Recommendations to improve the freight forwarding procedure of imported animal feed cargo at an phu trading and forwarding service co , ltd

Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd

PREFACE
If trading is considered as the “blood-line” of the world economy, it can be said that
maritime transportation is the key element to ensure blood circulation. According to
International Chamber of Shipping, it is about 90% of the world trade carried by
ship. In order to support this potential industry, freight forwarding service was born
to enhance thedevelopment of maritime transportation and has played an important
role. Vietnam is not an exception with the strong emerge of the freight forwarding
activities which attract many enterprises to involve in this field.
Understanding the importance of the freight forwarding service for the development
of An Phu Co., Ltd, I chose the topic “Recommendations to improve the freight
forwarding procedure of imported Animal Feed cargo at An Phu Trading and
Forwarding service Co., Ltd” for my dissertation.
.

Luu Thi Thu Trang GMA02

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Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd

DECLARATION

I certify that all the materials in this dissertation that is not my own work has been
identified, and that no materials is included for which a degree has previously been
conferred on me.
The contents of this dissertation reflect my own personal views, and are not

necessarily endorsed by the University.
Signature

LUU THI THU TRANG

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Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd

ABSTRACT

Thanks to globalization, economy of Vietnam has been developing dramatically.
Along with economic growth, exchange of goods and services has also significantly
risen which are mainly transported by sea. It is no doubt that freight forwarding is
an indispensable part of Export- Import industry. As a matter of fact, after
recognizing this potential field, An Phu Trading and Forwarding Service Limited
Company was established which has been an active player in the freight forwarding
service. Therefore, recognizing the importance of freight forwarding activities in
national economy development; in this dissertation, the freight forwarding
procedure of imported Animal Feed cargoby FCL method will be studied and
explained in details in the case of An Phu Co., Ltd. The purpose of this study is to
provide an overview of the freight forwarding activities and to understand deeply
about the freight forwarding procedure of imported animal feed cargo at An Phu
Co., Ltd. Moreover, it aims to analyze the current status quo of the above mentioned
procedure of the company.
Although, the procedure is created to be compatible with specific cargo- Animal

Feed cargo, there are still some problems happening during the procedure that need
feasible solutions. Thus, based on found limitations, I have proposed some
suggestions to resolve the currents limitations of the procedure in this dissertation.
Therefore, this study hopes to help readers have a basic knowledge about freight
forwarding service. However, due to the limitations of time and length and other
external factors, this report still contains some drawbacks with the aim of finding
the most effective solutions for the company. I really hope to receive feedback from
the lectures to be able to complete my study.

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Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd

Table of Contents
PREFACE .................................................................................................................... i
DECLARATION ......................................................................................................... ii
ABSTRACT ............................................................................................................... iii
LIST OF ABBREVIATIONS ..................................................................................... vi
LIST OF FIGURES ................................................................................................... vii
LIST OF TABLES.................................................................................................... viii
INTRODUCTION ....................................................................................................... 1
1. The necessity of the research ................................................................................... 1
2. Methodology............................................................................................................ 1
3. Dissertation Scope ................................................................................................... 2
4. Time Duration ......................................................................................................... 2
5. Research results ....................................................................................................... 2

6. Dissertation structure ............................................................................................... 2
CHAPTER 1: LITERATURE REVIEW ...................................................................... 3
1.1. General methodology of freight forwarding .......................................................... 3
1.1.1. Definition of freight forwarding and freight forwarder ....................................... 3
1.1.2. Commercial functions of freight forwarders ....................................................... 4
1.1.3. Obligations, Responsibilities and Rights of freight forwarder. ............................ 5
1.1.4. Definition of FCL cargo ..................................................................................... 6
1.1.5. Related parties in the freight forwarding procedure ............................................ 6
1.2. Legal Basis of the freight forwarding .................................................................... 7
1.2.1. Vietnamese Law ................................................................................................ 7
1.2.2. International Law ............................................................................................... 8
1.2.3. Related documents in the freight forwarding procedure...................................... 8
1.2.4 Legal documents relating to animal feed ............................................................. 9
CHAPTER 2: THE STATUS QUO OF THE FREIGHT FORWARDING
PROCEDURE OF IMPORTED ANIMAL FEED CARGO AT AN PHU
TRADING AND FORWARDING SERVICE CO., LTD ...........................................11
2.1 Company Overview ..............................................................................................11
2.1.1 History of foundation and development of the company ....................................11
2.1.2 Company Structure ............................................................................................13
2.1.3 Business Performance ........................................................................................15
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Recommendations to improve the freight forwarding procedure of imported
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2.2 The status quo of the freight forwarding procedure of imported Animal Feed
cargo at An Phu Co., Ltd ............................................................................................17
2.2.1 Introduction about the cargo and clients .............................................................17

2.2.2 The freight forwarding procedure of imported Animal Feed cargo at An Phu
Co., Ltd ......................................................................................................................18
2.2.3 The status quo of the freight forwarding procedure of imported Animal Feed
cargo at An Phu Co., Ltd ............................................................................................25
CHAPTER 3: RECOMMENDATIONS TO IMPROVE THE FREIGHT
FORWARDING PROCEDURE OF IMPORTED ANIMAL FEED CARGO AT
AN PHU TRADING AND FORWARDING SERVICE CO., LTD ............................29
3.1. Evaluating the freight forwarding procedure of imported Animal Feed cargo at
An Phu Co., ltd ...........................................................................................................29
3.1.1 Advantages of the procedure ..............................................................................29
3.1.2 Limitations of the procedure ..............................................................................30
3.2 Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Serive Co., Ltd ......................32
3.2.1 Professional Training Courses for forwarding staff ............................................32
3.2.3 Applying modern software .................................................................................33
3.2.2 Re- allocation of human resources in the procedure ...........................................34
3.2.4 Re- arrange transportation plan ..........................................................................36
CONCLUSION ..........................................................................................................37
BIBLIOGRAPHY ......................................................................................................38
APPENDIX ................................................................................................................39

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Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd

LIST OF ABBREVIATIONS

B/L

Bill of Lading

C/O

Certificate of Origin

CLECAT

Comité de Liaison Européen des Commissionaires et Auxiliaires
de Transport du Marché Commun

Co., Ltd

Company Limited

D/O

Delivery Order

EIR

Equipment Interchange Receipt

FCL

Full Container Load

FIATA

International Federation Of Freight Forwarders Association

THC

Terminal Handling Charge

WTO

World Trade Organization

VAT

Value Added Tax

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Recommendations to improve the freight forwarding procedure of imported
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LIST OF FIGURES
Figure 1.1: Related parties in the freight forwarding procedure ...................................... 6
Figure 2.1: Organizational structure of An Phu Co., Ltd ................................................ 12
Figure 2.2: The current freight forwarding procedure of imported Animal Feed
cargo at An Phu Co., Ltd ............................................................................................... 17
Figure 2.3: Login ECUSS VINACCS/VCIS .................................................................. 20
Figure 2.4: Register to open a new importing declaration............................................... 20

Figure 2.5: Declare General Information ........................................................................ 21
Figure 2.6: Declare Cargo Information .......................................................................... 22

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Recommendations to improve the freight forwarding procedure of imported
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LIST OF TABLES
Table 2.1: An Phu Co., Ltd Business Performance from 2013 to the first six months
of 2015 .......................................................................................................................... 14
Table 2.2: Volume of import, export and domestic of animal feed cargo at An Phu
Co., Ltd in 2013, 2014 and 2015 .................................................................................... 15
Table 2.3: Charges and Fees to be collected by Shipping Line ....................................... 19
Table 2.4: The current number of staff involving in the freight forwarding procedure
of imported Animal Feed cargo at An Phu Co., Ltd ....................................................... 25
Table 2.5: The difference between the average required time and average actual
time for each step of the freight forwarding procedure of imported Animal Feed
cargo .............................................................................................................................. 26
Table 3.1: The difference of the working style and efficiency of staff before and
after applying F.A.S.T ................................................................................................... 32
Table 3.2: Re- allocation of human resources in the procedure ...................................... 34

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Recommendations to improve the freight forwarding procedure of imported
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INTRODUCTION
1. The necessity of the research
Thanks to globalization, Vietnam has been immersed in the growing
development of the world’s economy. It can be said that International Trade of
Vietnam has grown rapidly over the past 20 years, especially after Vietnam became
a member of the World Trade Organization (WTO). Along with economic growth,
exchange of goods and services has also significantly risen which are mainly
transported by sea. As seaborne trade has expanded, the significant role of freight
forwarding service continues to become more important. The development of
freight forwarding activities in import and export field in our country play a key
role which contribute to enhance the competitiveness of goods in international
market. Therefore, recognizing the importance of freight forwarding activities in
national economy development;in this dissertation, the freight forwarding procedure
of imported Animal Feedcargo by FCL method will be studied and explained in
details in the case of An Phu Co., Ltd. Although, the procedure is created to be
compatible with specific cargo, there are still some problems happening during the
procedure that need feasible solutions. Therefore, the purpose of this dissertation is
to assess the present freight forwarding procedure of Animal Feed cargoby FCL
method at An Phu Co., Ltd and give some recommendations to improve the
procedure in order to enhance the competitiveness of the company.
2. Methodology
This dissertation applies the following approaches:
Participant observation: I have chance to work as an apprentice at An Phu
Co., Ltd to study and have deep understand about the freight forwarding procedure
of imported Animal Feedcargo by FCL method..
Data collection: General information about freight forwarding service is

studied and gathered from books and internet. Company’s information and statistics
are provided by company’s functional departments and websites.
Interview: I interviewed some company’sstaffs to get more detailed
information about the freight forwarding procedure and their experiences as well as
their advices.
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Recommendations to improve the freight forwarding procedure of imported
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Method of analysis: After collecting all necessary data and information,
method of analysis is applied to assess the current status of the studied procedure.
3. Dissertation Scope
This dissertation aims to analyze the freight forwarding procedure of
imported Animal feed cargo carried out by employees of An Phu Co., Ltd. More
specific, the dissertation focuses on each detailed step to understand clearly how the
company doesits business as well as the efficiency of company’s performance.
4. Time Duration
I have worked as an intern at An Phu Co., Ltd in order to study the freight
forwarding procedure of imported animal feed cargowithin 2 months.
5. Research results
The current status of the studied freight forwarding procedure, evaluation of
the advantages and disadvantages as well as recommendation to improve the
procedure are analyzed in this dissertation.
6. Dissertation structure
This dissertation includes three chapters:
Chapter 1:Literature review
Chapter 2: The status quo of the freight forwarding procedure of imported animal

feed cargo at An Phu Trading and Forwarding Service Co., Ltd
Chapter 3:Recommendations to improve the freight forwarding procedure of
imported animal feed cargoat An Phu Trading and Forwarding Service Co., Ltd

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Recommendations to improve the freight forwarding procedure of imported
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CHAPTER 1: LITERATURE REVIEW
1.1. General methodology of freight forwarding
1.1.1. Definition of freight forwarding and freight forwarder
a. Definition of freight forwarding service
According to the International Federation of Freight Forwarders Association
(FIATA) and theComité de Liaison Européen des Commissionaires et Auxiliaires
de Transport du Marché Commun" (CLECAT) on October29th 2004, freight
forwarding is defined as following:
“Freight forwarding service is any service related to carrying, consolidating,
warehousing, handling, packing or distributing goods as well as other supporting
and advising services which are related to these aforementioned services. In
addition, freight forwarding service deal with not only customs or financial issues
but also cargo insurance, charge and related documents. Freight forwarding service
also includes logistics services along with modern technology which has close
relationship with the progress of transportation, handling, warehousing and supply
chain management. These services can be provided flexibly to support the main
import and export activities” (FIATA, 2004)
In Vietnam, the time that the freight forwarding service was mentioned and

defined clearly was in Article 163 of Vietnamese Commercial Law 1997. Today,
the freight forwarding service has been developing more professionally and has
close connection with other customer services which can be called logistics
services.
b. Definition and role of freight forwarders
Freight forwarders are people who provide freight forwarding service and act
as trustees of their customers being cargo owners or carriers. In other words, freight
forwarders can be cargo owners, ship owners, handling companies or any
companies which register to be involve in freight forwarding business. In many
“

countries around the world, freight forwarders are known as with different names
such as Custom agent, Custom broker, Shipping and Forwarding agent, Principal
carrier, etc. However, they all has a common name in international transaction as
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Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd
“The international freight forwarding” with major task being providing forwarding
service.

“

1.1.2. Commercial functions of freight forwarders
In general, freight forwarders can undertake many tasks in providing services
for customers. However, in fact, they have the following basic commercial
functions:

a. Customs brokers
“

Each country has different policies and regulations for customs procedure

through each period; therefore, exporters and importers cannot update all
information timely. In order to support them, freight forwarders do customs
clearance as customs brokers (conventional function of freight forwarder) on behalf
of their customers to minimize customers’ difficulties in doing business.
b. Agents
In this case, freight forwarders perform as a “bridge” to connect the shipper
and the main carrier. They are in charge of being agents of carriers or shippers. In
fact, the freight forwarder is not responsible for carrying goods. Instead, the freight
forwarder can look for the third party to undertake the mission of delivery as long as
the forwarder is reasonably careful in the selection of a transportation company.
c. Transcargo and On-carriage
When goods are transited to the third country, freight forwarders will be
responsible for transition procedure. In others words, they are in charge of transiting
cargo from one mean of transport to others. If the freight forwarders have their own
vehicles, in this case, they can act as the carrier and they must be responsible for
delivery of goods from the point that they receive goods to the destination. If the
freight forwarders do not have their own vehicles, they will lease truck from
Transportation Company.

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Recommendations to improve the freight forwarding procedure of imported

Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd
d. Warehousing
When customers require the storage of the goods before exporting goods
or/and after importing goods, the freight forwarders will be responsible for this
activity as a warehousing agent.
e. Cargo consolidator
In order to perform this function, the freight forwarders collect various small
cargo from different customers to their warehouses. In there, they organize, sort,
categorize and combine small cargo which have the same destinations into larger
cargo to utilize the capacity of vehicles.
f. Carriers
In this case, the freight forwarders perform as actual carriers from when they
receive goods to the cargo are delivered to the destination. Therefore, they can be
Non-vessel Operating Common Carrier (NVOCC) or Multimodal Transport
Operator (MTO).
”

1.1.3. Obligations, Responsibilities and Rights of freight forwarder.
a. Obligations of the freight forwarder
The freight forwarders have obligations to depart from instructions of
customer during the performance of contracts for plausible reasons and in the
interests of customers.
The freight forwarders have obligations to perform all the instructions of the
customers. In the case that the forwarders do not follow one or any instructions of
customers, if they have reasonable justifications and all they do is for interests of
customers, it is accepted.
b. Responsibilities of the freight forwarder
The freight forwarders are responsible for any incurred problem if they do
not work hard and use reasonable measures in implementing forwarding services. In
this case, they have to compensate customers’ loss. However, freight forwarders

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Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd
are not responsible for any acts and omissions of the third parties such as
transporters, handling companies, and port authorities or other forwarders.
c. Rights of the freight forwarder
The freight forwarders have rights to enjoy service charges and other
reasonable expenses.
The freight forwarders have rights to complete their obligations to the
customers under the contract.
1.1.4. Definition of FCL cargo
FCL is the abbreviation for “Full Container Load” being used in the
international shipping industry for seaborne trade. FCL cargo are the standard form
of ocean freight for shippers who have a large amount of goods to send. Almost
every type of goods except liquidity could be stuffed into containers. FCL cargo
“

cost lower freight rate than an equivalent weight of cargo in bulk. The goods being
stuffed into one container is acceptable to reach maximum weight or measurement
of one container. However, in fact, the shipper is not required to use every single
square meter of a container to send goods. The goods inside containers can be half
loaded or quarter loaded. The container is sealed until it reaches its destination. In
an FCL cargo, all the goods in the sealed container belong to only one consignee.
Another advantage of FCL cargo is that shipper and consignee have less risk.
“

1.1.5. Related parties in the freight forwarding procedure
There are several parties involving in the freight forwarding procedure and
they have close relationship to the freight forwarder:

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Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd

Import- Export authorities:
- Taxation Department

- Customs

- Port authority

- Foreign ministry

- Health ministry

Shippers
(Exporters)

Consignees

Freight

Forwarder

(Importers)

Other parties:
Agencies

- Service organization
- Shipping companies
- Insurance companies
- Shipping agencies

Ports

- Inspecting andtesting
authority
- Banks
- Warehouse owners

Figure 1.1: Related parties in the freight forwarding procedure
1.2. Legal Basis of the freight forwarding
The freight forwarding activities involve in different fields including
transportation, purchase and sale contracts, payments, customs procedures;
therefore, the freight forwarders show understand well about legal regulations of
freight forwarding service.
“

1.2.1. Vietnamese Law
Besides international conventions, each country can adjust law based on
international law to accordant with its nation. Vietnamese authorities have issued

many legal documents related to the freight forwarding services including:
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Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd
-

Vietnamese Commercial Law 2005 ( from Article 233 to Article 240) and
Decree 140/2007/ND-CP September 5th 2007 which is regulated in the detail
of Vietnamese Commerce Law about business conditions for logistics and

-

-

limited liability for traders providing logistics services.
General regulations: The Civil Law 2005; The Enterprise Law 2005; The
Investment Law 2005, Tax Law and other regulations about trade insurance,
anti-corruption, etc.
Specialized regulations: Vietnam Maritime Code 1990, Decision 2016
regulates the rule of loading, unloading, forwarding and storage of goods in
Vietnam’s seaports, etc.

1.2.2. International Law
The system of international law relating to freight forwarding includes:
-

Vienna Convention for International Trade in 1980

-

The International Convention for the Unification of Certain Rules of Law
relating to Bill of Lading 1924 (Hague Rules/Hague-Visby Rules); First
Protocol (1968) and Second Protocol (1979)
The United Nations Convention on the Carriage of Goods by sea 1978

-

(Hamburg Rules)
Inco-terms 2010 (International Commercial Terms) standard interpretation of
trade terms of the International Chamber of Commerce
UCP 600 (Uniform Customs and Practice for Documentary Credits) by the
International Chamber of Commerce.

”

1.2.3. Related documents in the freight forwarding procedure
-

-

“

Commercial contract: is a legal documentary agreement between importer

and exporter stipulating every detail of the transaction. It is a legally binding
document.

Commercial Invoice is as formal demand note for payment issued by the
exporter to the imported goods sold under the sale contract. It should give
details of the description, the quantity, the price unit, the total price of goods,
the address of the buyer and seller, the payment terms and trade terms. The
commercial invoice is also used for the customs clearance of goods.

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Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd
-

Packing list is a list with detailed packing information of the goods shipped,
including number of cartons or packages, net weight, gross weight.

-

Bill of lading is a contract of carriage binding not only the shipper and the

-

carrier but also the consignee.
Certificate of origin is a certificate to certify the place of manufacture, the
nature, quantity and value of the goods. It is used to support the claim for

-

preferential tariff entry in importing country.
Customs declaration is a statement made to the Customs, declaring full
particulars of the imported/exported cargo.

“

1.2.4 Legal documents relating to animal feed
a. Decree 08/2010 / ND-CP about the management of animal feed
According to the above decree, animal feed is the food that livestock eat or
drink in fresh, raw or procedureedincluding raw material or mixed feed,
supplements feed, animal feed additives, premixes, the active ingredient and others.
Regulations about importing animal feed:
-

Organizations and individuals are only allowed to import animal feed on the
list that are allowed to circulate in Vietnam issued by the Ministry of

-

-

Agriculture and Rural Development.
Organizations and individuals importing animal feed must be responsible for
the quality and labeling of goods prescribed by law; responsible for
collection of goods that do not meet the need of quality assurance and
compensation for damage caused to farmers.
The procedures of importing animal feeds must comply with the provisions
of the current law. (Government, 2010)

b. Decree 17709/BTC-TCT about applying VAT for animal feed product

According to the Law Amending the Law on taxes in 2014: "Fertilizers;
machinery and equipment used exclusively for agricultural production; offshore
fishing boats; animal feed, poultry and other livestock feed are not subjected to pay
VAT. (Finance, 2015)
c. Decree 26/2012/TT-BNNPTNT aboutinspecting quality of animal feed product
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Recommendations to improve the freight forwarding procedure of imported
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Animal feed product imported must be implemented quality inspection as
according to Article 15 of Circular No. 66/2011 / TT-BNN dated 10/10/2011 of the
Ministry of Agriculture and Rural Development. (Development, 2012)

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Recommendations to improve the freight forwarding procedure of imported
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CHAPTER 2:THE STATUS QUOOF THE FREIGHT
FORWARDING PROCEDURE OF IMPORTED ANIMAL
FEEDCARGO AT AN PHU TRADING AND FORWARDING
SERVICE CO., LTD
2.1 Company Overview
-

Company’s name:
Company

An Phu Trading and Forwarding Service Limited

-

Main Office Address:

43 Dien Bien Phu, Hong Bang District, Hai

Phong

- Representative Office Address: Room 3, Floor 4, Thanh Dat Building, 3 Le
Thanh Tong, Ngo Quyen District, Hai Phong
Tel:

0312240902 – 0313769336

-

Fax:
E-mail:

0313555842


-

Type of Company:
Business Registration:

Limited Company
0202006601

-

Tax code:

0200812136

-

Year of Commencement:
Authorized capital:

08/05/2008
1.000.000.000 VND (one billion VND)
(Source: anphu.com)

-

“

”

2.1.1 History of foundation and development of the company
It is undeniable that Exporting-Importing industry has been developing
dramatically and it leads to the development of freight forwarding service. It can be

said that the freight forwarding plays a vital role in the completion of an
export/import procedure. Specifically, its contribution helps to minimize the risks
that may occur during the exporting/importing procedure. After recognizing the
potential of this industry, An Phu Trading and Forwarding Service Limited
Company was established in May 8th 2008.
After 7 years of establishment and development, An Phu Co., Ltd has
developed and expanded freight forwarding service with a strong customer base and
increasing reputation.
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Recommendations to improve the freight forwarding procedure of imported
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Mission
The mission of company is to provide freight forwarding service for
customers with the most achievable solutions and highest responsibilities.
Moreover, company’s mission is also to bring higher value of the company by
contributing to the development of the national economy.
Vision
The vision of company is to become one of the leading freight forwarding
service providers in Hai Phong in particular and in the North of Vietnam in general,
and continuously earning the trust of Vietnamese customers.
Objectives
During the operation, the strategic objective of An Phu Co., Ltd is to
continuously improve service and maximize profits. In addition, working
environment should be professional so that its employees are able to develop fully.
Main Services
Agency for ocean carriers

Freight forwarding business
Customs Clearance
Container handling service
Construction of civil engineering
It can be said that the main service of the company is freight forwarding. In recent
years, the company has expanded its operation southward of Vietnam
Main customers
The main customers of the company that can be mentioned are Viet Dung
Aluminum Joint stock company, Hong Trien Limited Company, EH Vietnam
Limited Company and many other potential companies.

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Recommendations to improve the freight forwarding procedure of imported
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2.1.2 Company Structure
a. Graph of Company Structure

Director

Deputy Director

Import & Export
Department

Sale Department

Accounting
Department

Human
resources
Department

Forwarding team

Documentation
team

Figure 2.1: Organizational Structure of An Phu Co., Ltd. Copyright 2015 by An Phu
Co., Ltd. Reprinted with permission
b.Departmental Responsibilities
According to the above company structure, the problem arising in the each
department will be managed by specialized officers. The common problems of the
“

company will be discussed between the Director and Deputy Director.
Director is the legal representative of the company who bears the highest
responsibilities and makes the final decisions.
DeputyDirectoris the person who is on the behalf of the Executive Director
under the direct authority of the Director and responsible for managingbusiness
activities and supporting Director in the management and planning.
Sale Department is in charge of organizing andimplementing the business
operations of the company as well as carrying out market research to actively seek
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Recommendations to improve the freight forwarding procedure of imported
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for new customers. This department plays a pivotal role in the operation of the
company, in particular, it helps to expand the market share and attract more
potential customers.
Accounting Department is in charge oforganizing and implementing
accounting operations, reporting accurate data periodically, monitoring business
activities continuously and efficiently.
Import-Export Department is the most important department in An Phu
Company due to the fact that for a company operating in the field of logistics,
import-export department accounts for majority of company’s employees with
½quantities of employees including forwarding team and documentation team.
Forwarding team directly engaged in forwarding activities. To be more
specific, the team is responsible for implementing forwarding procedure from
customer clearance to delivering goods to customers.
Documentation team is in charge of tracking, managing, storing and
dispatching documents. The team supports forwarding team to complete assigned
work effectively in draftingnecessary customs recordsandrequired documents. In
addition, the team also regularly monitors the whole forwarding procedure and
continuously contactswith the customer to notify necessary information of the
cargo.
”

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2.1.3Business Performance
Table 2.1: An Phu Co., Ltd Business Performance from 2013 to the first six months
of 2015
(Unit: VND) (Tax= 25% Profit)

Year
2013

2014

2015 (6months)

3,985,058,317

5,492,275,421

3,510,461,895

4,892,125,125

3,606.477.776

2,289,241,895

378,580,540

600,150,296

521,250,000

Profit after tax

283,935,405

450,112,722

475,927,500

Average wage per
month

2,000,000

2,500,000

4,050,000

Categories
Revenue
Expense

Profit before tax

(Adapted from Accounting Department. Copyright 2015 by An Phu Co., Ltd.
Reprinted with permission)
The above table reveals the development of An Phu Co., Ltd business
performance by year from 2012 to 2015. As we can observe from the above table,
overall, revenue of the company increased considerably from 2013 to 2015. To be

more specific, the total revenue increased from approximately four billion VND in
2011 to about 5.5 billion VND in 2014. Moreover, the revenue in the first six
months of 2015 was close to total revenue in 2014 with approximately 3.5 billion
VND. It can be said that the growth rate of the company is increasing considerably.

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Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd
Following the same upward pattern with total revenue, the amount of
operation cost increased by time. To be more specific, there is a slight increase in
the total cost with 3.6 billion VND in 2014 against 4.8 billion VND in 2013. It
shows that the company has had right policies and strategies to control and
minimize company’s expense.
Regarding to profit, the company’s total profit after tax almost doubled from
approximate 284 million VND in 2013 to 450 million VND in 2014. Moreover, in
the first six months of 2015, the profit after tax of company reached 476 million
VND. This growth leads to the increase in average wage of company’s employees
with 4 million VND in 2015 against 2 million VND in 2015.
In conclusion, it can be said that all above statistics forecast a strong and
sustainable development of the company in the near future.
Table 2.2: Volume of import, export and domestic of animal feedcargo at An Phu
Co., Ltd in 2013, 2014 and 2015
Year

2013

2014

2015 (6months)

Import (TEUs)

2313

3520

1023

Export (TEUs)

1120

667

234

Domestics (TEUs)

1025

1250

650

Categories

(Adapted from Accounting Department. Copyright 2015 by An Phu Co., Ltd.
Reprinted with permission)
The given table 2 illustrates the distribution of Animal feed cargo volume
that An Phu Co., Ltd served its customers in the period from 2013 to the first six
months of 2015. As can be observed from the above table, import volume
accounted for the largest proportion in the shown period and kept the role of domain
cargo. To be more specific, in 2013, the volume of import was 2313 TEUs, being
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Recommendations to improve the freight forwarding procedure of imported
Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd
two times higher than the volume of export with 1120 TEUs. The table showed that
export volume of animal feed cargo decreased during the years from 1120 TEUs in
2013 to 234 TEUs in the first six months of 2015. Following the same pattern,
volume of domestic activities saw a considerable decrease to 650 TEUs in the first
six months of 2015. Needless to say, the company needs to concentrate more on
performing well its main service to ensure the stability of its performance.
2.2 The status quo of the freight forwarding procedure of imported Animal
Feedcargo at An Phu Co., Ltd
2.2.1 Introduction about the cargo and clients
-

Introduction about clients:
Hong Trien Co.,Ltd; Nam Hoa JSC and East Hope Corporation
whichregularly imports raw materials for animal feed production and domestic
distribution,are longtime business customers of An Phu Trading and Forwarding
“

Service Limited Company. Through the procedure of researching, connecting and
creating reputation, An Phu Co., Ltd is authorized by these three customers to
conduct the freight forwarding procedure for Animal Feed FCL Cargo.They are
potential and regularly customers of the company which have contributed primarily
to revenues of An Phu in the last 2 years. Therelationship between those companies
and An Phu Co., Ltd is considerable close
”

-

Introduction about cargo:

Type of cargo: Animal Feed. It refers to type goods given to animals. It
contains hay, straw, silage, compressed, oil, mixed rations, etc. In this case, the
cargo is transported by FCL method.

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