NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT REAL SITUATION OF IMPORTING ELECTRONIC DEVICES IN VICCOM PRODUCTION AND TRADING INVESTMENT JOINT STOCK COMPANY- EVALUATION AND RECOMMENDATIONS TO PROMOTE EFFICIENCY Hanoi, May 2020 NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT REAL SITUATION OF IMPORTING ELECTRONIC DEVICES IN VICCOM PRODUCTION AND TRADING INVESTMENT JOINT STOCK COMPANY- EVALUATION AND RECOMMENDATIONS TO PROMOTE EFFICIENCY Supervisor: Le Thi Thu Ha, M. Hanoi, May 2020 Nguyen Thi Nhien- 11163898- Business English ACKNOWLEDGEMENT At the beginning of the research, I would like to send my sincere thanks to the individuals and organizations who have guided, encouraged, and helped so enthusiastically that I have the opportunity to complete this graduation thesis. First and foremost, my heartfelt thank will be sent to Ms. Le Thi Thu Ha, who helped me with my first orientation of the import-export industry.
Besides, she guided me to build a detailed outline for the research report, spent several months editing the paper, and supported me whenever I needed. Most importantly, she inspired and followed me every step of the research process. Once again I would like to send my sincere thanks, wish for her health, success, and happiness. In addition, I want to express my deep gratitude to all lecturers in the Faculty of Foreign Languages of the National Economics University for teaching and providing me with basic knowledge about export and import activities through academic subjects as well as the soft skills needed to successfully complete the internship which is the basis for the implementation of this research.
Thirdly, I want to express my deepest gratitude and special thanks to Mr. Le Van Thinh, Director of Viccom Production and Trading investment joint-stock company. In spite of being extraordinarily busy with his responsibilities, he still spent his time hearing, guiding me on the right path, allowed me to carry out my research at their esteemed organization and extent during the internship. I consider myself an extremely lucky individual because I had an opportunity to become a part of the Viccom company.
I am also grateful to meet wonderful people and nice co-workers who instructed me through this internship period. Last but not least, I would like to express gratitude to my beloved family, friends, and colleagues who have stayed with me to support promptly throughout the whole process. They have always been the firmest mental support for me. Nguyen Thi Nhien- 11163898- Business English EXECUTIVE SUMMARY In the era of globalization of economies, the relationship between countries in terms of economy is closely linked especially foreign trade activities.
Recognizing the fact that Vietnam is the main market attracting foreign investors and the increasing demand for electronic devices in businesses and constructions, Viccom's managers have planned short and long term aims to develop the business right from its inception. Accordingly, it aims to provide machinery and electronic equipment, for businesses and constructions. Although it has successfully affirmed its reputation, the enterprise has encountered certain drawbacks limiting the efficiency of import activities. Therefore, the research titled "Real situation of importing electronic devices in Viccom Production and Trading investment joint stock Company- Evaluation and Recommendations to promote efficiency" after some internship months in companies.
The objective of the study is to assess the current situation of import activities at Viccom in the period of 2017 - 2019. Based on the collected figures, the author will find out the achievements as well as shortcomings and practicable recommendations to improve the efficiency of import activities in enterprises. This research includes four main parts. Chapter 1 provides a background of the company including its establishment history, organizational structure, orientation, and import business.
In the subsequent part, the author provides the theoretical background of import operations. This will be the basis for the author to rely on to analyze and evaluate the data collected later. After gathering the primary and secondary data, the researcher analyzes the actual business operations of the business and considers the causes of those results. Finally, chapter 4 provides readers about the company's orientation soon and makes recommendations to promote Viccom’s development.
Nguyen Thi Nhien- 11163898- Business English LIST OF ABBREVIATION Abbreviation | Full written ASEAN Association of Southeast Asian Nations APEC Asia-Pacific Economic Cooperation WTO World Trade Organization FTA Freight Transport Association ATIGA ASEAN Trade in Goods Agreement AJCEP ASEAN-Japan Comprehensive Economic Partnership AIFTA ASEAN-India Free Trade Agreement GDP Gross Domestic Product CFR Cost and Freight CIF Cost, Insurance and Freight CPT Carriage Paid To DAF Delivered At Frontier EXW EX Works FCA Free Carrier FOB Free On Board SMEs Small and Medium Enterprise Nguyen Thi Nhien- 11163898- Business English LISTS OF TABLES AND FIGURES Figure Page Figure 1. Total business capital of Viccom company between 2017 and 2 2019 Figure 2. Business result of Viccom company between 2014 and 2016 29 Figure 3 .Import turnover of Viccom company (2017 — 2019) 30 Figure 4. Value of imported goods from 2017 to 2019 32 Figure 5.Viccom’s company imported goods structure 32 Figure 6.
Viccom’s company customers network 34 Figure 7. Countries Viccom import goods from 36 iv Nguyen Thi Nhien- 11163898- Business English TABLE OF CONTENTS ACKNOWLEDGEMENT .ccccccccesccceenceeeeneeeeeceeeeneeeseaeeceeeeeeeaeeeesaneeeaes i EXECUTIVE SUMMARY00000. eecceecceeneeeneeesneeeeecseecsaeeseersaeeseeesaeeeneessaes il LIST OF ABBREVIATION. oie eeeececeseesececeneceeeceseeseersaeesseessaeeseesens ill LISTS OF TABLES AND EIGUREES.
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Factors affecting import DUSINESS .- «5 5 +11 1+ vEEssssseeeres 20 Nguyen Thi Nhien- 11163898- Business English 2. c1 HHng 23 CHAPTER 3: FINDINGS AND ANALYSIS. Real situation of Viccom company from 2017 to 2019. Company capital SÍTICfUTC€.2 Business result in the period 2017 to 2019.
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Evaluation of import performance during the period from 2017 to 2019.- G2 TT HH kh 39 °h n9). 40 CHAPTER 4: RECOMMENDATIONS TO ENHANCE IMPORT EFFICIENCY OF VICCOM COMPANY FROM 2020 TO 2025. Organizational orientation from 2020 to 2025. General company OTI€TfafIOT.
--- - ---- S311 vn re rey 42 4. Specific orientation towards import aCfIVIfIGS. Recommendations for the COmpanyy. Strengthen advertising and marketing aCfiVIfI€S.
Improve the quality of human resources and increase remuneration for CMPLOVCES 20. Recommendation for the ØøOV€TTIN€TI(. Complete the system of laws and related poliCles. Upgrade infrastructure and transportation sysfem.
Manage market S{TIC{Ïy. HH ng HH Hệ 48 APPENDIX vi Nguyen Thi Nhien- 11163898- Business English INTRODUCTION 1. Background Globalization and international economic integration and trade liberalization are the major trends around the world. Countries are increasingly connected and interdependent with many multilateral and bilateral agreements signed.
As a result, regional and international links in economy, society, science and technology are becoming more and more the mainstreams. In line with that trend, Vietnam has carried out renovation, planned many policies with a view to promoting integration and achieving many successes such as establishing diplomatic and trade relations with many nations and regions around the world, being an active member of the Association of Southeast Asian Nations (ASEAN), becoming an official member of the APEC Forum, WTO, etc and signing a series of Free Trade Agreement (FTA) with countries and regions such as ATIGA, AJCEP, AKFTA, AIFTA, AANZFTA, and so on. Therefore, international trade and commodity trade are increasingly promoted and developed, which become a link between countries and regions together and create many benefits for countries. On that basis, logistics was born and contributed a great part to the economy.
According to recent 2018 statistics, more than 3,000 Vietnamese enterprises do logistics, with large to small scales. Logistics services now have a scale of over 40 billion USD / year, accounting for 21% of the country's GDP. In recent years, the average growth rate of this industry reached from 16% to 20%. However, Vietnam's logistics industry still faces many difficulties, although it has gained remarkable achievements, but besides that, there are still many difficulties and shortcomings such as: infrastructure in the industry, it is still backward, still weak and inadequate; limitations in the application of information technology; laws, policies and administrative procedures are still cumbersome and complicated; human resources are not yet qualified.
Import business is the activity of purchasing goods and services from abroad on the principles of the international market in order to serve domestic demand or re-export in order to seek profits. Imports show the Nguyen Thi Nhien- 11163898- Business English adherence and the interdependence between the economy of each country. Businesses specializing in importing goods and services from the outside are also making more efforts to simplify the import process, while ensuring the quality and transparency of products to achieve maximum profits. In this background, Viccom Production and Trading investment joint stock company is no exception.
Rationale Viccom Production and Trading investment joint stock company (Viccom) operates in the field of electronic equipment which are imported from overseas for industrial parks. The company provides machines and equipment, consulting and supervision with a team of dedicated leaders. Since Vietnam has had a policy of opening trade with foreign businesses, the supply of goods as well as the need to use electronic devices of businesses has increased significantly. However, the increase in demand also leads to a rapid increase of competition that has more outstanding advantages in the process of importing goods in terms of product variety as well as delivery time and many other aspects of the company which need overcoming.
In that context, I had a decision to choose the topic: “Real situation of importing electronic devices in Viccom Production and Trading investment joint stock Company- Evaluation and Recommendations to promote efficiency”. Research objectives The following research is expected to make the following objectives clear: - To analyze the real circumstance of import activities of Viccom company from 2017 until 2019. - To identify achievements and difficulties in the operation time. - To offer practicable suggestions to strengthen Viccom’s performance in the next years.
Research questions Based on the expected objectives, three main questions have been built: Nguyen Thi Nhien- 11163898- Business English - How has Viccom company operated in electronic device import over the last few years? - What achievements has the company gained so far? - What issues has the company faced with ? - What recommendations can be applied to have a substantial improvement in the import efficiency of the company? Methodology This report is studied and developed based on secondary data. It means that most of the information and data gathered and analyzed are taken from the company’s annual reports and online website. Moreover, during internship period, working directly at the business also helps the author have a relatively accurate view of the actual situation of the enterprise to complete the study. Outline Chapter 1: Introduction of Viccom company In the first chapter of the research, basic information about Viccom in general and the company's electronics import business will also be mentioned.
The purpose of this chapter is to give readers an overview of the company as well as the business areas and departments before going into research, analysis and evaluation.