Báo cáo thực tập tiếng anh INTERNSHIP COMPANYINSTITUTION tan an company ltd

VIETNAM NATIONAL UNIVERSITY, HANOI
INTERNATIONAL SCHOOL

***

GRADUATE INTERNSHIP REPORT
INTERNSHIP COMPANY/INSTITUTION:

Tan An Company Ltd.,
Address: 9th Floor, JSC Building 34, Lane 164 Khuat Duy Tien, Thanh Xuan,
Hanoi

Supervisor: Ms. Hoang Kim Thu
Student’s full name: Hoang Thi Van Anh
Student’s ID: 11071368
Major: International Business
Class: IB2012B

Hanoi, 11/03/2016


Internship Report
Hoang Thi Van Anh

ACKNOWLEDGEMENT
I would like to express the deepest appreciation to the Tan An company having
created an opportunity for my to work as an internship at the company. Especially
many thanks to my mentor, Mr. La Nhat Tan who had helped me so much in
communicating with other employees and specific works; to my Head of
department, Mr. La Viet Anh who had always been welcome me at work, always
enthusiastic to guide me, and provided me documents when needed; to my coworkers, Mr. Truong Manh Linh and Mr. Nguyen Huy Hoang at Export – Import

Department, those who had lead me through the internship period with exportimport techniques.
I would like to acknowledge extremely the support of my instructor, Ms. Hoang
Kim Thu, a lecturer at International School, who always raised my work of writing
this report and also inspired me to complete the work. She always devoted all her
best to help me to understand what was going on and what I needed to repair.
Finally, I would like to show my gratitude to International School having
introduced me to Tan An company and help me experience the wonderful and
dynamic internship period. Also to my friends, my teammates who have supported
me while writing this report.

Internship student

Hoang Thi Van Anh

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PART 1: MAIN CONTENT
INTERNSHIP REPORT

Table of Contents
ACKNOWLEDGEMENT.............................................................................................................................. 2

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A. CHAPTER 1: INTERNSHIP COMPANY / INSTITUTION OVERVIEW: TAN AN COMPANY.............................5
1. General information...................................................................................................................................5
1.1. Name of the company........................................................................................................................5
1.2. Headquarter and other branches.......................................................................................................5
1.3. Legal representative of the company.................................................................................................6
1.4. Industry and Activity fields .................................................................................................................6
1.4.1.Exploitation..................................................................................................................................6
1.4.2.Manufacture................................................................................................................................6
1.4.3.Business........................................................................................................................................7
1.4.4.Investment and construction.......................................................................................................8
2. Company’s milestones................................................................................................................................8
3. Mission, Vision and Core value...................................................................................................................9
4. Operation of the Company.........................................................................................................................9
5. Marketing mix analysis............................................................................................................................12
5.1. Product and Place.............................................................................................................................12
5.2. Customers.........................................................................................................................................13
5.3. Promotion ........................................................................................................................................13
B. CHAPTER 2: COMPANY’S BUSINESS ACTIVITIES REPORT......................................................................14
1. Financial statement analysis ..................................................................................................................14
2. Business activities by functions................................................................................................................16
3. The company’s value chain......................................................................................................................17
3.1. Exploitation and Importation............................................................................................................18
3.1.1.Sources of resources..................................................................................................................18
3.1.2.Standard of importing................................................................................................................19
3.2. Production.........................................................................................................................................19
3.3. Distribution.......................................................................................................................................22
3.3.1.Wholesale domestically.............................................................................................................22
3.3.2.Exporting....................................................................................................................................22

4. Major activity analysis: Exporting Low Carbon Ferro Chrome.................................................................23
4.1. Ore exploitation................................................................................................................................23
4.2. Resources procession .......................................................................................................................23
4.3. Exportation.......................................................................................................................................24
C. CHAPTER 3: INTERNSHIP OBJECTIVES, CONTENT OF SPECIFIC WORKS, WORKING METHODS................27
1. Internship objectives...............................................................................................................................27
2. Assigned tasks at the company: Importing turf grass seeds..................................................................27
2.1. Finding general information about some kind of turf grass seeds...................................................27
2.2. Contacting with foreign partners......................................................................................................28
3. Difficulty while implementing assigned tasks..........................................................................................30
D. CHAPTER 4: ACHIEVEMENTS AFTER THE INTERNSHIP PERIOD .............................................................31
1. Book knowledge and gained practical knowledge.................................................................................31
2. Gained skills............................................................................................................................................31
3. Gained experiences.................................................................................................................................32
4. Contributing to the company and results.................................................................................................32

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REFERENCES.......................................................................................................................................... 34
APPENDICES ......................................................................................................................................... 38
1. Declaration of Financial capacity (3 years, Unit: VND)..........................................................................38
2. Income Statement (year 2014, Unit: VND)...............................................................................................38
3. Balance sheet at date 31/12/2014 (Unit: VND).......................................................................................39
4. Cash flow statement (year 2014, Unit: VND)...........................................................................................41

A. CHAPTER 1: INTERNSHIP COMPANY / INSTITUTION OVERVIEW:

TAN AN COMPANY
1.

General information

1.1.

Name of the company

Tan An Company Limited was licensed numbering 1714/GP-UP on 10/03/1995 by
People’s Committee of Hanoi city.
Tax code: 0 1 0 0 3 7 9 7 7 6.
1.2.

Headquarter and other branches

Tan An’s headquarter located initially on 129B / 11B - group 12A - Thuong Dinh
Ward - Dong Da District - Hanoi. Now it moved the headquarter to 9th floor, JSC
Building 34, Lane 164 Khuat Duy Tien, Thanh Xuan, Hanoi.
The company has broadened both Hanoi and Ho Chi Minh city – the 2 biggest and
most developed cities in Vietnam and a small branch in Lao Cai province. The iron
factory in Ninh Binh province and a group of small hydroelectric power plants in
Van Ban district of Lao Cai province had been started to operate as well.

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1.3.

Legal representative of the company

From the birth of Tan An Company Limited, there are 2 members operated the
company with the authority capital of 150,000,000 VND. After 15 years of
operating, the company raised its capital up to 32,253,000,000 VND which means
215.02% increasing. At the present, the legal representative of the company is:
Mr. Truong The Son
Position: General Director.
1.4.

Industry and Activity fields

Within 15 years (until 2010), the had gained many achivements and developed itself
in infrastructure, work-forces, scale, business activities and management level. By
now, there are over 70 business lines, divided mostly into Construction industry and
Commercial industry. In this report, there will be subdivided into 4 main activities:
1.4.1. Exploitation
In order to serve for the manufacturing procedure and exporting raw materials to
foreign countries (especially to China), Tan An company registered to exploiting
some natural resources legally:
-

Wood and forestry products;

-

Coal, peat, iron ore and mental ore;

-

Sand, stone, gravel, clay.

Those resources are used for the manufacturing activities of the company as listed
after.
1.4.2. Manufacture
Raw materials after being exploited will be used to produce finished goods which
are divided into:
-

Chemical products;

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-

Electronic components, consumer electronic and other machines, measurement
equipment;

-

Batteries and accumulators;

-

Wooden products.

These finished goods will be distributed domestically to subsidiaries and also for
exporting purpose.
1.4.3. Business
Tan An Company has been doing its business in both domestic and foreign markets.
The company imports such products as electrical products and other products which
are needed in Vietnamese markets or sometimes re-export to another country. The
produced goods or imported goods are wholesaled inbound and exported outbound.
-

Mineral;

-

Industrial chemical;

-

Forestry products;

-

Agricultural products;

-

Electrical products;

-

Production materials: equipment, furnaces, geological exploration equipment,
machine tools, metallurgical industry materials;

-

Other products.

In addition, there are two researching centers aiming to develop its projects and
products:
-

Projecting center;

-

Testing measurement equipment center.

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1.4.4. Investment and construction
Besides above business activities, the company penetrated into investment with the
launching of:
-

Building Phu Mau hydropower plants;

-

MDF wood and furniture factories;

-

Iron and Ferro Manganese factories.

And the construction of:
-

Traffic works;

-

Irrigation;

-

Civil engineering.

The company activates widely in many aspects, especially focuses mostly in
manufacturing activities and export – import activities. By producing products by
themselves, the company has achieved successfully in exporting Vietnamese
wooden items like handicraft as a Vietamese traditional product to foreign markets
dedicating to the expandsion Vietnamese brand to the world.
2.

Company’s milestones

25/3/1995: Established in Hanoi Capital.
1998:
Tan An Co., Ltd has built a production factory of High Ferro Chrome Carbon in
Ninh Binh to supply the nationwide market and completely replace import of such
goods from abroad.
2004: Tan An Co., Ltd started building a group of small hydroelectric power plants
in Van Ban district of Lao Cai province.
12/2007: Ho Chi Minh branch of Tan An company had been launched.
2008:

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+ Launched Lao Cai branch.
+ Three small hydroelectric power plants went into operation and activities in
accordance with the designed capacity to synchronize into the national grid.
+ The company has a joint venture with the Vietnam Forestry Corporation to build
the MDF wood processing factory with a capacity of 54 thousand tons per year in
Yen Thuy district of Hoa Binh province.
2009: The company has a joint venture with a China partner to build the
Feromangan (FeMn) producing factory with a capacity of 100 thousand tons
per year which is considered as the largest factory in Vietnam now.
2010: Company’s capital raised up to 32,253,000,000 VND; in comparison with the
beginning capital, it had increased 215%.
3.

Mission, Vision and Core value

With the motto “Cooperation - Development”, Tan An Company expressed
determination to quickly make Tan An Co., Ltd become a powerful company.
The work of Tan An Company is to import raw materials of chemicals,
metallurgical materials, machines and equipments to serve for the domestic
industry.
4.

Operation of the Company

Beside headquater at Hanoi city, Tan An has representative office in Ho Chi Minh
city and some factories, hydropower plants, warehouses, estate property in other
provinces. In order to manage the whole company, Tan An required itself to
continous level up its management system. Therefore, the structure must be clear,
each department must be in charge of specified works to be easier in solving.
The main structure of the whole company (including 2 big branches and other
factories) will be illastrated as the map below:
Diagram 1: structure of the whole company.

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Boardof
ofDirector
Director
Board

Business
Business
Planning
Planning
Department
Department

HoChi
ChiMinh
Minh
Ho
branch
branch

Export-Import
Export-Import
Department
Department

NinhBinh
Binh
Ninh
iron
and
Ferro
iron and Ferro
manganese
manganese
factory

factory

HoaBinh
Binh
Hoa
MDF
wood
MDF wood
factory
factory

Financial&&
Financial
Accounting
Accounting
Department
Department

Human
Human
Resources
Resources
Department
Department

LaoCai
Cai
Lao
branch
branch

LaoCai
Cai
Lao
Hydroelectric
Hydroelectric
Plants
Plants

Diagram 2: Headquater’s structure – Hanoi Capital.

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Board of Director

General Director:
Truong The Son

Chairman:
La Hong Son

Union President

Export –
Import
department

Western +
USA
markets

Hydroelectric
Project
department

Financial &
Accounting
department

General
Trading
department

Test &
Measurement
Equipment
department

China +
Asia
markets

Diagram 3: Ho Chi Minh’s office structure.

Headof
ofrepresentative

representativeoffice
office
Head

Business
Business
Planning
Planning
Department
Department

11

Export-Import
Export-Import
Department
Department

Financial&&
Financial
Accounting
Accounting
Department
Department

Human
Human
Resources
Resources
Department

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5.

Marketing mix analysis

Tan An has both Export and Import activities with the main product lines are
wooden finished froducts and natural mental ores and divided clearly into 2
departments that focus on 2 big markets: China and Western countries + USA.
5.1.

Product and Place

In importing, the main object aiming to is woods while Ferro manganese and
handicraft are the targeting commodity for exporting.
Table 1: Tan An products and markets.
Import
- Woods for materials;
- Raw materials of chemicals;
- Metallurgical materials;
- Machines and equipments;

Export
Items
- Handicraft
items

- Ferro

Markets
USA,

Britain,

Japan,

China and Canada.
USA, Japan, Germany.

Manganese

- Small hydropower equipments.
Tan An Company’s products spread widely from diverse aspects and focused
mainly on Construction and Commercial products. Its raw materials of chemicals
and metallurgical materials are used for manufacturing constructional devices and
materials then export those finished products or being sale inside the country. Its
machines and equipments are used for both selling domestically and supporting
factories, plants and other properties of Tan An Company.
Tan An is the leading Handicraft company in Viet Nam with more than 10 years of
experience and always a pioneer in the field of handicraft and now have 3
considerably large specializing in ceramics, bamboo, rattan... Their products are
available in more than 10 countries throughout the world such as US, Canada,
Japan, China, Taiwan, and Germany. There is a remarkable collection of handicraft
products made of many kinds of materials ranging from Bamboo, Rattan, Palm
Leaf, Sea grass, Jute, Fern, Glass to Ceramic, and Lacquer...All of them are in

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unique designs. Feromagan – a proof by the strength of natural resources, aiming to
exporting to USA, Japan and Germany. It can be seen that USA and Japan are 2
biggest target market of Tan An with the amount of exporting products are highest
among listed markets.
5.2.

Customers

In doing business, firstly, there cannot help to mention about the company’s
customers. It is based on different products lines, then the target customers must be
different. Normally, Tan An company distributed its products by B2B model the
most (Business to Business):
-

Other companies and manufacturers both in Vietnam and foreign countries:
Construction companies, International companies;

-

Retailers: Electronic shops, home center shopping mall, etc.;

-

State institutions: National power grid, Educational and Medical institutions.

About Handicraft products, if customers make up their own products’ designs, the
comany could turn all the ideas into the real products with high quality and hottest
style, surely satisfying the most fastidious requirements. With 03 factories located
in the traditional villages, Tan An have the excellent showrooms with thousands of
designs to serve customer in experiencing in person all real products made from
skillful handicraft men.
5.3.

Promotion

Tan An Company only wholesales its products domestically, not for retailing,
therefore the products’ price are also discounted in the market.
When having a strong and long relationship with the company, the customers
(usually other business) will get some additional services for free and discounted
prices if purchasing huge amount of commodities.

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B. CHAPTER 2: COMPANY’S BUSINESS ACTIVITIES REPORT
1.

Financial statement analysis

Initially, Tan An capitalized with 150,000,000 VND until 2014 the total assets had
raised significantly up to 260,100,895,554 VND (Appendix 1: Declaration of
financial capacity) which meant increasing 1734 times. Also based on this

declaration, over three years (from 2012 to 2014), the company was in the highly
economic growth in general with the jumping outstandingly of its revenue from 344
billion up to over 548 billion VND.
Table 2: Declaration of financial capacity (extracted from Appendix 1).
No.

Year 2012

Year 2013

Year 2014

1

Total assets

203,720,913,56
1

163,158,742,75
4

260,100,895,554

2

Total payables

116,532,653,10
8

152,975,852,01
8

142,059,838,779

4

Total short-term liability

88,114,012,287

125,975,852,01
8

126,752,595,205

5

Revenue

344,940,547,84
3

525,891,656,10
7

548,662,181,579

In the period 2013 – 2014, although that Tan An company had reduced its Costs of

goods sold but it was only 0.2%; therefore, with the decrease of revenue by 0.88%,
Tan An’s gross profit had lost 14.9% in comparison with the year of 2013.
Table 3: Income statement (extracted from appendix 2).
Criteria
Revenues from sales
Net revenue from sales and services
(10=01-02)

Code
1
10

Note
VI.10

2014
543,820,640,645
543,803,640,645

2013
548,662,181,579
548,662,181,579

4
5

Cost of goods sold
Gross profits from sales and services
(20=10-11)

11
20

VI.11

521,811,016,337
21,992,624,308

522,817,956,124
25,844,225,445

10

Operating Income {30=20+(21-22)(24+25)}
Other income
Other expenses
Other profit (40=31-32)

30

6,862,806,028

6,777,625,587

31
32
40

114,897,354
-114,897,354

817,500,303
200,757,146
616,743,157

1
3

11
12
13

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14
17

Earnings before taxes (50=30+40)
Earnings after income tax (60=50-5152)

50
60

VI.13

6,747,908,674

6,346,963,752

7,394,368,744
6,938,057,227

Above all, in a bigger range of development, Tan An Company raised its profit
significantly throughout many years of doing business as can be seen in the
Appendices. Thereby, the earning before tax had 8.74% reduction because of falling
off in other income while there were many other expenses had to pay out leading to
8.52% reduction of earning after tax (different tax expenses) – appendix 2.
According to the audited balance sheet in year end of 2014 (Appendix 3: Balance
sheet), the total asset continously increased 68,567,336,655 VND (from 260 billion
up to 328 billion VND). Cash and cash equivalents reduced remarkably through the
beginning to the ending of this year, however, there was incresed in investment and
short-term receivables which meant the company used cash for investing in other
financial projects and long-term assets and cash on selling were not collected from
customers yet.
Table 4: Cash flow statement (extracted from appendix 4).
Criteria
I Cash flows from operating activities
Net cash flow from operating activities
II Cash flows from investing activities
Net cash flow from investing activities
III Cash flow from financial activities
Net cash flow from financial activities
Net changes in cash and cash equivalents

Differences in exchange rate affection

Code

Note

2014

2013

20

-59,607,236,132

18,002,249,490

30

-35,376,171,892

910,785,737

40
50

79,889,301,019
-15,094,107,005

-15,021,390,542
3,891,644,685

61

As can be seen from the table of Cash Flow Statement above, the company had paid
a much bigger amount of money for operating and investing activities in 2014 than
2013 which meant that Tan An was investing in some big investments and projects.

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Together with the raised capital spectacularly indicated that the company was
needing a huge amount of money for the above operating and investing activities.

2.

Business activities by functions

As mentioned, Tan An company has 1 headquarter, 2 branches and some other
factories, hydroelectric plants which are shown the structure above (in chapter 1,
part 4: operation of the company). Although, there are many offices and plants, all
Tan An’s branches are organized simply as 6 main departments which have
different responsibilities as follows:
Board of Director: Controling the whole Tan An’s business activities; directly
managing works, employees; making decision on distribution methods, inventories
level, invesments and scale of invesment.
Export – Import department: Doing market research (both domestic and foreign
markets), finding material resources and then making import-export plans; advising
the Director of international business, Vietnamese and international import-export
policies; implementing the contracts, negotiating price and other related, preparing
relevant foreign trade documents, performing international payments, etc.

Hydroelectric Project department: Focusing on managing hydropower plants, and
planning long-term, short-term projects; distributing electric power to national
electric network; forecasting inbound and international prices for response timely to
the trend; assuring information to be confidential toward those who are not
responsible for.
Financial and Accounting department: Managing all financial matters at Tan An
company: judging the assets and capital using following the State financial
management; making financial plans; responsing capital matters periodly aiming to
helping the Director changing the way in using capital resources efficiently.

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General Trading department: Being responsible for selling within Vietnamese
boundaries: advising the Director of business strategies and policies; signing inland
trading contracts, transportation, packaging when being authorised; co-working
with Import-Export department for finding other commodity resources.
Test and Measurement Equipment department:

Researching and testing

measurement devices and providing devices for education, medical, scientific
technology; system integration, technical services for industrial factories.
3.

The company’s value chain

Exploiting
Producing
Importing

Distributio
n

Wholesale
domestically

Exporting

Diagram 4: Tan An value chain.
In Tan An company, all staffs and workers including engineers, universities,
colleges, secondary and technical workers from grade 3 to grade 7, are selected
based on different positions that each individual is responsible for. Basically, there
are two main flows of standard for choosing work forces to work at Tan An:
-

Blue-collar workers: Generally, there is no need to have education-based or may
have graduated from vocational schools for those who want to work in the sites,
as long as their health are good enough, having experiences and especially
clearly understand about the objects they are working for (normally natives
priority). For example, for the exploiting labors, they need to deeply understand
about the way of cutting trees, digging soils for getting the mental ores; and for
those who work at hydro power plants, they need to be good at electrical aspect.

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-

White-collar employees: Those who work in offices at different departments, act
as supervisors at sites, engineers, factories and plants. In Tan An, all those
employees have to get at least a bachelor degree and are trained professionally
before working officially for Tan An company. For those who are the managers
such as head of departments, directors, they must have a higher education degree
and are experienced for years in the same fields.

By using such strong labor forces like that, Tan An is partly successful in follows
its value chain:
3.1.

Exploitation and Importation

For the purpose of doing business, every company need to find out the material
resources and then go to get that materials by any methods. In Tan An company,
there are two ways of taking the materials resources: Exploiting natural resources or
Importing such kind of raw materials or products, machines, technologies, etc.
From now, there will be described deeply about raw materials not machines and
technologies (because of the use of supporting for producing).
3.1.1. Sources of resources
+ Exploiting: As registered to the Vietnamese law, Tan An company is allowed to
take advantages of natural resources at Northern areas where are woods from timber
forests and mixed forests with bamboo wood, pure bamboo forests and mixed wood
forests; and ore exploitation mainly in Quang Ninh, Thai Nguyen and Ninh Binh
province but it is just a small partial of mental ore and wood sources which are

main ingredients for producing and doing business at Tan An.
+ Importing: This is the main source of Tan An for distributing within boundary
and production. With the highly demand of woods domestically, the company has
been importing woods from the Africa and the Americas for years in such countries
as: the Republic of the Congo, Colombia, Gabon, Cameroon, Angola, etc; whereas
China is always the main land for Tan An company to import mental ores over a
decade. With storage system and distribution agents in many provinces and cities

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nationwide, our company wishes to serve customers with products of high quality,
reasonable price, and fully, on-time delivery.

3.1.2. Standard of importing
+ After many years, both parties are in close relationship and therefore raised the
standard of each importing contract: delivery commodity, international payment,
incoterms or insurance are solved rapidly and fairly each time has any problem.
+ About the products, after delivery, the foreign countries always sent the samples
to Tan An company for comparison afterward. If there are any miss-matched with
the sample or any damage of goods, then both parties go to deal together. In fact,
this case rarely happens while trading between Tan An and foreign companies.
3.2.

Production

After the first process, those raw materials will be transferred following 2 ways:

distributing directly to customers (wholesale to other domestic companies) or being
processed until becoming finished goods. The company focuses on production,
because production is fundamental for the company to develop stably.
Table 5: Production in 3 factories.
Places
Ferro

Scale of manufacturing

Ninh Binh Over 400 workers;

Products
Steel, cast iron, other

manganese

Average capacity: 100,000

building materials and

factory

tons/year.

devices.

About 250 workers;

Electricity

Phu Mau

Lao Cai

hydroelectric

Annual power yield is 21-22

plants

million Kwh per year.

MDF wood
factory-Vinafor

19

Hoa Binh

Nearly 190 workers;

Handicrafts, wooden
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Average capacity: 54,000

products.

tons/year.
Ferro Manganese factory: was located in Ninh Binh province where processing
the mental ores to supply building materials such as steel and cast iron for the
Vietnamese market. By using modern technologies and machines, together with
over 400 workers, experienced engineering, manufacturing and working staff the
factory now has 2 mineral-heated furnaces with the capacity of 6300KVA, at the
end of 2010, we will invest to build 2 new mineral-heated furnaces and 1 refined
furnace, production will reach at least 100,000 tons per year.

Illustration 1: Ferro production and package.
Phu Mau hydroelectric plants: was placed in Lao Cai province where supplies the
electricity for some institutions and companies. Phu Mau group of hydroelectric
power plants comprise 3 plants with capacity of 5.6 MW. Annual power yield is
21-22 million Kwh per year. The Phu Mau plants act as an up-growing electric
plants with the increasing labors by years and now reached about 250 workers.
Plant number 1: Installed capacity: 1.4 MW
Height of estimated water column: 80m
Plant number 2: Installed capacity: 1.8MW
Height of estimated water column: 150m
Plant number 3: Installed capacity: 2.4MW
Height of estimated water column: 250m

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Illustration 2: Phu Mau hydroelectric plants.
MDF wood factory: was built in Hoa Binh province where processing MDF manmade fiber plywood with the thickness from 8 ÷ 25mm. The lengths of 1.830mm,
the width of 1.220mm are very convenient in the construction, interior and exterior
decoration to the building. As the main material for furniture production, MDF
wood is very convenient to processing work of window frame, door frame and other
household products. Vinafor factory gained only excess a half of capacity of the
Ferro manganese factory at about 54,000 tons per year. The reason is this factory
have only about 190 people including engineers, universities, colleges, secondary
and technical workers from grade 3 to grade 7.

Illustration 3: MDF factory.

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3.3.

Distribution

Tan An distributes two product status: one is finished goods after being processed
and the other is raw materials imported from other countries. There are two
channels of distributing Tan An’s products: being supplied domestically and being
exported to other countries.
3.3.1. Wholesale domestically
In 1998, Tan An Co., Ltd has built a production factory of High Ferro Chrome
Carbon in Ninh Binh to supply the nationwide market and completely replace
import of such goods from abroad. There are many domestic partners as companies,

retail shops and even state institutes started to have a long relationship in trading
products with Tan An company. Until 2008, there was only 10% of this factory’s
capacity used for distributing nationwide.
By the meanwhile, Electricity produced from Phu Mau hydropower plants are
100% used for domestic market.
3.3.2. Exporting
There are two main exporting products in Tan An company: Ferro Manganese with
90% products are exported and Handicraft items which become a pioneer in this
field throughout more than 10 years of experiences. Handicraft products made of
many kinds of materials ranging from Bamboo, Rattan, Palm Leaf, Sea grass, Jute,
Fern, Glass to Ceramic, and Lacquer with a wide range of products made from the
combination of various materials which are the completely new creation in the
Handicraft market.
The main markets for Tan An to export its products are USA, China, Japan, and
other European countries.

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4.

Major activity analysis: Exporting Low Carbon Ferro Chrome

Exploiting
mental ore

Processing

Mental ore

Exporting
finished goods

Diagram 5: exporting procedures.
4.1.

Ore exploitation

To executing this stage, first Tan An company have to go find the ingredients for
producing certain chemical products. For example, to produce Low Carbon Ferro
Chrome, the company will need to find these resources: Cromit, Quartzite, Coke
(fuel) and other aditivos.
Place of exploitation: Tan An company registered with the Vietnamese authority
and also the local authority to exploit natural resources in some certain provinces
such as: Ninh Binh, Quang Ninh, Thai Nguyen, Thanh Hoa by a limited amount of
resources. With Cromit, Quartzite, Coke (fuel), the company was authorized to
exploit in Thanh Hoa province.
4.2.

Resources procession

The exploited raw materials will be taken to Ferro Manganese factory for preparing
processing. Here, the manufacturer firstly accomplishes cleaning and removing

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impurities before executing processing then executing step by step to create final
products.
For producing Low Carbon Ferro Chrome, the manufacturer follows the chemical
equation for processing:
FeO.Cr2O3 + 2(CrFe)Si = 4Cr + 3Fe + 2SiO2
It is based on what products going to be produced, the progress will be different.
Let’s take the progress of producing Low Carbon Ferro Chrome as an example
which is illustrated as the map below:

Illustration 4: Producing Low Carbon Ferro Chrome.
After mixing all ingredients together, implementing adding lime and silicochrom
into the mixture then bring to the electric arc furnace. Finally, Low Carbon Ferro
Chrome are ready to export.
4.3.

Exportation

Main partners: In this stage, finding a foreign partner is very important.
Experiencing many years of exporting mental ores, Tan An company have created
strong relationship with many partner mostly from US, Canada, Japan, China,
Taiwan, Germany, India, etc.

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With Low Carbon Ferro Chrome, the main market of Tan An for years is India. In
the Appendices, there is the contract between Tan An company and World Metals
& Alloys (FZC) company in India for exporting Low Carbon Ferro Chrome.
Exporting execution: Tan An usually use CIF incoterm 2010 for exporting its
products. Normally, to export commodity, the company need to assess through
several steps which will be clarified by the example of exporting Low Carbon Ferro
Chrome used CIF pay by TTR of 100% value as follows:
-

Preparing commodity:

50 MT Low Carbon Ferro Chrome packing in 1MT in a 20FT container with
specification: 60% Cr min, 1% Si max, 0.1% C max, 0.03% P max, 0.03% P max.
-

Obtaining export license.

-

Making a carriage contract with freight forwarder: MAERSK LINE.

Hire a vessel and pay the freight for MAERSK Vietnam Ltd.
-

Delivering goods to loading port after receiving 100% payment.

-

Getting certificate of quantity and quality from SGS.

This is to prove that the good’s quality conform to the contract. When receiving this
document, the exporter need to check all the information. Then signing an
inspection contract at inspector, presenting seller’s certificate of quality, presenting
goods to the inspector and paying inspection fee. This document also for ensuring it
conform to the country exporting’s procedure: with Ministry of Science and
Technology with procedures as: submitting checking requirement form, presenting
seller’s certificate of quality and goods to be checked, then paying the fee.
-

Completing custom procedure:

Implementing custom declaration and submitting documents such as contract,
certificate of Business registration, importing/exporting tax code and exporting

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