ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE GRADUATION THESIS Topic: “SOLUTIONS TO IMPROVE THE GOODS IMPORT PROCESS AT PHUC HUNG INVESTMENT AND TRADING JOINT STOCK COMPANY” Instructor: Pham Ngoc Tru, PhD. Student: Nguyen Phuong Dung Student ID: 5073106005 Class: KTĐNCLC7A Hanoi, July 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE GRADUATION THESIS Topic: “SOLUTIONS TO IMPROVE THE GOODS IMPORT PROCESS AT PHUC HUNG INVESTMENT AND TRADING JOINT STOCK COMPANY” Instructor: Pham Ngoc Tru, PhD. Student: Nguyen Phuong Dung Student ID: 5073106005 Class: KTĐNCLC7A Hanoi, July 2020 i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com DECLARATION I would like to assure the graduation thesis on the topic “Solutions to improve the goods import process at Phuc Hung Investment and Trading Joint Stock Company” is my individual research project with the enthusiastic guidance from Pham Ngoc Tru, PhD. All data used in the analysis of this thesis and the results of the study are my own self-study and an objective analysis, honesty, of clear origin and have not been published in any form.
I accept full responsibility for any dishonesty in the information used in this research. Hanoi, July 05, 2020 Author Nguyen Phuong Dung ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CONTENTS DECLARATION. ii LIST OF ACRONYMS. v LIST OF TABLES AND FIGURES.
Research objective and mission. Research object and area. OVERVIEW OF PROCESS OF IMPORTING GOODS. Process of importing goods.
Overview of the current situation of Vietnam’s import procedures. PROCESS OF IMPORTING GOODS AT PHUC HUNG INVESTMENT AND TRADING JOINT STOCK COMPANY. General introduction about Phuc Hung Investment and Trading Joint Stock Company. Business performance of the Company in recent years.
Reality of the process of importing goods at Phuc Hung Investment and Trading Joint Stock Company. General assessment on the process of import of goods at Phuc Hung Investment and Trading Joint Stock Company. SOLUTIONS TO IMPROVE THE PROCESS OF IMPORTING GOODS AT PHUC HUNG INVESTMENT AND TRADING JOINT STOCK COMPANY. 68 iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Development orientation of the Company in the coming years. Solutions to improve the process of importing goods at the Company. 69 CONCLUSION AND RECOMMENDATIONS. 82 iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ACRONYMS Acronyms English Vietnamese B/L Bill of Lading Vận đơn đường biển Phương thức trao chứng từ trả tiền CAD Cash Against Documents ngay CFR Cost and Freight Tiền hàng và cước phí CIF Cost, Insurance, Freight Tiền hàng, bảo hiểm, cước phí D/O Delivery Order Lệnh giao hàng FOB Free On Board Giao lên tàu L/C Letter of Credit Thư tín dụng Petrolimex Insurance PJICO Tổng Công ty Bảo hiểm PJICO Corporation TT Telegraphic Transfer Chuyển tiền bằng điện Vietnam Chamber of Phòng Thương mại và Công nghiệp VCCI Commerce and Industry Việt Nam The Foreign Trade Freight Công ty Cổ phần Giao nhận Kho VIETRANS Forwarding and Warehousing., JSC vận Ngoại thương The Transport and Chartering Công ty cổ phần Vận tải và Thuê VIETFRACHT Corporation tàu Vietnam Freight Forwarders Hiệp hội giao nhận kho vận Việt VIFFAS Association Nam WTO World Trade Organization Tổ chức Thương mại Thế giới v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES AND FIGURES Table 1.
Favorability in import transactions of ASEAN countries from June 2018 to June 2019. Vietnam's cross-border trade transaction index from 2012 to 2019. Average cost and time to carry out imports in Vietnam in 2019. Structure of imported products.
General analysis of the number and value of import contracts from 2016 to 2019. Some typical contracts are signed by fax machine. L/C payment fee at Vietcombank. Mistakes when carrying out Customs procedures in 2019.
Total import turnover from 2016 to 2019. Import process of animal feed products at Phuc Hung JSC. Telegraphic Transfer flow chart. 75 vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Research motive Foreign trade activities play a very important role in the era of globalization, regional and international economic integration. Participation in integration and expansion of international trade relations has become an indispensable trend of nations. In particular, the issue of promoting foreign trade activities is one of the top priorities for many countries. Imports allow the addition of products that cannot be produced domestically or inefficiently produced while exports help boost domestic production network and increase foreign exchange earnings.
Implementing this foreign trade activity well, each country can expand, dominate the regional market and reach the world market. As Vietnam becomes an official member of WTO, the opportunities for trade with other countries in the world are increasing widely. However, it also brings many challenges for Vietnam, how to promote all the benefits of the country, attract many foreign investors. This has contributed to foreign trade activities much more developed.
Foreign trade activities are increasingly strong, contributing to improving the lives of people. Therefore, it is imperative that the Government need to put forward appropriate foreign trade policies, contributing to promoting the socio-economic development. In the process of industrialization - modernization of the country, our foreign trade policy focuses on the main objectives of boosting exports to meet the needs of industrialization - modernization and curbing inflation, increase state budget accumulation and improve people's lives. Foreign trade has gradually become a modern socialist-oriented business activity, capable of integrating into regional and world markets.
To do so, Vietnamese businesses need to build themselves a reputable brand and gain a firm position in the confidence of foreign partners. In the current difficult economic period, thousands of enterprises close or suspend their operations every year because the issue of improving import 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com efficiency becomes more urgent. This is the key to help businesses overcome difficulties. In particular, completing the import process is a prerequisite to improve the efficiency of import activities.
The import process is counted from the time the ship arrives at the port of destination until cargo are brought into the enterprise’s warehouse. During my internship at Phuc Hung Investment and Trading Joint Stock Company, having access to the process of importing goods, I felt the great influence of this process on the business performance of the company. Therefore, I chose “Solutions to improve the goods import process at Phuc Hung Investment and Trading Joint Stock Company” as the graduation thesis topic. Research objective and mission The objective of this thesis is to contribute ideas to help Phuc Hung Investment and Trading Joint Stock Company have more solutions to overcome the limitations of the import process.
The mission of the thesis research is to determine the situation in order to provide solutions to complete the import process at Phuc Hung Investment and Trading Joint Stock Company. Research object and area Research object: Research topic on the process of importing goods Phuc Hung Investment and Trading Joint Stock Company. Research area: + The research focuses on the import of Phuc Hung Investment and Trading Joint Stock Company. + Research space: at Phuc Hung Investment and Trading Joint Stock Company.
+ Research period: data is collected from 2016 to 2020. Research methods The research was conducted based on the application of theory, combining practical observations and using the Company's database. Simultaneously 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com coordinate methods: qualitative analysis, statistics, comparison, synthesis, logical reasoning. 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Research structure In addition to the table of contents, list of tables and figures, introduction, conclusion and references, the research topic is divided into 03 chapters: Chapter 1. Overview of process of importing goods Chapter 2. Process of importing goods at Phuc Hung Investment and Trading Joint Stock Company Chapter 3. Solutions to improve the process of importing goods at Phuc Hung Investment and Trading Joint Stock Company 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
OVERVIEW OF PROCESS OF IMPORTING GOODS 1. Import concept Import of an enterprise is the purchase of goods and services from abroad for domestic demand or re-export for profit. According to Clause 2, Article 28, Chapter 2, Vietnam Commercial Law 2017: “Import of goods means the goods brought into the territory of Vietnam from abroad or special areas located on the territory of Vietnam are considered is a separate customs area as prescribed by law”. Nature, objectives and characteristics of import Nature: Import is the purchase of goods from economic organizations or foreign companies and conducts the consumption of imported goods in the domestic market or re-exports for the purpose of making profits and connecting the Export with consumption.
Objectives: Imports ensure stable economic development, production and business activities and improvement of the people's life. In addition, imports must ensure continuous development, improve labor productivity, ensure domestic manufacturing industries and address scarcity in the domestic market. Features: Importing is a complex activity compared to domestic business activities and has the following characteristics: Import activities are governed by many resources such as International and Foreign Trade Agreements, National Laws of the concerned countries, and International Trade Practices. Trading methods on the international market are plentiful: regular transactions, intermediary transactions, trade fairs and exhibitions.
The methods of payment are diverse: collection, barter, L/C, TT, etc. Currency used in payment is usually strong foreign currencies with high conversion power such as: USD, GBP, etc. Conditions of delivery: there are many forms but it is common to import under CIF, FOB, etc. 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Import business is business on an international scale, so the area is wide, complicated procedures, and the implementation time is long.
Import business depends on business knowledge, managerial level, foreign trade skills and information acumen. Importing is an opportunity for businesses of different nationalities to cooperate for a long time. International trade has a direct influence on the economic-political relations of exporting countries, contributing to the development of external economy. Role of import 1.
For economy Import is an important activity of international trade, which has a direct impact on the production and life of a nation. For an economy, import operations usually aim to: - Supplementing goods that are not allowed or cannot be domestically produced. - Replace goods that domestic production has no competitive edge compared to imported goods. Import activities, if well organized, rational with domestic demand and production capacity, will positively impact the balanced development of the economy.
In particular, direct balancing of three factors of production: labor tools, labor objects and labor. In the market economy in our country today, import activities are growing and showing an important role for the national economic development. Shown in the following aspects: - Imports facilitate the process of economic restructuring towards industrialization of the country. - Importing contributes to improving the living standards of the people.
For consumers, imports provide opportunities to balance with diverse, modern goods and lower prices than domestically produced goods. For production and import, it is 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com the source of input assurance for production activities, technology and equipment for modernizing production, creating stable jobs for workers. - Imports play an active role in promoting export activities. With the production materials that import brings will increase the quality of goods, making our country's exports closer to the needs of the world, creating favorable conditions for Vietnamese goods to be exported to the world market.
For enterprises Import activities are one of the important stages in the production and business process of enterprises, contributing to providing inputs for the production process. At the same time, if the import activities are implemented well, it will help businesses save production costs, thereby reducing product prices, increasing profits and increasing competitiveness in the market for enterprises.