Professional Documents
Culture Documents
(Từ Lương Tiểu My) Báo Cáo Kiến Tập - Final
(Từ Lương Tiểu My) Báo Cáo Kiến Tập - Final
EXPORT ACTIVITIES
IN VIET DELTA CORPORATION
Class: K50-CLC2
SUPERVISOR’S REMARKS
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CONTENTS
PREFACE ................................................................................................................. 7
2.1. The export activities of Viet Delta Company from 2011 to 2013 ..................... 15
3.1. The outlook of the export activities in Viet Delta Company ............................ 22
3.1.1. Opportunities ........................................................................................... 22
3.1.2. Threats ..................................................................................................... 22
3.2. Viet Delta Corporation’s development orientation of the export activities in
2014-2020................................................................................................................. 22
3.3. Recommendations for promoting/improving the export activities in Viet Delta
Corporation .............................................................................................................. 24
CONCLUSION ........................................................................................................ 25
REFERENCES ......................................................................................................... 26
Name Page
PREFACE
Vietnam officially became a member of the World Trade Organization (WTO) in
2007 marked a milestone in the development of Vietnam foreign trade. There was
a massive increase in export value of Vietnam’s goods since the event. However,
along with the opportunities came many threats. So what did Vietnam companies
do to deal with all these waves?
The affection of a change in the whole economy is shown very clearly in every
single business trading in it. Viet Delta Corporation is a trading company and its
professional working environment would be a perfect match for my major and
what I wish to study about
I deeply thank Viet Delta Corporation’s managers and staffs, thank Miss Phùng
Minh Đức for your enthusiastic help in fulfilling this mid-course internship report.
Thank Foreign Trade University for creating such a good condition for me to
experience the internship.
Despite many efforts, mistakes are unavoidable. I really appreciate all the
instructions and comments for better. Thank you again! Truly!
Since the formation, Viet Delta has always been striving to widen its chain of
products, challenging itself in more new markets and continuously improve
material facilities as well as staff’s ability. After ten years, the company has built a
stable staff, strong operating system and specialized business for the ambition of
reaching more markets and further development in the future.
Company’s logo:
The functions of the company are importing and exporting to meet the rising
social demand of consumers, contributing to promote the economic growth and
the company income. Namely:
1.3.2. Tasks:
In order to perform the company’s functions well, Viet Delta has always been
Organizing market research, building and executing import and export plans in
order to contribute to Vietnam’s foreign trade turnover
Insuring the execution of economic accounting and tax paying, performing the
contracts in due time. Running business in accordance with the legal
framework
Researching and implementing effectively methods to improve product quality,
raise competitiveness and expand markets, which contributes to raise foreign
currency inflow
Proactively finding material sources, customers, methods to expand business
Hoarding for reinvestment or investment, infrastructure improvement and
expansion
Equipping and innovating production technique, widening manufacturing
scale, improving product quality
DIRECTOR
Foreign- Foreign-
trade trade Import An Suong
division division accounting Store
Hang Xanh
store
(Source: Human Resource Department)
Director is the head of the company who manages, administrate and direct all
activities in the company. Director will work an discuss with managers in all
departments and propose business strategy and orientation
Export Department, divided into three divisions: mobilizing division, foreign
trade division and shipping division, deals with foreign trade, market, customer
and supplier seeking, contracting and runs the export process.
Import Department, divided into three divisions the same with the export
department: mobilizing division, foreign trade division and shipping division,
deals with domestic customer trading, market study and runs the import process
Accounting Department carries out financial reports, statistics, business
performance reports, and monitors expenses, employees’ salaries, commissions,…
Accounting department is divided into three divisions, each dealing with one
specific function in export, import and store system
Store System performs market research, monthly reports and enumerates in-store
products as well as best-selling products. There are four stores: An Lac, An
Suong, Mien Dong, Hang Xanh.
Unit: USD
This is the activity that contributes the most to the company’s income with four
main groups of export products: handicrafts, agricultural products, aquatic
products and industrial products. Because the company chose to focus more in
export, combined with constant seeking for importers of rare and special products
– the area with less competitors, the export value has increased regularly over the
years and always comprised of more or less than 60% of total turnover.
With enthusiastic and friendly staff, contracting is always performed in a very
short time. The company is trying to enhance its range of export products and
looking for new export markets
From June 4th to July 4th, every day except for Sundays:
2.1. The export activities of Viet Delta Company from 2011 to 2013
Due to the direct export license, Viet Delta Company may export directly, or
concurrently take the mandate to export for other companies
The result of Viet Delta’s export activities in 3 recent years shows some good
points:
Unit: USD
2011 3.487.990
Due to Viet Delta’s strike to raise the company’s prestige, product diversification
and new customer seeking, the export turn-over gradually rose from 3.487.990
USD in 2011 up to 3.894.245 USD in 2012 and reached 4.213.586 USD in 2013.
Viet Delta Corporation’s export turn-over has increased well throughout the years
with the growth rate was 11,65%, accounting for 406.225USD in 2012 and 8,2%,
accounting for 319.341USD in 2013. Because the company has attached special
importance to export, the export value rose regularly through the years, and in
2013, the export value augmented to more than 4 million USD for the very first
time, which was a positive signal in export activities of the company, showing that
Viet Delta Company’s prestige has been raised significantly.
Unit: USD
Overall, all main export products increased, except aquatic products. In the latest
two years, both export values of handicraft and agricultural products were more
than 1 million USD each year, which contributed mostly to the company’s total
turnover
The export value of handicraft was quite stable with over 1 million USD each
year. In 2012, the export value was 1.386.948USD, increased 291.081USD in
comparison with the same period of the previous year and the density of
handicrafts in total turnover rose 4,2%. However, in 2013, due to some difficulties
in exporting handicraft, there was a slight drop in density from 35,6% down to
30,5%
In recent years, the export value of aquatic products diminished from the peak of
625.838USD in 2011 to 324.864USD in 2013, the density reduced steeply from
17,9% down to 9,7% because in 2012, the prices of aquatic products in worldwide
market decreased significantly, leading many difficulties in exporting.
Unit:USD
The Middle East is a stably growing market. In 2012, the export value was
883.734USD, increasing more than 158.051USD in comparison with the same
period in 2011, the growth rate was 21,78%. In 2013, the growth rate decreased
down to 9,46%, which means the value increased only 83.611USD,
South Africa is an unstable market. It is clear that in 2011, the export value to this
market reached 625.838USD, accounting for 17,9% in total turnover.
Nevertheless, this figure steeply depleted to only more than 9%. When it came to
2013, the turnover went up again and stopped at 724.34USD or 17,2% in density.
The up and down are because most customers only ordered for the purpose of
seeking information, there were not many long-term or periodical orders.
The other countries are mostly in Asia such as China, Japan, Philippine, Korea,...
As a whole, the export turnover of this area was increasing regularly every year. In
2011, the export value was 1.240.604USD, in 2012 it was 1.658.736USD,
augmented to 42,6% in density. However, in 2013, as a result of a considerable
rise in world-wide supply sources, a slight drop took place in demands and export
value to China, the turnover reached only 1.407.323USD, comprising of only
33,3% in total turnover.
With profuse source of capital, the company could supply large quantity of
products according to major orders’ requirements. Some products manufactured
and exported by Viet Delta have stable prices. Therefore, when market prices go
down, the company will be able to mobilize material for manufacturing, and when
market prices go up, it is not hasty to buy material.
The company focuses on diversifying products with less competitors so that they
could widen their market and seek new customers.
Locating near the center of Ho Chi Minh City is also an advantage for the
company in meeting foreign partners and trading
E-commerce is used to the fullest in trading, therefore, time and cost for such
activities are reduced, and the company can offer more competitive prices for
customers
Last but not least is being proactive in business with a wide and still expanding
range of products. For this reason, in lean years or when prices are not
competitive, there are still many other products for replacement.
2.2.2. Weaknesses
Due to some practical conditions, Viet Delta Corporation has not had its own
factory for manufacturing. As a trading company, the main activities in Viet Delta
is buying and reselling. Therefore, the prices are not very competitive and the
business depends a lot on manufacturers, product quality is not closely controlled
sometimes
The company has no specific long-term export strategy, there are only moderate
and small orders from 15 to 300 tons, seasonal delivery, with not many long-term
customers
In Viet Delta Company, there are usually exchanges between the import and
export department. In 2012, there was a problem with human resource in import
department, so many employees quit leads to some cost and time for training
newly inexperienced employees.
The company lacks of a marketing team responsible for market and customers’
demand research. Marketing activities are not very effective, hence the company
still cannot penetrate to many potential markets. There has been no product
introduction program, no participation on the International Agricultural product
Fair to broadcast its products and image to more customers, no registration in B2B
websites to gain more information
Payment is only accepted by L/C (Letter of credit) or T/T (Telepraphic transfer) to
ensure safety, passing by many customers who preferred other payment methods
such as CAD (Cash against documents), D/P (Documents against payment),...
Young and inexperienced staff could not fulfill the business the most precisely and
effectively. Although all employees are fluent in English, the expansion in export
market requires more than one foreign language when negotiating with customers
in Japan, China,…
3.1.1. Opportunities
Using internet as main tool to search for customers and promote the company’s
image has opened a huge expanding market with various customers’ groups in all
kind of products, from which there are many opportunities to boost exports to
global market and eliminate trade barriers and economic borders
The development of science and technology enables the company to select the
most appropriate technology, the most effective contribution to improving
competitiveness in the market
Expanding operating environment helps to take advantage of favorable conditions
in domestic and international level to develop international marketing strategies
more effectively.
International Marketing has many advantages to promote and put application in
many areas such as marketing in merchandise exports, marketing in services,
marketing in business investment… The company will accumulate more
experience in the organizational management, market research and strategic
planning, especially experience in building international marketing-mix strategy.
3.1.2. Threats
world, increasingly more strict and stringent. The first requirement is quality of
product. But today, along with quality, customers also require products to achieve
low cost, reasonable price, perfect service, accurate delivery period and
convenient distribution channels,…
Even with 10 years experience in trading, the company still has very little
information about customers coming from markets or countries that the company
seldom trades with such as South America,..
3.2. The company’s development orientation of the export activities in 2014-
2020
In the situation that the worldwide economy is rehabilitating and Vietnam
economy is becoming less dull. The company has development orientations as
follows:
Continue to expand export and import activities as well as markets, especially
Russia, East Europe.
Maintain business relationships with long-term partners exploit the internet’s
potential to the fullest in order to find new customers
Enhance the effectiveness of domestic trading by maintaining product and
service quality in the company’s own stores (Binh Trieu Store, An Suong
Store,…)
Continue to develop kinds of products which are in trading
Build and develop marketing division for the purpose of impulse sales,
prestige and brand
Find more sources inside and outside the country and export products with
lower price but the same quality
Curb worthless expense to save money and lower costs
Raise the effectiveness in using international payment methods
Raise employees’ professional skills
Raise the company’s prestige in international market
CONCLUSION
In business, the company has built a firm opportunity with many business
relationships widely inside and outside Vietnam. Despite some limits, all
managers and staffs have proved their professional skills, management skills and
business skills in many specific circumstances, contributing to raise Viet Delta’s
prestige in the international arena
I strongly believe that by continuing this way, Viet Delta Corporation will develop
more and more and will become one of the leading trading companies in Vietnam
During the internship, with the precious help from Viet Delta Corporation’s
managers and staffs, I could comprehend the practical situation of export and
import activities, consolidate what I learn at the university and gain practical
knowledge about foreign trade as well as contracting and performing process in
Viet Delta Corporation.
REFERENCE
1. Viet Delta Corporation’s reports from 2011 to 2013
2. Commercial magazines in of years of 2007, 2008
3. Paul R.Krugman and Maurice Obstfel - International Economics – Theory &
Policy (eighth edition)
4. Stephen Robbins - Management (third edition)
5. www.vdelta.com
6. www.customs.gov.vn
7. http://www.dankinhte.vn/co-hoi-va-thach-thuc-doi-voi-doanh-nghiep/