ACADEMY OF POCICY AND DEVELOPMENT INTERNATIONAL TRAINING INSTITUTE GRADUATION THESIS Topic: COMPLETE THE PROCEDURE OF IMPORTING STELL COILS FROM CHINA OF VIET DUC STEEL PIPE JOINT STOCK COMPANY Instructor: Dr. Pham Ngoc Tru Student: Pham Thi Thoa Student Number: 5083106520 Class : KTDNCLC 8.1 Ha Noi, June 6/2021 LETTER OF DECLARATION After studying serious research, with the valuable help of teachers and staves in import department of Viet Duc Steel Pipe Joint Stock Company, I completed my graduation thesis with the topic: “Complete the procedure of importing steel coils from China of Viet Duc Steel Pipe Joint Stock Company". In order to achieve that, first of all, I would like to thank the teachers of Academy of Policy and Development, the teachers of the International Economics, for their interest and facilitation of the implementation of this topic. In particular, I would like to express my best thanks to Mr.
Pham Ngoc Tru, who has helped me a lot throughout the research process, dedicated to guiding me so that I can complete the article fully and scientificall. By the way, I would also like to thank you the staff of Viet Duc Steel Pipe Joint Stock Company for allowing me to practice at the company, and enthusiastically provide the necessary documents for me to have a basis for implementing the selected topic. When I first exposed myself to the actual environment of importing when participating as an internship at Viet Duc Steel Pipe Joint Stock Company, I realized that I still have many shortcomings in knowledge, qualifications and skills, so in the process of completing my essay, I can not avoid errors, mistakes. Therefore, I look forward to receiving the enthusiastic comments of teachers and friends to make my essay more complete.
I sincerely thank you! Hanoi, June 6th, 2021 Student Pham Thi Thoa 2 TABLE OF CONTENTS LETTER OF DECLARATION LIST OF FIGURES, CHARTS AND TABLES PREAMBLE. The urgentity of the topic. Subjects and scope of study. The structure of the essay.
11 CHAPTER 1: THEORETICAL BASIS FOR IMPORT AND IMPORT PROCESS OF ENTERPRISES. Some basic concepts. The definition of import. Concept of import business efficiency.
Some theories about imports and import business processes. The theory of import activities. Characteristics of import activities. The role of imports.
The role of imports in general. The role of importing input materials. Process of importing raw materials. Making business plans.
Transactions, negotiation and signing of contracts. Organization of contract implementation. Check the goods and organize the shipping of goods to the warehouse. Import goods into warehouses and distribute production.
Factors affecting the process of import activities. 31 CHAPTER 2: THE CURRENT SITUATION OF IMPORT BUSINESS PROCESS AT VIET DUC STEEL PIPE JOINT STOCK COMPANY. Overview of Viet Duc Steel Pipe Joint Stock Company. History of the formation of the company.
Personnel, technical and financial facilities of the company. Overview of production and business activities of Viet Duc Steel Pipe Joint Stock Company. Overview of the steel import market in Vietnam. Production and business activities.
Importing activities of Viet Duc Steel Pipe Joint Stock Company. Analyzing the situation of the process of importing steel coils at Viet Duc steel pipe joint stock company. Making business plans .2 Transactions, negotiation and signing of contracts. Organize the shipping of goods to the warehouse.
Import goods into warehouse and distribute production. Evaluating the efficiency of the process of importing steel coils from the Chinese market of Viet Duc Steel Pipe Joint Stock Company. Results are achieved. Existence and causes.
61 4 CHAPTER 3: SOLUTIONS TO IMPROVE THE EFFICIENCY OF THE PROCESS OF IMPORTING STEEL COILS FROM CHINA OF VIET DUC STEEL PIPE JOINT STOCK COMPANY. Forecast of steel import into Vietnam market in the period of 2021-2025. Development orientation of Viet Duc Steel Pipe Joint Stock Company in the period of 2021-2025. Orientation to improve the efficiency of the company's material import process.
Some solutions to complete the process of importing steel coils from the Chinese market of the company. 74 5 LIST OF FIGURES, CHARTS AND TABLES Number Name Page 1 Figure 2.1: Organizational structure diagram 18 2 Table 2.1: Personnel structure of Viet Duc Steel Pipe Joint 40 Stock Company 3 Figure 2.2: Capital contribution chart of Viet Duc Steel Pipe 41 Joint Stock Company 4 Figure 2.3: Top 10 Vietnam markets importing the most iron 43 and steel in 2020 5 Figure 2.4: Vietnam's iron and steel import and export 44 situation in 2020 6 Figure 2.5: Revenue and profit after tax of Viet Duc Steel 45 Pipe Joint Stock Company for the period 2018-2020 7 Table 2.2: Structure of imports in the period 2018-2020 47 8 Figure 2.6: Import turnover and import turnover by goods in 48 the period 2018-2020 7 Table 2.3: Main import markets, 2018-2020 49 8 Table 2.4: Number of contracts, weight and import turnover 55 of steel coils in the period 2018-2020 10 Table 3.1: Targets for 2021 of Viet Duc Steel Pipe Joint 68 Stock Company 6 CATEGORIES ACRONYMS Number Acronyms Meaning 1 CIF Cost, Insurance and Freight 2 FOB Free on boat 3 FTA Free trade agreement 4 GDP Gross domestic product 5 L/C Letter credit 6 HS code Harmonized system codes 7 PREAMBLE 1. The urgentity of the topic In recent years, the world has witnessed rapid and complex fluctuations from US- China economic relations, fluctuations in economic-political relations between countries and especially the impact of the Covid-19 epidemic on all socio-economic sectors. These events have led to great losses of some industries such as tourism, aviation, etc.
But at the same time, it also opens up opportunities for other industries, one of which is the steel industry. In 2021, it is forecasted that Vietnam's economy will recover and grow by over 6%, so the demand for iron and steel in construction will also increase sharply. The real estate and infrastructure construction industry will recover when the Government simultaneously implements major public investment projects such as Long Thanh airport, North - South expressway as well as some other highways across the country. With this situation, the steel market will likely set a new price level that will be established and adjusted according to the supply-demand relationship.
In order to support domestic steel producers in lowering product costs, increasing competitiveness with imported steel, preferential import tax rates (MFN) for raw materials for steel production are prescribed at low levels of 0% (group 72.04) and 1% for steel billet (group 72. The regulation of low import tax rates for steel production materials in recent years has contributed to promoting the domestic steel industry to reduce input costs and expand production and business. In addition, Vietnam is currently a member of 14 free trade agreements, special preferential import tax rates in some of these Agreements for relatively low construction steel products such as ASEAN Agreement (ATIGA), Vietnam-Japan (VJFTA), Vietnam Korea (VKFTA), etc. With the conditions and opportunities created, this is a good chance to import steel raw materials into production.
Currently, China is the largest steel export market in the world and also the largest steel import market of Vietnam with more than 50%, with 1.88 million tons, equivalent to 1. China's steel industry production capacity is billions of tons per year, about 30% is used domesticly and mostly for export abroad. Chinese steel has the advantage of large-scale production, is supported by price support policies when exporting from the Government, export banks of the country. Therefore, Chinese steel prices have a huge competitive advantage.
On the other hand, China has favorable geographical conditions with Vietnam so the import of raw materials from China accounts for a large proportion. All of the above factors have caused the steel industry in general and Viet Duc Steel Pipe Joint Stock Company to increase the import of steel raw materials from China to serve domestic and export demand. During the practice at Viet Duc Steel Pipe Joint Stock Company's import and export department, I had the opportunity to contact and get acquainted with the company's international trade activities, apply learning knowledge on the lecture hall to specific situations, grasp the situation of the import process at the company. Noticing that in the process of importing steel coils from the Chinese market, there are many shortcomings.
Starting from being aware of the importance of conducting the import process in the company's commercial business and wishing to be able to effectively apply the knowledge equipped at the Academy of Policy and Development, I chose the topic : “Complete the procedure of importing stell coils from China market of Viet Duc Steel Pipe Joint Stock Company "to study in this thesis. Research overview The topic " Complete the process of importing " of a specific item from a particular market is not new and is studied by many students of universities. There are a number of similar research works such as: "Solutions to complete the process of importing medical equipment from the Chinese market of East Asia Medical Equipment Joint Stock Company", by Vo Thi Ngoc Huyen, 2013 essay, Faculty of International Trade, University of Commerce analyzed the process of imporing medical equipment from the Chinese market as well as proposing a number of solutions to improve business efficiency for East Asia Medical Equipment Joint Stock Company. 9 "Complete the efficiency of importing household equipment of Minexport Mineral Import Export Joint Stock Company", by Nguyen Tien Cuong, 2020 essay, Faculty of International Business, National Economics University analyzed and evaluated the efficiency of importing household equipment.
"Some solutions to improve the process of importing machinery and equipment from The Japanese market of Hanoi Mechanical Products Import and Export Co., Ltd", by Pham Thu Hoai, 2018 essay, Faculty of International Trade, University of Commerce analyzed the process of importing machinery and equipment from the Japanese market and proposed some sulutions for improving the process. The above research works have analyzed the process of importing finished products from a specific market and proposed some solutions but there is no topic that mentioned solutions to complete the process of importing raw materials for production of finished products and domestic sales. Research purposes Through studying the business process of importing steel coils from the Chinese market of Viet Duc Steel Pipe Joint Stock Company in conditions of integration, research objectives towards the following issues: - Systemization of reasoning issues related to import activities and import of input materials for production in particular - Analysis and assess the situation of the procedure of importing steel coils from the Chinese market of Viet Duc Steel Pipe Joint Stock company. - Based on the analysis and evaluation, propose solutions to complete the procedure of importing steel coils from the Chinese market of Viet Duc Steel Pipe Joint Stock company.
Subjects and scope of study Subjects of research of the topic: the procedure of importing steel coils from the Chinese market of Viet Duc Steel Pipe Joint Stock Company. 10 Regarding the content of the study: focusing on analyzing and evaluating the situation of the process of importing steel coils from the Chinese market of Viet Duc Steel Pipe Joint Stock Company and proposing solutions to improve the efficiency of importing steel coils and other raw materials for production. Regarding research space: focusing on the process of importing steel coils from the Chinese market is carried out mainly by the sales-import department of Viet Duc Steel Pipe Joint Stock Company. Regarding the time of research: this essay studies the process of importing steel coils from the Chinese market of Viet Duc Steel Pipe Joint Stock Company in the last 3 years: 2018, 2019, 2020.
Research methods In order to serve the essay writing process, I have collected data and analyzed data obtained from Viet Duc Steel Pipe Joint Stock Company in many different ways.