NATIONAL ECONOMICS UNIVERSITY FALCUTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT THE REAL SITUATION OF IMPORTING CHINESE GOODS OF VIETNAMESE CUSTOMERS THROUGH ALIBABA CROSS-BORDER E-COMMERCE SITES AT CHIPO JOINT STOCK COMPANY, EVALUATIONS AND RECOMMENDATIONS TO IMPROVE ITS EFFICIENCY Hanoi, May 2020 NATIONAL ECONOMICS UNIVERSITY FALCUTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT THE REAL SITUATION OF IMPORTING CHINESE GOODS OF VIETNAMESE CUSTOMERS THROUGH ALIBABA CROSS-BORDER E-COMMERCE SITES AT CHIPO JOINT STOCK COMPANY, EVALUATIONS AND RECOMMENDATIONS TO IMPROVE ITS EFFICIENCY Supervisor: Le Thi Thu Ha, M. Hanoi, May 2020 Nguyen Thi Thuy- 11165148 — Business English ACKNOWLEDGEMENT Initially, I want to send my deep thanks to several individuals and organizations, thanks to their guidance and assistance, this research can be conducted successfully. Specially, I would like to express my heartfelt gratitude to my supervisor Ms. Le Thi Thu Ha - who guided me wholeheartedly, helped me overcome my research difficulties, drawn up the roadmap clearly, and give me a strong motivation to continue from the time I started doing it until the study is completed.
Thanks to her very devoted guidance so that I can boldly implement and trust my graduation thesis. I wholeheartedly wish her a lifelong success, happiness, and satisfaction. Besides, I am greatly indebted to all lecturers in the Faculty of Business English, National Economics University for inspiring and encouraging me during my university life. The number of essential knowledge and soft skills gained from all lectures helps me to carry out the study as well as complete on — the — job training program.
Furthermore, I would also like to acknowledge the contributions of researchers, experts, and especially CEO of Chipo Vietnam Joint Stock company Mrs. Dang Thi Tuyet Nga, and exceptional staffs who supported me a lot with valuable advice and experiences to get a comprehensive overview about import activities through cross-border e-commerce. I am pleased to have the opportunity to become an member in such a friendly, yet professional working environment. And above all, I would like to express my deep gratitude to my family, and my friends who have always encouraged, and given me the most favorable conditions for me to complete this study.
I share this dissertation with you all. Thank you EXECUTIVE SUMMARY Nguyen Thi Thuy- 11165148 — Business English The scientific and technological revolution has been bringing about dramatic changes throughout the world. The application of information technology in economic activities brings tremendous benefits to the whole society. With outstanding development of science and technology, cross-border e-commerce has become a bridge between domestic customers and foreign businesses.
It is forecasted that cross-national e- commerce will become the most promising industry in the global economic development process. Since ancient times, trade between China and Vietnam has been extremely close but mainly through traditional commerce, however, in recent years by virtue of the emergence of cross-border e-commerce, this method has gradually been alternative. Understanding and grasping the development trend as well as the psychology of Vietnamese consumers, Chipo Vietnam Joint Stock Company has realized long-term goals and orientations from the first days of establishment. It aims at helping Vietnamese consumers directly access Chinese suppliers without any intermediaries.
This trend has many benefits but also many limitations for Vietnamese customers when participating in the transnational e-commerce market. Therefore, the report named “the real situation of importing Chinese goods of Vietnamese customers through Alibaba cross-border e-commerce sites at Chipo Joint Stock company - evaluation and recommendations to improve its efficiency”. This research aims at evaluating the real situation of activities at Chipo Joint Stock company during the period 2017 — 2019. Based on these findings, the author would then figure out the achievements as well as shortcomings to help the company promote the best efficiency.
This research consists of four main chapters excluding the introduction and conclusion. Chapter 1 indicates an overview of the company relating to the history of the establishment, organizational structure, and import activities via Alibaba's e-commerce platform. In the next chapter, the theoretical background of import activities through e- trade websites would be presented as the foundation for later analysis. After collecting primary and secondary data, the third chapter would clarify the real situations of operation efficiency and makes assessments of its performance from 2017 to 2019.
Finally, chapter 4 offers suggestions and recommendations for the company as well as state to enhance its operation efficiency LIST OF ABBREVIATION Nguyen Thi Thuy- 11165148 — Business English Abbreviation Full writte CBEC Cross-border e-commerce CEO Cheif Executive Officer COO Chief Operating Officer B2B Business to Business B2C Business to Customer C2C Customer to Customer ICT Information and Communication Technology IT Information Technology UNDP United Nations Development Programme VCCI Vietnam Chamber of Commerce and Industry VIAC Vietnam International Arbitration Centre WTO Worldwide Trade Organization LISTS OF TABLES AND FIGURES Nguyen Thi Thuy- 11165148 — Business English Figure 1: Total bussiness capital of Chipo Vietnam Joint Stock company from 2017 tO 2019. 26 Figure 2: Business result of Chipo Vietnam Joint Stock company. 27 between 2017 and 2019 oo. eesscccessnteeceesenececeessnaeeeesssaeeeeseseaeeeeeeeeeeeeeeees 27 Figure 3: Import turnover of Chipo Vietnam Joint Stock company.
29 Figure 4: Value of imported goods from Alibaba cross-border e-commerce. -- -- G1 TT HH HH it 30 Figure 5: Network of domestic customer in 4 cities (2017-2019).-- 31 HaNoi, HaiPhong, DaNang, and HoChIMiInh .- -- <5 5553 s+ssssx 31 Figure 6: The value of transactions processed in 3 websites Taobao.com and TmalÏ. - - c5 011119101 19911 K99 111kgit 32 TABLE OF CONTENTS ACEKENOWLEDGEMENT. - Gọi knnknhưy 1 EXECUTIVE SUMMARY .- Q TH HH HH ng HH Hư1 iv Nguyen Thi Thuy- 11165148 — Business English LIST OF ABBREYVIA TION.
SH» gu krh il LISTS OF TABLES AND FIGURES .ecccccccccceesccseseeeeneeeeeneeensneeeneaes iii INTRODUCTION 00000. cecceccceccsseesseeeesceseneesseeceneesaeessceceaeesceceaeesieeseeeeneersaes vi CHAPTER I: INTRODUCTION OF CHIPO VIETNAM JOINT STOCK COMPANY 1.1 Introduction of Chipo Vietnam Joint Stock company.1 Establishment and deVeÌODIH€HE. cv kg vn kh 6 1.3 Functions and current ÍSĂS:.2 Introduction of Chipo Vietnam’s import business.1 Major import products. 2G IS nh khe vết 8 1.2 Typical suppliers and CHSÍOHI€FS.
Gv nh tri 9 CHAPTER 2: THEORETICAL FRAMEWORK.1 Definition of Cross-Boder Electronic Commerce .2 Characteristics of importing online through cross-border e-commerce 10 2.3 The importance of importing online through cross-border e-commerce 11 2.1 To the national CCONOMY 0n ồn .3 To the SOCIAL nan ốốốeốS<e.4 Types of import via cross-border e-commerce.1 Direct purchase LIHĐOFÍ. Gv kg TH ng kh vết 14 2. ng TH TH tk TH kg kg ng kết 14 2.5 Models of cross-border e-commerFC.1 Bussiness to Business (B2 Ï)).- - - -c << n HH HH HH TT net 14 2.2 Bussiness to Customer (B2C) .3 Customer to Customer (C2C) .6 Overview of Alibaba cross-border e-commerce websifes.ccccccccccceseceetceeenee HH ren 16 2.7 Import process via Alibaba cross-border e-commeree.8 Factors affecting import activities via cross-border e-commerce .1 IM MACTO D€FSD€CÍÏVS.QQQ TT HH HH net 19 2.2 In MICTO PeTSPCCHIVES 0.ccceeecccceesnneceeeennaeeeteeenaeeceseesaeeeessesaneeeeeeeaees 21 CHAPTER 3: FINDINGS AND ANALYSIS 0.- - - - ng TH HH re 24 Nguyen Thi Thuy- 11165148 — Business English 3. Datta COÏÏ€CÍHOHH.
Ặ HT HH ri 24 B12, Dat ANALYSIS 8eneeee.2 Real situation of Chipo Vietnam Joint Stock company from 2017 to 2019 oe .1 Company capital Structure. ch kg rệt 26 3.2 Business result in the period 2017 to 2019 .3 Real situation of import activities via Alibaba e-commrce between 2017 and 2019 in Chipo Vietnam Joint Stock company.2 Structure of imported Ø00đS. Network of domestic CUStOMETS .5 Evaluation of import performance during the period from 2017 to "1. 34 BST ACH IeVEMENES 8n.
37 CHAPTER 4: RECOMMENDATIONS TO ENHANCE OPERATION EFFICIENCY OF CHIPO VIETNAM JOINT STOCK COMPANY FROM 2020 TO 2025 0. Organizational future orientation from 2020 to 2025.1 General company Orientation .Ăằ eeenee teense eeeeeetetseetaes 39 4.2 Specific orientation towards providing purchase activities via .2 Recommendations for the company .1 Reducing over — dependence onto third parfy.2 Expanding markets both intensive and extensive .3 Improve the professional skills of eimpÏ0ye€@§.4 Execute the government’s laws and F€9HÏIfÍOFNS.3 Recommendation for the government.1Perfecting the legal system and customs procedures .2 Upgrading infrastructure and ƒqCiÏifieS.3 Sealing the gap of high — quality MaNPOWE .à cà SSSSSciisssees 43 CONCLUSION 000. ceccecceececeseessceeeseesesecescecsaecsaeecsaecsaeesaessaeeseaeesaeessaeseaeesses 44 REFERENCES00000000 ce 5 6---------¬ 45 APPENDIX vi Nguyen Thi Thuy- 11165148 — Business English INTRODUCTION 1.Background Internet was born in 1969s and after that, it has been globally rapid growth. According to the source of Internet world statistics, the Internet used by people in the world reached 4,156,932,140 in 2017 and Asian accounted for nearly half.
In Vietnam, there is a remarkable increase in Internet users in 2019, approximately 64 million (28%) compared to 2017. With the development of the Internet, human beings took advantage of their serving feature and originated cross-border electronic commerce in recent years. Therefore, cross-border e-commerce attracts a huge number of individual customers and enterprises. Cross-border e-commerce becomes the largely prospective bridge, which connects closely customers to foreign businesses.
It can be undenied that transnational e- commerce supports clients to get easier to purchase the goods through cross- national e-commerce flatform and enterprises to economize on numerous expenditures at intermediate stages. For this reason, cross-border e-commerce is the optimal choice of most consumers in the world, while companies are gradually commercializing the trading of goods by electronics. According to Global Cross- BorderB2C E-commerce 2015 — Ystats.com, cross-border e-commerce is the most perspective industry that makes a substantial contribution to global economic growth. Nowadays, with the non-stop transfer of information technology as well as electronic commerce, people around the world can approach foreign e-commerce websites easily and the Vietnamese people are also gradually integrating into this emerging market.
In reality, Vietnam's e-commerce emerged in the 2005s and is still in the process of development and completion. As reported by Vietnam E- commerce Association, however, there is an increased propensity for Vietnamese people to purchase goods from oversea markets through e-commerce websites including Amazon, eBay, Walmart, and so on. It is noticeable that Alibaba is known as the predominant e-commerce flatform in Vietnam in recent years. Rationale Since ancient times, trade between China and Vietnam has been extremely close but mainly through traditional commerce, but in recent years , owing to the emergence of cross-border e-commerce, this traditional trading method has Nguyen Thi Thuy- 11165148 — Business English gradually been replaced.
Understanding and grasping the development trend as well as the psychology of Vietnamese consumers, Chipo Jointed Stock company was established to meet the import demand of Chinese goods of Vietnamese people through Alibaba e-commerce sites, instead of buying commodities by traditional trade methods. Chipo Vietnam Joint Stock Company has also realized long-term goals and orientations from the first days of establishment. It aims at helping Vietnamese consumers directly access Chinese suppliers without any intermediaries. This trend has many advantages but also brings about many difficulties for Vietnamese people when shopping online via transnational e-commerce flatforms, especially Alibaba websites.
Therefore, the report was named “the real situation of importing Chinese goods of Vietnamese customers through Alibaba cross- border e-commerce sites at Chipo Joint Stock company, evaluations and recommendations to improve its efficiency”. Research Objectives The study is aimed at: e Analyze the real situation of Chinese goods imports of Vietnamese people through Alibaba cross-border E-commerce websites at Chipo Trading Joint Stock Company from 2017 to 2019. e Identify factors that affect the trend of import activities via Alibaba websites e Offer possible suggestions and recommendations to promote efficiency of the company in the coming years. Research questions With those purposes, the researchers give three following questions: e How has the Chipo Joint Stock company operated in Chinese goods import through Alibaba websites in the last years? e What factors affect the import activities via Alibaba websites? e What solutions can be submitted to boost the efficiency of the company? Nguyen Thi Thuy- 11165148 — Business English 5.