ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE GRADUATION THESIS TOPIC “SOLUTIONS TO IMPROVE THE SEA FREIGHT FORWARDING PROCESS OF IMPORTED GOODS BY CONTAINER IN TNG LOGISTICS SERVICE AND SOLUTION COMPANY LIMITED” Instructors: PhD. Hoang Kim Thu Student: Dao Thi Huong Student number: 5083106542 Class : CLC8.2 Major: International Business Economics School year: 2017-2021 Ha Noi, June 2021 ACKNOWLEDGMENT In fact, behind every success of a research, it is impossible not to mention the enthusiastic help of teachers. Therefore, I would like to express my deep gratitude to the teachers at the International School of Economics and Finance - Academy of Policy and Development, especially my instructor – MA.Hoang Kim Thu, who has been dedicated to teaching and caring, guide, and create conditions for me to be able to best complete the graduation thesis. To complete the research paper on the topic " Solutions to improve the sea freight forwarding process of imported goods by container in TNG Logistics Service and Solution Company Limited ", I would like to express my deep gratitude to all managers and staffs in TNG Logistics has enthusiastically helped and trusted to provide me with enough information to be able to complete my thesis.
Although there are many efforts to implement the thesis in the most complete way, but due to the limitations of knowledge and experience, it is inevitable that there are shortcomings that I have not seen myself. I look forward to receiving suggestions from teachers and interested people to help the topic be more complete. To complete this thesis, I have researched the actual competitiveness of sea freight forwarding services by container at TNG Logistics based on the knowledge I have learned at the Academy of Policy and Development. Once again, I would like to sincerely thank the teachers at the Academy of Policy and Development and managers and staffs in TNG Logistics for helping me in the past time.
I would like to wish your company always develop and be sustainable, wish all members in the company and teachers always healthy and successful. i Best regards! Student Dao Thi Huong ii TABLE OF CONTENTS ACKNOWLEDGMENT.i TABLE OF CONTENTS. 3 LIST OF TABLES.6 LIST OF FIGURES.7 CHAPTER 1: LITERATURE REVIEW. Definition and Role of Import.
Definition of Import. The role of Import.Freight forwarding service.1: Concept of Freight forwarding service. Characteristics of Freight forwarding service.3: Classification of Freight Forwarding activities. Role of Freight forwarding services.
The role of forwarder. Rights and obligations of forwarders. Sea freight forwarding service. Definition and characteristics of the Sea freight forwarding service.
Types of the Sea freight forwarding service. Factors affect the Sea freight forwarding service. Criteria for evaluating the sea freight forwarding service. Main documents for the sea freight forwarding by container.5 Certificate of Origin (C/O).
International Sea freight forwarding process by container. Preparations to receive imported goods:.22 CHAPTER 2: SITUATION OF SEA FREIGHT FORWARDING PROCESS OF IMPORTED GOODS BY CONTAINER AT TNG LOGISTICS SERVICE AND SOLUTIONS COMPANY LIMITED.1 Overview TNG LOGISTICS SERVICE AND SOLUTIONS CO.1 General information and historical development.2 Field of business. Business situation of TNG LOGISTICS SOLUTION COMPANY. Business performance of TNG.
The company’s performance in 2020.3 Current process of the sea freight forwarding process of imported goods by container at TNG Logistics. The process of importing goods by LCL method of TNG.4 Evaluation of sea freight forwarding activities by container at TNG company.3 Causes of limitations.53 CHAPTER 3: SOME SOLUTIONS AND RECOMMENDATIONS TO IMPROVE THE SEA FREIGHT FORWARDING PROCESS OF IMPORTED GOODS BY CONTAINER AT TNG LOGISTICS SERVICE SOLUTIONS CO.1 Solutions to improve the sea freight forwarding process of imported goods by container.1 Solutions in checking and applying HS codes of goods.2 Solutions in preparing and checking documents.3 Solutions to investing vehicles. Solutions to take care of customers effectively.65 5 LIST OF TABLES Table 2.1: Results of business activities 2019-2020 Table 2.2: Revenue by market structure (from 2019 to 2020) Table 2.3 : Revenue by commodity structure in 2019-2020 6 LIST OF FIGURES Figure 2.1: Organirational of TNG Logistics Service Solution Company Firgure 2.2: Results of Business activities 2019-2020 Figure 2.3: Revenue by market structure (from 2019 to 2020) Firgure 2.4: Revenue by commodity structure in 2019-2020 Figure 2.5: Revenue by business method in 2019 and 2020 Firgure 2.6: Revenue of FCL goods by commodity structure in 2019-2020 Firgure 2.7: Revenue of LCL goods by commodity structure 2019-2020 Firgure 2.8: The process of importing goods by LCL method of TNG Firgure 2.9: The process of importing goods by FCL method of TNG 7 CHAPTER 1: LITERATURE REVIEW 1. Definition and Role of Import 1.
Definition of Import Imports of each country also depend on the income of the resident in the country and the exchange rate here. If the average income of the people of that country is higher, the demand for imported goods will also increase accordingly. Conversely, if the exchange rate rises, the price of imports in local currency becomes higher, which can impact imports and cause import demand to decrease. Imports play an important role in a country's economy, ensuring the stable development of each country's key economic sectors and at the same time fully exploiting the country's comparative advantages, contributing to the realization of the national economy.
highly specialized in labor and improved the international balance of payments. Commercial Law 2005 Article 28, Clause 1 defines as follows: “Import of goods means that goods are brought into the Vietnamese territory from abroad or from a special area located in the territory of Vietnam which is considered a separate customs area according to the provisions of law” Forms of importing goods Direct Import In this form, the buyer and seller of goods directly transact with each other, the buying and selling process is not binding on each other. Buyers can buy without selling and vice versa. Direct import is made quite simple.
In particular, the importing party wants to sign an import business contract, it must research the market, find a suitable partner, sign and perform the contract, finance itself, bear all risks and costs in deal… Entrusted imports Entrusted import is understood as a commercial service activity whereby the goods owner hires an intermediary unit to import goods on behalf of and in his name under an entrustment contract. 1 In a more understandable way, domestic enterprises have their own foreign currency capital and have the need to import a certain type of goods, but are not allowed to import directly, or have difficulty in earning. When dealing with foreign partners, they will hire enterprises with international trade functions to import for them. It is the responsibility of the trustee to provide information on the market, prices, customers, conditions related to the entrusted order, to sign the contract and carry out the procedures related to importing goods.
The role of Import Import is an important activity of international trade, import directly and decisively affects production and life. Importing is to enhance the material and technical basis of advanced and modern technology for production and goods for consumption that cannot be produced domestically or cannot meet demand. Importing is also a substitute, importing things that domestic production will not be as beneficial as exporting, doing so will positively affect the balanced development and exploit the potential and strengths of the country, the national economy in terms of labor, capital, material foundations, resources and science and technology. Therefore, imports have the following roles: First, Importing accelerates the process of using material and technical foundations, transforming the economic structure in the direction of accelerating industrialization and modernization of the country.
Second, Supplementing the imbalanced aspects of the economy, ensuring a balanced and stable development. Exploiting to the maximum the potential and capacity of the economy into the economic cycle. Third, Importing ensures inputs for production, creating stable jobs for workers, contributing to improving and raising people's living standards. Forth, Import plays an important role in promoting exports, contributing to improving the quality of export products, creating a favorable environment for exporting goods to the international market, especially to the importing country.
2 It can be seen that the role of imports is very important, especially for developing countries (including Vietnam) in improving economic life, changing a number of areas, thanks to imports. Exporters can acquire management experience, modern technology, etc. to promote rapid economic development. However, imports must be both consistent with the interests of society and generate profits for businesses, both public and private.
To achieve that, the importers must meet the following requirements: As a result, all import contracts must be based on the problem of benefits and efficiency, which is a fundamental issue for the country, because each business requires regulatory agencies as well as each firm to identify imported commodities in line with the socio-economic development plan 1.Freight forwarding service 1.1: Concept of Freight forwarding service Freight forwarding is a service that transports products from the point of shipment to the point of receipt, in which Freight Forwarder forms a carriage contract with the products' owner, as well as a contract with the shipper and the carrier to perform the service. The Model Rules of the International Federation of Forwarding Associations (FIATA),(2010) describe forwarding as follows: “Any form of service pertaining to the transportation, consolidation, storage, or transportation of commodities is referred to as freight forwarding. warehousing, handling, packing, or distribution of products and services, or in conjunction with the aforementioned, including customs, financial, insurance, and legal services. Article 163 of the Vietnamese Commercial Law,2005 defines forwarding as follows: “Freight forwarding is a commercial act in which a person providing freight forwarding services receives goods from the sender, organizes transportation, storage, warehousing, paperwork, and other related services, and then delivers the goods to the consignee on behalf of the goods owner, the carrier, or the consignee”.
Characteristics of Freight forwarding service 3 Because it is a type of service, it shares many of the same characteristics as other types of services: it is an intangible commodity, so there is no uniform quality assessment standard; it cannot be stored in a warehouse; production and consumption occur simultaneously; and the quality of the service is determined by the customer's perception.But because this is a specific activity, this service also has its own characteristics: The freight forwarding service does not create physical items It merely changes the spatial position of goods, but does not change them technically. Freight forwarding, on the other hand, has a beneficial impact on the growth of output and the improvement of people's living conditions. Passive nature This is due to the fact that this service is highly dependent on the needs of the consumer, the carrier's restrictions, and the government's legal and institutional limits (exporting country, importing country and third country) Seasonality Because forwarding is an import and export service, it is highly dependent on the volume of commodities imported and exported. However, because import and export activities are frequently seasonal, seasonality affects forwarding activities as well.3: Classification of Freight Forwarding activities There are 4 types of freight forwarding: road, rail, air and sea.
Each sort of freight has the following distinct characteristics, which are unique to that form of freight. Road transport This is the most common mode of cargo transportation. It's the ability to be flexible in the transportation process, regardless of time, and without any time constraints. The shipping time is set by the two parties individually, and it can be modified at any moment during the shipping procedure.
Rather than transferring items to other modes of transportation, goods might be transported by road to the desired location. However, there are 4 significant limitations to this mode of transportation, such as the ability to convey a huge amount of cargo. On the road, difficulties are also common because there are so many automobiles on the road that crashes are common. Rail transport The freight time is determined by the time the train runs, and it cannot be adjusted.