MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS INTERNATIONAL BUSINESS IMPROVEMENTS IN THE BUSINESS PROCESS OF FREIGHT FORWARDING FULL CONTAINER LOADS IMPORTED VIA SEA FREIGHT AT ADDICON LOGISTICS MANAGEMENT (VN) CO. To Thi Hang STUDENT: Le Truong Phuc Sang SKL012369 Ho Chi Minh City, November 2023 MINISTRY OF EDUCATION AND TRAINING HCMC UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMICS MAJOR: INTERNATIONAL BUSINESS ----***---- GRADUATE DISSERTATION THESIS: IMPROVEMENTS IN THE BUSINESS PROCESS OF FREIGHT FORWARDING FULL CONTAINER LOADS IMPORTED VIA SEA FREIGHT AT ADDICON LOGISTICS MANAGEMENT (VN) CO. To Thi Hang Author: Le Truong Phuc Sang Student ID card: 20136143 Course: 2020 Subject code: 231IBGR451708 Ho Chi Minh City, November 2023 i ACKNOWLEDGEMENT After nearly four years of rigorous studies and skill refinement at Ho Chi Minh City University of Technology and Education, the author has arrived at the final phase of this extraordinary academic voyage. As the author commences writing this thesis, he extends profound gratitude to those who have been constant companions throughout this four-year journey.
Upon the successful culmination of a three-month internship at Addicon Logistics Management (VN) CO., LTD after completing six academic semesters at the university, the author sincerely appreciates the opportunity it has provided as the initial stepping-stone on my path to a future career. This thesis signifies an important milestone, symbolically concluding the chapter of my educational period at university while simultaneously unveiling new horizons. The enduring backing from family, the support and counsel offered by respected instructors in the Faculty of Economics, and the dedicated mentorship and guidance from the Company's Leadership, together with the help of colleagues from various departments, collectively give him a truly invaluable asset. First and foremost, the author wishes to express his sincere thanks to his family, who guided him while he wrote his first words in life.
They are those who have persistently stood by the author's side during the most challenging times, providing steady encouragement in both material and spiritual aspects on his path to knowledge. Next, the author wishes to extend genuine appreciation to MSc. To Thi Hang, who provided direct guidance, information, and necessary documents that helped students set up a foundation before, during, and after the internship. She also answered all questions and concerns of the students during the internship procedure as well as while completing the internship report, thus facilitating the development of the research into the graduation dissertation.
The author would like to convey profound thanks to the Leadership Board, colleagues, and mentors at Addicon Logistics Management (VN) CO., LTD for their warm welcome and for facilitating the ideal conditions for him to acquire knowledge, observe, and engage in practical research. Serving as an intern at such a distinguished company, iii receiving guidance, the opportunity for observation, and practical experience, is an immense honor that paves the way for the author's future endeavors. The author would like to express sincere thanks to the outstanding instructors in the Commerce Department of the Faculty of Economics at Ho Chi Minh City University of Technology and Education. They not only expanded the author's knowledge but also provided him with sufficient skills, all while motivating students to engage in study, investigation, and preparation for practical internships.
This hands-on experience serves as a solid and vital foundation for the author to complete the graduation dissertation. In conclusion, despite the author's intense efforts and strong commitment to learning, he realizes that several challenges and limitations remain when it comes to engaging in practical work and carrying out the dissertation. The author sincerely seeks constructive feedback and assessments from esteemed instructors and the Company to improve both himself and his thesis. Once again, the author wants to extend sincere appreciation for the invaluable contributions of his family, esteemed instructors, the respected company, and the university.
Their support has enabled the author to complete the thesis most comprehensively. Ho Chi Minh City, November 2023 Student, Le Truong Phuc Sang iv LIST OF ABBREVIATIONS ALM (VN) Co., Ltd Addicon Logistics Management (VN) Limited Company Acc-Audi Accounting-Auditing B/L Bill of Lading C/O Certificate of Origin CBM Cubic Meter CFR Cost and Freight DOA Dead on Arrival EDO Electronic Delivery of Order FCL Full Container Load GDP Gross Domestic Product IB International Business KG Kilogram KPI Key Performance Indicator LCL Less than Container Load v LIST OF TABLES Table 1. 1 Statistics on the total volume of imported goods forwarding circulated by the company in the period 2020-2022. 1 The Business Process of Forwarding Imported FCL Goods via Sea at Addicon Logistics Management (VN) Co.
2 Statistics of Average Completion Time for Operational Steps Over the Years 2020-2021-2022 at ALM (VN) Co. 3 Error Rates in Professional Task Execution Between 2021 and 2022. 4 Professional Qualifications and Training of Personnel at Addicon Logistics Management (VN) Co. 5 Statistics on Years of Experience of Personnel at ALM (VN) Co.
6 Statistics on Language Proficiency of Personnel at ALM (VN) Co. 1 Simulation of Documentation Checklist. 2 Simulation of Table for Employee Recruitment Evaluation Criteria. 3 Information on Domestic Transportation Providers in different regions nationwide.
65 vi LIST OF FIGURES Figure 1. 1 The logo of Addicon Logistics Management (VN) Co. 2 Organizational Chart of ALM (VN) Co. 1 An Overview of the Professional Process of Forwarding FCL Importeds by Sea.
1 Setting up business information in the ECUS software. 2 Selecting the customs declaration after system setup. 3 Entering information in the "General Information" tab. 4 Entering information in the "General Information" tab.
5 Entering information in the "General Information" tab. 6 Entering general information. 7 Declaring HS code and Bank Tax Rate. 40 vii TABLES OF CONTENTS ACKNOWLEDGEMENT.
iii LIST OF ABBREVIATIONS. v LIST OF TABLES. vi LIST OF FIGURES. vii TABLES OF CONTENTS.
Reasons for thesis. Aims of research. Object of study and scope of research. Methods of research.
3 CHAPTER 1: GENERAL INTRODUCTION TO ADDICON LOGISTICS MANAGEMENT (VN) CO. Preliminary Information about Addicon Logistics Management (VN) Co. Formation and Development Process. Organization and Field of Operation.
Organizational Management and Resource Utilization in the Company. Organizational Structure and Responsibilities of Departments. Functions of Addicon Logistics Management (VN) Co. The Business Situations, Production, and Services of Addicon Logistics Management (VN) Co.
Vision, Mission, and Core Values .10 SUMMARY OF CHAPTER 1 .11 CHAPTER 2: LITERATURE REVIEW THEORETICAL BASIS OF FREIGHT FORWARDING IMPORTED GOODS BY SEA. The Definitions of Freight Forwarding Activities. The Definitions of Freight Forwarding Activities and Forwarders. Types of Freight Forwarding.
The Roles of Freight Forwarding Activities. An Overview of The Professional Process of Forwarding Full Container Load Imports by Sea 16 2. Related Documents in the Process of Forwarding Full Container Load Imports by Sea. Legal Basis Applicable in Cargo Forwarding Operations in Vietnam.
Theoretical Basis of Evaluation Criteria for Process Efficiency .22 viii SUMMARY OF CHAPTER 2 .24 CHAPTER 3: THE CURRENT STATE OF THE BUSINESS PROCESS OF FORWARDING IMPORTED GOODS IN FULL CONTAINER LOADS AT ADDICON LOGISTICS MANAGEMENT (VN) CO. The General Diagram of The Business Process of Forwarding Imported Full Container Load (FCL) Goods via Sea at Addicon Logistics Management (VN) Co. Analysis of The Current State of The Implementation of The Professional Full Container Load (FCL) Import Cargo Forwarding By Sea Process at Addicon Logistics Management (VN) Co. Signing the Forwarding Contract.
Receiving and Verifying Documents. Receiving the Delivery Order. Electronic Customs Declaration. Receiving and Delivering Goods to Customers.
Settling Service Charges with Customer and Records Keeping. Assessment of the Effiency of Full Container Load (FCL) Imported Freight Forwarding By Sea Process at Addicon Logistics Management (VN) Co. Average Time for Professional Task Execution. Level of Accuracy of Professional Operations.
The Quality of Human Resources .50 SUMMARY OF CHAPTER 3 .55 CHAPTER 4: SOLUTIONS FOR ENHANCING THE PROFESSIONAL PROCESS OF FORWARDING FULL CONTAINER LOAD (FCL) IMPORTED VIA SEA. Foudations of Comprehensive Solutions to Optimize the Professional Process of Forwarding Full Container Load (FCL) Imported via Sea. Orientation and Objectives for Improvements in the Professional Process of Forwarding Full Container Load (FCL) Imported Goods via Sea at ALM (VN) Co. Solutions for Quality Improvements of the Professional Process of Forwarding Full Container Load (FCL) Imported Goods via Sea at Addicon Logistics Management (VN) Co.
Establishing a Checklist of Documentation Verification Task. Enhancing the Quality of Human Resources and Document Staff's Professional Tasks. Diversifying Domestic Transportation Providers. Bill of Lading.
Clearance of imported goods. Clearance of imported goods. Clearance of imported goods. Electrical Delivery Order.
Reasons for thesis Amid robust economic and social development nowadays, economic activities always find themselves in a state of readiness to adapt and innovate to progress and keep pace with the times. Particularly, over the past decade, international business and trade activities in Vietnam have been increasingly vibrant, propelling domestic economic activities, including the fields of logistics and supply chain management, transportation, and cargo coordination, to thrive significantly. However, in recent times, the global economic landscape has experienced severe turmoil due to geopolitical fluctuations, the outbreak, and the aftermath of the pandemic. This situation has led to a substantial economic downturn worldwide, with Vietnam's economy being inevitably impacted to a certain extent.
Consequently, the logistics sector has seen a decline. However, when measured against several other expanding economies in the region and globally, the logistics industry in Vietnam has been resilient, remaining stable and adapting promptly, which has allowed for its continued development. Being the most dynamic economic hub nationwide and strategically located as the central gateway to the neighboring provinces in the Southeastern region of Vietnam, Ho Chi Minh City plays a pivotal role as a transportation and logistics center, serving as an arterial road in the Southern economic region. Here, logistics and transportation companies operate vigorously, catering to a vast and internationally promising market.
It can be affirmed that the logistics sector acts as a red thread running through the economic fabric, and ensuring the sustainability of the regional economy. As a student specializing in International Business in the new era and having gained practical experience through two internship periods, the author recognizes the importance and intimate role of logistics, supply chain management, as well as import and export activities in the realm of international business. This realization has fueled the author's aspiration to contribute to the workforce within this industry. For this reason, the author has chosen the research topic “IMPROVEMENTS IN THE BUSINESS PROCESS OF FREIGHT FORWARDING FULL CONTAINER LOADS IMPORTED VIA SEA 1 FREIGHT AT ADDICON LOGISTICS MANAGEMENT (VN) CO., LTD” as the subject of his graduation dissertation.
This research topic plays a role as a launching pad, providing the author with the most practical foundation to delve deeply into the realities of the international maritime freight shipping field specifically, and the International Business - Logistics - Import and Export sector in general. Aims of research Firstly, the thesis introduces and examines the current status of how the imported FCL by sea forwarding process via sea is organized and executed at Addicon Logistics Management (VN) Co. This process consists of seven main steps from contract negotiation with customers to the service settlement and recordkeeping. Secondly, the thesis highlights the strengths and weaknesses in organizing and executing the logistics operations of imported FCL by sea forwarding at Addicon Logistics Management (VN) Co., Ltd, focusing primarily on the professional competencies of document staff.
Thirdly, drawing upon analysis and data synthesis, the author puts forward a range of solutions and recommendations not only for optimizing the administrative and legal aspects but also for enhancing the overall efficiency of the imported FCL by sea forwarding process at Addicon Logistics Management (VN) Co.