INTERNSHIP REPORT

January April (2016)

Nguyen Duc Tuan

IRN: 1132300374

Abstract
Currently, I took an opportunity to intern at Thai Binh Shoe Company in logistic
department. In fact, Thai Binh Shoe Company business comprises 6 sectors: footwear
manufacturing industry, manufacturing industry bags, investing - business - real estate
management and industrial infrastructure, ports and logistics, trading & services. Thus, this place
is an excellent chance I encountered to enrich my knowledge and experience about supply chain
management, especially import-and-export-related understanding. After following 4-months
internships in TBS, I could apply what I study in class to the reality in reasonable way in order to
serve my future career. Besides, the purpose of the program is to fulfill the core equipment for
the award of a Bachelor Degree in Business Administration.
In this internship report, I would like to describe my experiences during my internship
period. It would contain a brief overview of the TBS company and its activities, tasks and
projects that I have worked on during my internship. Writing this report, I also will describe and
reflect my learning objects and personal goals that I have set during my internship period.

Contents
I.

Introduction .................................................................................................................. 1
1.

Internship objectives ............................................................................................. 1

2.

Expectations .......................................................................................................... 2

II.

Organization.............................................................................................................. 3
1.

Internship organization.......................................................................................... 3
TBS Group Corporation.............................................................................................. 3

2.

Culture, identity and image ................................................................................... 4

3.

Vietnams footwear industry overview ................................................................. 6

4.

TBS group corporations export condition............................................................ 7

5.

The SWOT analysis in exporting products to the U.S market. ............................. 9

III.

Literature review ..................................................................................................... 12

1.

Export concepts ................................................................................................... 12

2.

Marketing concepts ............................................................................................. 13

IV.

Solution for TBS group in entraining its products to the U.S market..................... 14

V.

Tasks, projects and activities .................................................................................. 16

VI.

Conclusion .............................................................................................................. 18

VII.

References ........................................................................................................... 19

I.

Introduction
1. Internship objectives
Like I said, it is believed that multi-sectors developed and executed in TBS company give

me a great chance to approach and exposure an extensive experience as well as to enhance my

skills and competencies in operational environment. During my internship I worked as a
purchasing official as I help to draft the purchase order, prepare payment documents (LBC,
remittance). In addition, I have to perform the necessary work on transport (contact, and
Forwarder, ...). This is a major competency that I have to conduct and focus on during my
internship. And finally I have to set up personal targets to develop and improve my skills.
Following this, I formulated it by using SMART to reflect my target:
Major Role: Purchasing official
During my 4 month of internship, I want to actively contribute to the companys
objectives by applying the knowledge I obtained during my education such as developing, and
execute purchasing strategies, seeking and partnering with reliable vendors and supplier, and
negotiating to get the best quality needed goods and services for company at the lowest price and
expense.
Major competency
Strategist:
As a Strategist, I want to come up with plans; new ideas and strategies on how to improve
the purchasing strategies.

Negotiator:
As a Negotiator, I want to set up network to facilitate the acquisition of company with
reliable vendors or suppliers who provide the quality goods at reasonable prices
Along with professional competencies like above, I also improve my personal skill as I
have studied what is the best behavioral manner in group. By understanding how to work in
professional environment, I am supposed that I will harmonize better in my future working job.

2. Expectations
I wanted to learn and specialize in how to coordinate and control the order cycle by using
information technology. Also it is important for me to learn how to improve and develop
business performance within the constraints of legislation, fuel costs and rising environmental
pressures. One more thing I hope to have relates to liaise and negotiate with customers and
suppliers. In reality, building up the network requires thousands skills to conquer the customer
and convince the supplier that could be not taught in class.
That is why I choose this internship company. It is suitable and I knew could achieve my
learning goals.

II.

Organization
1. Internship organization
Since the great improvement of Viet Nam of national construction and economy,

currently Vietnam participates in the WTO, AFTA and even TPP. In a sense, this offers plenty of
opportunities for Vietnamese companies in joining the world trade market to gain more market
and more profit without any geographical and legislative boundaries.

TBS Group Corporation

The renew policy released by the government in 1986 has opened a new era of Vietnam
economy. A number of companies
have been allowed to operate and
one of them is TBS Group. This
firm was founded in 1992 by a
group of Vietnamese shareholders
as one of the very first footwear
company in Vietnam (Thai Binh
Shoe Group , n.d.). At the begin, it
produced lady fashion shoes and
canvas vulcanized shoes, but then
specialized in sport, casual, hiking
shoes and sport sandals (Shop, n.d.). Apart from this, it has been expanding over many sectors:
manufacturing industry bags, investing - business - real estate management and industrial
infrastructure, ports and logistics, trading & services (Thai Binh Shoe Group, n.d.). With a

gradual increase in economics of scale, TBS continuously enlarge the production capacity by
building up new factories in both South and North Vietnam to reach the output target 25-30
million pairs annually (Thai Binh Shoe Group, n.d.). As a result, the export turnover increased
sharply from a mere 1.5 million US Dollars in 1992 to 61 million US Dollars in 2006 (Shop,
n.d.). And since 1992, Thai Binh Shoe has been listed in top 10 Vietnam footwear producers.
The company takes a pride on satisfying customer and market needs with sophisticated products,
competitive prices and on-time delivery. In addition, as OEM firm, the group becomes the
trustworthy footwear producer for brands and stores as Reebok, Decathlon, Stilman,
Dcshoescousa, Quik-Silver in the US, EU, Japan...markets (Thai Binh Shoe Group, n.d.).
Besides, it also offers integrated supportive manufacturing resources starting from the footwear
design to the molds, lasts, outsoles, to name a few. Throughout, the comparative advantages with
great capacity, efficient productivity, flexibility and advance management, TBS offers customers
our real sense of commitment to long-term business.

2. Culture, identity and image

Culture:
TBS is a place where Vietnamese traditional culture accordingly meets modern
technology models.
Vision:
By the aspiration and the determination of both competent employee and talent leaders,
TBS will emerge as a strong diversified-investment company in Vietnam and outside well. It
promises to achieve the global standard, so that it affirms itself as a delegate of Vietnam
intellectual stature and pride over the world.

Mission:
By relentless investing and innovating, TBS is proud of providing a high-quality products
and services that contribute to the Vietnam economy.
Additionally, it guarantees to always being creative and innovative. Its development
accompanies the high benefits, responsibilities associated with community businesses, social.
This means that it always brings confidence, peace of mind for customers, partners and
employees.
Core company values:
Human Resources

Accompaniment

Focus on developing human

resources. Employees are the
most valuable assets which
contribute as a strategic weapon

Accompanying with customers,

partners and employees to build
TBS development, success and
mutual benefit-sharing

for success and development

of the business.

Innovation and Creativity

Responsibility

Constantly innovation as a
foundation for growth

Being responsible for benefit of

country, community, society and
employees. Trying to contribute
to life, for a better society.

3. Vietnams footwear industry overview

Vietnam has a huge amount of labor force. This is singificant for the success of
developing labor intensive industries in Vietnam. Footwear industries requires a lots skilled
workers for producing. According to Lefaso ( Vietnam Leather, Footwear and Handbag
Association), there are about 812 active leather and footwear companies. Those companies are
mostly located in Ho Chi Minh city, Dong Nai, Binh Duong and Ha Noi. The footwear industry
has created thousands of job supporting around 624,000 workers. Around 80% of Vietnamese
producers are subcontractors of foreign (Nguyen, 2014)

Vietnams leather & footwear export structure by market in first 6 months of 2013
Source: General Department of Vietnam Customs

4. TBS group corporations export condition

TBS groups export turnover into different markets

Year

2008

2009

2010

Markets

Export turnover

Proportion
(%)

Export turnover

Proportion
(%)

Export turnover

Proportion
(%)

EU

42,104,859.29

76.6

49,914,157.24

71,57

48,546,702.54

50.7

U.S

3,331,802

9,471,155.98

13,58

34,497,340.1

36,06

America

4,325,784

7.87

2,718,538.46

3,9

6,629,486.52

6.9

Asian

4,162,905

7.57

7,580,401.08

10,87

5,913,903.58

6.17

Others

873,443

1.96

5,715.84

0.08

166,119.24

0.17

Total

54,941,460

100

69,737,869.07

100

95,753,551.98

100

TBS groups export turnover into the U.S market

Year

Total export turnover

Export turnover into the U.S

Proportion (%)

Growth (%)

2008

54,941,460

3,331,802

2009

69,737,869.07

9,471,155.98

13.58

184

2010

95,753,551,98

34,497,340.1

36.06

264

It is clear to see that TBS group has diversified many markets where EU and the U.S are
the main two main market accounted around 85% of total exported products. The export
turnovers have increased gradually for all markets. Although Vietnamese footwear industry is
accused by EU the act of anti-dumping in 2006, TBS groups growth ratio is still high. There is a

significant increase of export turnover for the U.S market, coming from 6% in 2008 to 36% in
2010. This change step by step show off market restructure of TBS group in the future, focusing
more on the U.S market.
By dividing exported products into different markets, the company could reduce risks and
pressure if there are any issue, and make sure steady profit for the company. Although the
company has diversified its exported market, TBS group has strategies for key markets like E.U
and the U.S in order to promote export performance and earn profit.
The U.S market is potential for export footwear products and the company step by step
try to reach the plan in which: 40% of products are exported in E.U, 40% in the U.S and 20% for
the rest.
Structure of exporting footwear products of TBSgroup to the U.S market.
2008
Products
Sport shoes

Pairs of shoes
329,593

2009
Proportion (%)
98

Pairs of shoes
893,188

2010
Proportion (%)
93,5

Pairs of shoes
3,435,772

Ty trong (%)
98.7

Others

6,5

1.3

Total

100

100

100

Most of products exported into the U.S market are sport shoes accounted around 98% of
total exporting products. Focusing only on sport shoes could bring both benefits and risks. The
company could focus on one kind of products, and invest machine as well as increase quality of

the product in order to meet foreign requirement. However, that is risky as the company is
dependent on one kind of product. If there are any problems in regard of sport-shoes products,
the company would suffer huge negative impacts.

5. The SWOT analysis in exporting products to the U.S market.

Strengths:

TBS group has a young labor force and they are active.

Most of machine at TBS are modern and they are imported from Italy

TBS has achieved ISO 9000

TBS groups has achieved trusts from many famous shoe brand and received many

subcontract contracts from foreign partners, like Skechers, Decathon.

The company has a department for research and develop product designs.

The company has a great capacity with many factories located in Thuan An and

Di An district.

There is good facilities and safety working condition for staffs and employees,

like restrooms and modern cafeterias.

Weaknesses:

TBS is 100 % domestic owned firm, so fund for operation is still low in

comparison with famous brands like Nike, Puma, Adidas. Besides, TBS groups has already
operated around 20 years, so the company lacks of experience for developing a owned brand.

There is not a department for research and development of foreign information

market. This department is actually important if the company want to expand its brand to
international market.

TBS group is a subcontractor, so the company is dependent much on foreign

partners. The company usually wait until the contract to begin the production line and this could
lead to waiting cost or overproduction.

TBS groups only focus on subcontract products from foreign partners design, the

company lacks of foreign market information. Besides that, shoes designs at TBS still limited.

There are still many defects in productions that may increase cost.

Opportunities:

Vietnam is one of the largest footwear producers and exporters in the world.

Recently, Vietnam has joined WTO and AFTA as well as TPP.

Vietnam has the stable reputation and safe environment for production.

The scandal of an-dumping in 2006 makes Vietnam achieve more attention from

many other countries. If Vietnam could exploit that, this would be positively potential.

Plentiful work force and low labor cost.

TBS (Thai Binh Shoe) is a famous fashion brand in Vietnam.

The company locates in the key economic zone, near to Tan San Nhat airport and

Cat Lat port.

Threats:

TBS groups lack of market information, so there is not forecast for the market and

production plan

Materials are important from China and Taiwan, and the company has to wait for

orders from foreign partners before producing. This increases carrying cost and warehousing
cost. Besides that, the company has to import materials from different resources, so product
quality is not the same and standardization.

TBS groups has to compete Chinese products in which products from China are

usually low price. The average price of product of TBS is 10-12 USD per one whereby 8 USD
per one for product from China.

Although TBS groups products could compare to Chinese products, Chinese

products are diversified in regard of designs, color and price.

In order to attract foreign contracts, the company has to offer new shoe designs

every month and that would increase cost.

TBS is a subcontractor for foreign partners, and the products are sold with the

brand of foreign partners. So, not many foreign users know about TBS brand. In order to expand
the market, TBS need to create a new brand for itself.

Although participation in world trade organizations reduce tariff and tax, this

increase pressure for local organizations to compete foreign brand with foreign direct investment
for foreign companies.

III.

Literature review
1. Export concepts
Export is a function of international trade whereby organizations earn profit by buying

products and services to foreign markets, not local market (Investopedia, n.d).
The role of export: Export plays an important role in generating national funds for
importing, promoting the process of industrialization. This process contributes to economic
restructure, increasing production, development of technology and upgrading new equipment.
Focusing on export would bring a huge amount of foreign currencies to the country as well as
create jobs for workers. Besides, export is also considered as a way to exchange cultures and
strengthen relationships with other countries.
Significance of export: Export is a key in reaching international exchanges of the country
by exploiting competitive advantages like resources, natural conditions, and labor force to get
profits and foreign currencies. This creates funds for national constructions and step by step
improve citizens standard of living.
By export, domestic products would be put in the international market to compete with
foreign products in terms of price and quality. In order to get success and compete with foreign
organization, Vietnamese organizations need to restructure the production process as well as
apply new methods to satisfy international requirement and standards.

2. Marketing concepts
Marketing definition: According to American Marketing Association, marketing is the
activity, set of institutions, and process of creating, communicating, delivering and exchanging
offering as well. That brings value for customers or users. (AMA, 2013)
Another simple definition comes from Meldrum and Mike in the book named Marketing
in a nutshell: key concepts for non-specialists / Mike Meldrum and Malcolm McDonald.
Marketing is the link, creating relationship between the customers and suppliers, and the link
between production and consumption (Meldrum & McDonald, 2007).
International marketing: it is the application of marketing principles in which products
and services are marketed oversee and across national borders. Although there are not much
difference in definition between domestic market and international market, there are significant
difference in marketing management between those two strategies ( domestic marketing and
international marketing). International marketing is more complicated than domestic marketing
as marketers face with difficulties in currency, finance, culture and law between countries.
(International marketing, n.d.)
The American Marketing Association (AMA) defines international marketing is
the multinational process of planning and executing pricing, promotion as well as distribution of
goods and services. In this case, marketing activities are undertaking in many countries.

IV.

Solution for TBS group in entraining its products to the U.S

market.
Improving competitiveness
Improving quality of initial material for production: TBS group could establish a
purchasing department. The role of the department is to find, research and deal with the
procurement of materials, make sure the quality of the inputs. Besides, the organization should
build up the relationship with suppliers to make sure that materials will be delivered on time.
TBS group could link with local footwear producers, such as Thuong Dinh or Bitis, in order to
exchange information. Moreover, it is necessary to find a new kind of material instead of only
relying on materials imported from China and Taiwan.
Improving labor skill and knowledge: apply gross-training to labor force to raise worker
skill. Sometime, the company should send some employees to foreign countries, such as Korea
and Italy to study experiences as well as quality management methods. In addition, TBS group
should apply new methods like 5S or Lean in its production process. By doing so, the company
could save costs and raise productivity.
Diversification of methods for export to the US market
Diversifying product designs to reach more customer segments: the role of research and
development of design department is important in reaching customers need.
Building up Thai Binh brand: instead of only focusing on subcontract, TBS group should
create some owned product designs and bring them to customers. By doing so, TBS group brand
could be strengthened and expanded in the world.

 Promote marketing strategies in the US market.

Market expo is an effective way for TBS groups products to reach American users. The
company need to identify which kind of product they want to show off and who target customers
are. Besides, providing catalogs to customers as well as admissions counselor if there is any
questions from customers at the market expo show. In addition, the company could use the
Internet as a marketing channel.
Diversification of methods for export TBSs products to the US market: instead of being
subcontractor of foreign footwear companies, TBS group could build up the relationship with
retailers at the U.S like Walmart to bring TBS groups products to American users.

V.

Tasks, projects and activities

In the internship period from 11/2015 to 2/2016, I has learnt useful lessons as well as

practical experiences as the role of a document staff. Firstly, I would like to thank the manager of
import and export department as well as staffs. They create a favorable working conditions for
me to study and work at TBS group Corp in the internship time.
Although I am majoring supply chain management, the job I deal with at the company is
about international logistics, specifically customs documentation. This makes me confused and
worried in the early days at the company. Most of key tasks likes, planning for exporting
products and importing materials, purchasing job and finance are undertaken by experienced
staffs who has many years working at the company. In contrast, young staffs, like me,are
assigned the job which requires traveling a lot, such as working at ports, meeting carriers and
forwarders in Ho Chi Minh city. They have to work with the Ministry of Industry and Trade to
get CO (certificate of origin), take bills from carriers and forwarders (mostly located in Ho Chi
Minh city), or meet customs officials at the ports if there is any problems related to exporting
products.
By working at Export and Import department in the internship time, I understand more
the working process of the export and import office. The department is divided into two small
departments. One is responsible for footwear products customs declaration and the other is
responsible for handbag products. At TBS group, I am assistant for Mr. Quan, who is responsible
for getting certificates of origin, taking bills and pay money for forwarders. Some days in week, I
follow Mr Quan to come to the footwear factory located in Thuan An district. We talk with
supervisors to the problems about shoes and receive packing lists of product. Every shoe at TBS

is designed followed several steps before checking and parking for oversee shipments. I also
helps people in typing documents, solving technical problems related to computer softwares. I
am impressive to the automatic customs clearance software (e-declaration), Thai Son software.
In addition, Vietnam is developing a new customs clearance named VNACCS/VCIS system, this
is promised to reduce costs and time for customs declaration.
Exporting products at TBSg roup could be used by vessels or planes. As each carrier and
forwarder specialized in certain routes, and TBS group Corp diversified its exporting products in
different forwarders. This may increase documentation jobs, but it reduces transportation cost by
exploiting competitive advantages of each carrier. We travel to the forwarders office in Ho Chi
Minh city in order to receive bills and pay transportation cost. TBS group Corps carriers are
DHL, Expeditors, Vinatrans, etc. we also deal with banks for transfer money. By meeting
carriers, forwarders and banking staffs, I could build up the relationship and understand more
about logistics process in Vietnam

VI.

Conclusion
It is potential for TBS groups to expand its exporting product to the US market. There is

huge demand in the U.S and American are also willing to pay money for fashion. However, there
are challenges for the company in expanding in this market. In order to do that, TBS group need
to complete two work: improve competitiveness and promoting marketing strategies. There is an
issue remaining in all of Vietnam footwear companies is that. We mostly focus on subcontract
orders from foreign partners, there is not any owned brand for Vietnamese footwear firm,
although Vietnam is one of the largest footwear producers. Developing an owned brand is an
important task for footwear industry in order to expand the footwear industrys impact on the
world and get profit.

VII.

References

Shop. (n.d.). Retrieved from Exporters: http://exporters.com.vn/shop/THAI-BINH-HOLDING-SHOES-MANUFACTURING-CO-/35471/about.html

Thai Binh Shoe Group . (n.d.). Lich su phat trien. Retrieved from TBS Group:
http://tbsgroup.vn/ve-tap-doan-tbs/lich-su-phat-trien/
Thai Binh Shoe Group. (n.d.). Linh Vuc Hoat Dong. Retrieved from TBS group:
http://tbsgroup.vn/linh-vuc-hoat-dong/
Investopedia
(n.d.),
Export.
http://www.investopedia.com/terms/e/export.asp#

Retrieved

AMA
(2013).
Definition
of
export.
https://www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx

Retrieved

from
from

Meldrum, M & McDonald, M. (2007). Marketing in a nutshell: key concepts for nonspecialists, 294: pp43
International marketing (n.d). Retrieved from http://www.marketing-schools.org/typesof-marketing/international-marketing.html#link1
Nguyen, P. M. (2014, July 16). New
http://vccinews.com/news_detail.asp?news_id=30750

Boost

Needed.

Retrieved

from