CHAPTER 01: OVERVIEW OF AQUA VIETNAM

1.1 General information and company's vision

AQUA is a brand of the famous Japanese electrical appliance company Sanyo. In
2012, the Aqua brand was acquired by China's Haier Group Corporation.
In 1996, AQUA officially entered the Vietnamese market when it set up its first
factory in Bien Hoa II industrial zone, specializing in manufacturing: washing machines,
refrigerators, air conditioners, water heaters and other household products. number of
more than 1,000 employees.
Over the past 20 years, with the motto "Japanese technology, by Vietnamese
people for Vietnamese people", AQUA has created memorable milestones such as:
In 1997, shipped the first washing machine products.
In 1998, introduced the first refrigerators.
2004 launched the product line of air conditioners.

Figures 1.1: AQUA Vietnam company's logo

(Sources: www.aquavietnam.com.vn)

Company name: AQUA ELECTRICAL APPLIANCES VIETNAM CO., LTD

Main Office Address: 15 Le Thanh Ton, District 1, Ho Chi Minh City, Vietnam.
Business registration certificate & tax code: 3600257517
Representative: FAN GUOFENG
Website: www.aquavietnam.com.vn
Email: wm@aquavietnam.vn
Phone/ Fax: 02513836651
Hotline: 02513836651
 Figures 1.2. AQUA Vietnam company's mission

(Sources: www.aquavietnam.com.vn)
Founded in 2014 but formerly known as Sanyo, established in 1996, AQUA Vietnam has been
operating in the field of electrical appliance supply for more than 25 years with trust from
partners and business processes. Professional and committed to customers for their own benefit. .
Since its inception, AQUA or Sanyo are famous distributors of electronic equipment, they import
goods from foreign suppliers and now have factories located in Vietnam;. To achieve these
certain victories, it is required to have a team of good experts, well-trained employees with high
competence and great capacity, especially wisdom and steadfastness in vision short-term as well
as long-term of the Board of Directors of the company.

1.2 Field of operations

With more than 25 years of experience, AQUA company has constantly developed
and supplied to the Vietnamese market many electrical and electronic products such
as washing machines, air conditioners, televisions, refrigerators ... AQUA is currently
a distributor. great. AQUA's distribution channels are divided into two parts.

1. Modern Trade (MT) channel: are major electronics supermarkets such as: Dien
May Xanh, Sieu Thi Cho Lon, Cao Phong, Media Mart....
2. Traditional Trade (GT) channel: distribution for 2 parties is 266 in the south and
Huong Thuy in the north

AQUA offers a wide range of products from air conditioners to refrigerators, washing
machines, etc. AQUA branded products are guaranteed to have a quality foundation
based on leading technologies from Japan, helping to improve the living space for
families. your family, thereby bringing families around the world a more comfortable
and healthier life.

Figures 1.3. AQUA Vietnam company provides products for various fields

(Sources: www.aquavietnam.com.vn)

In addition, AQUA Vietnam also has many main warranty centers for these
products throughout Vietnam with a team of highly skilled professionals. Whenever the
product has a problem, the customer can call the hotline posted on the product. Within 30
minutes of calling, a specialist will come to your home to repair. With the provision of
the above products and services, AQUA believes in bringing customers the best quality
and the most satisfaction.
 Figures 1.4. One of the biggest customer of AQUA
(Sources: www.aquavietnam.com.vn)

Currently, Dien May XANH is trading products of genuine AQUA brand at

website dienmayxanh.com and Dien May Xanh supermarket system nationwide. When
buying AQUA products at Dien May XANH supermarket, customers will get:

 Free exchange of defective products for 1 month.

 Free shipping.
 Genuine 2 year warranty. If used for business activities (factories, hotels),
the warranty is not covered.
Refer to information about AQUA Vietnam:
Website: aquavietnam.com.vn
Hotline: 1800 585832
1.3 Organizational structure
1.3.1 Structure
AQUA Company has been continually running and developing sustainably because of a
dynamic team of qualified managers and staff from many divisions. Everyone, from
workers to members of leadership and management,... fulfills their duties and
commitments to finish the work and offer the finest services to the clients.

CEO

Human
Sales Marketing Product Financial Logistics
Resource
Department Department Department Department Department
Department

Figures1.1: AQUA company's organization structure

(Sources: Human Resources Department)

1.3.2 Function
CEO: CEOs are in charge of overseeing a company's general operations. Delegating and
directing agendas, promoting profitability, controlling the organizational structure and direction
of the company, and interacting with the board of directors are a few examples of this.

The creation and execution of strategies to support the growth and profitability of the company is
one of the responsibilities of the board of directors, who play the highest position in the
organization. These plans could be for company ventures, product development, branding, or
investments. Additionally, they plan and oversee the implementation of methods to guarantee
business financial efficiency and cost-effectiveness.
Human Resources Department: The HR (Human Resources) department is in charge of
managing the employee life cycle, which includes recruiting, hiring, onboarding, training, and
terminating employees as well as handling benefit administration.

Creating annual plans and budgets for both hiring new talent and keeping existing workers, as
well as setting up the organizational framework for personnel. Assign tasks for each quarter that
will help you finish the annual budget that the agency has approved. Other departments'
participation in the hiring process: monitoring human resources data throughout the entire
organization, offering uniform job descriptions for each position, and staffing planning advising
on and managing staff incentives.

Product Department: Teams in charge of product development are in charge of researching

consumer demands, developing new products, and marketing them. Along with making decisions
on what to build, they must also convey the advantages of the product and evaluate its
performance, both important tasks for any business. Delivering value to customers and sustaining
the business are the ultimate goals.

Financal Department: Create and implement financial policies to ensure operational

efficiency. Supervise the preparation and planning of the budget. Maintain records and receipts
for all daily transactions. Ensure financial records are up to date with the latest transactions and
changes. Contribute to financial audits. Monitor all bank deposits and payments. Perform
periodic financial analysis to detect and resolve problems. Prepare balance sheets and invoices.

It is a division whose job it is to check, keep an eye on, and pay for all of the
departmental records and books in order to adhere to the requirements of accounting law
and the general organization's financial management. Record all economic activities that
occurred throughout the business period, including income and expenses, periodic asset
inventories, and make plans to mobilize financial sources at the same time to support the
company operational activities.

Sales Department: Recognizing product codes, origin, color, design, and usage details
for the goods and services provided by the company Additionally, this department must
constantly be on guard to watch, direct, and advise customers on products and services as
necessary, helping them choose the right products. Sales teams must look for potential
consumers. They must type or make phone calls to introduce customers to products and
services, capture consulting needs, allow customers trial products, and assist customers in
accessing the products they need to buy.
Marketing Department: A marketer is responsible for working with other marketers to come
up with creative campaign ideas to market a company's products, services, or overall brand
identity. Their job entails conducting market research in order to identify target audience
demographics, reviewing past successful marketing campaigns, and working as part of a team to
complete tasks by deadlines. They make adjustments to marketing campaigns as needed to
achieve better engagement from consumers.

Logistics Department: A logistics employee is employed by a logistics firm or the logistics

division of an enterprise. They are in charge of assisting with the organization's supply chain
operations coordination, planning, execution, and monitoring. They might be responsible for
working in the receiving and shipping departments, or they might help the logistics manager with
all facets of warehouse operations. Their responsibilities at their company, which works with
shipping vendors, include handling computerized shipment files and organizing product returns.

1.4 Personnel situation

1.4.1 Gender
Department Male Female Total
1 0 1
CEO

6 5 11
Human Resources Department:

Product Department 10 12 22
Financial Department 5 13 18
Sales Department 15 4 19
Marketing Department 4 11 15
Logistics Department 8 2 10
Total 49 47 96
According to corporate records, there are currently 96 employees at the company, 49 of
whom are men and 47 of whom are women, or 53.1% of the total (46.9 percent ). In
conclusion, it can be shown that there is not much of a gender disparity in the workforce.

1.4.2 Specifications

Department University degree Master degree

1 1
CEO

11 2
Human Resources Department:

Product Department 22 4
Financal Department 18 1
Sales Department 19 2
Marketing Department 15 3
Logistic Department 10 5
Total 96 18
According to corporate statistics, there are currently 100 percent of employees who have
a university degree, with 18/96, or around 18.75 percent, of them having a master's
degree. Additionally, the business paid for all of the employees' housing and lodging
costs while sending 3 employees to training sessions in foreign nations (accounting for
about 4.6 percent ).

1.4.3 Seniority

Year Quantity Percentage

From 1 to 5 years 67 69.8%
From 5 to 10 years 21 21.9%
 From 10 to 20 years 8 8.3%

The levels of seniority for employees will include those listed below, according to
corporate statistics: There are roughly 67/96 employees aged between one and five years
(accounting for about 67.8 percent ). There are around 21/96 employees aged between 5
and 10 years (accounting for about 21.9 percent ). The group of eight individuals with a
seniority of 10 to 20 years represents the greatest level of seniority in the company
(accounting for 8.3 percent ).

1.5 Performance of the year 2019-2021

Table 1.1: Financial statement of AQUA Vietnam from 2019 to 2021.
 The chart depicting AQUA Vietnam-Ho Chi Minh City's business environment for
the years 2019 to 2021 reveals that the company's income and profit tend to advance well,
steadily rising over notable years. Despite the fact that the market for electrical
appliances has recently been increasingly competitive, the years 2019–2021 are
specifically regarded as Accessories years for the Company. Detail:
• Revenue and expenses
Over the past three years, sales have increased consistently. Compared to 2019, revenue
climbed by 15% in 2020. (equivalent to VND 5,116 billion). When compared to 2019,
2021's performance is estimated to have increased by about 27 percent (or 9,015 billion
VND), making it the most prosperous year in the previous three. Increased sales result in
higher expenses. Costs rose by 6% in 2020 compared to 2019 (equal to VND 1,151
billion), and they will continue to rise by 10% in 2021 compared to 2020. (equivalent to
nearly VND 2,206 billion). There are several promising signs for Vietnam's economy up
till the first quarter of 2021. FDI capital, bilateral and multilateral free trade agreements,
and timely support measures from state agencies like cutting corporate income tax are all
to be grateful for. Mainly, stabilizing the exchange rate and lowering interest rates leads
to the development of domestic exports.
• Profit before tax, profit after tax
As a result of the global economy's fluctuating purchasing power, many businesses were
compelled to file for bankruptcy or reduce their size and expenses in the recent past. Pre-
tax earnings climbed by 30.75 percent in 2020 compared to 2019, coming to almost VND
16,935 billion. After taxes, earnings increased to roughly VND 13 billion. Pre-tax profit
growth in 2021 is 10 percent faster than in 2020, which would assist pre-tax earnings
reach VND 18,629 billion and profit after taxes reach VND 13,971 billion.
Profit after tax for this activity was 4,371 billion VND, an increase of about 2,608 billion
VND, or 31.58 percent. The industry of maritime freight forwarding generated more than
VND 12,509 billion in revenue in 2021, an increase of 15.9% from the previous year, and
generated an after-tax profit of VND 5,698 billion. In which, by 2021, the proportion of
forwarding will be four times more than the proportion of retail delivery, with the
proportion of forwarding operations being 75% in 2019, 3 times higher than the
proportion of 25% in 2018. This company is likewise experiencing rapid sales growth.
Whole electrical appliance is a field with higher profitability than other fields in addition
to the two criteria mentioned above. The leadership of the organization is responsible for
the success of the business by periodically laying out a suitable and adaptable business
development strategy based on the organization's competitive advantages, research on
consumer wants, and organizational capacity. competitors, the global and Vietnamese
economies. The business has leveraged a global network of forwarding agents,
agreements made with shipping lines,.. to offer the most aggressive pricing in the
industry. Additionally, the business has gained a lot of customer trust over the course of
its long history in business, which has helped it keep a sizable following of devoted
clients for many years.
• Net profit margin
Along with internal expenses, the profit-to-sales ratio—defined as profit after tax divided
by net sales—allows us to portray the financial health of AQUA Vietnam-Ho Chi Minh
at a typical level. industrial standard The profitability of 100 VND in revenue is
represented by the profit-to-sales ratio. Indicate the amount of profit the company makes
for every 100 VND in revenue. In 2020, this rate was 32.57 percent, meaning the
company made 32.57 VND for every 100 VND in revenue. 2021. The company makes
35,827 dong in profit for every 100 dong in revenue. As a result, the corporation will
make more money in 2021 with a revenue of 100 VND than it did in 2019 (3,257 VND).
It reflects the high profitability, the ability to effectively control costs, and the good
business performance of the company in recent years. The above figures are only
approximate to evaluate the business performance of AQUA Vietnam- Ho Chi Minh City
compared to its competitors in the industry, in addition, it also reflects the efforts and
unceasing efforts. Group. At the same time, it shows that the company needs to take
further steps to become one of the leading electrical appliance companies in Vietnam.
CHAPTER 02: ANALYZING THE PROCESS OF IMPORTING WASHING MACHINE
FROM CHINA TO VIETNAM AT AQUA VIETNAM
2.1 Overview of washing machine import process
It is absolutely required and indispensable to map out the associated working procedures for
each activity within the organization. Employees can use a different set of references for their
specific tasks from the full set of processes that the company has designed, which will help
them finish their work more quickly. decrease incidents Additionally, a procedure for foreign
purchasing is essential for AQUA's import activity.
The process helps AQUA's system work more smoothly, it is easy to find the cause of all
problems because each part of the team will be in charge of a separate function to ensure the
smoothest operation.

Figure 2.1. The general process of importing washing machine from China to
Vietnam
From figures 2.1. AQUA Vietnam needs 8 steps in order to import washing
machine from China:
❖ Step 1: Order receiving from Sales Department:
Orders from clients and partners are relayed to the product department via the
sales department. Finding out what to do next in the process begins at this point.

❖ Step 2: Order checking and confirmation

After learning the details about the goods, the product staff uses email to survey
and confirm information on things from foreign suppliers.
 ❖ Step 3: Making contract and payment:
Sales agreements with foreign suppliers are drafted and signed by the product staff
of AQUA Company. The team will prepare foreign payments concurrently with
the Financial Department.

❖ Step 4: Contacting Logistics Service Provider:

The import cargo' transportation and customs clearance will be handled by the
AQUA Logistics Service Provider.

❖ Step 5: Shipment tracking and document:

Documentation is sent to the Product Department by vendors, carriers, and freight
forwarders. It is acceptable to send originals or pdf files by FedEx or email.

❖ Step 6: Shipment arrival and Customs clearance

Prepare a list of supporting papers to hand the Freight Forwarder's Customs
declaration team when the goods arrive. They will open the declaration. Once the
import tax has been paid, prepare to pick up the merchandise.

❖ Step 7: Receiving goods at AQUA’s warehouse:

Send the necessary departments details about the anticipated cargo at the AQUA
warehouse so they can get ready to receive the goods.

❖ Step 8: Filling documents:

The Product team stores files and provides information to the Financial department
in order to stock the newly delivered cargo at the company.

2.2 Analyzing of the process

2.2.1 Order receiving from sales department
After confirming with AQUA customers about their new project, the Sales Department will
each month tell the Logistics Department of the quantity of new products. In this instance, a
sales representative was successful in winning the top spot in the main customer display
supplier's proposal for a brand-new Electrical Appliance project. In order to import the
goods to AQUA, new purchase order requests will therefore be issued to the import-export
department each month. The buying executive will then handle the following stages. In
order to prepare the cash flow for supplier payments, new purchase orders must also be
reported to the accounting department. If the product's information is incorrect, the entire
procedure will fail, and the business risked losing the Vietnamese customer's business.
While there is no unique document to make the order request, the procedure of getting order
information from the sales department is still manual and done through email information
exchange.
Typically an important part of the category data decision preparation process, is one of the
Logistics's duties. On the other hand, the strategy of getting order data from Sales
Department is still or can be manual. There is no official printed document to create an
order request other than an email exchange. In the case of errors in the approximate data of
items/part numbers/quantities, it becomes troublesome to determine who is correcting and
who is at fault when the work force from both sides is right. transactional mail mining.

2.2.2 Order checking and confirmation

The Product Executive will email Haier's Sales Manager Manager in response to the new
order request from the Sales Department to inquire about the product's availability and lead
time. The Logistics Executive will send a new order and confirmation to Haier China if
everything is well. There are several crucial details in the purchase order that was delivered
to Haier. AQUA is a subsidiary of Haier Group, so all imports are prioritized by
Haier and speeded up.
In order to move on to the next stage of their manufacturing process, Haier will
provide the invoice as the order confirmation. Additionally, a freight forwarder
will be added to the email as information support.

2.2.3 Making contract and payment

Making contract: The Logistics Executive will fill out the information on the purchasing
contract form and send it to Haier for the information double-checking and contract signing
after the order verification and confirmation stage between the two parties is complete.
The logistics staff should be aware of the following clauses in the purchase agreement for
the items between AQUA and Haier. These are the terms; if the data submitted is incorrect,
the cargo will not be paid, which will stall the process after the two sides have signed and
the importer has sent it to the payment bank. The importer may also be subject to inspection
and fines for errors made during the declaration and clearance of the shipment by Vietnam
Customs as well as the tax authorities if the shipment has been imported into Vietnam but
the contract terms do not match with other documents of the shipment, such as the
commercial invoice, packing list, etc.
The contract of sale must be closely examined to ensure it is fair and agreeable to both
parties. To maintain the speed of work, the company must inform the client of any
modifications and reconfirm if something goes wrong.
Payment: The two companies have agreed to use Transfer Remittance as the payment
method for shipments from AQUA and Haier, but the payment will be made once the
documents and goods have been received. Haier will provide AQUA with documentation
for the overseas sale of goods, including an invoice and a packing list when the contract is
signed. The information on the invoice will be used by the Logistics Staff and Accounting
Staff to determine the payment term of the shipment and the debtor's time frame. When the
payment is complete, Aqua will send the supplier an invoice. Notifying the supplier of your
payment completion with an email and attaching the payment slip will help increase
accuracy and serve as a proof of payment.
The value of the shipment must also be accurately reported to the finance department so that
the finance department can pay the right amount to the right supplier on time.In addition, a
careful analysis of all aspects of the contract is required because once signed by both
parties, it will be completed and sent to the bank for payment and identification and
payment of import tax.
Based on the consignment documents sent by the agent, the person in charge of operation
calculates a fine for exceeding the allowed time of cargo handling and requires the carrier to
pay, if any.
Receive invoices from agents and check the arising compared to the original estimate. if
reasonable expenses will be charged to the debt and transferred to the agent; if not, ask for
clarification.
Summarize the trip, calculate the actual cost and profit of the trip.

2.2.4 Contacting Logistics service provider

At the beginning of November each year, AQUA will open a batch to select reputable
forwarders with long experience in the industry. Therefore, AQUA's Logistics activities are
always guaranteed at a good level because there are about 4-5 forwarders providing
services.
Logistics is the best way to transport goods from the place of production to the hand of the
consumer. The task of logistics companies is to specifically plan and control the movement
of goods or information about materials from the point of origin to the point of consumption
in accordance with the requirements of the classes. focus on quantity, quality, time and cost
of services. AQUA also has its own logistics provider, which aims to focus on activities that
are not AQUA's greatest strengths, such as transportation and customs clearance in order to
minimize costs arise. Otherwise, it helps AQUA operate smoothly without employing a
large number of staff.

2.2.5 Shipment tracking and document receiving

2.2.6 Shipment arrival and customs clearance

 2.2.7 Receiving goods at AQUA warehouse
The Logistics will send a letter to the specialized department and the logistics department to
assist in the collection and arrangement of goods into AQUA's warehouse to prepare them
for shipment.
The Logistics will number and compare the number of products with the quantity on the
receipt, as well as check the condition of the carton when the goods arrive in the Water. The
Logistics staff will sign a receipt from the delivery driver if the carton is not punctured,
damaged or stained. If there is a possibility of things being compromised, the workforce
will take pictures of them and send them to a Cargo Forwarder representative for inspection.
When picking up items in the Country, there will be cases where the box is bumped or
scratched; In the case where the customer picks up the product without taking a picture
while opening the truck, there can be challenges. There is nothing to guarantee the safety of
the carrier or the supplier.

2.2.8 Filling document

The inspector compared the records for each trip, month, and quarter in accordance with the
instructions for making reports. When completing a shipment, sales staff need to keep in
mind the needs of their customers in order to promote customer care. Customer care is one
of the most important stages for a company. It’s essential to keep new customers and retain
old ones if the company wants to maintain a stable customer base. AQUA often offers
preferential rates to old customers as well as ensuring its pre-shipment reputation, so it has a
large number of customers. Customer care can be as simple as calling back to ask about the
health and business of the customer to increase the customer's empathy for the company.
For new customers, AQUA always has a professional team that can provide all the
necessary information, related services and support needed to carry out the delivery of
goods in the simplest and most effective way.
When the goods arrive at AQUA’s warehouse, the Logistics staff will print out all the
documents and hand them over to the technical and support department to verify the
receipt of the goods at the company. Then hand over the voucher to the accountant to
import the product into the sales software system of AQUA.

Saving a report is the final step of the bringing in handle. Obtaining faculty and
bookkeepers require a total collection of documentation, counting which archives to look
at and guarantee the deal is substantial and lawful. At the same time, the capacity of these
records too should be done logically and sensibly to serve the bookkeeping and examining
operations afterward.

2.3 Process evaluation

2.3.1 Strengths
- The AQUA company has a straightforward, conflict-free approach for importing
shipments from China to Vietnam that makes it simple for readers to complete the task.
 - Using social media, such as email, to sign service contracts, documentation between
linked parties, or negotiate with domestic and international partners is simple.
Because AQUA Electrical Appliances has a strong history of working with clients, the
importation procedure runs easily and conveniently, reducing risks. The demand growth
rate of this industry is expected to increase by 30% per year, but human resources currently
only meet about 40%.
When putting the procedure into practice, each task is delegated in a straightforward
manner. Each department's responsibilities at each stage of the process are distinct and easy
to understand. This guarantees that each step is performed on time, increases the
effectiveness of each department's operations, and improve the productivity on a regular
basis.
The staff is young and enthusiastic about learning, with a fast working speed that meets
customer needs in a convenient way. The branch always puts customers' needs first,
cherishes what customers care about, and makes sure the transit time and chartering process
are quick and efficient if there are no problems. This way, shipping costs will be minimized.

2.3.2 Weaknesses
- The Covid-19 outbreak scenario is getting worse and worse, especially since the shipment
from China to Vietnam was imported at that time. This has an impact on global trade as
well as freight operations that could experience challenges like delays.
- Because some technical facilities in connected stages have not received significant
investment, it takes personnel a little longer to produce paperwork.
- When compared to other kinds of transportation, the method takes a lengthy time to carry
products. High-tech equipment is also needed for marine transport in order to maintain the
quality of the cargo. As a result, shipping by sea carries a high level of risk and is
potentially deadly. Events of force majeure might also delay the cargo.
- There is still a chance that damaged goods will be delivered to the company by truck,
which delays shipments while these issues are resolved. Last but not least, the business
hasn't really paid attention to disagreements that come up during the execution of contracts
and are necessary to protect the interests of both the company and its personnel.

CHAPTER 03: RECOMMENDATIONS AND SOLUTIONS

3.1 Solutions for overall import process
3.2 Recommendations for overall business
CONCLUSION