Recommendations to improve negotiation and signing contract procedure to export quick lime in an my duc trading joint stock company

MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: NGUYỄN VĂN MINH

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE NEGOTIATION
AND SIGNING CONTRACT PROCEDURE TO
EXPORT QUICK LIME IN AN MY DUC TRADING
JOINT STOCK COMPANY

HAI PHONG – 2015


MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: NGUYỄN VĂN MINH
CLASS: GMA 02

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE NEGOTIATION
AND SIGNING CONTRACT PROCEDURE TO
EXPORT QUICK LIME IN AN MY DUC TRADING
JOINT STOCK COMPANY
Supervisor:

VŨ THANH TRUNG

Division:

BASIC ECONOMICS

Faculty:

ECONOMICS

HAI PHONG – 2015


Recommendations to improve negotiation and signing contract procedure to export quick lime in An
My Duc Trading Joint Stock Company

PREFACE

I declare that this report is my own unaided work. It has not been
submitted before.
If violated, I am solely responsible for and bear the punishments of the
Institution and University.

Student Name and Signature

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Recommendations to improve negotiation and signing contract procedure to export quick lime in An
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ACKNOWLEGEMENT

Firstly, I would like to express my sincere gratitude to my advisor Vu
ThanhTrung for the continuous support of my study and related research, for his
patience, motivation, and immense knowledge. His guidance helped me in all the time
of research and writing of this thesis. I could not have imagined having a better
advisor and mentor for my study.

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TABLE OF CONTENTS

PREFACE ................................................................................................................... i
ACKNOWLEGEMENT ............................................................................................. ii
TABLE OF CONTENTS........................................................................................... iii
LIST OF TABLES ..................................................................................................... v
LIST OF FIGURES ................................................................................................... vi
INTRODUCTION ...................................................................................................... 1
CHAPTER 1: LITERATURE REVIEW ..................................................................... 3
1.1

Fundamental issues on negotiation and signing contract in international trade.
3

1.1.1

The concept of negotiation: ..................................................................... 3

1.1.2

Characteristics of negotiations in international trade: .............................. 3

1.1.3

Forms of negotiation: .............................................................................. 3

1.1.4

The negotiation strategy in international trade ......................................... 4

1.2

The process of negotiating sale contracts in international trade ...................... 5

1.2.1

Planning negotiation. .............................................................................. 5

1.2.2

Preparation phase .................................................................................... 6

1.2.3

Conduct negotiation phase ...................................................................... 9

1.2.4

Check, evaluate and study experience ................................................... 10

1.4

Principle of signing sale contract: ................................................................ 10

1.4.1

The major contents of sale contract ....................................................... 11

1.4.2

Method of signing foreign trade contract ............................................... 12

CHAPTER 2:............................................................................................................ 13
RESARCH AND ANALYSIS ON ACTUAL SITUATION IN NEGOTIATION AND
SIGNING CONTRACT PROCEDURE TO EXPORT QUICKLIME IN AN MY
DUC TRADING JOINT STOCK COMPANY ......................................................... 13
2.1

2.1.1

Methods of collecting data .................................................................... 13

2.1.2

Methods of data analysis ....................................................................... 14

2.2

i.

Research Methods ....................................................................................... 13

Overview of An My Duc Trading Joint Stock company............................... 14

2.2.1

Summary of An My Duc Trading Joint Stock company ........................ 14

2.2.2

Functions and duties of the company: ................................................... 14

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Recommendations to improve negotiation and signing contract procedure to export quick lime in An
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2.2.3

The organizational structure of the company: ........................................ 15

2.2.4

Results of business activities ................................................................. 18

2.3 Evaluate situation and effects of environmental factors to negotiation and
signing contract procedure to export quicklime in An My Duc Trading Joint Stock
Company ............................................................................................................... 20
2.3.1

Negotiating Background ....................................................................... 20

2.3.2

The effect of environmental factors ....................................................... 21

2.4 The results of the investigation in negotiation and signing contract procedure
to export quicklime in An My Duc Trading Joint Stock Company ......................... 23

2.4.1

Planning negotiations ............................................................................ 25

2.4.2

Preparation of negotiations.................................................................... 26

2.4.3

Conducting negotiations........................................................................ 29

2.4.4

Conclude negotiation ........................................................................... 31

2.4.5

Check, evaluate and study experience ................................................... 31

2.5

The Results of signing contract .................................................................... 31

CHAPTER 3:............................................................................................................ 35
EVALUATION AND RECOMMENDATIONS FOR NEGOTIATION AND
SIGINING CONTRACT PROCEDURE IN AN MY DUC TRADING JOINT
STOCK COMPANY ................................................................................................ 35
3.1 The conclusions and findings through studies in the process of negotiation,
signing contract in An My Duc Trading Joint Stock Company. ............................. 35

3.1.1

Achievement ......................................................................................... 35

3.1.2

Limitations ............................................................................................ 36

3.1.3

The reason of the limitations ................................................................. 36

3.2 Recommendation to improve the negotiation and signing contract procedure
of An My Duc Trading Joint Stock Company. ....................................................... 37
3.2.1

Improvement of planning negotiation.................................................... 37

3.2.2

Find necessary information of partners and market ............................... 38

3.2.3

Preparation negotiating techniques ........................................................ 38

3.2.4

Evaluating the results after concluded negotiation ................................. 39

3.2.5

Improve the level of the negotiating team ............................................. 40

3.2.6

Improve check, evaluate and study experience phase ............................ 41

CONCLUSION ........................................................................................................ 42
REFERENCES ......................................................................................................... 43
APPENDICES .......................................................................................................... 43

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LIST OF TABLES
Table 1: Statistics of employment levels in 2014 ...................................................... 22
Table 2: Summary of survey test............................................................................... 24
Table 3: Table evaluate the results negotiation.......................................................... 39

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Recommendations to improve negotiation and signing contract procedure to export quick lime in An
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LIST OF FIGURES
Figure 1: Organization of company........................................................................... 16
Figure 2: Business capital of company ...................................................................... 18
Figure 3: Revenue of company ................................................................................. 18
Figure 4: Export Output ............................................................................................ 19
Figure 5: Ratio between revenues, total expenses and gross profit ............................ 20
Figure 6: Model evaluation negotiating process ........................................................ 41

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INTRODUCTION
Necessary
In the context of the Vietnam economy shift to integration into world
economy, specially, after Vietnam officially becomes a member of the World Trade
Organization, International Trade of Vietnam also growing and significant

contribution to the total gross domestic product and the development of Vietnam's
economy.One of major export items of Vietnam is material exporting to high
demand market where that countries’ industry is growing and development.
However, the export enterprises of Vietnam currently are mostly businesses with
small and medium sized companies such as An My Duc Trading Joint Stock
Company.In trading with overseas partners, Vietnam's exports companies are often
more vulnerable and facing many risks when negotiate and sign contracts.
Negotiating in order to bring a successful contract, mutual benefit for both sides is a
not a simple job, especially in the situation of Vietnam exporters are mostly small
and medium enterprises with management skills and negotiating skills in
international business are limited.
With the case of An My Duc Trading Joint Stock Company, in the
development, the negotiation operation to sign a contract has gradually improved,
but the company still faces to many difficulties such as preparing information,
market research, preparing negotiation, etc. Therefore, it needs to improve the
negotiation and signing contract procedure to help companies develop strongly in
the future.
Research Object
Based on the knowledge, real experience as well as research on the negotiation
and signing contract procedure in An My Duc Trading Joint Stock Company. I will
submit some recommendation to overcome limitations and improve the negotiation
and signing contract procedure among company
Research Scope

i.

-

Research subjects: negotiation and signing contract procedure to export

-

quicklime at An My Duc Trading Joint Stock Company
Research scope: An My Duc Trading Joint Stock Company
Research method: survey, direct interview and collecting secondary data
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Research Findings
From collected data, I will find out some limitations in the negotiation and
signing contract. From which I have assessed the status of the negotiation and
signing contract and give recommendations for An My Duc trading Joint Stock
Company.
Due to limited research time, so dissertation also has many limitations; I am
looking forward to the sympathy of teacher. Thank you sincerely!

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CHAPTER 1: LITERATURE REVIEW
1.1

Fundamental issues onnegotiation and signing contract in international

trade.
1.1.1

The concept of negotiation:

According to Prof. Roger Fisher and William Ury, "Negotiation is the basic
means to achieve what we want from others. It is a reciprocal exchange of ideas in
order to reach an agreement when you and others have a number of common
interests and a number of countervailing benefits. "
The concept of negotiations in international trade:“negotiations in international
trade is an art in order to obtain a common understanding through bargain based on
the essential elements of a contract, such as delivery, specification, quality, price
and other terms. "
Negotiations in international trade are a process in which parties have business
headquarters located in different countries conduct discussions, negotiations to
agree on a common concern and are also disagreements to have a commercial
contract.
1.1.2

Characteristics of negotiations in international trade:

- Parties take part in negotiations hasbusinessheadquarters located in different
countries. Therefore, parties have different nationalities should have different
culture, the negotiation process not only for the benefit of companies but also for

national interests. From this difference it makes the process of negotiation in
international trade become more complex and more difficult.
- Parties participate in international trade negotiations have different
nationalities and often use different common language.
-Partiestake part in international trade negotiations candiffer in political
institutions, so it will lead to differences of opinion, ideological and nationalistic.
- In the process of negotiations with the mixing of the different legal systems
- Negotiations in international trade can be different between cultures,
different customs.
1.1.3

Forms of negotiation:
Direct negotiations:

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This is the form which two parties directly met together to facilitate to the
exchange of information.
The two sides meet in exchange for many trading conditions; all matters
relating to the signing and implementation of sales contract. This form of
negotiations accelerates to solve any problems between the two parties and
sometimes is the best way to solve that negotiation by mail or phone may last too

long without results. Mail and telephone negotiation sometimes may be continues in
many months to going to be the signing of the contract. At the same time, direct
meeting negotiations are only lasting in 2 to 3 days. This negotiation use when the
two sides have many terms to explain to convince each other, when negotiating
large contracts, the contract with the complexity.
Negotiating on the Telephone
Negotiations over the phone are the phone used to transactions. The advantage
of this method is speedy to help the negotiators negotiate urgently when necessary
and timely. However, due to time restriction by using telephone, so parties cannot
discuss in detail. On the contrast, telephone transaction only the form of oral
exchange so it has no legal basis as written correspondence. Telephone use only in
cases of necessity, urgency, and fear of missed opportunities. When using this
method, the transactions must be prepared to respond immediately to any issues
raised correctly. After discussion by telephone, written confirmation is needed
requirement contents have negotiated agreements. This text has legal implications if
partner confirmation.
Negotiations by mail, telegram:
Negotiations
transactions with
accepted and can
transactions with

by mail, telegram are the use of mails and telegrams to
customers. The advantage of this method is cheap, widely
dispatch many places, mailing many people. But drawback of
letters, telegrams is slow and maybe misses purchasing

opportunity.
Mail, telegrams, faxes are legally binding documents on trade. This can be
used as evidence to complainant if required in judgment.

1.1.4

The negotiation strategy in international trade
Hard negotiation

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Hard negotiations is a contest of willpower, one party will uses powers to put
pressure and force to other parties make concessions. Attitude in the negotiations is
always rigid and resolute. Benefits of one party are based on the losses of the other
party.
Soft negotiation
Soft negotiation strategy is ways that two parties in the negotiations are
viewed each other as friends, equality and clear willingness to cooperate and build
confidence in each other, respect each other's interests. Negotiation bases on mutual
benefits, determine concessions in exchange for the concessions, which each party
benefits achieved on the basis of cooperation between the parties.
Principled negotiation
According to Roger Fisher and William Ury, Four basic point of principled
negotiation are separate the people from the problem, focus on interests, not
position, generate a variety before deciding what to do and insist that result be based
on some objective.

In three negotiating strategy, the negotiating strategy type principle has several
advantages over both, so this strategy is widely used.
1.2

The process of negotiatingsale contracts in international trade
1.2.1

Planning negotiation.

Planning activities of business negotiation consists of two main parts is
planning and adjust negotiation plan. After analyzing the situation of negotiating
environment, the negotiators will establish negotiating planas following:
-

Explaining briefly negotiating situation:

In this section, the planners will analyze generalize the basic features of the
world market, the characteristics of the partner, the partner's culture, affecting the
operations of negotiations, the strengths, weaknesses, advantages, disadvantages are
the basis for determining the purposes and objectives of negotiations.
-

Determine the purpose and objectives of negotiations:

Determine the purpose of negotiations is very important and oriented the
negotiations. In determining the purpose to ensure the following three basic
requirements: clear and comprehensible and consistent with general goals of the
business, to suit the specific conditions and can be performed.
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After determining the purpose, it must determine the objectivesconsistent with
the purpose of negotiation and oriented action.
-

Establishingaction plan:

Action Plan includes strategic planning, staffing plan, planning negotiating
location and planning for negotiating program.Strategic planning is to identify
strategic thinking, strategic measures,and the specific technical content of
negotiations to achieve its objectives.Staffing planmust identify partner’s
negotiator, the people will be involved in negotiation, identify who is acquainted or
strange. From whichplanning negotiating team including those who have been
involved in negotiate with partners; determine the number and composition of
negotiator.
-

Adjust negotiation plan

In fact, there is a lot of information and situations occur that planners cannot
anticipate all the way, so it needs to check and adjust the reasonableness of plan.
Adjust negotiation plan can be carried out in sequence: Analyzing negotiating
situations; check the validity of the plan and determine the content irrational need

adjusting; determine the cause of problem; determine the level of adjustment; adjust
reasonable plan with specific conditions.
1.2.2

Preparation phase

Preparation is essential work to have successful negotiations. Preparation
helps negotiators have necessary confidence in negotiations. Additionally, if
negotiators do not prepare carefully, it will make negotiators passive and reveal
weaknesses and put negotiator at a disadvantage in negotiation. Therefore,
preparation plays an important role for each of negotiations.
Prepare negotiating information: information is the most important property
in negotiating because it bring to negotiator the benefit in negotiation and helps
negotiators to be more confident to estimate the value of goods as well as the
information that partners issued.
There are many ways to gather information: through the mass media,
information from provider, international trade organizations or brokerage,
experiment of trading friend and colleagues.

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Requirement of information prepare for negotiation: Provide accurate

information, ensuring reliability; contents of information meet requirement and up
to date; provide timely information.
To collect and process information, the first problem is to determine the
necessary information. The necessary information is divided into two categories:
information provided regularly to the negotiators, and the information required for
each specific negotiations. That information can be:
-

The general market information and information about the economic,
political, legal, cultural and business practices, etc

-

The information about the goods: structure, type, size parameters, price, etc.

-

General information about the partnership: the process of formation and
development, organizational forms, legal status, business items, experience,
reputation, financial position, etc.

Having identified needs and classify information necessary next step is to
identify and collect information source. Sources of information that businesses can
gather as:
-

Information of international organizations such as WTO, ITC, ESCAP, ... or
information from regional organizations such as the EU, ASEAN, APEC,
NAFTA, ...

-

Information from trade magazines published by organizations, from the
Internet or other means of mass communication.

-

Information from the Promotion Center, Ministry of Industry and Trade,
Chamber of Commerce and Industry of Vietnam - VCCI, from professional
associations, from exchanges and other authorities.

The results of gather information is to help negotiators evaluate the possibility
of requirement and adjust the objective, select one or several negotiating partners
and also determine different methods to meet the need of entrepreneur.
Prepare negotiating content:
-

Identify negotiating content:

Each different business areas have the different negotiating content. But the
content of the basic negotiations including: agree on the definition used in the
contract, the quantity, product specifications, packaging, marking, pricing, billing,
time, place of delivery, insurance, warranty, commodity inspection, penalties and
compensation for damage, force majeure, arbitration and some other content.
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-

Selecting negotiating plan:

In each negotiation includes basic content, in each content have multiple
subsections, each subsection have many different negotiation strategies. the
negotiator must identify all of plans may occur to analyze identify optimal plan.
-

Identify sequenceof negotiating contents:

When determining the content of negotiations, it is necessary to determine the
sequence of negotiation. The important content must be negotiated before. The
contents are arranged so as not to miss the content, not duplicate or overlap, should
be easy to understand, complete and coherent.
Prepare personnel
Preparing negotiating personnel have important position and require a
thoughtful preparation. Composition of personnel in international trade negotiations
must content three expert components: legal, technical and commercial. The
combination of three expert categories will create the negotiation process to sign
tight, workable and effective contract.
Participants in the negotiations must have ability, experience in participation
in activities of international commercial transactions, creative, synthesis, decision
predict and react flexibly to situations, having knowledge of goods and partners in
international trade. In addition, the negotiator also must have moral, responsibility.
To organize an effective negotiation, it needs to set out the general provisions for

the negotiating team, division of responsibilities and organizational preparation for
the negotiation team and for each member of the negotiating team.
Prepare the location
Negotiating location can be selected in the seller’s country, buyer’s country or
third-country. However,the negotiating location must ensure the optimal timing and
give comfort and suitable for all parties.
Prepare the work program
There should be a specific work program, detailed and delivered prior to the
partners. Since then negotiations can predict the responses of partners in the next
step of negotiations.

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1.2.3

Conduct negotiation phase

Approach Phase:
Approach phase is the starting phaseof negotiations. This phase is to
discussion of issues outside the negotiating problem.The purpose is to create
ancomfortable atmosphere for negotiation. The parties will introduce the story on
the subject of economic, sports, arts and culture, weather, etc.Time for approaches

depends on the culture of the negotiating parties.
Information exchange phase
Negotiators provide and receive information about the content of negotiations
to prepare for the next stage.This information aims to clarify the point,
consolidating argumentations. Requirement of information must be complete, given
the right time and have persuasive.In this phase the negotiator must use these
techniques: questioning, answered questions handling questions, etc.
Persuade Phase
On the basis of information provided to partners and the information received
from the partners, the negotiators must conduct the analysis; compare the
objectives, benefits, strengths and weaknesses with opponent to deliver a
convincing strategy for the concessions. The essence of this phase is toprotectown
rights, the implementation of its objectives. In order to achieve the highest results
negotiators must use a combination of skill and strategy talks.
Concessions and agreements Phase:
The result of the negotiation process is the result of compromise and mutual
concessions. After persuade phases, negotiators will determine convince all
contradictions exist between the two parties which should have concessions and
agreements between the parties; it was put to successful negotiations.
These concessions can be made in smaller sections or successive full
concessions. The concessions are the result of what was successful or lost in the
negotiations, so negotiator must know to incorporate its concession and partner’s
concession to have successfully negotiationon mutual benefits, especially to achieve
negotiating objectives.
Conclude negotiation:
End of negotiations in international trade can have two circumstances:

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Negotiations do not reach a consensus as partners to make proposals not
acceptable or in the process of negotiating information no longer attractive, business
plan ineffective or not enforceable. Hence, it is best way to withdraw from the
negotiations. When withdrawing from negotiations to find a rational explanation of
how rational we cannot continue negotiations that retain good relations between the
parties.
If negotiate successfully, the parties shall sign a contract or parties reach
certain agreements and required subsequent negotiations to lead to a contract, the
parties must conducted confirm the agreement achieved.
1.2.4

Check, evaluate and study experience

After each negotiation, it always needs to analyze and assess the results of
negotiations compared to targets and gain experience for the next negotiations.
Companies can analyze and assess the outcome of the negotiations under way
model or tabulation.
1.4 Principle of signingsale contract:
Sale contract or so-called international commercial contract is an agreement
between seller and buyer in different countries, in which stipulates that the seller
shall be obliged to supply goods, transfer documents relating to ownership of goods
and commodities. Besides, the obligation of buyer is pay for goods and organizes to
receive commodities.

Characteristics of the sale contract:
- The subject of sale contracts is individuals, foreign organizations which have
juridical personality and headquarters of businesses place on different countries.
The representatives of these enterprises may have similar nationalities and different
nationalities, commonly those have different nationalities.
- Law covers sale contract is the law of the exporting country and importing
country and the law of international agreements which the parties have agreed or
implementing commitments.
The language in sale contract may be the language of exporting country,
importing country or the third country. Commonly, the language of commercial
contract is English
- Currency and methods of payment: Are common strong currencies which are
able to direct transfer. Dollar is contemporary used as payment currency.
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- Essential method of payment contains: letter of credit, Remittance, Open
account, Collection of payment and documentary credit.
1.4.1

The major contents of sale contract

On April 9th1992 the Ministry of Commerce has stipulated the Decree299

TMDL/XNK on the signing and management of foreign trade contracts.Basic
contents of the contract of sale are the sale condition that the parties have agreed.
The main contents of the contract of sale include:

 The opening includes:
-

Name and number of contracts

-

Date and place of signing the contract.

-

Name and address of the contracting parties: Name, address, name of the

telegraph, telephone number, fax number, name and position of the person
signing the contract.
- Contract Commitment

 The terms of the contract: There are two types of terms

Primarily Terms: As a term if one party does not carry out contract, the other
party may cancel the contract and penalize for the contract. According to Article 50
of Vietnam trade legislation, the key provisions are:
- Commodity



-

Quality
Price
The duration of delivery
Place of delivery

-

Payment
Secondary Terms:

That is if one party breaches the contract, the other party has no right to cancel the
contract, but may require the other party to implement and fine. It Includes clauses:
Quantity and packaging codes, warranties, and maintenance, force majeure and
arbitration conditions.
 Signing Section:
- A contract made in several copies, each party retaining these copies with equal
legal force.
- The sign of the seller, the buyer.

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1.4.2

Method of signing foreign trade contract

Negotiation period is the basis for going to the signing sale contracts. If
negotiation is successful, the results will be implementation of signing trading
contract. However, before signing the contract, the contract holder must be
acquainted with the content and the main terms of the contract, the sale contracts
and sale contracting procedures to achieve high efficiency
Signing a contract is the process which the two sides confirm the terms agreed
in negotiation process. However, depending on the conditions of economic trading
contracts, the signing of contract may be implemented by using one of the following
forms:
-

A written agreement: Both parties signed on a foreign trade contract,

stating the content purchase, the transaction conditions agreed upon and signed by
both parties.
- Contracts include many documents as the telegraph, mail transaction. For
example, the contract includes two offerings text as fixed by the seller and accepted
by the buyer or the buyer's order and accepted by the seller.
Forms of documents of contract are mandatory for exporter in relation
between countries. Form of contract in writing is the best form of protecting the
interests of both parties. It clearly defined the rights and obligations of the buyer
and the seller, avoid misunderstandings due to inconsistency of conception. Also
written forms also facilitate statistical, monitoring and inspection of the conclusion
and implementation of contracts.

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CHAPTER 2:
RESARCH AND ANALYSIS ON ACTUAL SITUATION
INNEGOTIATION AND SIGNING CONTRACT
PROCEDURETO EXPORT QUICKLIME IN AN MY DUC
TRADING JOINT STOCK COMPANY
2.1

Research Methods
2.1.1

Methods of collecting data

Primary data collection
Survey method: Questionnaire test designed by the form of multiple choice
questions and rated will be used to assess about the negotiation activities among
staffs of company. 5-level scale from 1 to 5 equivalent to the following assessment:
Excellent = 5 points, Good = 4 points, Fair = 3 points, 2 points = Average, Poor = 1
point. 8 test questionnaires has released to the staffs of Business Department of An
My Duc Joint Stock Company and earned enough 8 votes.
The results of the survey methodology are averaging method of rating.

Average points with total evaluation points divided by the total number of votes
obtained.
Interview method: To clarify and understand the deeper content to be
answered in the questionnaire test, I have conducted direct interviews with a
number of staff directly involved in the negotiation process of An My Duc Trading
Joint Stock Company. The purpose of the interview is to clarify why the activities in
the negotiation process are assessed with good or bad level.
Observation methods: Observation activities at business department and
accounting department. Besides, I also work with negotiating staffs gathered
practical and useful information for research topics. The process of observation has
collected primary data on business activities and the process of negotiations.
Secondary data collection
- Internal data sources: is business information such as financial statements,
income statement, plans, development objectives of the company, etc.
- External data sources: including specialized materials for international trade
activities as textbooks, magazines, specialized books and some websites Ministry of
Industry, Ministry Trading, etc.
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2.1.2

Methods of data analysis

- Qualitative methods: this research will use qualitative method to show the
relationship between the practical negotiation process and theoretical basis,
relationship between Chinese cultural environment and the process of negotiating
and signing a contract in the company.
- Quantitative method: quantifiable the business situation, using Excel to
calculates the average value, variance, standard deviation of the results of the
investigation interviews.
2.2

Overview of An My Duc Trading Joint Stock company
2.2.1

Summary of An My Duc Trading Joint Stock company

Company name: AN MY DUC TRADING JOINT STOCK COMPANY
Abbreviation name: AN MY DUC TRA.., JSC
Telephone: 031.246269:

Fax: 031.246226

Headquarter Address: in No.28, lot B1, Le Hong Phong Street, My Khe
Ward, Ngo Quyen District, HaiPhong City, Vietnam
Based on regulation on establishment and dissolution of enterprise, the
company was established in September, 30, 2011.
Charter capital: 11.000.000.000 VND
Face value of share: 10.000 VND
Total number of shares: 1.100.000
Offer for sale: 0
2.2.2

Functions and duties of the company:

An My Duc Trading Joint Stock Company is a business organization with the
following functions and duties
Export business: direct export and entrusted export commodities
Business line:
- Supporting business service activities remaining non-classified (detail:
import-export goods services).
- Wholesale material, other assemble equipment in construction( detail:
bamboo, wood, timber processed, cement, brick, tile, stone, sand, gravel,
construction glass, paint, veneer and sanitation equipment. lime trade)
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Recommendations to improve negotiation and signing contract procedure to export quick lime in
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- Metal and metal ore trade( detail: iron, steel)
- Iron ore exploitation
- Peat exploitation and collection
- Food trade
- Other road passenger transport( Detail: passenger transport fixed lines and
contractual)
- Travel agent
- Operational support services related to transportation( Detail: Shipping agent

services, sea transport agent service, customs clearance service)
- Warehousing and storage of goods
- Cargo transport by road
2.2.3

The organizational structure of the company:

Company management under the direct structure, the Board of Directors has
decided all of operations of the company and is responsible.
Total personnel of company include 19 people.
- Education Level: 3 master degrees, 9 professional certificates, 15 graduated,
and others certificates.
The function of each committee:
- Director: is chiefly responsible for company and board of director with
regarding to all activates of company, import-export activities, directly control
business departments, accounting and administrative organization of the company.
- Deputy Director: represent director when director’s absence, in charge of
draw up management plan, manages human resources in company department.
- Chief accountant: direct all activities of accountants in company to report the
final report prescribed by law and pay taxes on time.
- Prepare financial plan to ensure trading financial resources as requirement of
company.
- Open letters of credit and receive implement international payment
operations.

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Recommendations to improve negotiation and signing contract procedure to export quick lime in
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Board of
directors

Director

Assistant
director

Business
department

Financial
department

FIGURE 1: Organization of company
Board members include all the major limited partners to create the company,
is the highest authority, decided all matters of the company and also the
implementation of resolutions to Board CEO. Council members have the rights and
obligations:
- Deciding the orientation of company’s development in each phase in order to
achieve the defined objectives.
- Decisions to increase or decrease the charter capital as well as the
mobilization of investment capital to develop production.
-

Have the right organizational restructuring of Companies.

-

Have the right to establish branches, representative offices to introduce the

product, open the conference exhibition at home and abroad.
- Have the right to dismiss the Director, Deputy Director and other key
positions in the of Companies: Head, chief accountant, cashier, storekeeper ...
- Decide on methods and forms of investment such that the most beneficial
without infringing on the law of Vietnam socialist state.
- Decision lending, loan, mortgage or sell the property under the control of the
of Companies if the value of the item is greater than 40% of total production
value recorded in brutal accounting records of Companies .
-

Have the right to increase or decrease in wages or through other benefits for

directors, deputy directors, department heads, cashier, and storekeeper.
- Have the right to approve the annual report of company, distribution of
profits and review the method of solving the hole.
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Recommendations to improve negotiation and signing contract procedure to export quick lime in
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-

Have the right to amend, supplement to the charter activities of Companies.

-

Have the right to declare the dissolution of companies.
Director

At An My Duc Trading Joint Stock Company, the director is also the chairman
of the Members elected by a vote of confidence of the Board (must achieve at least
60% of the total votes). Director is the business operations of the Company and is
responsible before the Council members on the implementation of the rights and
obligations assigned to it.
The director shall perform the rights and obligations prescribed by law and the
charter of the company.
Besides the charge of the business operations, directors must also be
responsible for the financial operations as well as personnel of the company and to
explain to council members before the decision to use the capital to come on 40% of
the charter capital of the company.
Assistant director
The deputy director in charge besides technical director also helps organize
the company monitor the export procedure of goods produced in areas under their
charge. The vice president also must support the Director in the fields of business,
signing contracts, organizing fairs, display, exhibition etc.
Department of Finance and Business:
This is in charge of financial operations, business and cooperate accounting.
Also, this will balance financial in end of each accounting quarter, month on the
hole, as well as the loan interest, the company's debt, etc. In charge of activities

with tax departments to pay taxes in accordance with the terms prescribed by law.
In order to develop company board of director manage departments and staffs
in company cooperate with each other to achieve the best outcome.
Financial Manager must directly work with directors and two directors to
accept the directives on financial operations, business...

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