VITECO COMPANY AND ITS IMPORT OPERATION EFFICIENCY

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CHAPTER I: INTRODUCTION OF VITECO COMPANY
AND ITS IMPORT OPERATION EFFICIENCY
1.1 Introduction of Viteco Company
In this part, author focus on introducing the establishment and organization of
Viteco Company from the beginning to present.
1.1.1 Overview of Viteco
- Trading name
VITECO
VIETNAM
TELECOMUNICATIONS
TECHNOLOGY JOINT STOCK COMPANY
- Abbreviation name
- Head office
+ Tel
+ Fax
+ Website

VITECO VNPT.,JSC
No. 35/61 Lac Trung, Hai Ba Trung, Ha Noi
(84.4) 3 8622727
(84.4) 3 6360023
www.viteco.vn

Founded in 1991, Viteco Company specializes in supplying, installing, repairing
and producing the telecommunication equipments and electronics proponents.Viteco’s
effort in that period played an important role in completing the company’s plan in 19911995.
From 1996-2000, Viteco had succeeded in supplying 100 per cent of the
switchboard in district, strengthening and improving the quality, maintaining the network
equipments to improve its quality and service.

In 2006, the company changed to do business by equitization form, the economic
growth in 2008 increased 30 % compared to 2007. At that time, Viteco focused on
cooperating with famous partners like Motorola, Ericsson, etc.
Up to now, the company has 170 employees and more than 80 per cent of total
workers had university degree and 10 per cent of them studied in abroad. With more than
20 years experience, Viteco reached trust from customers and partners, as well as its
reputation has been increasing more

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The organizational structure
Viteco’s management structure includes shareholders, board, directors. They are all
controlled by supervisors. The following offices are finance and accounting,
administration, business plan, import-export and technology office. Beside, there are
some branches. They are all described by the below diagram
1.1.2

General meeting
of Shareholders
Supervisors

Board
Directors
Financial - accounting
department

Telecommunication

centre branch

Administrative
department

IT research, produce
and apply centre
branch

Business plan
department

Design consulting
and peripheral
networks installation
branch

Import-export
department

Technological
service centre branch

Technological
department

South branch in Ho
Chi Minh City

Chart 1: Viteco organizational structure

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General meeting of shareholders is the highest power in the company. It decides to
reorganize and dissolve the company, as well as developing plan, dismissing or assigning
members of board, supervisors.
Board is the highest one in the management. It has enough power to decide
problems related to the goal and profit of company, except for works of shareholders’
authority
Directors include general director and deputy of director. General Director is on
behalf of company doing business everyday. They are all voted or dismissed by the
general meeting of shareholders.
Supervisors are voted by Shareholders. They control all operation of business,
management of company.
◊ Financial- accounting department: Advises the leadership, manage and
support departments in the company on issues related to the accounting and
statistics to ensure cost accounting in the company
◊ Business plan department: Advises the leadership, manage and support
departments in the company to ensure goal for the production, business
◊ Technological department: Researches and applies informational
technology, supervising service’s quality and products of company,
managed by leadership
◊ Import-export department: does business directly, gains revenue for
company, takes over consulting tasks, manages and supports the production
for company
◊ Administrative department: supports in human resources, salary, political
system
◊ Branches: supply telecommunication services, economical benefit, finance

to implement plan and target of company.

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1.2 Introduction of its business operation
Business operation of Viteco includes business areas, some services, customers as
well as partners.
1.2.1 Viteco is one member of VNPT
Vietnam Posts and Telecommunications Group is a state enterprise which
specializes in investing, producing or doing business in posts and telecommunication in
Vietnam. Ranking to the fifth businesses among 500 highest enterprises in Vietnam,
VNPT has been the biggest one in posts - telecommunications in Vietnam. .
Viteco is one of some parts of VNPT implementing the commission import service.
Up to present, it has been making up large market in this manner
1.2.2 Business areas
The company does business in the field of installing, repairing, producing and
ensuring, importing the electronics components, telecommunications equipments. For
example:
◊ Producing and assembling telecommunications equipment, electric,
electronics, information technology, combustion engine and refrigeration
equipments
◊ Installing, repairing, and ensuring some switchboards such as STAREXIMS, STAREX-SRX, STAREX-APR.
◊ Producing, purchasing and selling smart cards and applied card products
(SIM/GSM, Master Card)
◊ Importing-exporting commodities company trading, especially the
commission import service.
◊ Supervising construction, installing equipments, network information

technology, telecommunications

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1.2.3 Services, customers and partners
1.2.3.1 Services
Huge customers using commission import service of Viteco involve both domestic
and international countries like Vinaphone, VNPT, VTN, Alcatel, Motorola, Ericsson,
etc. In recent years, this form has brought great profits for company, especially with 3G
service, Viteco becomes the head enterprise in VNPT doing this kind well.
Sponsored by Japan government, design consulting service succeeded in consulting
solutions to incorporate the most advanced achievements telecommunications in world
and Vietnam's telecommunications network conditions
1.2.3.2 Customers and partners

Customers of Viteco are almost in all provinces, city in Vietnam which using
network telecommunications and company’s services: Hanoi, Yen Bai, Thai Nguyen,
Quang Ninh, Tuyen Quang and some other foreign customers like Huawei, Motorola,
Ericsson, ZTE. Up to now, Viteco has good relationship with more than 14 famous
enterprises in the world such as: NEC (Japan), Siemens (Germany), LG (Korea),
Ericsson, Motorola, Utstarcom (USA), Argus (Canada), Accu (Korea, China).
Above is the common introduction of Viteco Company including establishment,
organizational structure, business areas, services, customers and partners. In chapter 2,
general terms used in import operation will be defined. In addition, there are also some
factors that affect on company’s import operation

CHAPTER 2: THEORETICAL FRAMEWORK

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2.1 Import theory
This part will solve import theory involving its definition, characteristics, roles and
types.
2.1.1 Definition of import
The word "import" is derived from the word "port," since goods are often shipped
via boat to foreign countries. Countries are most likely to import goods that domestic
industries cannot produce as efficiently or cheaply, but may also import raw materials or
commodities that are not available within its borders
( />"Imports" consist of transactions in goods and services (sales, barter, gifts or grants)
from non-residents (residents) to residents. (Lequiller, F; Blades, D. Understanding
National Accounts, Paris: OECD 2006, pp. 139-143). The exact definition of imports in
national accounts includes and excludes specific "borderline" cases. A general
delimitation of imports in national accounts is given below:
An import of goods occurs when there is a change of ownership from a nonresident to a resident; this does not necessarily imply that the good in question physically
crosses the frontier. However, in specific cases national accounts impute changes of
ownership even though in legal terms no change of ownership takes place. Also
smuggled goods must be included in the import measurement.
Imports of services consist of all services rendered by non-residents to residents. In
national accounts any direct purchases by residents outside the economic territory of a
country are recorded as imports of services; therefore all expenditure by tourists in the
economic territory of another country are considered as part of the imports of services.
Also international flows of illegal services must be included.

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2.1.2 Basic characteristics of import
Import is a complicated operation compared to domestic business. It has some
features as follows:
◊ Adjusted by laws like international agreement on foreign trade, national
laws, etc
◊ Diversifying trading systems on international market: normal trade,
mediated transactions, or transactions in festivals, exhibitions
◊ Various payment methods: L/C, T/T, exchanging goods
◊ Importing by CIF, COB, etc conditions
◊ Currencies used in transactions are: USD, EURO…
◊ Buying insurances in terms of risks
◊ Large area, complex formality, long time for completing.
Import operation is one chance for businesses in different countries cooperating.
International trade has a direct effect on economic relations - politics of the exporting
country, contributing to economic development and external relations.
2.1.3 Roles of import
Import expresses close mutual relations between the country’s economy and the
world one. However, its characteristics and its goal are different in each time. In fact,
after joining the international economy, import operation is becoming more and more
significant
◊ Contributing to bring modern technologies from world to country, plays
roles in eliminating monopoly, and improves economic result.
◊ Creating leading goods for company, department and meeting domestic
customers demands
◊ Diversifying business operations and commercial goods, and then improving
quality of those companies.

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◊ Pushing up technique transportation which helps save time, money and
leading to the development of national production
◊ Creating competitions among domestic companies and international ones
2.1.4 Types of import
There are two main types of import. They are direct import and commission import.
2.1.4.1 Direct import
Direct imports are products imported directly into a country and not through the
manufacturer's authorized agent/distributor. Since there is no factory-authorize