báo cáo tiếng anh thương mại Machinery import activities at Việt NamPhat Co., Ltd Situation and suggestions.doc

ENGLISH BUSSINES DEPARTMENT - FOREIGN TRADE UNIVERSITY
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ACKNOWLEDGEMENTS
First and foremost, I sincerely thank teachers of the Faculty of
Business English at Foreign Trade University, especially Mrs Nguyen Binh
Lan for her enthusiastic guidance throughout the writing of this field stydy
report. I would also like to express my gratitude to Vinh Nguyen Phat
company’s staff who have helped me to complete this report.
I am deeply indebted to Mr Nguyen Van Chung and Mr Nguyen Van
Hoan whose materials, support, stimulating suggestions and encouragement
helped me in all stages of writing this report.
My classmates supported me a great deal and I want to thank them for
all their support, cooperation and valuable suggestions.
Finally, I cannot fully express my gratitude to all the people whose
direct and inderect support helped me complete my report in time.
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ENGLISH BUSSINES DEPARTMENT - FOREIGN TRADE UNIVERSITY
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INTRODUCTION
Nowadays, globalization is a general trend. Not a single nation can be
prosperous with closure policies since international trade plays the key role
in promoting domestic economic integration into the world economy.
Moreover, international trade can also help a country develop it comparative
advantages, taking advantage of potential capital, technology, science and
advanced management skills from outside, as well as maintain and develop
national culture, acquiring the quintessence of human culture.
Imports help domestic consumers to have a diversity of products at
lower prices. Also for the entire economy, imports increase the efficiency of

production and enable it to concentrate on producing those goods which it
has competitive advantages, increasing labor productivity through imported
equipment, technical science, and modern production methods. With the
trend to strengthen international cooperation, the Vietnamese government
has allowed various business types, including state-owned enterprises, joint-
ventures, business cooperation and private sector to participate in import and
export business. Therefore, improving the efficiency of import-export
business in general and import business inparticular is extremely important .
Like other commercial enterprises, Vinh Nguyen Phat Trading and
Service Company is also very interested in improving its import business
performance. During her internship at the company, the writer has tried to
study how the company does business and decided to choose the topic
"Machinery import activities at VNPhat Co., Ltd: Situation and
suggestions" for her field stydy report.
This report was finished with the aim to study the status and ability to
perform business activities on international trade of a medium company, to
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ENGLISH BUSSINES DEPARTMENT - FOREIGN TRADE UNIVERSITY
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understand the process of importation and how to use available resources to
achieve the highest efficiency. The report includes the following sections:
Introduction
Chapter I: An overview of VNPHAT Co., Ltd
Chapter II: Machinery import activities at VNPHAT Co., Ltd
Chapter III: Sugesstions to improve machinery import activities at
VNPHAT Co., Ltd
Conclusion

References
Because of the short practice time and limited knowledge, this report
should have some inevitable errors. The writer would like to receive
comments from readers in order to improve her report.
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ENGLISH BUSSINES DEPARTMENT - FOREIGN TRADE UNIVERSITY
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CHAPTER I: AN OVERVIEW OF VNPHATCO., LTD:
1.1. Establishment and development:
VNPhat Co., Ltd was set up from a store specializing in trading
mechanical equipment in Hanoi. After a period of operation, realizing the
potential market for mechanical goods in Vietnam, and the limitations of a
familly business, the store owner decided to set up a limited liability
company called VNPhat Co.,Ltd. VNPhat Co., Ltd was officialy established
in March 2001 with the initial capital of 5,000,000 VND. Its headquarters
were then at No. 37/4, Phuongmai Road, Hoangmai, Hanoi. A
representative office was opened at No. 21, 152 A Caolo Road, 4 Ward, 8
District, Hochiminh City in 2005.
In september 2005, VNPhat Co., Ltd was relocated to 30/192 Giapbat,
Hoangmai, Hanoi. During its operation, the company has tried to expand the
market in Hanoi and Hochiminh city while increasing the ability to grasp
and manager new markets by opening branches in various provinces. The
company estiblished a representative office in Hai Phong in 2004.
Representative office in Danang - the largest industrial city Center of
Vietnam in 2007. March 2008, it opened a branch in Thainguyen – an
industrial city of Vietnam. Thus, so far the distribution network of the
company has expanded across the country.

Initially the company’s major sources of import were from Russia and
Eastern Europe. However it has now transferred to sourcing goods from
Taiwan and China because of their good quality and competitive prices.
With the expanding market, the company has diversified its lines of
business. Its initial major business items included hydraulic presses,
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ENGLISH BUSSINES DEPARTMENT - FOREIGN TRADE UNIVERSITY
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broaching machines, compressors, welding machines and lathe. Currently,
the company's products range from handheld machines for small operation
such as welding machines, drilling machines, to the machines for production
and business processes of large factories such as drilling machines and two-
stone grinding machines.
Experiencing the rises and falls of the country's economy, especially
the serious economic crisis wordwide in 2007-2008, like other companies,
VNPhat co.,Ltd, faces with more and more difficulties but its brand has won
market acceptance, customer trust and reputation. Futhermore, along with
the efforts of the entire management and employees in the company, Vinh
Nguyen Phat has overcome the difficulties, maintaining growth and
exceeding the targets set. The company's motto is: "prestige accompaning
brand”. Vinh Nguyen Phat brand is developing and will surely grow with the
growth of the national economy.
1.2. Organizational structure
Vinh Nguyen Phat’s organizational structure is reflected in the
following figure (figure 1.1).
Figure 1.1: Organizational structure
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Board of Directors
Accounts
department
Import
department
Marketing
department
Sales
department
Technical
department
ENGLISH BUSSINES DEPARTMENT - FOREIGN TRADE UNIVERSITY
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1.2.1. Board of Directors
The directors are responsible for general planning and strategic
direction for the entire company; they are also responsible for all activities
of the company, ensuring profitability, growth and development of the entire
company, achieving the objectives of the company on sales growth, profit,
personnel development and others.
1.2.2. Sales department
The salesforce is responsible for sales, services provision through
direct transactions with customers in the areas assigned. On the basis of the
overall business plan given by the directors each year, the sales department
will work out plans and specific methods of implementation, distribution,
and revenue goals that each salesperson must complete. The sales
department must carry out all necessary market activities to win customers
(mainly dealers, shops, mechanical plants), to sign contracts, and to take

care of customers, commodity distribution and other related activities.
The results of the sales department operation are reported monthly to
the directors, which will be the basis for business planning and import plan
for the folowing years.
1.2.3. Marketing department
This deparment’s function is to determine the market demand for each
type of products in quantity, quality, distribution methods etc. The
marketing department's quarterly report on market will be the basis for the
directors to make plans for importing goods or business plan, and orientation
for the marketing department on market approach accordingly.
The department also implements programs to build and promote the
company’s brand such as promotion, advertising and customer conferences.
For some goods that the company is a sole distributor in Vietnam for a short
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ENGLISH BUSSINES DEPARTMENT - FOREIGN TRADE UNIVERSITY
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time (about 3-5 years), the construction of brand names plays an important
role in the busines activities of the company.
1.2.4. Accounts department
The duties of this department are to advise the directors on corporate
finance, making sure it is in line with the State policies on business,
financing, investment, and management so as to effectively use all sources
for business development.
1.2.5 Technical department
The technical deparment is in change of installing machinery and
intructing customers on how to operate them, repairing the machines when
customers request. It also organizes professional training, and coordinates

with the sales department to train workers for the implementation of
projects.
1.2.6. Import department
The import department plays an important role in the search for input
goods for the company. It conducts organized import activities as planned
under the direct leadership of the directors, such as finding partners, making
contractual arrangements, implementing contracts etc.
1.3. Main business fields and achivements
Vinh Nguyen Phat Trading and Service Limited Company is a
professional importer of metal processing equipment with over 10-year
experience in Vietnam’s market. With a team of mechanical engineers of
high levels and many years of experience working in large factories, who are
constantly updated with technical information and technology through the
cooperation with foreign experts, VNPhat Co.,Ltd provides customers
with program packages including: technical advice, equipment selection,
technology suitable for technical requirements and capabilities, technology
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ENGLISH BUSSINES DEPARTMENT - FOREIGN TRADE UNIVERSITY
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transfer package, installation instructions, workers training, maintenance and
technical support.
Items of equipment provided by VNPhat Co., Ltd include: lathe,
universal lathe screw, CNC lathes, drilling machines, milling machine, two-
stone grinding and surface grinding machines, grinding holes, grinding
machine tools, hydraulic shearing machine, brake machine hydraulic,
hydraulic presses, sawmill, welder, air compressor, etc.
During its development, VNPhat Co., Ltd has established solid

relationships with many domestic and foreign partners.
The company’s domestic customers are mainly mechanical plants who
need to purchase machinery and equipment for their production. The
purchasing power of the mechanical plants in Viet Nam is huge. Heavy
industry is growing, so the market for all kinds of electrical machinery and
metal processing is potential. Some of its domestic customers are Duyen Ha
cement plant, Bai Bang Paper Factory, Bach Dang shipyard, Lilama7,
Engineering Factory 19-5, Mechanical and Chemical Company 13. The
company's foreign partners are mostly manufacturing plants who have done
business with the company for a long time, such as ARSENAL Group (EU);
Rostselmash, Kamas, Irkut, Mikron (Russia); Annn Yang, China Jiangsu,
Nanton Donghai, Shanghai (China); etc.
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ENGLISH BUSSINES DEPARTMENT - FOREIGN TRADE UNIVERSITY
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CHAPTER II: MACHINERY IMPORT ACTIVITIES AT VNPHAT
CO., LTD
2.1. Factors affecting import activities
In fact, there are many factors affecting the import activities of
enterprises and thereby affecting their business performance. They can be
divided into two main groups: factors outside the company (objective
factors), and factors within the company (subjective factors).
2.1.1: Objective factors
Objective factors are elements related to business environment and
laws. For enterprises importing goods, these factors include:
- Business environment and laws of the exporting countries and
international legislation: the biggest difference between doing business

locally and internationally is the impact of foreign laws, and international
conventions. Import contracts and import activities must abide by the laws
of the exporting country, the law of a third country (if specified in the import
contracts), international business practices and international conventions,
treaties that the parties participate in. The laws and regulations of the
exporting country can make the process of import business simpler or more
complex, which affects the import operating costs and thus import activites
efficiency.
Therefore, before conducting import, enterprises must clearly
understand international laws and the laws of the exporting countries.
- Fluctuations in the domestic market and international market: like
other types of businesses, import businesses are influenced by input
commodity markets and output commodity markets. However, for
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