Luận văn Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company

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  1. MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: KIEU PHUC HIEP DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company HAI PHONG – 2015
  2. MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: KIEU PHUC HIEP CLASS : GMA-02 DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company Supervisor: Hoang Bao Trung Division: Basic Economics Faculty: Economics HAI PHONG – 2015
  3. Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company PREFACE Intership is very important with students to interact the knowledge they have learnt at school and hands-on experience. Besides, intership is a good chance for students to visit places they might not ever visit on their own. Many scientists affirm that intership is very important and necessary to students to have a new experience and learn how to use what they are learning in the real situations. Students are able to gain all experience beyond reading and can see elements by their eyes instead of reading about it in books and believing what they are told because it’s in print. With intership, student knows clearly and exactly how to do a work, then they can draw the real-work knowledge for themselves and can be successful in their business after finishing education. Moreover, not only learning but also practicing, students will feel more confident about their abilities and can work more efficiently. It is also the opportunity for students to make a great combination of learning and fun; it will make the outside classes more interesting and more working. Intership can provide entertainment for students; and it can make students more focus back in the classroom. It is better if students have chance to practice all the knowledge they have learnt in the educational process; and intership helps to make it become true. This is an useful and important part to help students complete the working abilities in the future. And furthermore, intership can change the way students consider and look at education and the way they recognize their communication skills. In conclusion, intership is indispensable part in the educational process, it helps students improve the knowledge they have learnt and perfect all the skills and abilities. It is absolutely a new experience for students and it will make the success of students in the future. As a student of Vietnam Maritime University (VIMARU) and has the passion in maritime field, I chose Tung Bach Export Import And Transport Services Trading Company as my intership company. Along with the history, an interesting development process as well as the specialization in work, I believe that this is the best choice for me. Hai Phong, September 30th, 2015 Student Kieu Phuc Hiep i. KIEU PHUC HIEP – GMA-02 Page i
  4. Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company ACKNOWLEDGEMENT During the process of doing my research, I am thankful for the all people that helped me finish my dissertation. First of all, I would like to express my gratitude to my supervisor Mr. Hoang Bao Trung for his guidance and valuable suggestion during my training time as well as the processing of this dissertation. I cannot perform my dissertation correctly without his advice. Secondly, I’m grateful to the staffs of Tung Bach Export Import And Transport Services Trading Company for their enthusiastic assistance, instructions and advices during my training time. Lastly, I also would like to thank my parents and my friends for their support and encourage both in mentally and physically in that time. Adding more, because of limited knowledge and time in the process of completion, shortcomings cannot be avoided so the helpful advices from teachers and readers are warmly welcome. i. KIEU PHUC HIEP – GMA-02 Page ii
  5. Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company LIST OF TABLES TABLE 2.1: Business result in 2013 (Unit: Million VNĐ) TABLE 2.2: Business result in 2014 (Unit: Million VNĐ) TABLE 2.3: Business result in first 3 quarters of 2015 (Unit: Million VNĐ) i. KIEU PHUC HIEP – GMA-02 Page iii
  6. Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company LIST OF FIGURES FIGURE 2.1: Organization system of Tung Bach Company FIGURE 2.2: Business Results of Tung Bach Company in the 11 consecutive quarters FIGURE 2.3: Business results of Tung Bach company in 2013 and 2014 FIGURE 2.4: Business Results of Tung Bach Company in the first 3 quarters of 2013, 2014, 2015 FIGURE 2.5: Process of imported FCL goods FIGURE 2.6: Customs clearance process i. KIEU PHUC HIEP – GMA-02 Page iv
  7. Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company TABLE OF CONTENT Preface i Acknowledgement ii List of tables iii List of figures iv Introduction 1 Chapter I: Foundation of freight forwarding 3 1.1. Freight forwarding and operation 3 1.1.1 Foundation of freight forwarding 3 1.1.2 Enterprises engaged in freight forwarding 3 1.1.3 Legal basic, rules of freight forwarding 4 1.1.4 Types of freight forwarding 5 1.2 Freight forwarder foundation and duties in the international trade scenario 6 1.2.1 Foundation of freight forwarder 6 1.2.2 Role, duties and powers of freight forwarder 7 1.3 Freight forwarding process 9 1.3.1 Duties of parties involved in freight forwarding process 9 1.3.2 Shipping goods methods 10 1.3.3 Criterion for evaluating the freight forwarding process of imported FCL cargoes 11 1.4 Essential documents in freight forwarding cargoes 12 1.4.1 Bill of lading (B/L) 12 1.4.2 Certificate of origin (C/O) 12 1.4.3 Commercial invoice 12 1.4.4 Packing list 13 i. KIEU PHUC HIEP – GMA-02 Page v
  8. Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company Chapter II: Forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company 14 2.1 Introduction of Tung Bach Export Import And Transport Services Trading Company 14 2.1.1 Background of the company 14 2.1.2 Mission, function and core values of Tung Bach company 15 2.1.3 Organization 16 2.1.4 Personnel 18 2.1.5 Facility 19 2.1.6 Functions of Tung Bach Export Import And Transport Services Trading Company 19 2.1.7 Analysis of business result of Tung Bach Export Import And Transport Services Trading Company during the period from 2013 to 2015 21 2.2 Freight forwarding process of imported FCL cargoes in Tung Bach Export Import And Transport Services Trading Company 25 2.2.1 Negotiate and sign the contract 25 2.2.2 Receive and check the documents from importers 27 2.2.3 Receive notification of arrival of goods 27 2.2.4 Exchange B/L and take D/O at shipping agent 27 2.2.5 Carry out customs clearance for the import goods 27 2.2.6 Exchange D/O for delivery note and pick up goods 29 2.2.7 Deliver containers to the imported warehouse 30 2.3 Evaluation the freight forwarding process of imported FCL cargoes at Tung Bach Company 30 Chapter III: Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company 34 3.1 General evaluation of Tung Bach company 34 3.1.1 Advantages 33 3.1.2 Disadvantages 35 i. KIEU PHUC HIEP – GMA-02 Page vi
  9. Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company 3.2 Goals and directions for Tung Bach company in the future 36 3.2.1 General solutions for the company 37 3.2.2 Solutions for infrastructure 38 3.2.3 Solutions for human resources 39 3.3 Recommendation of the company to improve freight forwarding process 39 3.3.1 Recommendation for reducing cost of providing services 39 3.3.2 Complete online business capabilities 40 3.3.3 Participate in professional associations organizations 40 3.3.4 Closely cooperate on information .41 3.3.5 Creat a hightly professional style in serving customers 42 Conclusion 43 Reference 44 i. KIEU PHUC HIEP – GMA-02 Page vii
  10. Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company INTRODUCTION Necessity Transportation is the life-blood of the economy, transport development will motivate other economic sectors develop. In the era of modernization and globalization today, transportation plays a very important role, especially maritime transport. Thanks to marine transportation, the economic sector of countries can link to each other, close the gaps on geographical space, reducing significantly production cost as well as product prices, creating big profits not only for a certain country but also for regions and even the world. In international trade, maritime transport plays an extremely important role. According to the International Maritime Organization (IMO), “Maritime transport is essential to the world’s economy as over 90% of the world’s trade is carried by sea and it is, by far, the most cost-effective way to move goods and raw materials around the world” (IMO). Therefore, shipping becomes one of the most potentail business serviecs in Vietnam recently, and has developed more service segments to serve better for customers. Along with the development of maritime industry, freight forwarding services also attract more attention and become one of the indispensable services of all the shipping companies. During practice at Tung Bach Export Import And Transport Services Trading Company, along with the knowledge I have learned in school, I noticed that freight forwarding is as the core of all foreign trading activities. Enterprises want to achieve good results, obtain much profit required to perform well the process of freight forwarding cargoes. Standing in front of this trend, Tung Bach Export Import And Transport Services Trading Company, as well as countless other businesses, need to prepare a good knowledge, professionalism and quality of service to meet the high demands of our customers, especially with freight forwarding process of imported cargoes of the company - one of the key services. Understanding the importance of this issue, I chose topic “Recommendation to improve freight forwarding process of imported cargoes in Tung Bach Export Import And Transport Services Trading Company” as my dissertation’s topic. Research object Research object of the dissertation is the process of freight forwarding imported cargoes at Tung Bach Import Export And Transport Services Trading Company. Besides, the research also gave an assessment of the business situation of company in terms of logistic and freight forwarding in recent years. Thereby can evaluate the strengths and weaknesses in freight forwarding services, and then come up with solutions to improve the quality of service and meet the customers’ needs which is suitable with the current situation. i. KIEU PHUC HIEP – GMA-02 Page 1