that, the Export Department of Viet Hoa Company organized the operation delivery based on the signed service contract and request the customer to provide full sufficient documents to carry out procedures for exporting goods, including:

- Foreign Trade Contract - Booking Confirmation- Commercial Invoice (C/I) - Packing list (P/L)

2.2.2 Research the products and foreign trade contracts related

The staff of the export documentation department evaluates the customer's set of documents, assigns a batch number, and notifies the delivery team and the customer of the status of the shipment.

2.2.3 Apply the tax code and calculate tax value

Wooden furniture having the code HS 940330 and HS 940340 are exempt from both the export tax and the excise tax.

2.2.4 Making a reservation, get Booking Note and borrow empty containers for packing2.2.4.1 Making a reservation

Data on the Booking Note are verified:

- Carrier brand: Zim Integrated Shipping Services LLC- Name of carrier: ALS VESTA 29S

- Carrier number: 9999

- Port of loading: HO CHI MINH CITY- Port of discharge: MELBOURNE (VI)- Transit Port: None

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- Sailing date: 05/07/2023

2.2.4.2. Get Booking Note and borrow empty containers for packing

The forwarder of Viet Hoa Company utilizes the Booking Note after receiving it to modify the order to issue an empty container and ask Zim Integrated Shipping Services LLC for a seal.

In exchange for the order to take the container and receive a collection of documents, including the packing list for the container, the ship seal, the position of the container, and the order to issue the container, the forwarding staff of the Viet Hoa Company brought the order to issue an empty container to the shipping company's dispatching room. To for empty containers to be taken, the port dispatcher must sign.

The shipping line's designated yard, present the approved empty container order, pay the container lifting fee at the port sales office, and then take the empty container and carry it to the warehouse areall tasks that the forwarding crew performs. to close the sale of the goods.

Smaller than the data on the container, businesses receive empty containers and pack them themselves. After the contents have been packed, the container will be carried to the port to wait for export while the port authority is paid the unloading charge.

In order to guarantee the security of the goods, fumigation is also necessary for commodities shippedon wooden pallets and in cartons. Employees of the Viet Hoa Company send a sterilization application and make contact with the Dai Viet Inspection Joint Stock Company to discuss shipping details and agree on the timing and place of fumigation. Employees of Viet Hoa Company provide a number of documentation to Dai Viet Company for certification following the packing and fumigation of items, including:

- Packing List- Booking Confirmation

The fumigation certificate will be obtained in one to two days, at which point the personnel of Viet Hoa Company will visit Dai Viet Company to obtain the confirmation certificate and add it to the package of documents being given to the importer.

2.2.5 Custom clearance

2.2.5.1 Necessary documents for custom clearance- Sales contract

- Commercial invoice- Packing list - Booking confirmation

2.2.5.2 Online customs declarations

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Online customs declarations are processed at Saigon Port Area I Customs Branch. Currently, Viet Hoa Company is making electronic customs declaration using ECUS5-VNACCS software for exportbusiness.

- Type code: B11 – Export business, export of enterprises- Customs office:

- Processing division code: 02

- Transport code: 2 – Full container goods by sea- Exporter:

• Code: 0316911827

• Name: J Furniture Company Ltd

• Address: 173 Long Thuận Street, Long Phước Ward, Thủ Đức City, Hồ Chí Minh City, Việt Nam

- Importer:

• Name: ESR Group Holdings PTY Ltd

• Address: 24-46 Bend Road, Keysborough, AU WH 3173, Australia• Country code: AU

- BL information:

• Invoice number: 122300022680212• Number of packages: 134 PK• Gross weight: 7.812,96 KGM• Storage location: 02CIS02 - SP ITC Port• Discharge location: AUMEL - MELBOURNE - VI• Loading location: VNITC - CONT SP ITC Port• Transport: ALS VESTA 29S/9999

• Sailing date: 05/07/2023- Invoice information:

• Classification of invoice forms: A• Invoice price classification code: D• Invoice number: PO91845• Release date: 30/06/2023• Payment method: KC• Invoice price condition: FOB• Invoice code: USD

• Currency code for tax calculation: USD• Total invoice value: 18.031,88• Total tax value: 18.031,88- Contract information:

• Contract code: PO91845• Date of contract: 30/04/2023- Container information:

• Code: 02CIS02

• Container number: ZCSU7580132

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