Import activities of goods and equipment of green energy technology joint stock company current situation and solutions

INTRODUCTION
1. Reasons of choosing the research:

In line with the trend of regionalization and economic globalization, with the
strong development of the market economy, with the deepening economic and
trade interdependence between countries, Vietnam has and is constantly trying to
promote the cause of industrialization and modernization of the country to
integrate the economy with the dynamism of Southeast Asia, or more broadly, the
Asia-Pacific belt. Starting out as an outdated agricultural country, with many
limitations on the level of science and technology, the fastest way to conduct
industrialization and modernization of the country is the need to quickly access
advanced technologies and foreign engineering. To do this, import and export play
a very important role. Imports allow maximum use of domestic resources and take
advantage of the world's scientific and technological advances. Imports promote
continuous and efficient expansion of production and encourage development of
production.
Realizing the importance of importing, with the knowledge learned in the
classroom and the useful information accumulated during the internship, I would
like to select the topic “Import activities of goods and equipment of Green Energy
Technology Joint Stock Company: Current situation and solutions” to understand
and put into practice the forwarding activities of imported goods, but more
specifically the process of importing goods from abroad into Vietnam.
2. Objectives of the research:

In order to contribute more ideas, Green Energy Technology Joint Stock
Company has more solutions to overcome the limitations of the goods import
process. Besides, I hope import business enterprises can enter the hierarchy of
completing this activity, increasing business efficiency.


3. Object and scope of the research:

All activities of importing goods and equipment at Green Energy
Technology Joint Stock Company.
4. Scope of research:

Import activities of goods and equipment of Green Energy Technology Joint
Stock Company in the last 3 years.
5. Research method:

Using qualitative, quantitative, synthetic, logical inference and generalized
methods based on the Company's actual data and situation.
6. Structure of the research:

In addition to the introduction and conclusion, the topic is presented in four
chapters as follows:
Chapter I: Rationale for importing goods and equipment
Chapter II: Actual situation of importing goods and equipment of Green
Energy Technology Joint Stock Company
Chapter III: Solutions and recommendations to complete the process of
importing goods and equipment at Green Energy Technology Joint Stock
Company
I would like to sincerely thank the guidance and enthusiastic guidance of
MA. Pham Thanh Ha and the enthusiastic help of the entire leadership, the
colleagues at Green Energy Technology Joint Stock Company helped me to
complete this graduation thesis. Due to the short internship time and not much
practical knowledge, my graduation essay could not avoid mistakes. So I look
forward to receiving the enthusiastic advice and suggestions from teachers.


CHAPTER I: THEORETICAL BASIS ON ACTIVITIES OF IMPORT OF

GOODS AND EQUIPMENT

1.1

Import activities of goods

1.1.1

Import concept

“Import is an international trading activity, a process of exchanging goods

between countries based on the principle of equal exchange for currency as a
broker. It is not an act of individual trade but a system of trading relations in an
economy that has both an internal and external organization”. (Truc, 2009)
“Import of goods means the goods brought into the territory of Vietnam

from abroad or from special areas located on the territory of Vietnam are
considered is a separate customs area as prescribed by law ”. (Decree G. , 2005)

1.1.2

Target of import business activities

Import business is the efficient use of foreign currency sources to import
materials, technical equipment and services for the expanded production process,
improve labor productivity, and increase the daily value. and address the scarcity
of goods and supplies on the domestic market.
On the other hand, import business ensures the stable development of key
economic sectors of each country where domestic production ability does not

ensure supplies and technical equipment to meet development needs. In addition,
the import activities fully exploit the country's competitive advantages,
contributing to the specialization of international labor division, harmonizing and
effectively combining import and improvement. balance of payments.
1.1.3

The role of import activities

“The role of import activities is extremely important. Firstly, import

activities will increase the quantity and quality of goods on the domestic market to
meet the increasing demands of consumers. Secondly, imports bring domestic


goods that cannot be produced, items that are more imported when they are
produced domestically and domestically. The production is not sufficient to meet
the increasingly diverse and diverse needs of consumers. Thirdly, import activities
bring a nation a modern and advanced science and technology to serve the process
of industrialization and modernization of the country. Fourthly, the export
activities help the domestic production growing, constantly improving designs and
product quality to be able to compete with imported goods. Therefore, if the import
is adjusted appropriately, it will contribute to increasing the speed of development
of an economy, increasing incomes for people, effectively using domestic
production capacity, and settling well. social labor policies, ...” (Ha, 2014)
1.2

Basic issues about importing goods and equipment

1.2.1

Import forms

Based on the business conditions and the creativity and dynamism of the
businessmen, so many import forms have actually appeared. Depending on the
different criteria, we can divide the import forms into different groups.
There are three main types of import
 Direct import
 Indirect import
 Temporary import for re-export

1.2.1.1

Direct import

The enterprise directly deals, signs and implements its export / import
contract with foreign customers. In particular, the buyer and the seller directly deal
with each other, goods are bought directly from abroad and without intermediaries.
The exporter directly delivers the goods to the importer.
In this form, there are transaction steps such as asking price, ordering,
refunding, accepting, confirming. Importing enterprises must directly conduct
domestic and foreign market research activities, seek partners, negotiate and sign


contracts ... and invest capital to organize import goods business, and must bear all
expenses such as: market research, transactions, contracting, delivery, storage,
consumption of goods ... When imported directly, the import-export enterprises are
allowed to calculate the business quota and when consumed, they must bear value
added tax, corporate income tax. Businesses importing in this form must bear full
responsibility for their business activities, from collecting market information to
signing import contracts. The risk of direct import is higher than that of

intermediaries, but it is more profitable for businesses.
This form of import is commonly used in our country today. Because of the
declining trend of State-owned enterprises and the increase in small and mediumsized enterprises, enterprises have conditions as well as desire to be imported
directly to increase revenues. Moreover, this type is applied in importing ordinary
goods so the volume is large and continuous.
1.2.1.2

Indirect import

Enterprises directly transact, sign and perform goods import / export
contracts under the authorization of other enterprises with foreign customers.
Import activity formed between a domestic enterprise with its own foreign
currency capital, having the need to import some goods but not having the right to
participate or not having the conditions for direct import delegating to other
enterprises who have direct functions participating in foreign trade transactions
proceed to import goods at their request. The trustee must negotiate with a foreign
partner and carry out import procedures at the request of the consignor. The trustee
will receive a part of the payment called a trust fee.
In this activity, the business entrusted importer will have to make two
contracts, the import contract signed with the foreign partner and one contract of
entrusted import with the other entrusted party.


When conducting entrusted import, the trustee will only calculate import
turnover, not sales. Entrusted import contracts usually apply to specialized goods
and technical equipment.
1.2.1.3

Temporary import for re-export

A form applied when an enterprise imports goods but not for domestic
consumption but exports it to a third country for profit. These are items that are not
processed or processed at the place of re-export.
Goods must go through both import procedures and export procedures
afterwards.
1.2.2

Process of organizing the implementation of import contracts

Obtaining import license (if any)
Procedures for opening L / C (if paying by L / C)

Renting a vehicle
Buying insurance

Payment procedures

Customs procedures

Receiving imported goods

Inspection of imported goods

Dispute and complaint settlement (if any)


(Sources:www.thuongmai.vn )
Figure 1.2.2 Process of organizing the implementation of import
contracts

1.2.2.1

Obtaining import license (if any)

The state uses import licenses to manage import activities. Therefore, after
signing a contract with a partner, the enterprise is required to apply for an import
license to perform that contract.
“Traders being enterprises of all economic sectors, which are established

under the provisions of law and are allowed to import / export. goods according to
the registered business lines ”. (Decree G. , 23/1/2006)

As such, all businesses with legal status are allowed to import goods
according to the registered business lines and enterprises only need to register their
import-export business codes with their local customs authorities. Headquartered.
However, for goods on the list of goods banned from import, subject to conditional
import or temporarily suspended from import, enterprises need to apply for import
licenses.
To apply for an import license, an enterprise must produce a dossier of
application including a license:
 Import contract
 Quota card (if the goods are managed by quota)
 Import consignment contract (if it is consigned import)

The granting of import permits is assigned as follows:
 The Ministry of Trade (licensing offices) issues import licenses for trade if

the goods are under the control of the state.
 General Department of Customs issues licenses to import non-commercial

goods (sample goods, gifts, exhibition goods).


Each permit is only granted to a goods owner to import one or several goods
items with certain countries, transported by a mode of transport and delivery at a
certain border gate.
1.2.2.2

Procedures for opening L / C (if paying by L / C)

Letter of credit (L / C) is a legal document in which a bank opens an L / C
undertaking to pay the exporter if they present a complete and valid set of payment
documents. with the content of L / C. Payment of goods by L / C is a reasonable,
convenient and safe payment method, limiting risks for both buyers and sellers.
When the import contract specifies the payment method as L / C, one of the
first tasks that the importing party must implement to perform the import contract
is to open L / C.
About L / C opening time: L / C is normally opened before delivery from
20-25 days unless the contract specifies. But for the contract to be tight, it is often
specified in the contract to open L / C.
Bases for opening of L / C: are terms of the import contract. When opening
an L / C, the company must rely on this basis to fill in the printed form of the L / C
opening bank called "Application for opening of import letter of credit".
How to open L / C in Vietnam: Enterprises must carry out the following
steps:
 Apply and apply for L / C opening
 Deposit to open a letter of credit account
 Payment of L / C opening fee

When informed by the bank that the L / C has been opened, the importer

contacts the bank to check if the details of the L / C are in accordance with the
contract, and then ask the bank to forward it to the exporter. If there is anything
inappropriate that needs amendment, the importer makes a request to the bank to


amend the L / C (in agreement with the exporter), including all the details that need
to be amended. After that, notify the amended results.
1.2.2.3

Renting a vehicle

Most of the goods traded, traded on the world market are transported by sea
(accounting for about 80% of the volume of goods in international trade) because
of the advantages of this type of transport. Therefore, chartering of goods by sea
has become a common, basic and almost indispensable business in most of the
import and export activities in the world today.
For the importer, the chartering of a ship to the carriage of goods only arises
when the contract of sale specifies that this obligation is on the part of the buyer
(under the terms of delivery of Group F and EXW).
The importer will progress into its chartering service based on the following
grounds:
 Terms and conditions of the sale contract
 Characteristics of goods traded
 Transportation conditions

Currently in the world there are two modes of hire for importers to choose:
Mode of chartering a ship: chartering a ship (booking freight / Booking

Shipping Space) is that a shipper who through a broker or on his own contact with
the ship owner to rent goods from one port to another.

Ship chartering method: The shipowner leases the charterer wholly or

partly of a ship to carry cargoes from one or several ports to one or several other
ports. The relationship between owner and charterer is governed by a charter party
contract (C / P - Voyage Charter Party).
1.2.2.4

Buying insurance

To ensure business safety, importers and exporters often buy insurance for
their goods through an insurance contract. The insurance policy may be either an


insurance policy (Open policy) or a trip insurance policy (Voyage policy).
Currently cargo insurance by sea is the most common type of foreign trade
insurance.
The importer should buy insurance for goods in the case of import under
trade terms of group E, F and group C (except CIF and CIP).
The process of buying cargo insurance:
 Selecting the appropriate conditions to buy insurance
 Making paper to request insurance
 Paying the premiums and get a certificate of

1.2.2.5

Payment procedures

In international trade, there are 3 common forms of payment:
 Collection
 Money transfer

 Letter of credit (L / C) (this is also the most widely used form)

If the contract prescribes that the payment is made by the method of
collection together with the documents, after receiving the documents at the
foreign trade bank, the importing enterprise must compare the documents with the
contract and, if appropriate, pay them. In the case of a draft collection, after
receiving a bill of exchange from the bank, the importer may pay or refuse to pay.
This method is somewhat unfavorable for exporters because it depends on the
wishes of the buyer.
If payment by money transfer method, when receiving the goods sent by the
seller and documents from the bank, after the prescribed time, the importing
enterprise shall write a bank transfer order requesting the bank to transfer money to


export party. There are two forms: Telegraphic Transfer (T / T) and Mail Tranfer
(M / T). In particular, Vietnam often uses Telegraphic Transfer, which is faster
than money orders but higher.
If the contract stipulates payment by L / C when the original set of
documents from abroad arrives at the foreign trade bank, the enterprise must check
the documents and, if found valid, carry out the procedures for payment to the
bank.
1.2.2.6

Customs procedures

Customs procedures are a tool to manage acts of international trade in
accordance with the law: in order to prevent illegal import and export across
borders, to check documents for errors, to forge fraud, to make statistics on goods
import and export chemistry.
The process of carrying out customs declaration procedures consists of the

following three main steps:
 Declaration - submit the declaration

The goods owner shall declare the imported goods according to the customs
declaration form, then return the declaration to the customs office together with a
number of necessary documents: import permit, invoice, packing slip, detail
declaration,…
 Presentation of goods

For a small volume of goods, the goods owner shall transport the goods to
the customs warehouse to check the quality, carry out the customs procedures and
pay taxes (if any) when the goods come ashore.


For large import consignments, the inspection of goods and customs
documents takes place in 2 places:
 At the border gate / port: Customs officers check the goods and paperwork at

the port of import of such goods.
 At the place of delivery and receipt of final goods: Customs officers shall

check the seal seals and contents of goods.
All costs are paid by the shipper.
1.2.2.7

Receiving imported goods

“Transport agencies (stations, ports) are responsible for receiving imported

goods from means of transport from water. in addition to, preserving such goods

during the process of loading, unloading, warehousing, and delivering to the
ordering units according to the orders of the foreign trade units which have entered
the goods”. (Decree t. P., 1973) Therefore, when the goods arrive at the port, the

shipping company will directly take delivery of the goods with the port, and then
return the goods to a safe position. The shipper must sign a consignment contract
for the port to do this.
Before the ship arrives, the shipping agent or shipping company will send
the "Notice of Arrival" to the consignee, so that they can come to receive the
"Delivery Order" (D / O) at the shipping agent.
When receiving D / O, there should be:
 Original bill of lading (Original B / L)
 Letter of introduction of the unit

Procedures for receiving goods are as follows:


The importer receives Less than Container Load (LCL): the owner needs to
do the following to receive goods
 Going to the port or ship owner to pay storage and handling fees and get a

receipt.
 Taking the receipt of storage, 3 copies of D / O, Invoice and Packing list to

the shipping agent's office at the port to sign for D / O confirmation, find
the location of goods.
 Bringing back 2 D / O to logistics department for delivery. This department

holds a D / O and makes 2 delivery notes to the owner.
 Bringing 2 delivery notes to the warehouse to see the goods, carry out the

warehousing procedures, separate goods to wait for the customs to check, to
the port customs, port customs officers supervise the receipt of goods.


After customs confirm "completion of customs procedures", the goods will
be released from stock, the importer will bring the goods to the designated
place..
The importer receives Full container load (FCL), customs checks at its own

warehouse
 Applying for goods inspection at a separate warehouse, submit the same set

of customs procedures registration documents
 Carrying out procedures for borrowing containers from shipping lines,

importers pay the handling costs and shipping costs of containers from ports
to separate warehouses.
 The importer carries a set of documents including: D / O (3 copies) signed

by the customs officer and stamped "received declaration"; Receipt of
collection and handling fees of the shipping line; Receipt of container


storage charge; Application for borrowing container to go to shipping
agency's office to get permission to export containers from the yard. The
shipper and warehouse staff find the container, check the integrity of the
container and the Seal. The shipper receives two "Transport orders" and
brings the entire dossier to the customs warehouse. After customs officers
check, sign for confirmation of container number and seal number,

Declaration and Transport Order. The goods owner leaves the container out
of the yard, submits a Transport Order to the port customs, then takes the
container to a separate warehouse. The goods owner welcomes customs to
the private warehouse to check the goods. After checking, if there is no
problem, it will be confirmed "completion of customs procedures".
The importer takes the whole ship or bulk cargoes
After entering D / O, submit documents to customs, receive NOR (Notice of
readines) and notice of loading and unloading. Before opening the hold, a
representative of the following agencies is required:
- Receiver
- Representative of seller (if having representative office in Vietnam)
- Goods inspection agency
- Ship representative, ship agent
- Customs supervision, customs inspection
- Port representative
- Insurance (if the case is suspected to be damaged)
In the process of receiving goods, the delivery staff must regularly follow
the scene, updating data every hour, every shift, every day. Timely detect errors to
take appropriate handling measures.


1.2.2.8

Inspection of imported goods

According to Government regulations, imported goods need to be carefully
inspected. The purpose of this inspection is to protect the legal rights of the buyer,
prevent in time negative consequences, divide the responsibilities of the purchaser
and the seller, and ensure the reputation of the business units. and the basis for later
complaints (if any).

The importer, as the undersigned on the bill of lading, must prepare a Letter
of reservation, if in doubt or perceive that the goods are damaged, deficient,
asynchronous or inconsistent with the contract, request the agency. have authority
to prepare Survey report.
1.2.2.9

Dispute and complaint settlement (if any)

A complaint is one of two ways to resolve disputes that arise in foreign
trade. By making a complaint, the two parties to the dispute proceed to negotiate
with each other to resolve the dispute.
In the course of performing the import contract, if the importer finds that the
goods are damaged, broken, missing or lost, he / she must file a complaint within
the prescribed time limit. Because if past the deadline, the complaint is not valid. A
complaint file includes:
- Complaint letter
- Sale contract
- Bill of lading
- Inspection records of the appraising agency


Completed records must be immediately sent to the object that the importers
complain about. Depending on the extent of the loss, the claimed object may be the
seller, the carrier or the insurance company. Specifically:
- The object of complaint is the seller if the seller violates the contract such
as: not delivery, slow delivery, wrong delivery or missing delivery,
inappropriate packaging, ...
- Claimed object is the carrier if the goods are lost during transportation or
such loss is caused by the carrier (full B / L but damaged goods, ...)
- The object complained about is the insurance company if the goods - the

object of insurance is damaged by a natural disaster, unexpected accident or
caused by a third party that these risks are specified in the insurance. .
If the loss is not clear, the aggrieved person has the right to complain. In
case the importer is complained about the delay of receiving the goods, late
payment, ... then the importer must be responsible for resolving those complaints.
In this case, the importer has the right to prove that he is not at fault or that the
error is caused by a third party. If it cannot be proved, the importer must take
serious and cooperative attitude and give appropriate compensation form.
If a dispute occurs and the two parties cannot resolve it themselves, they
may seek a judgment of the arbitral tribunal (specified in the contract). The dossier
set for suing must be complete with the documents (made in the complaint file),
the complaint letter and the complaint reply of the parties and the complaint.
Submit this set to the Court or Arbitration Council. The decisions of the Court will
be final and legally decisions that the parties must seriously execute.
1.3

Factors affecting import activities

1.3.1

Some state regulations on import of raw materials


The State uses tools and policies to regulate the economy, regulate the
activities of entities participating in that economy. In particular, the import
management policies and tools issued by the State are to regulate import activities.
The main import management measures currently applied by the Vietnamese
government are:
 Import Tax
 Import quotas

 Exchange rates and policies

Importing businesses need to know the specific regulations and
characteristics of the government's import management policies to ensure business
in the right direction, policies and national laws.
1.3.2

Characteristics of goods affecting the professional process of

importing raw materials

Each commodity has its own characteristics. If agricultural products - which
are perishable, easy to change quality, machinery and equipment are often bulky,
large in volume and size, etc. Due to such specific characteristics, the goods will
specify packaging. , unloading in accordance with the specifications, suitable to
each type of goods to ensure quality during import and transportation.
1.3.3

International payment terms

International payment is one of the bank's operations in settling the value of
a shipment between the buyer and the seller in the field of foreign trade. The
current popular international payment methods are:
 Transfer money by: TT (Telegraphic Transfer Remittance) or by MTR

(Mail Tranfer Remittance).


The buyer will transfer the money through the local bank to the seller, in part
or in whole the value of the shipment (subject to foreign trade contracts).

In this way, Remitter orders the Remitting bank to transfer to a bank whose
seller has an Beneficiary bank account. After receiving the money, the seller
proceeds delivery.
 Collection: seller after delivery will authorize the bank, ask the bank to

collect money from overseas buyers. There are 2 types of collection:
- D / A (Document Acceptance)
- D / P (Document against Payment)
 L/C

Letter of Credit: is a written conditional payment by a financial institution
(usually a bank) to an L / C beneficiary (usually a seller or a person) service
provider) provided that the beneficiary must produce a set of documents in
accordance with all provisions of the circular L / C, in accordance with The
Uniform Custom and Practice for Documentary Credits (UCP) referenced in letter
of credit and in accordance with International Standard Banking Practice for the
Examination of Documents under Documentary Credits (ISBP).
1.3.4

International trade conditions

The global economy has opened up unprecedented opportunities for
businesses to access markets around the world. Goods are sold in more countries,
with an increasing number and variety of types. As the volume and complexity of
international trade increases, and if the contract of sale of goods is not carefully
drafted, the likelihood of misunderstandings and costly disputes increases.
Incoterms, ICC's official rules on the use of domestic and international trade
conditions, facilitate the development of international trade. The reference of

Incoterm 2010 in the contract of sale of goods will clearly identify the respective
obligations of the parties and reduce the risk of legal trouble.
Key terms of Incoterm 2010.
Picture 1.3.4: International trade conditions

(Source: www.nghiepvuxuatnhapkhau.com)

NAME

CONTENT

Delivery at warehouse: Ex Works
EXW

The seller ships to the buyer at the seller's warehouse. The seller is not
responsible for loading, unloading or paying for export customs. All
costs and risks, the buyer is responsible.
Delivery to the carrier: Free Carrier

FCA

The delivery location is one of: ex-work, terminer or warehouse.
Seller assumes all responsibility after completing customs procedures
and delivering to the recipient.


Delivery along the ship: Free Alongside Ship
FAS

The seller assumes all responsibility when fulfilling the customs

obligations and delivering the goods to the recipient at the wharf of
the exporting country.
Delivery on board: Free on board

FOB

The seller assumes all responsibility when fulfilling customs
obligations and delivering the goods to the recipient on board the
exporting country.
Price includes: Cost and Freight

CFR

The seller has no responsibility when the goods arrive at the port of
import. The buyer assumes all costs and losses when the goods are
transferred via the ship's rail at the port of discharge.
Price includes: Cost, Insurance and Freight

CIF

The seller has no responsibility when the goods arrive at the port of
import.
(CIF = CFR + Insurance cost)
Price includes: Carriage Paid To

CPT

All costs in the process of transporting the goods to the location
specified by the buyer in the contract.

CIP

Price includes: Carriage and Insurance Paid to
All costs of shipping to the destination specified by the buyer in the


contract and insurance.
(CIP = CPT + Insurance cost)
Delivery at the terminal: Delivery at the terminal
DAT

Seller completes the liability when the goods are unloaded at the port
of discharge.
Delivery to the seller indicated: Delivery at Place

DAP

The seller fulfills the responsibility when the goods are delivered at
the designated buyer warehouse. (Excluding customs obligations,
unloading at the warehouse and tax costs in the importing country).
Tax-paid delivery: Delivery duty paid
The seller becomes responsible when the goods are delivered at the

DDP

warehouse designated by the buyer. (Including customs duties and
payment of taxes in the importing country).
The buyer is not liable for any obligation during the shipment.

CHAPTER II: GOODS AND EQUIPMENT IMPORT ACTIVITIES OF
GREEN ENERGY TECHNOLOGY JOINT STOCK COMPANY:
CURRENT SITUATION AND SOLUTIONS
2.1

Green Energy Technology Joint Stock Company

2.1.1

Overview of Green Energy Technology Joint Stock Company

 Company name: GreenTech Green Technology Joint Stock Company
 Director: Nguyen Minh Chien
 Head office address: 631 La Thanh Street, Thanh Cong Ward, Ba Dinh

District, Hanoi
 Phone number: (04) 8352460
 Fax: (04) 8352460
 Website: />
Green Energy Technology Joint Stock Company is a company specializing
in chemicals and water treatment equipment, providing customers with a
comprehensive and advanced water treatment solution for issues of water supply,
public water. technology and wastewater for various technology industries.
The management team of the company are experienced people in their
specialized field as well as experience in business investment environment in
Vietnam.
The customers of GreenTech are extremely diverse and diverse, from large
corporations to small and medium-sized companies (SMEs) or state-owned units.
Founded on February 29th 2008, the company has been in operation for
more than 10 years with two main businesses: chemicals and water treatment

equipment. The company owns charter capital of 4 billion VND (225,000.00
USD), revenue in 2017 over 3 million USD. GREENTECH has 01 warehouse with
620m2 and 28 employees.


In the next 10 years, the company will continue to expand the market. With
the determination and unremitting efforts of the General Director, the Board of
Management and all employees, the company will continue to change and improve
to become one of the leading businesses in the countries in this areas.
2.1.2

Organizational structure of GreenTech

Administrative Council
Board of
directors

General director

Deputy General Director

Sales Project
Department

Technical
Department

Accounting
Department

Export Import
Department

Administra
tion
Department

Sales –
Project
Manager

Technical
Manager

Technical
Manager

Export –
Import
Manager

Administra
tion
Manager

Sales –
Project
Staff

Technical

staff

Technical
Staff

Export –
Import
Staff

Administrat
ion Staff


Figure 2.1.2 Organizational structure diagram

(Source: Administration department, GreenTech company)
 Director: The head office of the company performs the function of managing

all activities of the company in accordance with the law. Organize the
operation of the service in a way that benefits the company now and in the
future.
 Sales - Project Department: Task of finding and taking care of customers,

coming up with ideas for new projects, planning sales for the next year
 Technical Department: Designing and deploying technical supervision,

installation and acceptance of product quality.
 Accounting Department: Performing accounting tasks, managing and

organizing accounting work in the company. Conducting the acquisition,

processing and provision of information, synthesizing reports, planning
financial status to help the board of directors make the most optimal plan in
the operation.
 Export - Import Department: Implementing procedures to import and export

goods. Sometimes each employee can find customers on his own, not
passively by designation.
 Administration Department: Performing human resources, labor contracts,

implementing company rules and regulations. Plan and deploy work on
hiring, staff training, work rotation.
2.2

Summary of business activities in 3 years from 2017 to 2019

2.2.1

Business report 2019
BUSINESS REPORT
Year: 2019
Currency : VND


ARTICLE

CODE

2019

2018

1. Sales of goods and provision of services

01

48.439.064.336

71.278.542.024

2. Revenue deductions

02

54.727.800

-

3. Net sales of goods and services (10 = 01–
02)

10

48.384.336.536

71.278.542.024

4. Cost of goods sold

11

39.359.846.235

62.395.136.882

5. Gross profit on goods sale and service
provision (20 = 10-11)

20

9.024.490.301

8.883.405.142

6. Revenue from financial activities

21

3.129.595

1.370.015

7. Financial expenses

22

907.412.919

614.028.385

23

876.381.167

547.286.701

8. Enterprise management expenses

26

8.162.726.054

8.158.061.778

9. Net profit from business activities (30 =
20 + 21-22-26)

30

(42.519.077)

112.684.994

10. Other income

31

245.057.054

96.562.005

11. Other expenses

32

8.036.329

0

12. Other profits (40 = 31-32)

40

237.020.725

96.562.005

13. Total accounting profit before tax (50
= 30 + 40)

50

194.501.648

209.264.999

14. Current corporate income tax expenses

51

38.900.330

41.849.400

15. Deferred corporate income tax expense

52

0

0

16. Profit after tax (60 = 50-51)

60

155.601.318

167.397.599

In which: interest expenses

(Company, 2019)

(Currency :million VND)