MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS INTERNATIONAL BUSINESS IMPROVING IMPORTING SERVICES AT PEGASUS GLOBAL LOGISTICS COMPANY LIMITED INSTRUCTOR: Ph. D NGUYEN THUY PHUONG STUDENT: NGUYEN HUNG NHAT THANG SKL012741 Ho Chi Minh City, April 2024 MINISTRY OF EDUCATION AND TRAINING HCMC UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMICS _______ _______ GRADUATION THESIS MAJOR: INTERNATIONAL BUSINESS TOPIC: IMPROVING IMPORTING SERVICES AT PEGASUS GLOBAL LOGISTICS COMPANY LIMITED. Instructing Lecturer: PhD Nguyen Thuy Phuong Student’s name: Nguyen Hung Nhat Thang Student’s ID: 20136147 Academic year: 2023 – 2024 Type of training: Formal university HO CHI MINH CITY, APRIL 2024 i EVALUATION OF INSTRUCTING LECTURER Student’s name: Nguyen Hung Nhat Thang Student’s ID: 20136147 Class: 201361B Academic Year Code: 2023 - 2024 --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- Ho Chi Minh City, Date…………………. Instructing Lecturer (Full name ands signature) iii ACKNOWLEDGEMENT The author has reached the last stage of the academic journey after nearly four years of intense study and skill development at Ho Chi Minh City University of Technology and Education.
With this thesis, the author wishes to express his sincere gratitude for the priceless assistance provided by everyone who has supported him during these moments. First of all, the author would like to send heartfelt thanks to the dedicated guidance of PhD Nguyen Thuy Phuong, the lecturer at the Faculty of Economics, Ho Chi Minh City University of Technology and Education, who supervised the author throughout the process of completing the graduation thesis. Thanks to her guidance, feedback, and enthusiastic assistance, she has made an important contribution to helping the author find the shortcomings in the report. In addition, she addressed all the students' queries and worries during the completion of the dissertation, helping to facilitate the process of research as a graduate thesis.
At the same time, the author extends a deep appreciation to the entire leadership and staff of Pegasus Global Logistics Company Limited for giving the author an opportunity to work, learn, and gain valuable experiences with a three- month internship at the company. Their support during the internship was instrumental in allowing the author to gain practical exposure and acquire valuable knowledge. The author's graduation dissertation will be completed with a strong and essential foundation thanks to this practical experience. Finally, the author would like to express sincere thanks to the teachers of the Faculty of Economics as well as the teachers at the HCMC University of Technology and Education for providing knowledge through the subjects at school and the data pertaining to the resources, enabling the author to confidently embark on his journey.
However, the author acknowledges that there are still certain constraints when it comes to doing the thesis and engaging in practical work, despite having done his best to research and put what he has learned into reality. For the above reasons, the author looks forward to receiving comments, suggestions, and guidance from esteemed teachers so that his report can be completed comprehensively. Sincerely Thank you! iv LIST OF ABBREVIATIONS AND ACRONYMS ABBREVIATIONS MEANINGS AEC ASEAN Economic Community AFDC Alternative Fuel Data Center AN Arrival Notice B/L Bill of Lading C/O Certificate of ogirin D/O Delivery Order DDP Delivered Duty Paid (Incoterms 2020) DPU Delivered at Place Unloaded (Incoterms 2020) ECUS5 Electronic customs declaration software EFE External Factor Evaluation Matrix EIR Equipment Interchange Receipt ESG Environmental, Social, and Governance Strategy EVFTA EU-Vietnam Free Trade Agreement FCL Full container load FDI Foreign Direct Investment FIATA International Federation of Freight Forwarders Associations FTL Full truckloads GSCM Green Supply Chain Management HS Codes Harmonized System Codes IFE Internal Factor Evaluation Matrix IT Information Technology L/C Letter of Credit LCL Less than container load LPI Logistics Performance Index LTL Less than Truckloads Q&A Question and Answer RNG Renewable natural gas TEU Twenty-foot equivalent unit v TPP Trans-Pacific Partnership Agreement TTR Telegraphic Tranfer Reimbursement USD United States dollar VND Vietnamese Dong WMS Warehouse management systems WTO The World Trade Organization vi LIST OF TABLES AND GRAPHS Table 1. Table of personnel situation at Pegasus Global Logistics.
Structure of distribution of import and export shipments. by market in 2022. Business result report of Pegasus Global Logistics Co. Proportion of import and export shipments.
in the period of 2020 – 2022. Pegasus' import market structure by country and imported products by shipments in 2022. Structure of import and export shipments. 36 by transport in the period of 2020 – 2022.
EFE Matrix for Pegasus Global Logistics Co. IFE Matrix for Pegasus Global Logistics Co. SWOT Analysis of Pegasus Global Logistics Co. 62 vii LIST OF FIGURES Figure 1.
Logo of Pegasus Global Logistics Co. List of three branches of Pegasus Global Logistics Co., Ltd in Vietnam. Organizational chart of the management apparatus of Pegasus Co. Business result report chart of Pegasus Co.
Process of providing delivery services for imported goods by sea. Process of delivering imported goods in full containers by sea. 38 viii THE TABLE OF CONTENTS LIST OF ABBREVIATIONS AND ACRONYMS. v LIST OF TABLES AND GRAPHS.
vii LIST OF FIGURES. Reasons for the study. Objectives of the study. Object and scope of the study.
Research methods for the study. The significance of the study. Structure of the study. 3 CHAPTER 1: OVERVIEW OF PEGASUS GLOBAL LOGISTICS COMPANY LIMITED.
General information about Pegasus Global Logistics Company Limited. The company’s history, establishment, and development. Organizational structure and Responsibilities of departments. Labor forces and Resource utilization.
Business results in the period 2020-2022. Business market and customers. Business result at Pegasus Global Logistics Company Limited. General judgements on business operations of the company.
16 SUMMARY OF CHAPTER 1. 18 CHAPTER 2: THEORETICAL FOUNDATIONS OF IMPORTING SERVICES. Several main concepts in the importing services. Import Forwarding Services.
Mean of transportation. The professional process. Some essential documents. Legal basis in importing operations in Vietnam.
Factors affecting the efficiency of import services. External factors analysis: EFE. Internal factors analysis: IFE. 31 SUMMARY OF CHAPTER 2.
33 CHAPTER 3: ANALYZING THE IMPORTING SERVICES OPERATION AT PEGASUS GLOBAL LOGISTICS COMPANY LIMITED. Analyses of current activities in importing services at Pegasus Global Logistics Company Limited. The importing services turnover. The structure of import market.
Mode of transport in import. The general process of forwarding imported full container load (FCL) goods by sea at Pegasus Global Logistics Co. General evaluations of importing activities at Pegasus Global Logistics Company Limited. Possible factors affecting the importing services at Pegasus Global Logistics Company Limited.
Macroenvironment analysis: EFE Matrix. Microenvironment analysis: IFE Matrix. 52 SUMMARY OF CHAPTER 3. 59 CHAPTER 4: IMPLICATIONS TO IMPROVE THE IMPORTING SERVICES IN PEGASUS GLOBAL LOGISTICS COMPANY LIMITED.
Orientations and policies of the company for the future. Basis to provide optimal solutions for the importing services. Proposing solutions to improve the efficiency of importing services at Pegasus Global Logistics Company Limited. Take advantage of good relationships with partners and dealers to optimize storage and transportation costs.
Harnessing human resources and taking advantage of outsourcing trends to grow the company’s business. Apply IT to improve services by information management systems. Implement the Green Logistics policy from the State for Sustainable development with ESG strategy/Green Supply Chain Management GSCM. 70 SUMMARY OF CHAPTER 4.
xiii xi INTRODUCTION 1. Reasons for the study The world economy is changing rapidly with unpredictable shifts as the major economies: The United States, the United Kingdom, the European Union, etc. are constantly struggling to stay stable, suffering greatly from inflation pressures leading to tight monetary policies of the major central banks, reducing overall demand, and reducing imports of unessential consumer goods (Linh Anh, 2024). According to data from the Ministry of Industry and Trade of the Socialist Republic of Vietnam (2023), Vietnam’s imports still largely depend on “neighbor” China, with an estimated turnover of $111.6 billion due to its low-cost products, close geographical location, and financial suitability for domestic enterprises for assembly and export machinery purposes in the global production chain.
This is the strategic objective of industrial development to meet domestic consumer demand, export and import enterprises, and expand the export market thanks to imports. With the right path of economic development and the natural advantages available, Vietnam has more and more opportunities to grow. Vietnam's lengthy coastline with numerous deep seaports and islands and its advantageous position in the center of Southeast Asia make the country a great competitive merit for economic development and opportunity utilization, especially in global freight forwarding. In addition, the growth of socio-economic cooperation with countries and regions worldwide is another aspect of the activities of international trade relations.
This chance presents Vietnam with a vast market and a golden ticket to membership in international organizations such as the EVFTA (30/06/2019), WTO (7/11/2006), AEC (28/07/1995), TPP (3/2010), etc., which supported Vietnam in establishing excellent prospects for the inward and outward transportation of goods. On the other hand, Vietnam's imports and exports still face many problems: high shipping costs, complicated customs procedures, suboptimal shipping times, and unsatisfactory services have firms concerned due to incomplete logistics. In order to solve these problems and make Vietnam a prospective destination for export-import with effective transportation forwarding activities, a result of the international cargo enterprises' presence is postulated, not only in terms of quantity 1 but also in terms of scale and quality. Without exception, Pegasus Global Logistics Company Limited, with the desire to support Vietnamese businesses in import and export work, offers detailed freight forwarding services that enable businesses to optimize profits for shipments while also guaranteeing the greatest level of shipment safety at the most affordable cost and a reasonable shipping time.
Pegasus is an enterprise that supports transportation-related service activities. Although not a new player in the market, Pegasus has a lot of constraints and hasn't quite gotten to the top of the efficiency scale when it comes to transportation, particularly when it comes to import operations. This is not in line with the company's potential and position. Based on the above reasons and a three-month internship with the volition to support the company’s long-term development, the author chose the topic for my graduation thesis as “IMPROVING IMPORTING SERVICES AT PEGASUS GLOBAL LOGISTICS COMPANY LIMITED.” It attempts to analyze the causes and offer solutions to help improve import services, thereby contributing to improving efficiency in the company's business results.
Additionally, the most practical basis for the author delving extensively into the realities of the international maritime freight shipping industry in particular and the international business, logistics, and import and export sectors in general is provided by this research topic. Objectives of the study. Firstly, the thesis introduces and examines the current situation of the company's importing services in recent times. Second, the thesis highlights the achievements and drawbacks of import services at Pegasus Global Logistics Co.
and how the company takes advantage of opportunities and limits the challenges of the business's external environment through two factors: EFE and IFE matrices. Thirdly, drawing upon analysis and data synthesis, the author puts forward a range of solutions for optimizing storage and transportation costs, harnessing human resources, improving services by management systems, and sustainable development with ESG strategy and Green Supply Chain Management (GSCM) to enhance the business performance of the company. Object and scope of the study. 2 In this topic, we will focus on analyzing the import activities and factors affecting the import services at Pegasus Company Limited, based on the EFE matrix, the IFE matrix, and SWOT.
The scope of this research is the company's import services for the period 2020-2022, based on reliable data sources from the company. Research methods for the study.