Dissertation: International Business and Logistics

MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING
VIETNAM MARITIME UNIVERSITY
STUDENT NAME: CHU GIA HUY
DISSERTATION
INTERNATIONAL BUSINESS AND LOGISTICS
RESEARCH ON EVALUATING MARINE MATERIAL

SUPPLIERS OF HAI AN COMPANY, HAI PHONG BRANCH
HAI PHONG, April/2019

MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING
VIETNAM MARITIME UNIVERSITY
STUDENT: CHU GIA HUY

CLASS: IBL0502
DISSERTATION
INTERNATIONAL BUSINESS AND LOGISTICS
RESEARCH ON EVALUATING MARINE MATERIAL SUPPLIERS

OF HAI AN COMPANY, HAI PHONG BRANCH
Supervisor: Nguyen Huu Hung

Division: Economics
Faculty: International Business and Logistics
HAI PHONG, April/2019

Research on evaluating marine material suppliers of Hai An Company, Hai Phong Branch
PREFACE
Vietnam is one of the countries to keep pace with the globalization trend of
the world economy to integrate as well as contribute to the development of the
economy as well as the global. The developed economy has led to increased
demand for goods and freight. Transport companies are increasingly established and
growing relentlessly. Especially when Vietnam has improved its transportation-
related areas as well as equipment related to the rapid growth of its GDP.
In addition to shipping by sea, activities related to delivery, transportation to

warehouses and vice versa are taking place more and more. More and more
transport innovations are being introduced to improve transport productivity and
thereby increase the efficiency of commercial contracts.
As one of the leading companies in the marine equipment sector, Hai An

Company understands the demand for transportation is very large in the world.
Expanded markets should have high competitiveness in terms of product quality.
In this report, I will mention the process, data and activities of the company's
imports. In addition, the report will also mention how changing suppliers will affect
the entire business result of the company.
I confirm that this dissertation is my own work, is not copied from any other
person's work (published or unpublished), and has not previously submitted for
assessment either at Vietnam Maritime University or elsewhere.
If violated, I am solely responsible for and bear the punishments of the

university.
Signature of student
Huy
Chu Gia Huy
Chu Gia Huy – IBL0502 i

ACKNOWLEDGEMENT
During the period of dissertation, I was helped, supported and encouraged
every time I had difficulty in research information. Although it was the most
difficult time in the university, I felt that this was really an unforgettable time in my
life.
First of all, I would like to thank the Vietnam Maritime University, The
International School of Education has provided me a myriad of useful knowledge so
that I can complete this dissertation.
Besides, I sincerely thank you Nguyen Huu Hung, my supervisor who gave
useful ideas and suggestions to give me a better overview of the topic I selected.
Thus, I have more understanding and orientations for this dissertation.
Finally, I would like to express my gratitude and thanks to the leadership and
each staff of Hai An company and Hai Phong branch for giving me lots of advice
and experience.
Chu Gia Huy – IBL0502 ii

VIETNAM MARITIME UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM
INTERNATIONAL SCHOOL OF EDUCATION Independence - Freedom - Happiness
Hai Phong, ……………… 201
REMARKS ON THE DISSERTATION BY THE SUPERVISOR

Student: ...............................................................................................Student ID: .....................
Title: ............................................................................................................................................
Major: International Business and Logistics
Supervisor name: ........................................................................................................................
Supervisor’s faculty:
REMARKS
1. Quality of the Dissertation:
1.1. Consistency between content of the dissertation and title & major:
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1.2. General results of the dissertation:
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1.3. Strong and weak points of the dissertation’s appearance and content:
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2. Capability, attitude and spirit of the student during the process:
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Chu Gia Huy – IBL0502 iii

3. Conclusion:
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Grade: …………/100 (in words: ………………/hundred).
Full name and signature of the supervisor
Chu Gia Huy – IBL0502 iv

Hai Phong, ……………… 201
REMARKS ON THE DISSERTATION BY THE REVIEWER 1

Student: ................................................................................................Student ID: .....................
Title:.............................................................................................................................................
Reviewer name: ...................................................................................
Reviewer’s faculty: Economics
REMARKS
1. Necessity, scientific and practical significance of the dissertation:
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2. Details on the dissertation:
2.1. Layout (number of chapters, pages, tables, diagrams, annexes, references, etc.)
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2.2. Plagiarism
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3. Consistency between contents of the dissertation and title & major:
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Chu Gia Huy – IBL0502 v

4. Methods used in researching and general results of the dissertation:
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5. Strong and weak points of the dissertation appearance and content:
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6. Conclusion:
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Grade: /100 (in words: /hundred).
Note: The reviewer can give few questions to the student in the remarks.
Full name and signature of the reviewer
Chu Gia Huy – IBL0502 vi

Hai Phong, ……………… 201
REMARKS ON THE DISSERTATION BY THE REVIEWER 2

Student: ...............................................................................................Student ID: .....................
Title: ............................................................................................................................................
Reviewer name: ..................................................................................
Reviewer’s faculty:
REMARKS
1. Necessity, scientific and practical significance of the dissertation:
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2. Details on the dissertation:
2.1. Layout (number of chapters, pages, tables, diagrams, annexes, references, etc.)
.....................................................................................................................................................
.....................................................................................................................................................
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2.2. Plagiarism
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3. Consistency between contents of the dissertation and title & major:
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Chu Gia Huy – IBL0502 vii

4. Methods used in researching and general results of the dissertation:
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5. Strong and weak points of the dissertation appearance and content:
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6. Conclusion:
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Grade: …………/100 (in words: ………………/hundred).
Note: The reviewer can give few questions to the student in the remarks.
Full name and signature of the reviewer
Chu Gia Huy – IBL0502 viii

TABLE OF CONTENTS
Preface ......................................................................................................................... i
Acknowledgement ...................................................................................................... ii
Approval of supervisor .............................................................................................. iii
Remarks by reviewer 1 ............................................................................................... v
Remarks by reviewer 2 ............................................................................................. vii
Table of Contents....................................................................................................... ix
List of Abbreviations ................................................................................................ xii
List of Tables ........................................................................................................... xiii
List of Figures .......................................................................................................... xiv
INTRODUCTION ...................................................................................................... 1
Necessity of research topic ......................................................................................... 1
Research object ........................................................................................................... 1
Research scope ........................................................................................................... 1
Research methodology ............................................................................................... 2
Research findings ....................................................................................................... 2
CHAPTER 1: LITERATURE REVIEW OF IMPORT AND EXPORT
ACTIVITIES .............................................................................................................. 3
1.1. Review information about Import-Export Company .......................................... 3
1.1.1. Import-Export Company .................................................................................. 3
1.1.2. The Role of Import Export Company in logistics ............................................ 4
1.1.2.1. The Role of Export ........................................................................................ 4
1.1.2.2. The Role of Import ........................................................................................ 5
1.1.3. The service range of freight forwarder agent ................................................... 6
1.1.3.1. Working as an exporter ................................................................................. 6
1.1.3.2. Working as an importer ................................................................................. 6
1.1.3.3. The power and obligations of the Import-Export Company ......................... 7
1.1.4. Responsibility of the Import-Export Company ................................................ 7
Chu Gia Huy – IBL0502 ix

1.2. Legal basis export/import cargo at seaport .......................................................... 8

1.3. The concept of financial statements .................................................................... 9
1.4. Criterias for evaluating business efficiency ...................................................... 10
1.4.1. Import-Export tax ........................................................................................... 10
1.4.2. Value Added Tax ............................................................................................ 11
1.4.3. Actual price (original price) of imported goods ............................................. 11
CHAPTER 2: REALITY OFIMPORT ACTIVITIES IN HAI AN COMPANY, HAI
PHONG BRANCH ................................................................................................... 13
2.1. Background Information ................................................................................... 13
2.1.1 Details of Hai An Company ............................................................................ 13
2.1.2. The history of Hai An Company .................................................................... 13
2.2. Organizational structure .................................................................................... 14
2.2.1. Control Board ................................................................................................. 14
2.2.2. Broad of Directors .......................................................................................... 14
2.2.3. Accounting Department.................................................................................. 15
2.2.4. Import and Export Department ....................................................................... 15
2.2.5. Planning and Marketing Department.............................................................. 15
2.2.6. Personal – Administration Department .......................................................... 15
2.3. Resources ........................................................................................................... 16
2.3.1 Real Estate and human resources of Hai An Company................................... 16
2.3.2. Equipment of Hai An Company ..................................................................... 16
2.4. Vision and mission ............................................................................................ 17
2.4.1.Vision............................................................................................................... 17
2.4.2. Mission ........................................................................................................... 17
2.5. Business activities ............................................................................................. 17
2.6. Orientation and future plans .............................................................................. 25
2.7. The Process of Import ....................................................................................... 27
CHAPTER 3: RESEARCHING THE BUSINESS EFFICIENCY OF HAI AN
COMPANY, HAI PHONG BRANCH..................................................................... 33
3.1. Evaluating decisive factors in choosing suppliers of Company: ....................... 33
3.1.1. Introduction of suppliers................................................................................. 33
Chu Gia Huy – IBL0502 x

3.1.1.1. YoungHeung Company, SaiGon Branch: ................................................... 33

3.1.1.2. Manho Company, Korea: ............................................................................ 34
3.1.1.3. Chonghong Company China: ...................................................................... 35
3.1.1.4. Gunnebo Company, Germany: .................................................................... 36
3.1.2. Price and Profit: .............................................................................................. 37
3.1.3. Mode and Time: ............................................................................................. 38
3.1.3.1. Import goods from YoungHeung Company, SaiGon Branch: .................... 38
3.1.3.2. Import goods from Manho Company, Korea: ............................................. 39
3.1.3.3. Import goods from Chonghong Company, China: ...................................... 40
3.1.3.4. Import goods from Gunnebo Company, Germany:..................................... 42
3.1.4. Certificate of goods ........................................................................................ 43
3.1.5. Demand Of Marine Materials ......................................................................... 46
3.2. Evaluating businessefficiencies of Import activity with Suppliers: .................. 51
CONCLUSION ........................................................................................................ 54
Reference .................................................................................................................. 55
Appendices ............................................................................................................... 56
Chu Gia Huy – IBL0502 xi

LIST OF ABBREVIATIONS
ETA Estimate Time of Arrival
CFS Container Freight Station
LCL Less than Container Load
FCL Full Container Load
B/L Bill of Lading
D/O Delivery Order
VAS Value Added Services
ETA Estimate Time of Arrival
C/O Certificate of Origin
Chu Gia Huy – IBL0502 xii

LIST OF TABLES
Table 3.1 Price and profit of Hai Phong Branch 37
Table 3.2 Business efficiencies 51
Chu Gia Huy – IBL0502 xiii

LIST OF FIGURES
Figure 1.1 Import-Export Tax Formula 10
Figure 1.2 Value Added Tax Formula 11
Figure 1.3 Actual price (original price) of imported goods formula 12
Figure 2.1 Department of Hai An company 14
Figure 2.2 Headquarter of Hai An Company 16
Figure 2.3 Factory of Hai An Company 17
Figure 2.4 Workers Press the lead of cables 18
Figure 2.5 Worker is Pouring the socket 19
Figure 2.6 Worker is testing the sling load 20
Figure 2.7 Workers are making handmade PP wires 21
Figure 2.8 Equipment for checking the load 22
Figure 2.9 PP 23
Figure 2.10 Steel Sling 24
Figure 2.11 Alloy chain lifting 25
Figure 2.12 Making Customs Declaration 30
Figure 2.13 ECUS5 – VNACCS Software 32
Figure 3.1 Label of Youngheung Company 34
Figure 3.2 Label of Manho Company 35
Figure 3.3 Label of Chonghong Company 35
Figure 3.4 Label of Gunnebo Company 36
Figure 3.5 Offer with a customer 37
Chu Gia Huy – IBL0502 xiv

Figure 3.6 Vessel Schedules of Maersk (Korea-Vietnam) 40
Figure 3.7 Route from China to Vietnam 41
Figure 3.8 Vessel Schedule of Maesrk (Germany – Vietnam) 42
Figure 3.9 Certificate of origin 44
Figure 3.10 Certificate of the product 45
Figure 3.11 Distance between Saigon and Hai Phong 47
Figure 3.12 Distance between Vietnam and Korea 48
Figure 3.13 Border Vietnam borders China 49
Figure 3.14 One of Route from Vietnam to Germany 50
Chu Gia Huy – IBL0502 xv

INTRODUCTION
Necessity of research topic
Hai An Company is one of the leading companies in Vietnam specializing in

supplying lifting equipment and materials for the oil, gas, marine, construction and
industrial sectors in Vietnam.
We are always available in stock full of lifting materials such as steel cable,
lifting chain, websling / roundsling, sash, hook, socket, hand panel, corrugated iron,
cable fastener, hoist, PP wire, etc., ready to deliver all over Vietnam.
By capacity and prestige in the market, we are proud to be chosen as a

distributor in Vietnam for well-known manufacturers in the world such as Gunnebo,
DSR, Manho, Young Heung, Chung Woo, PWB, Terrier, Eastern Ind., Thiele,
Vornbaumen, Daichang, etc.
Understanding each lifting is related to human life and cargo safety, SRC is
committed to providing only the best quality products and services to customers to
ensure the highest safety for people and goods, because "everyone has a family".
The reason why I really want to choose Hai An company, Hai Phong branch
and the topic of import and export activities is that I feel the research on import and
export activities is very interesting, giving me much knowledge in the future job. I
feel really interested in this job and want to stick with it for a long time.
Research object
Learning about processes, procedures, data on import activities of Hai An

company. In addition, research more about supplies in other countries. How the case
of changing suppliers will affect on the company's inventory and business results.
Research scope
Business areas : Import Export Company
Research area : Hai Phong city - Vietnam, Germany and China market
Research object : Hai An company, Hai Phong Branch
Chu Gia Huy – IBL0502 Page 1

Research methodology
Quantitative research: Analysis of the company's financial data, suppliers

from many countries (whether or not it is a partner), the influence of suppliers on
inventory and business performance of the company Company based on ROA /
ROE ratio, inventory turnover.
Qualitative research: analyze upsides and drawbacksof transfering the

available suppliers to another supplier at Hai An Company, Hai Phong Branch
through current import activities.
Research findings
Evaluate business results with maritime materials industry through

indicators: ROA, ROE, inventory turnover.
Evaluating upsides and drawbacks of current suppliers, analyzing Hai An

Company, Hai Phong Branch's strengths and weaknesses.

CHAPTER 1: LITERATURE REVIEW OF IMPORT AND

EXPORT ACTIVITIES
1.1. Review information about Import-Export Company
1.1.1. Import-Export Company
Import-Export Company
Import-export company basically consists of two main services which are

import and export. Import-export companies often import goods from distributors
worldwide through sea ports and distribute goods in importing countries or
transshipment. In addition, the company can also provide services on import or
export procedures.
Theoretically, import and export is understood as an international trading

business, the exchange of goods between countries on the principle of equal
exchange taking money as a broker and usually calculating in a certain period of
time. Importing is not a single trade act, it is a system of trade relations in an
economy that has both internal and external organizations.
Imports of each country also depend on the income of domestic residents and
the exchange rate here. If the average income of the people in that country is higher,
the demand for imported goods will increase accordingly. Conversely, if the
exchange rate rises, then the price of imported goods in the local currency becomes
higher, which may affect imports and reduce import demand.
Imports play an important role in a country's economy, ensuring the stable

development of key economic sectors in each country and fully exploiting the
comparative advantage of the country, contributing to implementation. highly
specialized in labor and improve international balance of payments.
In contrast, Export is the provision of a volume of goods or services to

another party as a country or a company or an organization that uses the currency as
a payment method.

That currency will be agreed upon by the parties in terms of par value and
country. For example, China exported fabric yarn to Vietnam and agreed to use the
payment currency as VND. So in this case, VND is the foreign currency for Chinese
companies but is the local currency of Vietnam. In the case of China exporting
goods to the US, and agreeing to pay in VND together, the VND here is a foreign
currency with both exporting and importing countries.
Import-Export Company must encompasses qualifications such as:
• Possess the ability and skills to plan exports as well as import goods across
different countries and territories.
• Minimize the steps to complete the shipping work as well as receive the
fastest goods to save time for the company and customers.
• Having good relationships with companies that have related or similar
functions with the import-export company, thereby enabling quick and
professional processing of foreign affairs.
• Providing services and customer support so that the work is completed
soonest and saves the most cost.
• Import-Export Companies can also own warehouses to store goods for
customers, helping customers save warehousing costs.
So far, Import and Export Companies in Vietnam still provide available

services and develop new types to help customers save time and cost.
1.1.2. The Role of Import Export Company in logistics
1.1.2.1. The Role of Export
• Businesses can receive large revenues from exports. Supplying goods to

overseas customers helps businesses expand their markets and reach more
potential markets as well as enhance the reputation of domestic businesses.
• Through the export of goods, the reputation of the business will be promoted
overseas as well as worldwide. Besides, the company can quickly dominate

the market and affirm its brand. The more powerful the country has, the more
affirms its prestige and ability despite being in any field. This can be clearly
seen through the contributions of big names for brands of countries such as
Microsoft, Apple (USA), Sony, Toyota (Japan), Samsung, Hyundai (Korea),
Lenovo, Alibaba (Trung National) ...
• Value of value is always a great asset for many countries that they are always
looking for and hope to gather as much as possible. A macroscopic benefit
and also one of the main purposes for encouraging countries to export.
• Export also contributes to boosting the global economy and helping the
economy worldwide not be slow. Export activities also make manufacturers
constantly develop to compete with a large number of competitors in the
market.
1.1.2.2. The Role of Import
• Imports help the domestic market with more quality products that are
currently unavailable, creating a variety of markets between many different
categories and products.
• Imports supplied to consumers in the importing country have better options
instead of using domestic goods. This activity also helps to satisfy
consumers' needs directly.
• This thought may be a bit strange, but many countries think imports are for
export. The reason is that they import materials as well as machinery and
equipment from abroad and carry out the production of high quality products
that are national specific. This also helps create jobs for people.
• National economic transition is an indispensable thing in the benefits that
imports bring. Imports help to develop trade and foreign trade activities, in
which insurance, banking, etc. also develop in parallel.

1.1.3. The service range of freight forwarder agent
1.1.3.1. Working as an exporter
Forwarders with specific agreements will assist their clients (exporters) with the
following:
• Plan the route

• Applying for a long-term export license, once can be used for many times
• Place empty containers. In this step, the import-export company should pay
attention to selecting clean containers without internal or external damage to
avoid the cost of repair in case of broken containers.
• Preparing goods and packing goods in containers.
• Packaging of goods (unless goods have been packaged before delivery to the
forwarder)
• Consultation as well as issue of buying insurance for goods to avoid risks
and in accordance with the terms of the incoterm in the contract.
• Store and weigh and measure the shipment.
• Access customs software to declare shipment shipments.
• Delivery to the designated ship.
• Complete the payment of goods value agreed in the contract.Represent the
importers.
1.1.3.2. Working as an importer
• The parties negotiate and sign foreign trade contracts according to the terms
and laws.
• Please import license for goods at competent authorities.
• Based on incoterm's terms, the parties agreed on the import of goods to
process the shipment in the most accurate way.
• Individuals or organizations may use third-party services to handle some
import-related work.

• After completing the procedures, the goods owner or representative will

transport the goods to the intermediate warehouse or warehouse of the goods
owner to distribute to the market.
1.1.3.3. The power and obligations of the Import-Export Company
The power and obligations of the Import-Export Company
• Except for goods on the List of goods banned from export, suspended from
export, List of goods banned from import or suspended from import as
stipulated in this Decree and other legal documents, traders are allowed to
export, Importing goods does not depend on the business registration.
• Merchants 'branches may export and import goods according to traders'
authorization.
• For conditional export and import goods, when exporting or importing, in
addition to complying with the provisions of law on export and import,
traders must comply with the law on export conditions. , import that goods.
• Goods exported and imported under permits, traders wishing to export or
import must obtain permits of the concerned ministries and branches. Goods
that want to carry out import procedures of course need to meet specific
conditions related to the type of goods to be imported by the enterprise.
• Export and import goods must ensure relevant regulations on quarantine,
food safety and quality standards and regulations, subject to inspection by
competent agencies before customs clearance.
• Goods not on the list of goods banned from export, temporarily suspended
from export, the List of goods banned from import, temporarily suspended
from import and goods not included in the above cases, must only be
exported and imported. export at border gate Customs Branch.
1.1.4. Responsibility of the Import-Export Company
• Organization of production, assembly, processing of products and export to

other countries.

• Import goods directly from countries around the world or receive

authorization to import goods.
• Up to plans and plans to implement import and export activities.
• Breating competitive strategies with companies with similar functions.
• Constantly developing, improving methods and services to save time and
cost for yourself and customers.
• Complete all the terms agreed in the contract and related documents.
• Complete business laws included in the contract as well as the country of the
parties.
1.2. Legal basis export/import cargo at seaport
In business in particular and import and export activities in general,

businesses need to understand and comply with the laws and circulars issued by the
relevant governments so that the transport of goods is not postponed or Canceled. In
addition, understanding the law will help businesses to carry out business activities
in a smooth, uninterrupted manner, making their business reputation better for
domestic customers as well as international customers. To achieve that, import and
export enterprises need to pay attention to some of the following laws:
The provisions of Customs related laws were created in 2014

• Decree No. 187/2013 / ND-CP
• Circular No. 22/2014 / TT-BTC
• Circular 128/2013 / TT-BTC
• Circular No. 172/2010 / TT-BTC
• Tax laws in import and export activities were announced in 2005
• The Law on Value Added Tax was announced in 2008
• The special consumption tax laws were revised in 2014
• Decision No. 36/2011 / QD-TTg on adjusting tax rates for old cars under 15
seats
• Circular No. 83/2014 / TT-BTC Guiding the implementation of value added
tax according to the List of Vietnam imported goods

• Special consumption tax for some goods was issued in 2008

• Circular No. 06/2011 / TT-BYT
• Circular 103/2015 / TT-BTC
• Circular 39/2014 / TT-BTC Guiding the implementation of Decree No.
51/2010 / ND-CP dated May 14, 2010 and Decree No. 04/2014 / ND-CP
dated January 17, 2014 of the Government on goods and service provision
invoices
• Official Letter 1332 / TCT-NV2 of the General Department of Taxation on
goods authorized for import and export
1.3. The concept of financial statements
Financial report is a type of overview report on all aspects of a company's

money. It includes assets, equity, loans with or without payment, especially
business results. When we look at a financial report, we can easily see the
company's business situation, thereby making adjustments to help improve the
company's business results. The financial report is also a means to show investors
and shareholders, banks see the company's profitability, then make investment or
lending decisions.
The financial report will show details of business information such as:
 Existing assets (real estate, cash, money in bank accounts, ...)

 Debts that have or have not been paid
 Information on profit margins
 Value of revenue, other sources of income, types of production and business
costs.
Financial report is a type of report that shows an overview of a business. Just

relying on a financial report can also see whether the company's business is
positive.
The financial report is a basis for analyzing, researching, exploring aspects of

a company's business and, most importantly, making regulatory and administrative

adjustments. A financial report containing perfect data will attract investors or

banks who want to invest or lend more. Optimize the ability to use capital, increase
profits for businesses. Therefore, the financial report has the attention of many
people such as the board of directors, banks, senior management agencies and all
employees in the enterprise.
1.4. Criterias for evaluating business efficiency
1.4.1. Import-Export tax
Import and export taxes are independent of Vietnam's tax laws and countries
around the world.
The name of the law is the export and import tax that regulates different
taxes, including export and import taxes.
The important purpose of export and import taxes is the requirement to

protect domestic production but cannot apply administrative measures (non-tariff
barriers), the export and import tax is a useful tool. Best performance of this
requirement.
Currently, due to the requirements of the market economy and the trend of
international integration, the state has also issued additional anti-subsidy tax and
anti-dumping tax (issued by the Standing Committee of the National Assembly ). In
fact, these are two additional taxes for export and import taxes in cases where there
is evidence that the goods have state subsidies or dumping acts for unfair
competition.
tax Import
actual
calculation Export
goods
value per
quantity Tax
unit
Figure 1.1: Import-Export Tax Formula

1.4.2. Value Added Tax
Value-added tax (VAT) is an indirect tax calculated on the added value of

goods and services arising in the process from production, circulation to
consumption.
Subjects liable to VAT are goods and services used for production, business
and consumption in Vietnam.
VAT payers are all organizations and individuals that produce and trade in
goods and services subject to VAT in Vietnam, and other organizations and
individuals that import goods subject to VAT.
The basis for calculating VAT is the tax calculation price of goods and
services and the tax rate of such goods or services. Taxable prices are specifically
differentiated in each case. Tax rates are set at three levels: 0%, 5% and 10%.
The payable VAT is calculated according to the tax deduction method or the
direct calculation method on the VAT.
The Value The value

The VAT
of the of goods
percentage
shipment with VAT
Figure 1.2: Value Added Tax Formula
1.4.3. Actual price (original price) of imported goods
According to Vietnam Accounting Standard No. 02 (VAS 02) - Inventory,

the actual price of imported goods is determined according to the original price,
which is the price calculated according to the amount of money or cash equivalents
paid, payable to have get the number of imported goods. The formula is as follows:

All kind of
The price of taxes and
Actual price
purchase other added
costs
Figure 1.3: Actual price (original price) of imported goods Formula

CHAPTER 2: REALITY OFIMPORT ACTIVITIES IN HAI

AN COMPANY, HAI PHONG BRANCH
2.1. Background Information
2.1.1 Details of Hai An Company
• Transaction name: Hai An Company

• Headquarters: No.1B, Tran Hung Dao street, Minh Khai ward, Hong
Bangdistrict, Hai Phong city.
• Tel: +02253 810 516
• Website: hamasco.com
2.1.2. The history of Hai An Company
• Hai An Marine Trading and Services Company Limited was established on

December 8, 2000 with its headquarter located at 33A1 Dinh Bo Linh, Ward
26, Binh Thanh District, Ho Chi Minh City. HCM; Its main business is
trading materials and equipment in the marine industry; Brokerage and
provision of services for ships.
• On April 23, 2001, the first branch of the company was officially established
at 1B Tran Hung Dao, Hong Bang Dist. Hai Phong. By October 2002, Hai
An changed its business license.
• On July 24, 2003, the Board of Directors agreed to set up a subsidiary named
SRC Marine Engineering Co., Ltd, headquartered in Lot A10B Zone A,
HiepPhuoc Industrial Park, Nha Be Dist. Steel cable slings, chains, cranes,
crane hooks, clamps, piling, as well as other lifting and handling tools.
• As of February 19, 2004, in order to facilitate the business of the Company,
the entire Board of Members has decided to relocate Hai An Company's head
office to No. 51 Dien Bien Phu, Ward 25, BinhBinh District. Thanh, TP.
HCM.
• From a small company, initially only four employees, now the staff of
HAMASCO GROUP has increased to 32 people.

• In particular, in 2008, our company once again changed its head office,
officially moved to address 250 No. D5 Street, Ward 25, Binh Thanh
District, and stabilized to this day.
• On December 5, 2008, the Board decided to set up a second subsidiary
named Hai An Flow Technical Co., Ltd.
2.2. Organizational structure
Figure 2.1: Departments of Hai An company
2.2.1. Control Board
The highest organizational management in the company, follows

shareholders elections, headed by chairman and CEO. Chairmanis responsible
before the law for all its business activities. CEO is the person who takes
responsible before the Board for the administration of all activities in the company,
implementing business plans, managing the use of resources and responsibility the
financial performance of the company.
2.2.2. Broad of Directors
Broad of Directors currently consists of a director and a deputy director.
• Director: as head of the company, director is responsible for the general

administration of all activities and responsible to the law of all problems in

the company. Director is allowed to propose plans on the organizational

structure and rules of internal management such as appointment, dismissal or
demotion the management positions within the company.
• Deputy Director: Deputy Director is in charge of building the business
strategy, selecting sources, suppliers and summarizing the business situation
of the company advising the director.
2.2.3. Accounting Department
They organize notes, reflect and account for economic transactions to ensure
that the company supplies adequately, accurately and opportunely the data,
accounting information and accounting reports for inspection, monitoring,
management of assets and business results of the company. In addition, accounting
department also analysis and propose the measures to manage the economy and
finance.
2.2.4. Import and Export Department
Manage the foreign operations, analysis, market expansion and product

introduction and exploitation of domestic and imported raw material supply,
production of goods for business and management activities for export products
produced by the company, distributor.
2.2.5. Planning and Marketing Department
Advising, planning, production-oriented business development company.

Perform statistical tasks, synthesis and assessment report on the operation of
business production periodically or irregularly, to meet the requirements of the
management company.
2.2.6. Personal – Administration Department
In charge of personnel issues, wages, the mass cultural activities. They

advise the board of directors of the management and movement of business
operations.

2.3. Resources
2.3.1 Real Estate and human resources of Hai An Company
• The main transaction office at 51 Dien Bien Phu, Ward 25, Binh Thanh
District, Ho Chi Minh City. There are currently 16 employees.
• 3,200 square meters workshop and warehouse in HiepPhuoc Industrial Park,
Ho Chi Minh City.
• Branch office in Hai Phong city, including 1 director, 3 staff.
• Two trucks (crane) to carry goods.
Figure 2.2: Headquater of Hai An Company
2.3.2. Equipment of Hai An Company
• A 15-seat car for sales/technical staff.

• A four-seat car for sales staff/technical staff.
• Computer system with high speed fiber optic internet network for work.

Figure 2.3: Factory of Hai An Company
2.4. Vision and mission
2.4.1. Vision
Become a leading, reliable and innovative company in providing products,

services and safety solutions to meet international standards for oil and gas,
maritime, industrial and construction industries. in Viet Nam.
2.4.2. Mission
 Healthy in working with customers, think of the safety and benefits to

customers first.
 Provide customers with quality products from reputable manufacturers in the
world with competitive prices, good customer service and fast.
 Provides quick and complete product-related documentation as well as user-
friendly manuals.
2.5. Business activities
Besides the import and distribution of marine materials such as steel cable,
lock, chain, hook, .... Hai An company also has related services such as:
Press lead cable
Machining of lead-tip cable with hydraulic press 600 tons and 1500 tons.

With two cable-lead hydraulic presses (one unit of 600 tons and one 1500
tons), Hai An Company is capable of processing and pressing lead cable of steel
cable sizes from 8mm to 72mm brought by customers. Hai An Company will
supply aluminum tube with Alu Ferrules and cable / leaf groove (thimble)
corresponding to the cable brought by the customer.
After finishing the lead press, Hai An Company will carry out the safety test
of the cable end and lead the lead with 200 ton load test machine connecting and
controlling with modern computer. Load test results will be shown in data and
graphs.
Figure 2.4: Workers Press the lead of cables
Cable socket mounting glue
Hai An Company provides all kinds of sockets and performs plugging of

sockets into cables according to customers' requirements. Hai An Company uses
sockets of De Haan (Netherlands) and Dai Chang (Korea). Common socket types
include: Open Spelter Socket, Close Spelter Socket and Pear (Nose) Socket. The
glue used to attach the socket to the cable is the famous US Wirelock brand,
ensuring a strong bond between socket and cable.

Figure 2.5: Worker is Pouring the socket
Pull the load test
With a 200-ton load test machine connected and controlled by modern

computers, Hai An Company provides reliable load testing service for lifting
supplies such as steel cables, chains, ma-gir, and hook. , puly, ring ring, etc. The
load test results will be both in the form of the data and graphically indicating the
load capacity and the expansion (stretching) of the pull test material.
Hai An Company load test tractors can carry out the following types of test
pulls:
• Proof Load: pulls the load to be tested, the machine stops and automatically
stops trying
• Hold Test: the test force pulls up to the required load and maintains such
stable force for a period of 5 minutes.
• Breaking Test: pulls to destroy the object to be tested to know the load that
destroys that material.

Hai An Company load test tractors are annually verified and certified by
Quality Measurement Technology Center 3 (QUATEST 3) to ensure a 99% test
load accuracy. Therefore, when customers need a certificate of download
certification certified by a third party are international registry agencies such as
DNV-GL, Lloyds' Register, ABS, Vietnam Register, etc. and invite them to witness
Witness is very easy to accept.
Figure 2.6: Worker is testing the sling load
Adopting cable hands and PP wire
The Hai An Company implements flanking of steel cable and PP wire (soft
eye or cable groove liner) according to the length of customer request.
Steel cables of sizes from 8mm to 64mm.

PP wire sizes from 10mm to 100mm. Head of PP wire after flanking with
protective cloth cover. Hai An Company has special cable trims (thimble)
specifically for PP wire.
Figure 2.7: Workers are making handmade PP wires
Loadcell rental
Hai An Company leases Loadcell (Dynamometer) of 50 tons, displaying the

results on a handheld LCD monitor via a wireless remote connection, which is very
convenient when using crane tests. Accompanying Loadcell is 2 55-ton ma-
equivalent. Hai An Company has technical staff to manipulate tenants if necessary.
Loadcell of Hai An Company is audited every year and has a certificate of

Quality Measurement Technology Center 3 (QUATEST 3).

Figure 2.8: Equipment for checking the load
In addition to steel cable products, Hai An Company also sells other products
such as:
GUNNEBO
Hai An Company specializes in providing strictly controlled quality lifting

nipples from GUNNEBO (Sweden). Gunnebo Masks are manufactured, tested
according to European high standards (EN 13889) and US (US Fed. RR-C-271) as
well as DNV certified DNV 2.7-1 standard for lifting. offshore lifting. All the maña
supplied to the customer are accompanied by the test certificate and manufacturer's
materials (Gunnebo Certificate) according to EN 10204 type 3.1.
PP, Nylon rope
As a leading company specializing in supplying PP wires for oil and gas and
marine industries in Vietnam since 1998, Hai An Company is always available in
warehouse of all kinds of PP wire of Korea as follows:
• PP wire used for tying ships or tug boats, 8 strands, 200 meters long / roll,
sizes from 40mm to 100mm
• 2-component PP wire (PP and PE), 8-strand braided, specialized for oil
tankers

• PP Superdan wire, 3 strand braided, specially used for sling rope lifting or
woven net lifting outside the port with common sizes from 10mm to 32mm.
Currently, Hai An Company is an agent for two major Korean PP wire

manufacturers, DSR and Manho.
PP wires supplied by Hai An Company when delivered are accompanied by

Lloyd's Certificate of Registration (originals on each roll) and certificate of origin
(C / O) issued by the Korean Chamber of Commerce.
Figure 2.9: PP
Fabric cable (Websling, Roundsling)
Hai An Company is an agent of Eastern Ind manufacturer of Korea. We are

always available in warehouse of fabric cables (Websling) as follows:
• Manufacturer: Eastern Ind (Korea)

• Eastern wire websling is manufactured according to EN 1492-1 standard
• Wire load (SWL) from 1 ton to 25 ton
• Length from 1 meter to 12 meters
• All have Inspection Certificate and Certificate of Origin (C / O) issued by the
Korean Chamber of Commerce.

In addition, at the request of customers, Hai An Company also provides

loads of more than 25 tons. However, with the lifting capacity greater than 25 tons,
the manufacturer recommends using the Roundsling wire.
Figure 2.10: Steel Sling
Alloy chain lifting
Hai An Company is the official dealer in Vietnam of 2 major alloy chain

manufacturers in the world: Gunnebo (Sweden) and PWB (Australia).
SRC is always available at the level 8 alloy chain warehouse (Grade 8, Grade
80) with the following specifications:
• Manufacturer: PWB (Australia), Gunnebo (Sweden)

• Standard: Australian standard AS 2321, EN standard EN 818-2

• Only Hai An Company has a full stock of popular sizes: 8mm, 10mm,
13mm, 16mm, 20mm, 22mm, 26mm and 32mm.
On the body of the alloy chain Gunnebo and PWB have embossed symbols
to identify genuine goods.
Alloy chains supplied by Hai An Company are fully certified by the

manufacturer's test load test and certificate of origin (C / O) issued by the Country
Chamber of Commerce.
Figure 2.11: Alloy chain lifting
2.6. Orientation and future plans
Our development strategy for 2015 – 2020 is to concentrate on market. We

call this strategy “Four Markets Policy”. Based on market, we prior to deal with
four major strategic solutions as below:
Market Development:

Properly analyzing, evaluating market trend, properly evaluating potential

partners to select and find right direction of trade promotion. On that basis, we
actively prepare facilities, the conditions for customer’s evaluations, sources to
satisfy market.
Promoting activities of fashion design, actively branding the Hamasco’s

image. Completing the value chain from design -supply – production –
consumption.
Promoting the development of FOB, ODM across Hamasco’s system to

catch the Free Trade Agreements.
Domestic trade promotion will be strengthened and increased to higher

professional level by preparing tender bidding documents, competitive costing to
win big contracts.
Investment in Accordance with the Market:
Our success or failure of investment is not only depended on the capital but
also the market. Investing decisions must be analyzed on the basis of deep market
analysis, competitiveness and administration factors.
Building key product structures through the identification of divisions/

specialized products as the basis for the promotion, market development.
Promoting the autonomy of investment of system, strengthening the links

between internal and external units to create focused power, form large and
competitive linked chains.
Management in Accordance with the Market:
Manage production costs, analysis of sales, profit/lost, wage because this is

an important factor related to human. Management in accordance with the market is
to ensures table quality at high level to reduce the rate of repair. It is also to improve
method from processing to FOB, ODM.
Studying and improving production model to obtain a new dynamic and

effective model: centralized cutting, intelligent inventory management…

Studying to apply high-tech on planning management, order management,

salary…
Studying to combine with customers to invest in ERP system (Enterprise

Resource Planning).
Training and Recruiting in Accordance withthe Market:
Building appropriate remuneration in order to attract high-quality human

resources (especially at divisions of trade promotion, sales). Besides, we
continuously train and develop our existing workforce.
Recruiting some core position such as manager, high-quality foreign experts.
The Hai An Company will be the partner for the making of the known brands
such as D.S.R, Gunebo, Tokyo Rope, Wirop, Chung Woo,…
2.7. The Process of Import
Firstly, I would like to mention the characteristics of sea transport with the
following advantages:
• Shipping by sea can serve to transport any kind of goods of all sizes.
• Most sea transport routes are natural and reasonably exploited without loss of
construction, repair or installation fees.
• Transport capacity of the shipping industry is huge.
• Sea transportation is not limited as other forms of transportation.
• Air transport will have limitations on the size and volume of the shipment,
transporting to the railway will have time restrictions or as transportation by
road will limit the amount of shipment and the time with long routes.
• Because the roads are natural, there are no costs such as maintenance,
construction or renovation.
• Ability to use sea transport by high-specialized containers.
• The ability of transporting goods of large vehicles, carrying various types of
goods in relatively large quantities.

• Shipping rates are lower than other forms. Sea shipping is very suitable for
high volume shipments.
Basically, the import process has five main steps that we need to know:
Step 1: Negotiating, agreeing and signing commercial contracts between the

two parties
Determining the negotiating situation is to explore and examine the

negotiating context and related issues, noting the key aspects affecting the
negotiating relationship, establishing common goals for relations. negotiation,
which is the specific benefit that the parties are all about.
Planning negotiation is the work of preparing directly for negotiation such as

organizing the collection and processing of information, developing plans and
negotiating programs, practicing the implementation of specific negotiation
tactics…
Organizing negotiations is a dialogue between two or more parties to discuss

and reach agreement on some or all of the issues raised by the parties before.
After having agreed on the basic issues at the negotiation stage, the parties
signed a contract to purchase international goods. When signing, the parties need to
comply with the signing rules, which are equality, voluntary, bilateral agreement,
and compliance with international laws and practices.
In the international sale and purchase transaction, the parties may apply
various contract signing methods such as direct signing, indirect signing, written
signing or by email.
• Direct signing is the direct meeting, discussing and negotiating the contents
(terms) of the contract and signing the contract together.
• Indirect signing is the signing of contracts through means of communication
such as correspondence, telegraph, telex, fax, telegram, email ... The process
of negotiating and signing contracts by the method of cockroaches including

two stages are Offer (Offer) and Acceptance (Acceptance): Offer includes
active offers, passive offers, free offers (Free offer), specific offers ( Firm
offer); Acceptance must meet the conditions submitted by the offerer -
unconditional and sent within the validity period of the offer.
Depending on the specific conditions, the signing of the contract may be

conducted in one of the following forms: The two parties sign the sale and purchase
contract (documents are usually drafted according to a common uniform form); The
buyer confirms in writing that the buyer has agreed to the terms of the free offer
letter; The seller confirms in writing to accept the order of the buyer, both parties
exchange with a confirmation letter that the terms agreed in the order have been
reached (which clearly states what has been agreed). .
The time of signing a contract is very important because by this time the
contractual relationship between the parties is established and if the contract is
consenting, it will give rise to legal rights and obligations. tie the sides together.
Step 2: Receiving and Checking Documents
Employees of Company received from the exporter and checked the

accuracy and appropriateness of the original documents, faxes and copies include:
• Commercial Invoice
• Contract
• Bill of Lading
• Packing List
After receiving Arrival Notice from marine shipping agents, Logistics

Company notifies Hai An Company and then Hai An Company’s employees would
come to Logistics Company to receive letter of authority. Logistics Company will
provide Hai An company the letter of authority (This paper is a delivery order)to
make customs declarations and receive commodities at port. Delivery staff needs to
check essential information such as: name of vessel, container number, quantity,
number of trips.

Step 3: Making Customs Declaration
• Enterprise declares electronic customs declaration in

accordance criteria and standard forms and sent to
Step 1 the system of customs.
• Enterprise receives feedback from the customs.

Step 2
• Enterprise prints customs declaration on their system

Step 3 to take delivery of goods.
Figure 2.11: Making Customs Declaration
Making Customs Declaration is an important step in the unloading process.

If there are any errors, it would bounce back and lose time, affecting the handling.
There are 2 ways to declare: by hand and electron. Currently, most businesses
choose to report electronically. Staffs complete information on ECUS5 – VNACCS
software and then send to Customs through internet networks. Customs will give
back the receipt number, customs declaration number and the result of ramification,
consists of 3 levels:
• Green Lane: To spare inspection of documents and actual goods. Goods are
accepted by the customs on customs clearance.
• Yellow Lane: To spare inspection of actual goods but customs will check
detail profile. If asked to amend and supplement the documents, enterprise
implements on rules and presentation paper documents to the customs, and
then they will check. If the goods are approved customs clearance, the next
step is that takes delivery of goods. If customs require inspection of goods, it
will be red lane.
• Red Lane: Enterprise shows paper documents and goods, and then customs
will check. Goods in this lane have complex document, import policy is

unclear, difficult to determine the code, quality, origin or enterprise has been
sanctioned for acts of smuggling or tax evasion fraud.
Then, enterprise prints the customs declaration and prepares the transport
documents to do customs procedure clearance.
Delivery staff prepares carefully the documents for customs procedure

clearance, including:
• The Letter of Authority of Logistics Company.

• Foreign Trade Contract
• Customs Declaration
• Commercial Invoice
• The Detail List of Goods
After preparing completely the documents, forwarders go to port to show

customs declaration. Staff forwarder come to the Customs, which was heralded
through network transmission in the part of ramification results. They are guided to
make customs procedures, submit a set of documents and do customs clearance
procedures. After that, forwarders fill in received form and hand over documents to
the customs, and then wait until they check the documents completely.
This shipment is determined as Green Lane on the computer. Delivery staffs

wait to receive the declaration after completing customs fees.

Figure 2.12: ECUS5 – VNACCS Software
Step 4: Preparing a set of records to Customs Branch
Import-Export Staff of Hai An Company must prepare a set of records to

Customs Branch to know who receiving and processing the goods before Hai An
Company pay some kind of fees.
Step 5: Receiving and Checking Shipment
To receiving goods, Company’s staff must has Declaration Of Imported

Goods (clearance)”,bar codes list and go to the warehouse monitoring area to
continue through the monitoring area. Then, Import-Export staff brings Delivery
Order (received from carrier in the first step) of Carrier and bar code list which
confirmed by customs to the order changing room of the warehouse. Finally,
Import-Export staff completes some kind of fees before receiving the export ticket.
After that, that staff brings it to the warehouse, get the goods and transport the
goods to warehouse of company.

CHAPTER 3: RESEARCHING THE BUSINESS EFFICIENCY

OF HAI AN COMPANY, HAI PHONG BRANCH
3.1. Evaluating decisive factors in choosing suppliers of Company:
Based on the available information as well as the additional information

mentioned in chapters 2 and 3, I will evaluate and select the best quality and best
product and then plan to import steel cable D.18mm x 1000 meters/ reel and
transport to the warehouse of Hai An Company, Hai Phong Branch through
calculating and commenting on key factors including:
• Introduction of Suppiers
• Price and Profit
• Mode and Time
• Certificate of goods
• Demand Of Marine Materials
3.1.1. Introduction of suppliers
3.1.1.1. YoungHeung Company, SaiGon Branch:
Youngheung Iron & Steel Co. Ltd, has developed as the leader of shipping
material industry through continuous technological innovation since its
establishment in 1977 and was merged to Korea Iron & Steel Co. Ltd in December
2004. In order to improve governing structure and enhance responsible business
management system, Youngheung Iron & Steel Co. Ltd became affiliate-separated
from KISCO Holdings Group in April 2011 and now Youngheung Iron & Steel Co.
Ltd is in the second stage of take-off Our main products are wire ropes, hard drawn
steel wire, CD-bar, PCW, PCWS and Youngheung Iron & Steel Co. Ltd
collaborated with automobile and shipbuilding industries and contribute some
portion to national basic industries and Youngheung Iron & Steel Co. Ltd are now
developing as global corporation with exports to USA, Europe and Asia and abroad
and diversification of abroad production including China.

Figure 3.1: Label of Youngheung Company
3.1.1.2. Manho Company, Korea:
Since established on 1953, through the tireless technology Innovations and

research and development for more than 60 years, Manho Rope & Wire td. has
grown up as the manufacturer of the best-quality products of hard drawn steel wires,
plano wire, stainless steel wire, CD BAR, PC steel wire and strand, HIBON,
elevator rope, galvanized steel wire strand & steel wire for ACSR, wire rope and
fiber rope Based on the technology and experiences accumulated so far, Manho
Company is now exporting our products to more than 80 countries worldwide. All
products supplied by Manho are produced through the strict quality management
system compliant with IS09002 and JIS Manho Wire& Rope, Ltd. considers
satisfying its customers and gaining their trust by manufacturing the highest quality
products as the very soul of our company With our specific needs for our customers
in mind, Manho puts forth our best efforts through research and development to
make contribution to the industry and produce the world-best products in our
endeavor to become the leader in the industry Manho Wire &Rope, Ltd. has
continued to grow since its establishment earning a supervisor reputation
domestically and internationally as the forerunner in the industry of fiber wire,
special wire, and wire rope. Through continuous technological improvement and
management innovation, and by providing the "best quality product" at the "right
price" with "timely delivery," Manho Company do its best to serve you as our
customers We would like to extend our gratitude to those who keep watching it with

special interest and affection as Manho Wire &Rope, Ltd. grows to become the
industry leader.
Figure 3.2: Label of Manho Company
3.1.1.3. Chonghong Company China:
Since 1995,Chonghong Ltd(from year 2004 till now, registed as Chonghong

Industries Ltd.) has become one of the Chinese distributor specialized in assorted
steel wire ropes, cables sling,rtgging hardware, industrial chain and extreamly hard
material components in optic,machinery,laser,semiconductor etc. The year of 2007
Chonghong Company begin to focus on more assortment sourcing of the wire
rope,stainless steel wire rope, rigging hardware and chain for marine, industrial,
architectural, government, OEM and commercial markets.
Figure 3.3: Label of Chonghong Company

3.1.1.4. Gunnebo Company, Germany:
Gunnebo Company strives to work hard and creatively to become a leading

global supplier of marine equipment and bring a safer future for customers.
To become a leading supplier of marine equipment and supplies around the

world, Gunnebo Company has been trying relentlessly for decades.
For Gunnebo, there is no need to say that the company must strive for
sustainability in every aspect of business. Gunnebo Company always aims to build
and develop a long-term, ethical and profitable business but still ensures safety for
the environment. Gunnebo Company always has a long-term plan and tries to work
to achieve it.
The Gunnebo Company has been building a progressive sustainability

agenda since 1997. And we will continue to develop a close dialogue with our key
stakeholders to ensure that we focus on the proper operation.
Figure 3.4: Label of Gunnebo Company

3.1.2. Price and Profit:
Price
Percent
Supplier (Available in VAT Final Profit
of Profit
Warehouse)
YoungHeung Company,
39.000.000 10% 15% 5.265.000
SaiGon Branch
Manho Company, Korea 59.950.000 10% 15% 8.093.000
Chonghong Company China 28.000.000 10% 15% 3.780.000
Gunnebo Company, Germany 65.000.000 10% 15% 8.775.000
Table 3.1: Price and profit of Hai Phong Branch
Figure 3.5: Offer with a customer
Steel cable is a large cable made of many small twisted-type carbon steel
fibers, creating an extremely durable and sturdy structure, which helps it withstand
extremely large loads so steel cable is the type of wire used. popular in construction,
bridges, maritime, mining ... Due to its wide application, the demand for buying is

huge. In addition to product quality, good prices are an important factor for
customers to evaluate and choose to buy products.
Hai An Company, Hai Phong Branch is a site specializing in distribution of

construction steel cable, steel crane, high quality lifting steel cable in tphcm. Cable
products are imported from countries such as Korea, Taiwan, India, China,
European countries ... with full certificates of product quality, clear origin and The
most competitive price in the market.
In addition to cable products, we also provide specialized accessories with

cables such as bumpers, jacks, cable locks, cable liners, hook hooks, sling cables ...
Based on the price list including VAT and the percentage of profit of the
same roll of steel cable D.18mm, quantity of 1000 meters. The values in the Price
(Available in Warehouse) column include all CIF fees, container fees and other
small fees. We can easily see. Gunnebo Company Cable prices from Germany hit
the ceiling with a price of VND 65,000,000 (not including VAT) while the cable
price from Chonghong Company, China is very cheap which is VND 28,000,000.
There are 2 mid-range options, namely YoungHung Company, SaiGon Branch and
Manho Company, Korea with 39,000,000 VND and 59,950,000 VND respectively.
The price of product from these two suppliers are reasonably priced.
In addition, the table also includes the percentage of interest on the product
as well as the amount of interest on each product the company sells. Thereby we
have more accurate information to consider the best option.
3.1.3. Mode and Time:
3.1.3.1. Import goods from YoungHeung Company, SaiGon Branch:
In this case, Hai An Company - Hai Phong Branch is expected to import 1

roll of steel cable D.18mm, quantity of 1000 meters from YoungHeung Company,
SaiGon Branch. The company will choose the route Saigon - Hai Phong, there are
two ways to transport that shipment are air and road.

In case of using air routes when the company needs to import goods in a
short time. With a frequency of about 18 flights a day from Ho Chi Minh City to
Hai Phong, this is the shortest method, saving maximum time for shipments to Hai
Phong. The company only needs to arrange a suitable flight time from Tan Son
Nhat International Airport to Cat Bi Airport. These referral airlines include Jetstar,
Vietjet Air, Vietnam Airline. Flight time is only about 2 hours. Flights from Saigon
to Hai Phong only take about 1 and a half hours and can receive goods after 1 to 2
days but the cost will definitely be much higher than the road. The company can use
the services of Vietnam airlines such as Vietjet air, Vietnam airline, ....
In case of road use, the company does not limit the time to import goods or
need to import goods in about 4 to 5 days, which may be earlier than expected if
goods are preferred or goods are quickly circulated. Shipping costs of around
2,000,000 VND (including freight handling costs) will certainly be cheaper than air
routes.
3.1.3.2. Import goods from Manho Company, Korea:
In case Hai An Company and Hai Phong Branch choose to import 1000
meters of D.18mm cable (1 roll) from Manho Company, Korea. The sea route is the
best option because other roads will take a lot of time and cost.
Hai An Company, Hai Phong Branch will sign a contract with Manho
Company, Korea. The Incoterm clause will be CIF, this means that the company
only needs to fill in the import procedures and the costs of shipping goods from the
port.
The company may use services of international or foreign shipping lines.

Information for vessel schedule will be available on shipping carriers' websites.
Normally, routes from Busan, Korea to Hai Phong, Vietnam will take about 5 days.
If Calculating Adding time to receive goods, the total time can be up to 1 week.

Figure 3.6: Vessel Schedules of Maersk (Korea – Vietnam)
As we can see in the picture above, when accessing Maersk carrier's website
and searching the route from Busan, Korea to Hai Phong, Vietnam will have 2
schedules for the company to choose. The first timetable is the Moonchild 003S
from Busan Hutchison Terminal on March 30, 2019 and docked at Dinh Vu
Terminal on April 4, 2019. The second schedule is from Hansa Ludwigsburg 901S
from Busan Hutchison Terminal on April 5, 2019 and docked at Dinh Vu Terminal
on April 10, 2019. Thus we can see that the transit time is about 5 days and must be
booked at least 3 days in advance.
3.1.3.3. Import goods from Chonghong Company, China:
When searching for trains from Chongqing, China to Hai Phong, Vietnam.
We can see that shipping lines do not have this route. For that reason we need to
transport the shipment in other ways. According to the survey of Chongqing, China
routes to Hai Phong, Vietnam, there will not be any cruise lines. Instead, it is an air
route with a flight time of nearly 10 hours. And to complete the procedure and
receive the goods can just wait 1 day.

Figure 3.7: Route from China to Vietnam

According to the price from Vinalogs Container Transportation Company,
Air Freight = Unit price x Volume charged. In which the unit price of this company
offered is 10 USD / kg, the volume of cable presented by the supplier is 3861 kg. So
when multiplying shipping costs will be very large.
The other option is to transport the shipment by road, but this option still
costs a lot as well as the time of the company as well as customers who want to
order from this supplier from China.

3.1.3.4. Import goods from Gunnebo Company, Germany:
In the case of Hai An Company, Hai Phong Branch accepts to buy 1 cable of
D.18mm, quantity of 1000 meters of Gunnebo Company, Germany. The best choice
is still shipping goods by sea.
Hai An Company, Hai Phong Branch will sign a contract with Gunnebo
Company, Germany. The Incoterm clause will be CIF, this means that the company
only needs to fill in the import procedures and the costs of shipping goods from the
port.
The company may use services of international or foreign shipping lines.

Information for vessel schedule will be available on shipping carriers' websites.
Normally, routes from Hamburg, Germany to Hai Phong, Vietnam will take about
34 to 37 days. If Calculating Adding time to receive goods, the total time can be up
to 1 week.
Figure 3.8: Vessel Schedule of Maersk (Germany - Vietnam)
As we can see from the picture above, Maersk Shipping has provided
information for 2 trains from Hamburg, Germany to Hai Phong, Vietnam. The first
train of CAP SAN LORENZO 912S from Eurogate Container Terminal Hamburg
on March 28, 2019 to the VIP Greenport Joint Stock Company on May 1, 2019. The
second train is CAP SAN LORENZO 913S departing from Eurogate Container

Terminal Hamburg April 1, 2019 to the VIP Greenport Joint Stock Company on
May 8, 2019.
Thus, if importing goods from this supplier, Hai Phong branch of Hai An
company will have to pay a much larger sum than the remaining choices due to the
value of goods as well as shipping costs too high.
3.1.4. Certificate of goods
Among the four houses also supplying cables D.18mm, the number of 1000
meters per roll, only YoungHeung Company - SaiGon Branch, Manho Company -
Korea, Gunnebo Company - Germany are the sales companies with the certificate of
load test. Particularly, Chonghong Company, China does not have any quality
inspection certificate or load test.
Therefore the purchase from Chonghong Company, China has a very high
risk of goods quality as well as safety for customers.
In the event of an accident it is also difficult to bring this supplier to court to

ask them to take responsibility and compensate for the damage. There is no any
commitment about the load of cable winding when the company purchases.

Figure 3.9: Certificate of origin

Figure 3.10: Certificate of the product
CO indicates the origin of the goods produced in a particular territory or

country.
Knowing the origin or origin of the goods will help the importer determine
whether the goods are eligible for special offers or not. For example, if the goods
are from ASEAN countries, have C / O form D, they may be entitled to special
preferential tax, which means that the tax is lower than the level without C / O.
In addition, some C / O products will decide whether the goods from that
country are eligible to enter Vietnam. For example, at the beginning of 2014, used
machinery and equipment originating from China were not imported into Vietnam,
as stipulated in Official Letter No. 3016 / BKHCN-DTG dated September 24 / 2013
of Ministry of Science and Technology.
C / Q is a document that confirms that the quality of the goods conforms to

the manufacturer's standards or international standards.
As we can see on the Certificate of Quality of the cable coil imported from
Korea. This includes information on diameter, length of cable winding, specific
number of cable winding, twisted direction of cable. In particular, in this certificate
also contains information about quality testing such as Breaking Strength, Tensile
Strength, Break Force and the ratio of chemical elements that make up the cable
winder. Since then, the house as well as the customers can estimate the load
capacity of the cable and improve the safety of workers as well as ensure the
maritime activities are going well.
3.1.5. Demand Of Marine Materials
With the outstanding progress of science and technology, maritime

technology of a ship that has made outstanding steps, the maritime people are no
longer making up their minds to design the route before the journey with
information disordered related to safety, efficient running of ships, choosing
optimal route calculation, correcting necessary information, instructions on the way,
with a map of the sea beside me and ... With economic development world economy
- politics - society, the shipping industry is no longer limited in one area but has
spread to the whole world, the volume of transport is increasing, the proportion of
shipping also increases and currently reaching 90% of freight volume worldwide.
The number of ships soared, the size, tonnage, speed and density of boats also
increased rapidly.
Thus we can see that, almost all goods in the world go to sea to come to
different countries in the world, leading to the types of equipment, machines, tools
to support goods activities. Customs overload, the quality of the device will also be
reduced. And to ensure safety for workers at seaports where regular marine
equipment is used, port managers often plan to check quality as well as replace
equipment and supplies. Maritime to help port operations flow smoothly as well as
maritime safety.

YoungHeung Company, SaiGon Branch:
Youngheung Company has a factory and a branch in Saigon, Vietnam.

Therefore, the cost of this product is much lower than that of importing goods by
sea because it does not take much other costs (shipping, import tax, cost of testing
in Korea, ... ). This helps the customers to be satisfied and choose Youngheung
Company products because of reasonable prices as well as quality assurance.
Figure 3.41: Distance between Saigon and Hai Phong

Manho Company, Korea:
Similar to Youngheung Company, Saigon Branch is a Korean enterprise

specializing in providing marine equipment and materials but Manho Company
does not have any headquarters in Vietnam. Therefore, customers who want to
contact and order Manho Company products, Korea take much more time. In return,
the quality of marine supplies produced with technology as well as workers in
Korea will produce a much more quality product. Therefore, large customers like
seaports are not afraid to spend a large amount of money and wait for a longer time
to get quality cables for lifting and lifting containers.

Figure 3.12: Distance between Vietnam and Korea
Chonghong Company, China:
Small private businesses often do not place too much emphasis on certified
products, of origin because most of these products are manufactured and imported
from China by road, without a test certificate. Download and most are cheap and
always available on the market, typically Chonghong Company, China. Besides, the
demand of this item is low because the value of safety and economic value is not
high. In the event of a maritime labor accident, the seller will not be responsible for
compensation and it will be the responsibility of the buyer and the user.

Figure 3.13: Border Vietnam borders China
Gunnebo Company, Germany:
In these four suppliers, Gunnebo Company, Germany is the most trusted

company in quality. But goods imported from Germany to Vietnam will have
weaknesses, which is the cost of cables from Germany is always the highest along
with rigorous certificates of occupational safety. Besides the long time of importing
goods, customers who want to buy cables imported from Germany will have to
book in advance for the whole month. Not to mention that in case the goods are
postponed or not returned at the right time, it will be a big loss for big customers

like seaports where the amount of goods needs to be lifted regularly and without
pause.
Figure 3.14: One of Route frome Vietnam to Germany

3.2. Evaluating businessefficiencies of Import activity with Suppliers:
Mode and Certificate of

Supplier Price and Profit Demand
Time goods
Road way
YoungHeung 39.000.000 VNĐ
Company, (4 -5 days)
(Profit: 5.265.000 Available Very High
SaiGon
Branch VNĐ) Very Low
cost
Sea way
Manho 59.950.000 VNĐ (5–7
Company, (Profit: 8.093.000 days) Available Very High
Korea VNĐ) Medium
cost
Air way
Chonghong 28.000.000
(1 day)
Company, (Profit: 3.780.000 Not Available Low
China VNĐ) Very High
cost
Sea way
Gunnebo 65.000.000
(> 1 month)
Company, (Profit: 8.775.000 Available High
Germany VNĐ) Medium
cost
Table 3.2: Business efficiencies
According to the table above, it is easy to see the profits from Manho
Company, Korea and Gunnebo Company suppliers, Germany that give the company
the highest of 4 supplier choices. Followed by Youngheung Company, Saigon
Branch and the least profitable supplier, Chonghong Company, China.
In terms of transportation mode and time, the two most profitable companies
for the company are Manho Company, Korea and Gunnebo Company, Germany
have the same shipping method with low and middle cost. meanwhile Youngheung

Company, Saigon Branch has the most easily accessible method due to being in the
same country. Particularly Chonghong Company, China, there are no shipping lines
offered, instead it is air way with a very high cost and hard to access, or road but
must wait for a long time.
About Certification of product, Chonghong Company, China does not

provide any certificate of tensile testing while the other three suppliers all have
certificates attached.
Since 90% of goods in the world in general and Vietnam in particular are
traded via sea, it can be seen that the lifting equipment as well as the steel cable for
the equipment on the cargo ship are always in active status. with high intensity. This
has led to seaports as well as ship owners always checking and replacing cables to
ensure labor safety as well as maintaining activities related to seaports. Due to the
high transportation costs and profitability as well as low safety and reliability, the
demand for imported products from China is low. The supplier of Gunnebo from
Germany gives the company profit, safety and reliability, but it takes time to import
goods. Finally, two suppliers from Korea, Youngheung Company, Saigon Branch
with average profit, time to import goods about 4 to 5 days with low cost and
Manho Company, Korea with high profit, cost Average shipping and time to import
goods about 5 to 7 days.
Based on the above analysis, it can be seen that these suppliers are typical of
customer needs. If customers want to buy goods at low prices, they will be exposed
to safety risks. If customers want the best product quality, they have to spend a lot
of time and cost. Finally, if customers want products that both bring high profit, low
cost and transport time, high safety and reliability, they can consider two suppliers
from South Korea, Youngheung Company. , Saigon Branch and Manho Company,
Korea.
In addition, the company should pay attention to the time of payment. There
are several suppliers ready to give importer a long time to pay the price of goods
while other suppliers do not. Therefore, Hai An company can consider the supplier

which sell product with high price but they let the importer pay the price for a long
time. This case definitely give importer enough time to get the money from sell
product and pay the bill from exporters

CONCLUSION
Import and export is one of the main sectors of countries with seaports like
Vietnam. The amount of goods through seaports accounts for 90% of the world's
goods. That leads to the increasing demand for import and export and use of steel
cable products.In the dissertation, we have identified two objects, the first is the
main suppliers in the world representing different segments that have been
evaluated through four main elements: Price and Profit, Mode and Time. ,
Certificate of goods, Demand Of Marine Materials. The other is to assess the
business performance that suppliers provide to Hai An Company, Hai Phong
Branch in importing activities through analyzed information. This shows that the
business performance of the company depends very much on the exact analysis of
the price factors, the method of importation, the cost and time of importation, the
demand for imported goods. Through the analysis, we can easily select the
supplier's products in accordance with the factors that the company as well as the
customers set out. The import of such suitable goods will help the company
estimate the delivery time for customers, the time and cost of storage to avoid
inventory as well as ensure the goods are available or at the right time to deliver. for
customers, affirming the company's reputation and responsibility for customers. The
percentage of interest rate is only about 15% inclusive of VAT for all items to have
a competitive price in the market, so the higher the value, the more profitable the
company will bring. In addition, the value of goods also comes with quality
accreditation from reputable agencies in the world. If Hai An Company and Hai
Phong Branch continue to provide high quality, good quality products from Korea
and Germany as well as find suppliers with quality products corresponding to The
lower the value, the more profitable the company will have and a more competitive
advantage for its competitors in the future.

REFERENCE
1. The suggestion from the president and import-export staff of Hai An
Company, Hai Phong Branch
2. The supplier’s list from Hai An Company, Hai Phong Branch
3. John J. Capela (2018). DEFINING THE IMPORT/EXPORT BUSINESS.
Retrieved from Dummies:
https://www.dummies.com/business/sales/defining-the-importexport-
business/
4. Jason Harris (2019, 08 March). Marine Composites Market Size, Demand,
Volume, Growth ratio, Industry Challenges and Future Forecasts to 2024
retrieved from https://marketresearchledger.com/2019/03/08/marine-
composites-market-size-demand-volume-growth-ratio-industry-challenges-
and-future-forecasts-to-2024/
5. Net Compisites (2013, 04 June). Composite Insights Assesses Demand for
Composites in the Marine Industry retrieved from
https://netcomposites.com/news/2013/june/4/composite-insights-assesses-
demand-for-composites-in-the-marine-industry/
6. A. Amini and P. Zolghadr(2014). Learn more about Marine Industry.
Retrieved from Sciencedirect:
https://www.sciencedirect.com/topics/engineering/marine-industry

APPENDICE






Dissertation: International Business and Logistics

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MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: CHU GIA HUY

RESEARCH ON EVALUATING MARINE MATERIAL

HAI PHONG, April/2019

STUDENT: CHU GIA HUY

RESEARCH ON EVALUATING MARINE MATERIAL SUPPLIERS

Supervisor: Nguyen Huu Hung

HAI PHONG, April/2019

In addition to shipping by sea, activities related to delivery, transportation to

As one of the leading companies in the marine equipment sector, Hai An

If violated, I am solely responsible for and bear the punishments of the

Chu Gia Huy

Chu Gia Huy – IBL0502 i

Chu Gia Huy – IBL0502 ii

VIETNAM MARITIME UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM

INTERNATIONAL SCHOOL OF EDUCATION Independence - Freedom - Happiness

Hai Phong, ……………… 201

REMARKS ON THE DISSERTATION BY THE SUPERVISOR

Major: International Business and Logistics

Supervisor name: ........................................................................................................................

1.2. General results of the dissertation:

2. Capability, attitude and spirit of the student during the process:

Chu Gia Huy – IBL0502 iii

Grade: …………/100 (in words: ………………/hundred).

Full name and signature of the supervisor

Chu Gia Huy – IBL0502 iv

VIETNAM MARITIME UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM

INTERNATIONAL SCHOOL OF EDUCATION Independence - Freedom - Happiness

Hai Phong, ……………… 201

REMARKS ON THE DISSERTATION BY THE REVIEWER 1

Major: International Business and Logistics

Reviewer name: ...................................................................................

Reviewer’s faculty: Economics

2. Details on the dissertation:

3. Consistency between contents of the dissertation and title & major:

Chu Gia Huy – IBL0502 v

4. Methods used in researching and general results of the dissertation:

5. Strong and weak points of the dissertation appearance and content:

Grade: /100 (in words: /hundred).

Full name and signature of the reviewer

Chu Gia Huy – IBL0502 vi

VIETNAM MARITIME UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM

INTERNATIONAL SCHOOL OF EDUCATION Independence - Freedom - Happiness

Hai Phong, ……………… 201

REMARKS ON THE DISSERTATION BY THE REVIEWER 2

Major: International Business and Logistics

Reviewer name: ..................................................................................

2. Details on the dissertation:

3. Consistency between contents of the dissertation and title & major:

Chu Gia Huy – IBL0502 vii

4. Methods used in researching and general results of the dissertation:

5. Strong and weak points of the dissertation appearance and content:

Grade: …………/100 (in words: ………………/hundred).

Full name and signature of the reviewer

Chu Gia Huy – IBL0502 viii

Chu Gia Huy – IBL0502 ix

1.2. Legal basis export/import cargo at seaport .......................................................... 8

Chu Gia Huy – IBL0502 x

3.1.1.1. YoungHeung Company, SaiGon Branch: ................................................... 33

Chu Gia Huy – IBL0502 xi

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