Báo cáo thực tập tiếng anh INTERNSHIP COMPANYINSTITUTION ARMEPHACO JOINT STOCK COMPANY

VIETNAM NATIONAL UNIVERSITY, HANOI
INTERNATIONAL SCHOOL
***

GRADUATE INTERNSHIP REPORT

INTERNSHIP COMPANY/INSTITUTION: ARMEPHACO JOINT STOCK COMPANY
Address: No 118. Vu Xuan Thieu Town, Phuc Loi Ward, Long Bien District, Hanoi.

Supervisor: Ths. Hoang Kim Thu
Student’s full name: Nguyen Thi Dieu My
Student’s ID: 11071270
Major: International Business
Class: IB2012B

Hanoi, 11th March 2016


Internship Report

Dedication
First of all, I would like to thank most sincerely to all International School teachers, teachers of
major International Business who taught, impart valuable knowledge for me during 4 year study
and practice at the school. I would like to thank Mrs. Hoang Kim Thu - who enthusiastically
guides me written this internship report.
I sincerely thank the leadership and the colleagues in the company has created favorable
conditions for me as an internship in companies, are exposed fact, answer questions, help me
understand more business and import and export activities during internship time.
With limited knowledge and internship time in the company is limited, I cannot avoid
shortcomings. I look forward to the comments and criticisms of the teachers and the colleagues
in the company. It would be valuable luggage to help me improve my knowledge later.

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Internship Report
Table of Contents
A. Chapter 1: Overview about ARMEPHACO Joint Stock Company

4

I.

General information…………………………………………………………………….4

II.

Establishment and development of the company……………………………………….4

III.

Mission – vision – development strategy……………………………………………….5

IV.

Brand identity…………………………………………………………………………...5
1. Logo & slogan…………………………………………………………………………...5
2. Commitment…………………………………………………………………………….6
3. Product…………………………………………………………………………………..7

4. Supplier – Retailer………………………………………………………………………8
5. Market………………………………………………………………………………….10
6. Customer

V.

10

Organizational structure

11

B. Chapter 2: Specific major activity of ARMEPHACO Joint Stock Company

12

General production and business activities……………………………………………12

I.

1. Strategy/business plan…………………………………………………………………12
2. Business production process (the value chain)………………………………………15
3. Business production process (function)
II.

Main activities

18

20

C. Chapter 3: Goals of internship, tasks assigned and working methods……………. 28
I.
Goals of internship…………………………………………………………………..28
II.
Tasks assigned……………………………………………………………………….29
III.
Working methods…………………………………………………………………….29
D. Chapter 4: Results gained from the Internship…………………………………… 30
I.
Gained knowledge…………………………………………………………………...30
II.
Gained experiences…………………………………………………………………..31
III.
Gained skills………………………………………………………………………….32
IV.
Contribution to the Company………………………………………………………...33

References……………………………………………………………………………….35
List of table and chart…………………………………………………………………..36

A. Chapter 1: Overview about ARMEPHACO Joint Stock Company
I. General information
1. Name of company: ARMEPHACO JOINT STOCK COMPANY

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2. Trade name: ARMEPHACO JSC.
3. Headquarters: No 118. Vu Xuan Thieu Town, Phuc Loi Ward, Long Bien District,
4.
5.
6.
7.

Hanoi.
Phone: (04) 3875 9466 (04) 3875 9475
Fax: (04) 3875 9476
Website: www.armephaco.com.vn
Email:
Legal representative: Mr. Nguyen Van Dung – Position: General Director
Account number: 15110000027726 – Bank for Investment and Development of
Vietnam, Thanh Do Branch

8. Business license: 0100109191
II. Establishment and development of the company
- On April 17, 1996 ARMEPHACO Joint Stock Company, formerly known as Army

Medical Equipment and Pharmaceutical Company were established, specializes in
•

manufacturing and trading of pharmaceuticals and medical equipment.
Company includes 3 large enterprises
Pharmaceutical Factory 120 (APHARMA): Established on 05/01/1973, the plant
achieved WHO GMP standards contains three workshops: injections production
workshop; non-βlactam tablets production workshop; ointment production workshop.
Pharmaceutical Factory 120 now was converted into 120 ARMEPHACO Limited

Liability Company, with 100% capital shareholding of ARMEPHACO Joint Stock

•

Company.
Pharmaceutical Factory 150 (COPHAVINA): Established on 10/20/1962, contains one

•

Cephalosporin production workshop and two non- βlactam tablets production workshops.
Medical Equipment Factory 130 (MEF): Established on 07/15/1969, the plant achieved
ISO 9001-2000 quality standards for the production workshops of portable medical
equipment, mechanical, electrical electronics, refrigeration, etc. Now Medical Equipment
Factory 130 was converted into 130 ARMEPHACO Medical Equipment Limited
Liability Company, with 100% capital shareholding of ARMEPHACO Joint Stock

-

Company.
On May 07, 2010, the company officially changed to model operating under Joint Stock
Company with a charter capital of 130 billion VND.

III. Mission – vision – development strategy
1. Mission
- Putting ARMEPHACO becomes the brand reputation of Vietnam, production and

distribution of high-value products in the field of people’s healthcare.
2. Vision
- Constructing ARMEPHACO becomes one of ten leading manufacturers, distributors of
domestic pharmaceutical and medical equipment of Vietnam (both in production scale,

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Internship Report
capital, revenue, profit, human resources). Gradually bring the pharmaceuticals and
medical equipment of ARMEPHACO out to regional and international.
3. Development strategy
- Creating policies to maintain and promote the development of efficient, sustainable and

connected with the mission to serve and meet the needs of customers.
IV. Brand identity
1. Logo & slogan
- The image of the logo

•

The meaning of the logo & slogan
ARMEPHACO logo is designed with the layout hemispherical and brand name

•

inscription in the center logo.
With the expansion of cooperation and development, brand identity through symbols
ARMEPHACO want to convey to our customers and our partners that ARMEPHACO
has been building its image more professional and modern, provides better services and

•

products.
ARMEPHACO designed serif font, create strong feeling, modern and elegant, bold font
and powerful strokes captures the spirit and power of ARMEPHACO. A highlight in the

•

literal A creates of the logo differs.
® is registered by the National Office of Intellectual Property of Vietnam, according to
the number of shares 4-2008-22979, dated 24/10/2008 by Army Medical Equipment and

•

Pharmaceutical Company, now ARMEPHACO Joint Stock Company.
Logo simple thanks to the combination of simple elements with images meant
understandable that makes communication more convenient, it helps customers and
viewers easy to remember and inspire on ARMEPHACO safety. On the other hand the

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simplicity also makes working on the material to be convenient as printing, zoom in, and
•

zoom out, stamping, casting logo, and carvings ... all very convenient.
Route to perfection along with the best service and products so that rebranding and reach
out to integrate with the world. That has always been the strategic goals not only with its
own board of directors of the Company and also all officers and employees of the

Company. The logo & slogan has demonstrated the role and determination of

ARMEPHACO.
2. Commitment
- Always providing pharmaceutical and medical equipment of good quality, consistent
-

with the interests of consumers.
Respect, cooperation and mutual development with customers.
Dynamic, creativity and fairness working environment that constantly improve their
professional qualifications; meet the requirements technological innovation and the

-

continuous development of the market.
ARMEPHACO provides products and services with the best quality and ensure that

-

ARMEPHACO is trusted partners of enterprise and customers.
ARMEPHACO committed to building partner relationships and on a sustained spirit of
cooperation and mutual benefit between the product provider and customer service,

-

among partners, and between businesses and enterprises.
The consistency of the brand ARMEPHACO ensure that it is the perception of the brand
ARMEPHACO is consistent at anytime, anywhere and whether they are communicating
over the phone, at events, on documents print and on the mass media such as television,
newspapers, magazines, brochures, catalogs introduce.

3. Product
- To meet growing consumer demand of customers, the Company has been actively
•

studying the market, research and product design; offering the following types of items:
Medicine: are the company's main products include a variety of products of company,
dedicated to each type of disease such as the liver, bones and joints, stomach, antibiotics,

•

inflammation,...
Medical Equipment: As essential products of the Company from 2012 to present and
accepted by market all over the country. In 2 years (2012- 2013), production of medical

•

equipment increase rapidly due to more demand of the population.
Medical Gas Systems SME: As the product is put into production from October 12/2013.
This is the high-end equipment, technology and production equipment of Indonesia are in

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line with consumer tastes of the people in Asia and is likely to be the need to exploit
•

more.
Medical Gas Pipeline: As new product is put into production in 2012, but 2013 was
introduced into the market. This is a premium product produced by the technology of the
Republic of France and this product has a spike on the consumer market in 2005. The
company's products have different features are used extrusion technology, very hygienic

-

and safe for consumers.
Overall, the current products and services of the company are of good quality and meet
the needs of the majority of domestic consumers, high consumption, favored by
consumers. However, to meet the increasing demands of the market, the Company
continues to invest to diversify product mix; develop the potential, inherent brand value
of the company.

4. Supplier - Retailer
- Supplier
• After more than 15 years developing, the company has commercial relations and

cooperation with many major medical equipment manufacturers and business over the
world such as Atlas Copco, Airtech Equipment Pte. Ltd. Japan, Olympus, Schmidt,
Siemens, Shimadzu, Del Medical SA, Universal, etc. to update medical achievements, the
latest techniques with the aim of ensuring excellent warranty service, long-term
maintenance and repairs and supply of spare parts up timely replacement the equipment
•

imported and produced by the company.
Here are the images of some supplier of the Company:

Atlas Copco Group (Sweden) Airtech Equipment Pte. Ltd.Japan

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ACON Diabetes Care


Internship Report

•

Polygreen
Actavis
Samsung Medical Eng
Retailer
120 ARMEPHACO Limited Liability Company
Director: Ms Nguyen Thi Huong (Vice President of ARMEPHACO concurrently)
Vice President: Ms. Vu Thi Khuyen
Factory achieved GMP-WHO standards with two workshops: Workshop production of
injections and workshop production of pills non-βlactam with production lines tablets,

•

•

film coated tablets, sugar coated tablets, capsules, powdered drugs…
ARMEPHACO Medical Equipment Limited Liability Company
Director: Mr. Bui Viet Tuan (Vice President of ARMEPHACO concurrently)
Deputy Director: Mr. Nguyen Dinh Hau, Nguyen Duc An

Factory standards of quality management ISO 9001-2000 with workshops production of
portable medical equipment, mechanical, electronics, refrigeration...
Pharmaceutical Factory 150 (COPHAVINA)
Director: Mr. Do Van Be (Vice President of ARMEPHACO concurrently)
Vice President: Mr. Nguyen Huu Duy, Nguyen Thi Kim Hang
Factory achieved GMP-WHO with 2 workshops: Cephalosporin workshop and workshop
production of tablets Non-β lactam with many production line tablets, film coated tablets,

•
•
•
•
•
•
•

sugar coated tablets, capsules, powders, herbal medicines...
Branch in Ho Chi Minh City
Director: Ms Tran Thi Bach Tuyet
Branch in Hanoi
Director: Mr Do Duc Thinh (Deputy Director of ARMEPHACO concurrently)
Vice President: Mr. Le Van Thuan
Representative Office in Da Nang
Chief Representative: Mr. Nguyen Quang Van
Representative office in Gia Lai province
Head of the Representative Office: Pham Xuan Anh
Branch in Can Tho City
Director: Truong Nguyen Minh Son
Representative office in Haiphong
Chief Representative: Mr. Le Thanh Ha

Branch 2 in Ho Chi Minh

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Director: Mr. Duong Dinh Son (Deputy General Director of the Company concurrently)
Vice President: Ms. Doan Thi Le Phuong
5. Market
- Along with production and distribution of pharmaceutical medical equipment, since

privatization, the company has expanded many new industries, including the field of
medical equipment suppliers, design and construction of a modern operating room,
-

medical gases....
Joint Venture with Korean partners founded the company specializes in producing plastic
syringes used 1 times with famous brands named VINAHANKOOK, accounting for over

-

80% market share in Vietnam.
Hanoi market is the largest market of the Company (accounting for 50% of total
consumption). However, the Company's market share in this market has declined in
recent years due to fierce competition by other competitors. After Hanoi market is the
market of the Northwest Province and Northeast (40% of total consumption). This is a
very large market, there is potential for exploitation both in width and depth. In the
central market, mainly consumed in some provinces: Nghe An and Thanh Hoa. Local

products are consistent with the needs of this market. For Southern market, the
Company's new products are present in recent years, mainly in some provinces such as
Vung Tau, Dac Lac, Ho Chi Minh City and Quy Nhon. Consumption volume in the
central and Southern provinces is low (5-6% sales volume of the Company). Caused by
geographical distance too far, the company has not enough resources to manage, in
addition to the competition of enterprises producing pharmaceuticals and medical
equipment in Southern has advantages over ARMEPHACO. This market area nearly
Company vacant. Currently, the company continues to focus on gaining market share in
the Hanoi market because it is the largest city, with consumption of pharmaceutical
products high. The company has opened more agents; the commission also has incentives
for these units stand out as agent for the Company or the store, drugstore. In addition, the

company also applied a number of product promotions on holidays.
6. Customers
- The company's customers are diversified as follows
• 108 Central Military Hospital
• Oncology Hospital, Ho Chi Minh City
• Health Department
• Ministry of Public Security
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•
•
V.
-

Army Medical Department - General Department of Logistics
The health facilities, hospitals nationwide….
Organizational structure
Organizational apparatus operations of the company are lightweight, scientific, operating
under command online mode, encouraging the ability to work independently and to

-

maximize the creative capacity of each staff.
Organizational chart
ANNUAL GENERAL
MEETING OF
SHAREHOLDERS
DIRECTOR
BOARD

DIRECTOR

VICE PRESIDENT
OF BUSINESS

Business
Department

VICE PRESIDENT
OF PRODUCTION

Project
Department

Organization
Department

Accounting
Department

Packing, storage, transport
and installation of the
product workshop
•



Organizational structure of the company includes
Companies Agency
Director Nguyen Van Dung
The Vice President

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Quality control
workshop

Technical
Department

Finish
workshop

Internship Report


Vice President of Pharmaceutical business production: Major Nguyen Thi Huong – Chief






of Pharmaceutical Factory 120
Vice President of Medical equipment business production: Bach Dinh Viet Colonel.
Vice President - Secretary of the Party: Senior Lieutenant Colonel Do Chi
Chief Accountant: Do Dinh Ngoc
Departments: Business Department, Project Department, Organization Department,
Accounting Department, Technical Department.

• The unit members
 3 affiliated factories: Pharmaceutical Factory 120, Pharmaceutical Factory 150, Medical

Equipment Factory 130.
 4 branches in Hanoi and Ho Chi Minh City
 3 representative offices in Da Nang City, Hai Phong City, Gia Lai Province
B.
I.
1.
•

Chapter 2: Specific major activity of AMERPHACO JOINT STOCK COMPANY
General production and business activities
Strategy/business plan
Overall objectives
Constructing ARMEPHACO becomes one of ten leading manufacturers, distributors of
domestic pharmaceutical and medical equipment of Vietnam (both in production scale,
capital, revenue, profit, human resources). Gradually bring the pharmaceuticals and

•

medical equipment of ARMEPHACO out to regional and international.
Specific objectives in 2013-2018
The scale of production and business capital reach 500-600 billion VND, sales reached
1,000 billion VND on. Revenue from production at the Company reached over 400

•

billion VND. Trade turnover of over 600 billion VND.
Construction ARMEPHACO become multi-industry enterprise, operating in both the
field of production and trade. ARMEPHACO brand on Vietnam pharmaceutical and

•

medical equipment market will be a prestigious brand of people.
Develop and set up a capable and strong distribution system and gradually covered areas
of the country. Venture Activity will become important activities to bring: economic
efficiency, launching new products or replacement products imported for consumption in
Vietnam and export products, bearing the advanced technology, management skills, and

•

development of human resources for ARMEPHACO.
Creating a corporate culture characterized by clarity ARMEPHACO - a Defense Security
business while ensuring pharmaceutical military has engaged in the construction and
development of the country in the new era, with the characteristics always innovative,

-

always innovative and constantly growing.
Results of production and business operations of the company in recent years.

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Table 1: Summary of production and business results of the company over 3 years
from 2012 to 2014

No
.

The main criteria

1

Revenue consumption
at current prices
Total labor

Average
business
capital
3a. Average fixed
capital
3b. Average working
capital
Profit after tax

2

3

4
5
6
7
8
9
10

Unit

Million
dong
People
Million
dong

Million

dong
Budget submission
Million
dong
Admission
per 1000d/
employee (V)
month
Labor productivity per Million
year
(7) = (1)/(2) dong
Margin/revenue
Index
consumed
(8) = (4)/(1)
Margin/capital
Index
business
(9) = (4)/(3)
Working
capital Loop
turnover
ratio
(10)=(1)/(3b)

Year
2012

Year
2013

Year
2014

Compare increase
or decrease
2013/2012
Absolute %
numbers

Compare increase
or decrease
2014/2013
Absolute %
numbers

38,672

44,974

53,881

6,212

16.03

8,907

19.8

162
39,349

185
43,652

217
48,015

23
2,423

14.19
6.66

32
4,208

17.29
9.73

14,765

16,284

18,162

1,519

10.29

808

6,14

24,584

27,368

29,853

2,784

11.32

2,485

9.08

1,539

2,251

3,418

712

46.26

1,167

51.84

394

448

511

54

13.71

63

14.06

4.36

4.51

4.74

0.15

3.44

0.23

5.09

239.27

243.1

248.29

3.83

1.6

2.43

1.01

0.039

0.05

0.063

0.039

0.05

0.089

1.56

1.64

1.80

•

Looking at the business results of the company from 2012-2014 year saw the situation of

•

the business activity is growing, in particular:
Annual revenue slightly increased consumption over the years, from 2012- 2013 from
38,762 to 44,974 increase (up 6,212), accounting for 16.03%, increased from 44,974 in
2013-2014 to 53,881 (up 8,907), and accounting for 19.8%. Since then the company may

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see relatively good sales and service of companies also bring significant revenue
•

expenditure of the company.
The profits of enterprises increased year by year 2012 a profit of 1,539 million, increased
from 712 to 2013 million up to 2,251 million. And in 2014 increased 51.84% compared

•

to 2013 with 1,167 million. This proves that the company is profitable.

Number of employees of the company shows that the company increased gradually
expand the scale, an increase of 23 employees from 2012-2013, from 2013-2014
increased by 32 employees. This matching of labor demand for the company to meet the

•

increasing workload even more.
The average wage for workers increased over the years shows that businesses are not just
focused on its own profit, but also thinks about the lives of employees, in 2014 the
average income of each employee was 4.74 million. The lives of the workers, the

•

company stable and more opportunities to develop further.
Labor productivity of the business tends to rise, rose 3.83% in 2013 compared to 2012
increased by 2.43% in 2014 to 2013. There are preliminary results are now invested by

new technology, professional workers, machinery layout, efficient workers.
2. Business production process (the value chain)
- The value chain is a set of activities linked vertically to create and increase value for
customers

R&D

Inbound
Logistics

Manufacturing

Outbound

Logistics

Marketing &
Sales

After sale
services

Importing

•

R&D
The company has staff working in a very dynamic market, be trained, love my job: Group
employees are responsible for gathering information on the market to capture the
strengths and weaknesses of the company and competitors, as well as researching the
tastes and characteristics of customer consumption.

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•

Product Design Study: Trial manufacture from small scale to medium scale production
then to a large scale. Trial manufacture by various methods based on the standards that

•

the Company has adopted.
Inbound Logistics
ARMEPHACO Joint Stock Company is a unit production of pharmaceutical products and
medical equipment so material in production is often difficult to preserve, easily damaged

•

or deteriorated.
Features of the source material are diverse in type, nature and perishable supplies over
time, difficult to preserve and unstable prices. To ensure the quality of raw materials,
besides reasonable price issue, it must be assured of good quality, easy storage and

•

transport.
The majority of the Company's raw materials must be imported from abroad such as
Lactose, Gelatin, Avicel, Paraffin Oil, Vaseline, Non-betalactame Antibiotics, Vitamins,
D-Glucosamine kinds, ... the rest is purchased in companies in countries such as natural
herbs, ... so there is a certain variation from suppliers as well as the change in the
monetary policy of the government to adjust the exchange rate are both interfere with the
production of the company, especially overseas supplies. To avoid this situation, the
Company has calculated raw material procurement to always have a certain amount of
reserves to ensure that production is carried out continuously and in case there is a
problem from imported sources. On the other hand the company tried to find the source
of high-quality goods at low prices in order to increase efficiency, and enhance research
using alternative raw materials to production and reduce production costs while ensuring

•

quality.
The company also implemented the inspection regime and strict preservation of raw

•

materials to minimize the moisture, mold, damaged.
Manufacturing
ARMEPHACO Joint Stock Company on the basis of understanding the needs in terms of
quantity and quality of drugs, medical equipment on the market have shifted their
production and business, diversification of products with good design, low cost and high
quality .The company has self-designed construction, expansion and modernization of
production lines with modern technology imported from France, Germany, Indonesia ...
as tablet production line,....

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•

However, because of the rapid development of production and limited capital, investment
in machinery and equipment of the Company has not been synchronized. The company

•
•

still uses a number of machines were old and outdated as:
Blender material, China's rolling mills are entered since 1998.

Packaging machines, dryers ... of Poland from the years 2001, 2002… And some other

•

machines are imported from Germany; the Netherlands is also very backward.
Another issue of concern is the company to use the machine performance, the company's
equipment is not high, so much downtime. This led to the depreciation of the company
allocations remain high, as the price up. This is the general condition of the enterprises
producing medicines and medical equipment in general, ARMEPHACO Joint Stock
Company in particular. In the future, the Company must pay attention to assure the best
mining machinery capacity, reduce costs, lower product costs further in order to improve

•

the competitiveness of products.
Importing
Import Export Business Department and Branch in Ho Chi Minh City is responsible for
implementing the direct import of machinery and medical equipment that is specialized,
modern specialists, originating from countries high-level technology to meet health care

•

needs in the country.
Outbound Logistics
Pharmaceuticals are goods used immediately, so the quality assessment should be based
on reasonable indicators, chemical, microbiological indicators and also based on the
sensory quality to evaluate. If all the indicators that are satisfactory, the new medicine is

•

considered satisfactory quality.
Companies based on the market situation, study of consumer preferences and based on
production and business situation of the company, machinery, materials, qualified
workers and particularly based quality indicators of the government to build a system of

•
•






quality indicators specific to their company.
Improving the quality of products, resulting in increased profits.
Marketing & Sales
Marketing
Create image, brand development.
Market research, product development, market expansion
Implementation of marketing programs by the Board of Directors
Advising the company's director of strategic marketing, product, and customer
Check supervises the work of the employees of his department, decided to reward or

•

discipline employees of departments.
Sales

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 Perform deployment to achieve sales revenue target given the Board of Directors.
 Administration of goods, import and export of goods, distribution of goods to the stores

and order production
 Advising the Board of Directors to handle work related to business activities of the
company
 Check supervises the work of the employees of his department, decided to reward or
•

discipline employees of departments.
After sale services
Provides sales services and after-sales: installation, repair and maintenance for
establishments use with the collaboration of a team of engineers of Medical Equipment
Factory 130 and technicians of the foreign manufacturers and suppliers in Vietnam. The




3.
•

company has service policies are as follows:
Warranty Policy
Transport Policy
Return/Exchange Policy
Business production process (function)

Functions and duties of each department
Board of Directors: As the governing body of the company, had full authority to
represent the company to decide on all matters related to the company's target (except for
matters within the jurisdiction of Annual General Meeting of Shareholders), have the
right to inspect and supervise the implementation of the resolutions of the Board, the

•

director of the company.
Supervisory Board: Supervisory Board of the company consists of 3 members, operates
independently under the duties and exercises their powers as stipulated in the charter of
the company and is responsible to the Annual General Meeting of Shareholders on

•

checking, supervision and operation of the board and CEO.
General Manager is the person nominated, appointed by the Board and must meet all
conditions as legal representative of the company. General Manager is the person
responsible for the organization and operation of all production and business activities of
the company daily and responsible before the Board implements obligations and

•

exercises their powers in accordance with the decision, the charter of the company.
Deputy General Manager: As assistants to General Manager appointed and dismissed by
the Board at the proposal of the General Manager, is in charge of management and
operations of the company, helped general manager build the production plan monthly,
quarterly and year of the company, balance tasks assigned to plan the workshop, directing
daily production, weeks, months, years.

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•

Sales & Project Department: Search new customers and receive orders, sourcing and
production to supply to customers. Search for business opportunities, conduct the
procedure and to participate in bidding. Management of the business situation and the
relationship with the dealer. Propose business ideas to directors. Coordinate with other
departments to meet customer requirements quickly and to accomplish the overall goals
of the business. Supervise and inspect the progress of handover, installation products for

•

partners.
Accounting Department: Accounting costs, monthly sales, quarterly, and annual
fluctuations in revenue and costs. Subscribe to the volatility of the assets and funds of the
enterprise. Prepare monthly manufacturing business results reports. Accounting of
salaries and insurances. Resolving the issue of value added tax, corporate income tax,

•

bills and vouchers.
Organization Department: Track and manage changes in the business personnel.
Coordination of production and business activities according to the strategic and business
objectives that were set out. Import and export of materials for production machining

•

parts.
Vice President of production: Has the task to advise the director of the daily work of the
technical and production segment. On behalf of the directors responsible for oversight
and urge ... the activities of the technical department and production department that
directors clearly grasp the exact situation and the necessary information for the operation

•

and complete tasks assigned.
Technical Department: Product design to production parts machining and fabrication.
Receive designs from the business department; the analysis calculates the cost to the
business department report back to the client. Research launched the innovative solution

•

design, reduce production costs.
Production Department: Receive of designs and materials for processing into products
manufactured. Packing, shipping and installation of the product.

II. Main activities
•

Import customs clearance activities in business of ARMEPHACO Company
The role of import customs clearance activities in the import of goods by the
company.

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 Army Medical Equipment and Pharmaceutical Company is an enterprise in business,

manufacturing and exporting/importing of items of medical equipment. Regular
importers of the company are all kinds of medical equipment cannot be produced in the
country to provide medical supplies and technical market in the country.
 ARMERPHACO Company often enters the shipment of medical equipment in order to
perform the contract of sale with the disease, the health authorities in the country.
Therefore, customs clearance operations have a huge impact to the business results of the
company.
 If the customs clearance difficulties encountered problems such as: lack of invoices, false
declaration of goods to reality, not pay enough taxes and fees, etc. will not be cleared by
the agency customs clearance so that goods will not be released to cause a large impact
on business operations of the company. If the goods are not cleared by the deadlines
specified in the contract, the company will have to pay compensation due to improper
performance of contracts, causing great damage to the company. Or where goods are
retained customs authorities to check, verify the source, origin, HS code ... in a long time,
it may affect the quality of goods, making quality of goods declined, the company does
not comply with the contract, partners will not continue to contract again, this will also
cause huge losses for the company both in terms of finance and prestige.
 Conversely, if the clearance work is done quickly or on time, the company will
successfully implement the contract, the company works effectively will bring prestige
and profits for the company, avoiding be serious losses to the company.
 Therefore the position of imports customs clearance operations for the import of goods of
•

the company should be focused.

The process of customs clearance of imported goods in the import business of the

company.
 All kinds of goods being transported across national borders to imports or exports must
make customs procedures. Customs procedures as a tool for behavior management buy sold under the laws of the State to prevent acts of smuggling, the trade violations against
individuals, organizations implementing foreign trade activities.
 The customs procedures include the following major steps:
 Declarations and customs filing.
Person declared the customs duty is responsible for:
1- Declaration and payment of customs declarations submit and present documents of the
customs dossier. In case of implementation of electronic customs procedures, the custom
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declaration declared and sent through customs dossier data processing system's electronic
Customs Branch.
2- Customs declarations made on the customs declaration form prescribed by the Ministry

of Finance.
3- The custom declaration are obliged to complete, accurate, clear and commodity code

name, unit, quantity, quality, origin, unit price, the customs value, interest and taxes other
criteria specified in the customs declaration; to determine the nature of tax and other
levies payable state budget and take responsibility before law for the declared contents.
4- Deadline for registration customs declaration is made in accordance with Clause 1,

Clause 2 of Article 18 of the Customs Act. For imported goods, the customs declaration

was made before or within 30 days from the date the goods to the gate. Date goods to the
gate is the date stamped on the customs authorities stamped on the goods declaration
(cargo manifest) in the transport profile entry or the date on the declaration means of

o
o
o
o

transport through the door or import books to monitor vehicles.
Customs records for imported goods trade basically consists of:
Votes received customs declarations or customs declaration cards remotely.
Customs declarations of imported goods: 02 originals.
Declaration of the value of imports (depending on each case).
Commodity sales contract or papers of equivalent legal value to the contract or entrusted

import contract (in case of import consignment): 01 copy.
o Commercial invoice: 01 original.
o Bill of lading: 01 photocopy of the original or a copy of the original copy with the word,
o

the word surrendered.
The detailed list of goods for shipment consists of various kinds or heterogeneous
packaging: 01 original or the equivalent value such as the telegraph, facsimile, telex,

message data ...
o License of the State agency competent for goods imported must be licensed under the
provisions of the law: 01 original and other document prescribed by law for each
particular item.
For ARMEPHACO Company: medical equipment company that imported goods must

present the import license medical equipment by the Ministry of Health.
o Paper registration state inspection on quality of goods or inspection exemption notices
State on goods quality issued by the competent State for the import and export of goods
subject to State control water quality of 01 original.

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o

The paper copy of the head of the company or the person authorized by the head
certificates, signs, stamps and takes responsibility before law for the legality of these



documents.
To produce goods.
In case goods are actual inspection, the customs declaration is tasked to take goods and
means of transport to the location specified. Goods must be arranged orderly, convenient
for actual inspection of the customs authorities. After bringing the goods to the location
specified, the clearance procedures shall have contact with customs officers at the stage
of inspection to conduct inspection of actual goods. After inspecting finished goods,
goods inspection personnel will carry forward the declaration to the customs officers in
charge of calculating the tax. After calculating the tax, customs officials will return the
declaration to enterprises in parts customs declarations to customs clearance for goods
carried.
In case the goods are not the actual inspection, the customs declaration may proceed to



withdraw customs declarations for customs clearance of goods.
Pay taxes and customs fees.
The company is obliged to pay the tax and the full implementation of other financial
obligations as prescribed by law.
After completion of all administrative and financial obligations, the company is the
release of goods.
In addition, enterprises must fully prepare the content and requirements to cater for postclearance checks by customs authorities.

• Current situation of clearance of goods imported by ARMEPHACO Company
 Active service of the complete declaration and import customs records of the company.
 Origin of goods

Most of the goods that the Army Medical Equipment and Pharmaceutical Company
imported are from major markets such as the USA, Japan, and Korea and European
countries. These markets do not enjoy tariff preferences in Vietnam but still need to have
a certificate of origin because it is required for the import of medical equipment in the
country. Or in other words, goods subject to compliance with the legal regime of import


under the Health Ministry's regulations and laws of Vietnam.
Classification of goods
The process of classifying goods of the Army Medical Equipment and Pharmaceutical

Company complies with the following contents:
o The list of goods exported and imported Vietnam, import tariff.
o The general rules of the HS Convention.
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o
o

Compulsory annotations of the HS Convention.
Refer to the glossary supplement the list of ASEAN Harmonized Tariff Nomenclature
(AHTN) and detail explanation harmonized system of description and coding

o
o
o
o

commodities (HS).
Pursuant to the classification:
The list of goods exported and imported Vietnam, import tariff.
Actual goods.
Technical documents, detailed description of goods, illustrated catalog of goods.
The results of analysis, assessment of goods.
Machinery, medical device Army Medical Equipment and Pharmaceutical Company
imported was classified as complete equipment or synchronized equipment. Machinery
import company on most headings and subheadings of Chapter 84, 85, 86, 88, 89 and 90
of the import tariff preferences applicable to current guidelines classified by machine to
calculate the import duty.
For complete equipment shipments including multiple sets of machines, different lines, in
which each set of lines with a main unit, the classification of import shipments into the

•


machinery and equipment group corresponding to each line to the principle taxed on.
In case the main engine has higher import tariffs of other machinery and equipment
application classification or classification according to the main unit for each machine.
Valuation of imported goods for tax purposes.
Company ARMEPHACO apply the Agreement on the dutiable value determination that
the WTO Customs regulations applicable to the Member States.
Agreement on Customs dutiable value has given 01 standard method and 05 alternative
methods (used in cases the standard method does not apply). The company always

understands, grasp and apply these guidelines to protect its interests.
o Standard Calculation Method: The value of goods imported to calculate the import duty
is the price actually paid or will pay the price when the goods are sold from exporter to
importer (called the transaction price). In other words, the price used to calculate the tax
will be the price recorded in foreign trade contracts, on the sales invoice. This price may
o

be adjusted plus some kind of reasonable expenses.
The alternative calculation method is the method of determining the taxable value
alternative when Customs decides not to apply standard methods (ie not recognize the






transaction as customs taxable value). Include:

The transaction value of identical goods.
The transaction value of similar goods.
The value of the deduction.
The value calculated.

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 A reasonable approach (in the case of the 4 methods above are unusable).

Foreseeing this, ARMEPHACO always understand and apply the principles for
calculating the taxable value of Customs because this is a tool to protect corporate


interests.
The consultation commodity prices.
Consultation is a professional activities in line procedures imports, consultations are the
customs authorities and the exchange of customs declaration, provide information on
issues of mutual shipment prices related imports at the request of the customs office (if
questionable) or at the request of the declarer (if not possible to determine the value).
Time consultation carried out within 30 days (working days) from the date of shipment
cleared customs. The consultation must be done as soon as possible and lasts a maximum
of 30 days for complicated cases, with large amounts of consultation. The consultation
has influenced the goods taxed. Thus consultation is very important.
Items of machinery, medical equipment ARMEPHACO Company imported often, the
complex commodity groups, difficult subject to tariffs and HS taxed. Therefore, in many
cases, companies have taken the advice of the customs authorities.

Following are data on import contracts of the company consulted the Customs value:
Table 2: Number of contracts of ARMEPHACO Company is customs authorities
consult price
Unit: Contracts

Number of import contracts
Number of contracts to be consulted

2007
115
12

2008
86
9

2009
136
24

Looking at the figures, we see that the Army Medical Equipment and Pharmaceutical
Company have import contracts that customs authorities consult price through years.
2007, 12 out of 115 contracts are contracts Customs consultations, 2008 9/86 consulted
contracts and 24 contracts in 2009 with a total of 136 contracts were consulted. The
company's consultation takes place mostly due to the company by the customs authorities
to join the consultations to adopt HS for the items is difficult to determine the HS code to
determine taxable value and the amount of tax payable. Because companies always have
good law observance, no case the company must consult misstatements due to tax
•

evasion.
Results customs clearance of goods imported by the company.

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 Each year, ARMEPHACO Company has to make a lot import contracts. Following are

data on cleared customs declarations of the company in recent years:
Table 3: Results of clearance for three years: 2007, 2008, 2009

Registration declarations number
Cleared customs declaration number
Percentage cleared customs declaration

2007
115
110
96%

2008
86
80
93%

2009
136

132
97%

Looking at the above figures we can see the results of operations of the company. In
2007, the numbers of customs clearance declarations were up 96%, in 2008 was 93%, in
2009 was 97%. In 2008, due to the impact of the world economic crisis, the company
achieved little more import contracts from 2007 and 2009. The rate faster customs
clearance declarations are always in the majority. The remaining number of declarations
that is not cleared mostly are the declarations of the shipment is incomplete and customs
procedures after the company handle all caught vouchers to complete the full set of
•





•



customs documents trousers.
The problems arising in the customs clearance of imports.
Some problems that businesses import and export business is often encountered in the
customs declaration process in Vietnam:
Violation of regulations on customs declaration, tax return, tax payment extension.
Breach of the customs value.
Violation of classifying imported goods, wrong application of HS codes.
Violation of origin.
Assessment of the operational status of the import customs clearance company.
The positives.

ARMEPHACO Company has many years of experience in import and export business.
Commodity import operation is highly professional operation of the company. Therefore,
with experience and a solid business, import customs clearance operations of the
company always takes place very quickly. Can appreciate the positive aspects of



operations import customs clearance of the company through a number of criteria:
Cargo clearance times faster. Because the company has many years of experience and
solid operations, the company rarely caught in the customs declaration, complete customs
documents, and good company always abide by the law, so the clearance goods always
happen quickly. Therefore, the company performed very successfully and on time for the
sale of goods contracts with local partners.

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

The tax declaration, calculation and payment of corporate taxes is always completed
quickly. Company less tax arrears cases, if any, companies are quickly completed the



payable tax amount.
Goods are usually freed quickly. Machinery, medical device companies are often
imported modern machinery and high-tech. The company is always interested in faster



release of goods to ensure the quality of machinery and equipment.
Companies always abide by state laws and regulations of the Customs, no phenomenon
of commercial fraud, misrepresentation commodities, commodity codes to tax evasion,



tax breaks ...
Therefore, the company has always made a reputation and brand with partners at home
and abroad, has credibility with customs authorities, facilitating the process of import and
clearance of goods, thereby helping companies perform many economic contracts,
increase profitability, revenue and operational efficiency.

 These drawbacks and causes.
 Because companies import goods are machinery, medical equipment, these are relatively

complex items in determining the HS codes and the origin of goods. Another type of
machinery, medical equipment can be assembled in one country, but the equipment was
manufactured from a different country, so the determination of origin of goods is very
difficult. And with these types of items such complex, the pressure commodity code is
also the problem requires companies to have solid professional. Due to the imported
goods of such companies, so in some cases, these characteristics have a major influence


on the clearance of goods.
Goods are another obstacle to complete C/O slow cargo clearance time and affect the
value of the tax. It is caused by the complex nature of the item. A company shipments are
imported medical equipment can be produced from many countries. For example, 40% of

components produced in China, 40% manufactured in the USA and 20% produced in
Germany, the determination of a reasonable origin would be difficult and costly time. If
the company confirmed goods originating from preferential market on tariffs but the
customs authorities did not recognize the origin of goods that the company tax amount
payable will be huge, affecting many to revenue and expenses of the company. However,
the company imported goods mostly from the big markets are not entitled to preferential
tariff. But items by machinery, medical equipment items are required to have state

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certificates of origin of goods. Hence the determination of the exact origin of the


company is very important.
In some cases, due to the complexity of the goods which the company applied the wrong
HS code for the goods. The reason is that commodities of machinery and medical
equipment are often complex machinery; it is difficult to determine the HS. This affects
the amount of tax payable by the company. Errors will affect the time of customs
clearance, cargo liberation of the company lead to problems in the implementation of
contracts with local partners.

C. Chapter 3: Goals of internship, tasks assigned and working methods
I. Goals of internship
- After 4 years at the International School – Vietnam National University, Hanoi, each

student has their own accumulated a certain amount of knowledge, but if there is no

environment to practice, apply the theory learned will not achieve best results. Therefore,
-

the internship graduation is a very important subject for every college student last year.
Duration of 6 weeks internship is a good opportunity for each student (especially an
international business student like me) to interact and become familiar with the working
environment in the workplace, as well as office work. Furthermore, students have the
conditions to apply knowledge learned in school to practical work, learning more
experienced and supplement the shortcomings and contribute to improving the skills
learned in college over the years. After graduation internship, each student will have the

-

professional skills and clearer orientation in their future work.
This internship also helps students complete more about all aspects of the training
process, including strengthening the knowledge, skills training, improve attitude, love
teaching, strengthen communication, ability work, management, practice conscious labor
discipline, industrial working style, to become familiar with the work environment. This

-

is the initial step is very important, to help students not confused before the new job.
With myself, I found that the internship has an important role not only with my learning
process, but also for my career later.

II. Tasks assigned
- The content of the specific tasks assigned to me during internship at the ARMEPHACO
•

Company as follows:

Searching an overview of the Company and the job as well as how the operate of the
Import and Export Sales Department 2.

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