NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES DEPARTMENT OF BUSINESS ENGLISH LE DIEP LINH BUSINESS ENGLISH 58A REAL SITUATION OF EXPORTING AGRICULTURAL PRODUCTS IN INTERIMEX VIETNAM IMPORT EXPORT JOINT STOCK COMPANY FROM 2017 TO 2019 - EVALUATIONS AND RECOMMENDATIONS FOR THE FUTURE BUSINESS EFFICIENCY NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES DEPARTMENT OF BUSINESS ENGLISH LE DIEP LINH BUSINESS ENGLISH 58A REAL SITUATION OF EXPORTING AGRICULTURAL PRODUCTS IN INTERIMEX VIETNAM IMPORT EXPORT JOINT STOCK COMPANY FROM 2017 TO 2019 - EVALUATIONS AND RECOMMENDATIONS FOR THE FUTURE BUSINESS EFFICIENCY Supervisor: M. Le Thi Thu Ha Le Diep Linh — 11162849 — Business English 58A ACKNOWLEDGEMENT At preliminary, the author would like to thank to individuals and organizations, whose guidance and advice support strongly for author to complete this research thoroughly. First and foremost, the author would like to express the gratitude to supervisor, Mrs. Le Thi Thu Ha, M.A who spent time to supports author with useful information and advice during the time that this study was conducted.
There are her fitful instruction, heartedness in editing draft and motivation creation. Wish her success, happiness, and last long beauty. Secondly, the author would like to give thanks to all lecturers of the Faculty of Business English in National Economics University for their encouragement and education during four-year university. Thirdly, the author would like to give gratefulness to Mr.
Nguyen Dat Tan, the Chairman of Interimex JSC as well as all the staffs in the company, who help the author with useful information and export professional proficient. It is a wonderful chance for the author to participate in such friendly and kind working environment. Finally, the author appreciates the support of family, friends during working process. They are two main motivations for the author to complete this graduated research.
Thank you! Le Diep Linh — 11162849 — Business English 58A EXECUTIVE SUMARY International trade has developed for a long time in history (typically mentioned the Silk Road). This is a type of exchanging goods and services among countries, which following the principle of price exchange at par value to benefit all the parties. Export is one of main components of international trade. Over thousand years of development, most of today nations participate in export activities, which are considered as strategic directions of industrialization and modernization.
Absolutely, Vietnam is not stand beyond this trend. In recent decades, Vietnam has become a member of international organizations, such as ASEAN, WTO, APEC, etc., as well as signed a lot of agreements thanks to global interaction. To 2020, Vietnam has signed totally 16 FTAs, which include 12 valid FTAs. By awareness of this fact, Interimex Vietnam Import Export Joint Stock Company (known as Interimex JSC) was founded with the aim of taking advantages of business conditions to benefit from that, and attributing to national economy at the same time.
At the very beginning, Interimex has aimed to do business of both import and export. However, after years operated, the Chairman decided to focus on export, which is considered as a last-long and potential activity, based on his strategic vision and real conditions of Vietnam. Hence, recently, Interimex has concentrated on exporting agricultural products such as cashew, cassia, pepper, coffee and so on. Although achieving several successes, Interimex has faced with a few difficulties, which inhibit the business efficiency.
Therefore, the study named “Real situation of exporting agricultural products in Interimex Vietnam Import Export Joint Stock Company from 2017 to 2019 — Evaluations and Recommendations for the future business efficiency” has been picked up to understand current status of export agricultural products in this company and give some suggestions to improve limitations. The target point of this research is to consider the real situation of export activities at Interimex JSC during the period 2017 — 2019. Based on collected data and direct interview with the Chairman and several staffs, the author then il Le Diep Linh — 11162849 — Business English 58A evaluate achievements as well as shortcomings and then suggest some ideas to enhance efficiency of export activities. This study is divided into four main chapters (except the introduction and conclusion).
Chapter 1 gives readers an overview of Interimex JSC, which includes history of establishment, organizational structure, and export activities. The second chapter, theoretical framework of exporting, presents the basic information for analysis in chapter 3. By using collected primary and secondary data, the author analyzes real situation of Interimex business performance from 2017 to 2019, and figures out achievements as well as limitations at the same time. Finally, in chapter 4, the company’s orientation and recommendations for five-following-years business will be given out in order to enhance the business result.
1H Le Diep Linh — 11162849 — Business English 58A LIST OF ABBREVIATION Abbreviation Full written Page APEC Asia-Pacific Economic Cooperation 03 ASEAN Association of Southeast Asian Nations 03 CIF Cost, Insurance, and Freight 23 CNF Cost Net Freight 23 Co. Company Limited 35 DPRK Democratic People's Republic of Korea 18 Ete. Etcetera 03 EU European Union 15 FDI Foreign direct investment 06 FOB Free On Board 21 FTAs Free Trade Agreements 03 GDP Gross Domestic Product 16 JSC Joint Stock Company 02 L/C Letter of Credit 22 PI Proforma Invoice 21 SMEs Small, Medium Enterprises 18 T/T Telegraphic transfer 22 USA The United State of America 14 VCCI Vietnam Chamber of Commerce and Industry 41 WTO Worldwide Trade Organization 18 1V Le Diep Linh — 11162849 — Business English 58A LIST OF CHARTS AND FIGURES Chart 1: Export turnover of Interimex JSC from 2017 to 2019(Source: Annual financial report of Interimex JSC from 2017 to 20119). «sa 19 Chart 2: Structure of Interimex JSC exported øoodS.-- «55+ +<+< +2 20 Chart 3: Number of contracts of typical foreign customers from 2017 to 2019 .21 Chart 4: Number of weight of raw material buyed from local suppliers from.
22 Figure 1: Interimex JSC’s Organizational StrucfUTre.----s-ccssssscsssseeres 5 Figure 2:Total business capital of Interimex JSC from 2017 to 2019. Business result of Interimex JSC from 2017 to 2019 oo. Value of exported goods from 2017 to 20119.- eee eeeeaes 20 Le Diep Linh — 11162849 — Business English 58A TABLE OF CONTENTS ACKNOWLEDGEMENT .ccssscssscsssscssssccsssscsssscsssesssssssssesscessessssooees i EXECUTIVE SUMA RRYY. HH 00400080808 iii LIST OF ABBREVIATION.
HH 00808 68 iv LIST OF CHARTS AND EIGUIRES. << 55 <5 55 2555955 Vv TABLE OF CONTTIENTS.8 2 CHAPTER I: INTRODUCTION OF INTERIMEX JSC.1 Introduction of Interimex Vietnam Import Export Joint Stock COIMDADV.1 Establishment and Developmen:.3 Function and current tasks: .2 Introduction of Interimex JSC’s export business: .1 Major export DfOdUCS:.2 Typical suppliers and customers: .1 Typical foreign CUSfOIN€TS:.2 Typical local suppliers: .-- -- - - ----- «<< s+++<+s<seeeeeeess 7 CHAPTER 2: THEORETICAL FRAMEWORK.1 Definition Of ©XỊDOT: .2 The importance of export Activities .1 To the national eCONOINV:.3 Types Of ©XỊDOTFẨ.06 10 VN icuon2 on. G ngHe II VI Le Diep Linh — 11162849 — Business English 58A 2.5 International DFOC€SSITE.4 Export DFOC€([UIFC.5 Factors affecting export DUSINESS: .--ssssss<ss< «se 13 VNNha vo icon. -- -- - «cv nnnnHnnknnkkết 14 CHAPTER 3: FINDINGS AND ANALYSIS.
0000000944996 06 16 SSNBPE- vi vo na .-- S111 ng vn rey 16 3.- SH HH re 17 3.2 Real situation of Interimex JSC from 2017 to 2019.1 Capital system of Interimex JSC.2 Business result in the period 2017 to 2019.3 Real situation of export activities during 2017-2019 period.2 Structure of exported ØOOdS.3 Network of foreign CUSfOI€TS.4 Network of local suppliers .4 Export method and trade term .5 Evaluation of export performance from 2017 to 2019.1 AChieV€Im€TIS.- ng ng vết 23 3.1 Spreading networking of customer and suppliet.2 Improving export pTOC€dUTG.3 Providing convenient conditions and good environment to A010 6 10) Coe 23 3.1 Pin na ae. Failure in delivery On tIe. HH Họ vi 24 3.-LQS ng re 24 VI Le Diep Linh — 11162849 — Business English 58A 3.ccceeccceseccceeeccceesccceseccceeeccseusecseeeceeees 25 CHAPTER 4: RECOMMENDATIONS TO ENHANCE EXPORT EFFICIENCY OF INTERIMEX JSC FOR FUTURE BUSSINESS.1 Organizational future orientation from 2020 to 2025.1 General company OrIenfafIOT.2 Specific orientation towards export aCfIVIẨI€S.2 Recommendations for the COMPANY .1 Improving the quality of human resource.2 Improving business result .3 Enhancing the Services.3 Recommendation for the governMent .1 Perfecting the legal system and customs procedures .2 Upgrading infrastructures and facilities .3 Cultivating high — quality manpOWT. 00000 0000 106000080008 80 30 REFERENCES APPENDIX VI Le Diep Linh — 11162849 — Business English 58A INTRODUCTION 1.
Background Vietnam has been an agricultural country thanks to geography and climate. Therefore, various agricultural products that produced every year not only provide fully for Vietnam citizen and industry but also meet the demand of exporting. In order to take full advantages of the real status and increase turnover of economy, Government has issued laws and policies to promote agricultural export industry. Globalization has become more and more popular over the past few decades.
It has promoted international trading and mutual culture. Vietnam, of course, do not stand beyond this trend by having been signed many global and regional agreements as mentioned above, along with the vast amount of FDI. This step has advantaged and supported the domestic economy. According to the statistics of Vietnam Customs, by the end of 2017, the import — export turnover of the whole country reached nearly US$ 425 billion, up 41.6% billion compared to 2016 (USD 300 billion).
Of which, the export value reached US $213.5% compared with the same period last year (US $175. Rationale Interimex Vietnam Import Export Joint Stock Company (Interimex JSC) was founded with the major aims of being a bridge between local enterprises and foreign enterprises and promoting agricultural export industry. Since Vietnam has successfully found the new method of increasing productivity of plants, especially valuable plants, Vietnamese agriculture has been boosted. This would mean that the real condition is offering favorable opportunities for enterprise to expand its market share.
Nevertheless, the removal of trade barrier also brings about difficulties for the company due to the penetration of overseas and competition among international enterprises. Besides, participating in international competition forces the company to raise awareness of changeable legal framework and ensures export process would happen smoothly and strictly allowed to both international and national customs rules and regulations. Realizing these limitations, the author decided to choose the topic Research objectives “Real situation of exporting agricultural products of Interimex Vietnam Import Export Joint Stock Company from 2017 to 2019 — Evaluations and Recommendation for the future business efficiency” Le Diep Linh — 11162849 — Business English 58A This research was conducted: e To analyze the real situation of export activities of Interimex JSC from 2017 until 2019 e To identify achievements and problems during export activities e To offer possible recommendations to improve the business performance of the company in the upcoming year. Research questions This study is expected to satisfy the following objectives: e How has Interimex JSC operated during the period of 2017-2019? e What achievements has the company gained so far? e What obstacles has the company coped with? e What solutions can be issued to improve efficiency of exporting of the company? 4.
Methodology This research was developed based on the support of primary and secondary database. Firstly, the author collected primary data by observing the real situation of the company and interviewing the Chairman as well as several staffs. Then, secondary data would be collected and from books, journals, websites and annual reports of the company. In a little more detail, first of all, the author observed how the company operated generally.
Then, a close interview would be taken place directly with the Chairman of Interimex JSC — Mr. Nguyen Dat Tan - and several staffs of each department. The purpose of this interview is to understand the structure, operation, orientation, achievements of the company and find out how export activities are taken smoothly. After interviewing, the author read and collected related information from books, e-journal, websites and annual financial report of Interimex, etc.
in order to analyze and calculate business efficiency of the company comprehensively.