Water valve export procedures and documentation at minh hoa thanh co., ltd.docx

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BACH VIET COLLEGE
FACULTY OF FOREIGN LANGUAGES
INTERNSHIP REPORT
WATER VALVE EXPORT PROCEDURES AND
DOCUMENTATION AT MINH HOA THANH CO., LTD
Major :BUSINESS ENGLISH
Course :8 (2013 – 2016)
Student :ĐỖ THỊ DUYÊN - 21130831
Class :C113TA02
College supervisor :PHAN VŨ NGỌC LAN, Ph.D.
Ho Chi Minh City, August

BẢNG ĐÁNH GIÁ THỰC TẬP
i thực tập:........................................................................................................................
Địa chỉ:...........................................................................................................................
Điện thoại.......................................................................................................................
Người liên hệ:.................................................................................................................
II. Thông tin về sinh viên thực tập
Họ và tên HSSV:............................................................................................................
Lớp: ................................................................................................................................
Chuyên ngành: ...............................................................................................................
Người hướng dẫn – giám sát:.........................................................................................
Họ và tên ..................................................................... Điện thoại:................................
III. Nội dung thực tập
Bộ phận HSSV tham gia thực tập (sinh viên có thể tham gia thực tập ở nhiều bộ
phận):
........................................................................................................................................
Công việc được phân công cụ thể:.................................................................................
Thời gian làm việc tại mỗi Bộ phận:.....................................................................tuần
Số giờ làm việc trong ngày ...................................................................................giờ
Số lần vi phạm kỷ luật:..................................................................................................
Đi trễ/ về sớm: Vi phạm nội qui: Nghỉ không phép: Khác:.................

Đánh giá chuyên môn:
Đánh giá các tiêu chí theo thang điểm 10/10
Yếu: dưới 5 Trung bình: 5 - 6 Khá: 7 – 8 Giỏi: 9 –
10
STT TIÊU CHÍ ĐÁNH GIÁ ĐIỂM SỐ
1
Kiến thức chuyên môn
- Công việc chuyên ngành chính
- Công việc phụ
2 Kết quả công việc được giao
3 Kỹ năng xử lý tình huống trong công việc
4 Kỹ năng giao tiếp
5 Tính chủ động trong công việc
6 Khả năng tiếp thu và nắm bắt yêu cầu
7 Kỹ năng ngoại ngữ
8 Kỹ năng làm việc nhóm
9 Tinh thần học hỏi trong công việc
10 Kỹ năng quản lý thời gian
Nhận xét khác:
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
Tp. HCM, ngày…...tháng ….. năm 2017
Trưởng Bộ phận/Quản lý Đơn vị đánh giá
(Ký, ghi rõ họ tên) (Ký, ghi rõ họ tên và đóng dấu)

SITE SUPERVISOR’S COMMENTS
TOPIC: SOLUTIONS AND RECOMMENDATIONS TO PROMOTE THE
ACTIVITY OF WATER VALVE PRODUCT EXPORT OF MINH HOA
THANH CO,.LTD
I. INTERN’S WORKING ATTITUDE
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II. INTERN’S PROFESSIONAL KNOWLEDGE
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III. CONTRIBUTION OF THE REPORT TO THE COMPANY
......................................................................................................................................
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Date....................................................
Company’s stamp

vi
COLLEGE SUPERVISOR’S COMMENTS AND EVALUATION
I. COMMENTS
.......................................................................................................................................
......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
......................................................................................................................................
.......................................................................................................................................
II. EVALUATION
Criteria & Score
Part Note
Information
Vocabulary, Structure &
Use of English
Total
Introduction 1.5mks 0.5mk 2mks
Chapter 1 1mk 0.5mk 1.5mks
Chapter 2 3mks 1mk 4mks
Chapter 3 1.5mks 0.5mk 2mks
Conclusion 0.25mk 0.25mk 0.5mk
Final score
Date
College Supervisor’s Signature and Name

vii
EVALUATOR’S COMMENTS AND EVALUATION
I. COMMENTS
.......................................................................................................................................
......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
......................................................................................................................................
.......................................................................................................................................
II. EVALUATION
Criteria & Score
Part Note
Information
Vocabulary, Structure &
Use of English
Total
Introduction 1.5mks 0.5mk 2mks
Chapter 1 1mk 0.5mk 1.5mks
Chapter 2 3mks 1mk 4mks
Chapter 3 1.5mks 0.5mk 2mks
Conclusion 0.25mk 0.25mk 0.5mk
Final score
Date
College Supervisor’s Signature and Name

viii
ACKNOWLEDGEMENTS
I would like to extend my sincere thanks to teachers of Bach Viet College have
enthusiastically communicated to me of knowledge, experience of a lifetime during
the 3 years of training under the roof of the school.
During the fact-finding in the company, I have learned a lot of knowledge and
gather more information needed to cater for my thematic. Even there are just 4
weeks, this is the good opportunity to approach the author and reality of a business
unit economics. I would like to extend thanks to the directors of Minh Hoa Thanh
Co.Ltd supply all officials and employees create favorable conditions for authors
complete this symposium.
Finally, please send thank all family and friends sincerely for their support, help me
during the past.
Do Thi Duyen

ix
TABLE OF CONTENTS
INTRODUCTION.......................................................................................................1
1.RATIONALE FOR CHOOSING THE TOPIC.......................................................1
2.SIGNIFICANCE OF THE INTERNSHIP..................................................................2
3.METHODOLOGY...................................................................................................3
4.ORGANIZATION OF THE REPORT....................................................................4
CHAPTER 1: COMPANY’S BACKGROUND INFORMATION ...........................5
1.1 OVERVIEW OF THE COMPANY .....................................................................5
1.1.1 History of Minh Hoa Thanh Import Export Service Trading Co.ltd .................5
1.1.2 The process of development...............................................................................6
1.2 Functions, mission, structure.................................................................................6
1.2.1 The function .......................................................................................................6
1.2.2 The mission ........................................................................................................7
1.2.3 The company organization structure..................................................................8
1.2.4 The situation personnel of Minh Hoa Thanh Import Export Service Trading
Co.ltd.........................................................................................................................11
1.3 Results of business activities of the company in the period from 2014 to 2016 13
1.4 the role of exporting water valve for the company.............................................15
CHAPTER 2: EXPORT STATUS OF MINH HOA THANH IMPORT EXPORT
SERVICE TRADING CO.LTD..................................................................................1
2.1 BASIS OF EXPORT ACTIVITIES....................................................................17
2.1.1 The concept of export activities.......................................................................17
2.1.2 The forms of exports ........................................................................................17
2.1.2.1 Direct exports................................................................................................17
2.1.2.2 Export mandate .............................................................................................18
2.1.2.3 Trade (Counter-trade)....................................................................................19
2.1.2.4 In place Export ..............................................................................................19
2.1.2.5 International processing forms:.....................................................................20
2.2 THE EXPORT ACTIVITIES OF MINH HOA THANH IMPORT EXPORT
SERVICE TRADING CO.LTD................................................................................21
2.2.1 Import turnover ................................................................................................21

x
2.2.2 The structure of export commodities ...............................................................22
2.2.3 Export Market Structure...................................................................................24
2.2.4 The export forms..............................................................................................25
2.2.5 Method of payment ..........................................................................................26
2.2.6 The modes of transport.....................................................................................26
2.2.7 The quality of export goods .............................................................................26
2.2.8 Pricing policies.................................................................................................27
2.2.9 Customs declaration process............................................................................28
2.2.10 Process exports of Minh Hoa Thanh company..............................................28
2.3 ASSESSMENT OF EXPORT ACTIVITIES OF MINH HOA THANH COMPANY .........30
2.3.1 Strengths...........................................................................................................30
2.3.2 Weaknesses ......................................................................................................31
CHAPTER 3 EXPERIENCE GAINED AND RECOMMENDATIONS ................32
3.1 TASKS ASSIGNED ...........................................Error! Bookmark not defined.
3.2 ADVANTAGES AND PROBLEMS..................Error! Bookmark not defined.
3.2.1 Advantages.......................................................Error! Bookmark not defined.
3.2.2 Problems...........................................................Error! Bookmark not defined.
3.3 EXPERIENCE GAINED....................................Error! Bookmark not defined.
3.4 RECOMMENDATIONS ....................................Error! Bookmark not defined.
CONCLUSION.........................................................Error! Bookmark not defined.
REFERENCES..........................................................Error! Bookmark not defined.

xi
LIST OF CHARTS
Figure 1.1: organizational structure of Minh Hoa Thanh Import Export Service
Trading Co.ltd .............................................................................................................8
Chart 1.1. Business results of the company ..............................................................11
Chart 1.2. the number and the proportion of exports in the total number of water
valves.........................................................................................................................15
Chart 2.1. Export turnover of the company over 3 years from 2014 to 2016..........19
Chart 2.2. Export structure of valves ........................................................................21
Chart 2.3. Structure of export markets......................................................................22
Chart 2.4. the prices of export products (2014-2016)...............................................26
Chart 3.1: Diagram describing the work assigned ....................................................32

xii
LIST OF TABLES
Table 1.1 The labour structure ....................................................................................9
Table 1.2: Business results of the company..............................................................11
Table 1.3: the number and the proportion of exports in the total number of water
valves.........................................................................................................................13
Table 2.1: Export turnover of the company over 3 years from 2014 to 2016..........19
Table 2.2: Export structure of valves........................................................................20
Table 2.3: Structure of export markets......................................................................22
Table 2.4: the prices of export products (2014-2016)...............................................26

1
INTRODUCTION
0.1 RATIONALE FOR CHOOSING THE TOPIC
The economy is changing rapidly around the world, every country on the region and
the world are according to this rule, Vietnam is no exception. Implementation of the
method of converting the country's economic integration with the world economy,
the party and Government of Vietnam are constantly expanding foreign economic
relations, particularly in the area of international economic cooperation. In particular,
international trade is an important field to Vietnam is well located in the area and
scope of the world.
However the export sector in particular, the proportion of exports of Vietnam was
very much limited, and largely exports primary products are agriculture or raw
materials, mining products. Also the industrial products-export sources bring high
profits back has not yet been utilized effectively or not yet built up a private brand,
export is through other partners should commonly higher than the selling price of
products of the same type of competition, ... In General is not yet properly effective
investment with the potential to be available should a losing Vietnam export
proportion.
With this situation, Minh Hoa Thanh Import Export Service Trading Co.ltd. was
founded with the desire to export industrial goods of Vietnam such as: industrial

2
water valve products out to the international market in order to contribute to improve
the structure of export products of our present, at the same time creating jobs for
workers. Even so, the export of the company also encountered many difficulties and
limitations. Derived from this situation, I have chosen the subject: WATER VALVE
EXPORT PROCEDURES AND DOCUMENTATION AT MINH HOA
THANH CO., LTD do this internship report post to General research situation of
valve products export Minh Hoa Thanh co., Ltd to foreign markets to see the pros
cons when exporting industrial goods to the international market.
0.2 STATEMENT OF PURPOSE
The report aims to describe the documents required to export water valve at Minh
Hoa Thanh CO., LTD
0.3 SIGNIFICANCE OF THE INTERNSHIP
University helps students get the basic knowledge of theory. However, with this
knowledge, we can not work and complete the job in practice. So we need additional
knowledge and new skills to learn additional methods in the workplace and society.

3
At first practice in company practice I still crestfallen, although the school is also the
teacher to share practical experience much, but when the reality is arising a lot of
situations and problems. Require a business person must have expertise and soft skills to
handle situations
The internship also contributed to the additional knowledge and skills we also focus on the
reality of work.
0.4 METHODOLOGY
To finish this report I have used the research methods: data collection, information
from secondary information, analyze the company's report on the process of
exporting water valve.

4
0.5 ORGANIZATION OF THE REPORT
Topic structure consists of three chapters.
Chapter 1: Overview of Minh Hoa Thanh Import Export Service Trading Co.ltd
Chapter 2: Export status of Minh Hoa Thanh Import Export Service Trading Co.ltd
Chapter 3:A number of solutions in order to promote the export of Minh Hoa Thanh
Import Export Service Trading Co.ltd

5
CHAPTER 1: COMPANY’S BACKGROUND INFORMATION
1.1 OVERVIEW OF THE COMPANY
1.1.1 History of Minh Hoa Thanh Import Export Service Trading Co.ltd
Minh Hoa Thanh Import Export Service Trading Co.ltd was opened more than four
years ago, the company has made many significant achievements in areas, was
founded with the desire to bring the highest credibility and satisfaction for the quality
of service for customers. that determination is always the active direction of proving
The Republic during the past time. all the company's staff has years of experience, be
well educated in the country and abroad. However, with the force and dynamic sales
staff are always willing to resolve customer service and thoughtful, conscientious,
always gives the feeling of friendliness to customers in business.
- Name: Minh Hoa Thanh Import Export Service Trading Co.ltd
-Address: 199/2 TA19 Thoi An Ward, 12 District, Ho Chi Minh City
-Phone: (08) 62502299/0982.666.352-Fax: (08) 62502299
-Email: minhhoathanh@gmail.com-Website: http://minhhoathanh.com
-tax code: 0313196929 date: 01/06/2011 in Ho Chi Minh City
-Main activity: trade and exporting
-Charter capital: 3 billion VND

6
LOGO:
. Minh Hoa Thanh Import Export Service Trading Co.ltd is the company
distributing the water valve type branded MIHA, MBV, MI by the Minh Hoa
Investment Company commercial production, products such as: gate valve-one-way
valve, gate valve, butterfly valve, foot valve, brass balls, steel pipes, ... and threaded
fittings. In addition the company also distributes the water meter type mark Unik
(Taiwan), Zenner-Coma (Germany), the Shinha (Korea), Fuzhuo Fuda, Yuta Flange,
...
1.1.2 The process of development
The newly formed company stage with chartered capital of 3 billion VND was
established on June 20, 2011, at the present time the company's capital was increased
to 10 billion dong versus the initially established, the products of the company before
selling out to foreign and domestic markets are registering the quality of the goods
and the company continuously improve the quality of goods , code samples to meet
the needs of the market. Now the company has combined with several other foreign
companies such as South Korea, Poland, ... in order to expand the scale of their
activities. Planned in the near future will equipped with more modern machinery and
equipment targeted at further efficiency in its business activities.
1.2 FUNCTIONS, MISSION, STRUCTURE
1.2.1 The function
The company operates in accordance with the registered function in the business
registration license. The company specializes in producing domestic and exported to
foreign countries training in professional environment go up along with the
experience gained in the process of development so as to establish the company has
identified its business direction is to bring the best quality products for consumers
with professional working style at the same time contribute to job creation,
contributing to the State budget, stabilize and improve the lives of staff.
The company also is distributor of valves, water brand MBV, MIHA, MI by the
Minh Hoa Investment Company product.

7
1.2.2 The mission
Perform business tasks in the correct category in the business registration license and
company purposes.
The company completely independent, financial autonomy, autonomy of the business
plan.
The company operates according to the principle "a leader", the Director of the
company is to decide all issues related to all aspects of company activities.
Depending on the time the Director of the company management hierarchy for the
subsidiaries of the company.
Building strategy development, business plan consistent with the mission and needs
of the market. Preferred employers in the region and in the country, take care of the
good material life sense for officials and employees. Planning training, retraining in
order to raise the professional level, profession, work capacity, ensuring legal rights
for employees. Respect for the right to organize of the mass organizations, social and
political organization in business for workers.
Implement mode and rules of capital management, the property, funds, create
efficiencies in business operations, strengthen the material conditions for solid
companies for the development of the company, responsible for the authentication
properties of the financial activities of the company.
The company is subject to the management of the Government. Implementation of
tax obligations and the terms of the submission to the State budget in accordance
with the current legislation.

8
1.2.3 The company organization structure
Minh Hoa Thanh Import Export Service Trading Co.ltd is a company that small and
medium scale so the Organization activity of the company is quite simple.
Organizational structure of the company was performed through the following
diagram:
Figure 1.1: organizational structure of Minh Hoa Thanh Import Export Service
Trading Co.ltd
Source: Human Resources Department
a) The company is organized according to the structure of the direct-to function.
Director of the company directly managed by the decision down to departments and
managers in every department to again convey the contents down to the lower level
employees. This structure is to achieve uniformity in higher orders, improving the
quality of management decisions, reduce the burden to be the Manager of the levels,
can be attributed to specific responsibilities for each person. However, the Director
of the company must specify the tasks that each Board is made, the relationship of
the tasks between the functional parts to avoid embarrassment at work or conflict of
work between the departments. In fact, the organizational structure of the company
not being tricky, the direction and unity from the leadership of the company, each
Department has a function, its own duties and made adequate corporate objectives
Director
Director of Sales Director of
Financial
Sales
Department
Accounting
Department
Marketing
Department
Accounting
Department
Human
Resources
Department
Technical
Department

9
set out, without any parts or perform the duties of the other parts to avoid
inconsistencies in the Organization and the direction property export business.
b) The function of parts
From the company's organization chart, we see the organization structure of the
company includes:
+ Director: is the legal representative, who is operating direct all activities of the
company, are responsible to the Council and the law on the implementation of the
rights and obligations are assigned within the company. At the same time, the
Director is the person giving the final decision in the course of business activities of
the company, to receive direct reports from two Deputy Director about the situation
for foreign and domestic companies.
+ Director of Sales: the Deputy Director Is the recipient of the direction directly from
the Director General of the business direction and done through conveying and
subordinate parts management: planning, sales, marketing and technical rooms.
Sometimes, the Director of business to quickly capture the real needs from the
market, advised the Director General of the planned implementation of new business
strategies.
+ Director of Finance: If the Director of sales made in Foreign Affairs, the
company's Chief Financial Officer is the person who manages the domestic work:
direct management of the entire financial system of the company through accounting,
organizational management personnel of the company through administrative rooms.
+ The functions of other departments:
-Planning: Mission advised the Board of Directors in the business plan of the
company. The urge to supervise the implementation of the approved plan. From
which to draw advalvetages, disadvalvetages to be submitted to the Board of
Directors. Given the annual production business on that basis build targets for ptừng
manufacturing business; at the same time, in coordination with other departments, the
unit directly to business plan complete synthesis process on approval.
-Sales: duty of market research, in collaboration with the plan in deploying the
business approach of the Director and the company, in conjunction with the

10
marketing department to build the business promotion strategies, introduce products
to the market. Operating and developing the retail company.
-Technical Department: responsible for the quality of the product, the warranty.
Technical Department also manages the company's shipping fleet, for duty shipping
goods to customers.
-Marketing: marketing department has a duty to learn the investigation collected
information on customer comments, made the task of promoting and introducing the
products, promotions, discounts or customer incentives.
-Accounting: duty management of vouchers, books related to finance, to perform the
work related to the accounting profession, the tax affairs of the company, balance and
report business results for director financial
-Administration-human resources: HR management functions of the company,
management of correspondence, dispatch and Administrative Affairs Office, human
resources and the company's unions.

11
1.2.4 The situation personnel of Minh Hoa Thanh Import Export Service
Trading Co.ltd
Table 1.1 The labour structure
TT
Objective consciousness
2016 2017
Number (%) Number (%)
01 Number of employees 52 100 53 100
02 Gender
- Male
- Female
40
12
77
23
41
12
77,3
22.7
03 Age
- 20 → 30
- 31 → 40
- Over 40
24
19
9
46.15
36.54
17.31
25
19
9
47.17
35.58
16.98
04 level
-< University
- University
36
16
69.2
30.8
36
17
67.9
33.2
5 Density of labour
- Direct labor 35 67.31 36 67.92
- Indirect labor 17 32.69 17 32.08
* Analysis of the number of employees:
Number of employees of the Company in 2016 was 52 people, including 40 men,
accounting for 77% of all companies. 1 person in 2017 increased the number of
employees in the company almost stable and the change is not significant.
* Analysis of the quality of labor
is a company active in the field of business and commercial production should
company employees in many different levels. Labor quality in the company is
expressed through the level of each employee. 2016 The company has 36 employees
at the college level accounted for 69.2% less than the total number of employees is

12
maintained in subsequent years. Number of employees with university degrees
increased to 1% of the total, accounting for 33.2 employees,
We can see the quality of the Company employees is almost not changed much in the
last 2 years.
* Analysis of the age of labor
In the company, the workforce from 25 to 30 years old make up the majority, then to
the workforce from 31-40 years old. Ranked 3rd in the company's workforce over
age 40. Overall labor force at the company did not change much in terms of quantity
and quality. In total, the number of labor workers aged 20-30 accounted for the
relatively high rate of the advalvetages of this is a company in the service industry
requires dynamism, creativity and youth.

13
1.3 RESULTS OF BUSINESS ACTIVITIES OF THE COMPANY IN THE PERIOD FROM 2014
TO 2016
Table 1.2: Business results of the company
Unit: 1000 VND
No. Target 2014 2015 2016
2015/2014 2016/2015
+/- % +/- %
1
Total
revenue 16.743.677 17.240.528 18.435.889 496.851
3,0
1.195.361
6,9
3
Total of
cost 12.874.343 13.224.906 13.564.899 350.563
2,7
339.994
2,6
4
Profit
before
taxes 3.869.334 4.015.622 4.870.989 146.288
3,8
855.368
21,3
5
Total tax
payable 933.798 950.264 1.032.494 16.466
1,8
82.230
8,7
6
Profit
after tax 2.935.536 3.065.358 3.838.495 129.822
4,4
773.137
25,2
(Source: Accounting Department)
Chart 1.1. Business results of the company
16,743,677
2,935,536 3,065,358
3,838,495
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
2014 2015 2016
Total revenue
Profit after tax

14
Comment:
• Revenue:
Based on the results of trade we see companies that are in the development
stage. Sales steadily increased over the years:
Revenue increased more than 2014 2015 are: 3%, equivalent to 496,851,000.
Revenue increased more than expected in 2015 is 6.9% equivalent to 1,195,361,000.
The revenue increase is good sign, meaning that the company is performing well.
Growth is quite good, while the domestic economy should in particular and
the world in general are in a difficult period. Do this first to mention the leadership
and direction to the business from the leader board, good business reputation with
customers as well as the import field exams should head out to the input of the goods
smoothly and favorably. In the last three years the company constantly expands its
export markets, although the company's valves items yet to be favored in the
domestic market.
• Costs:
In 2014 the total cost is 12,874,343,000 until 2015 total costs increased 2.7%
increase respectively copper 13,224,906,000. By 2014 the amount of export goods
increased, the cost of which must also increase accordingly. Besides of labour also
increased every year.
In 2016 the total cost is increased 2.6% copper compared to 13,564,899,000 in
2015. Low-cost speed increase over 0.1% by weight of 2044 merchandise exports
decreased, falling more than a year to 2014, but the cost of equivalent again because
next to the old charges are also incurred additional costs hidden Bhikkhu arises when
troubled economy
• Profit:
In 2014 the profit of the company is 2,935,536,000 until 2015 3,065,358
increased profits, increased 4.4% respectively. Revenues increase drag by increasing
profits, the market for domestic and export valves in the past 3 years is relatively
stable and largely due to the policies and directions of the company's business is
good, so the goods are imported into and sold more convenient.

15
In 2016 the profit of the company increased to 3,838,495,000 Council than
2015, respectively falling 25.2%. With business policy and proper development
direction the company has business activities.
1.4 THE ROLE OF EXPORTING WATER VALVE FOR THE COMPANY
Table 1.3: The number and the proportion of exports in the total number of
water valves
Unit: piece
Target 2014 2015 2016
2015/2014 2016/2015
+/- % +/- %
Total
revenue 16.743.677 17.240.528 18.435.889 496.851
3,0
1.195.361
6,9
Revenue
of water
valve 5.801.627 7.849.430 8.653.254 2.047.803
13,5
803.824
1,1
(Source: Accounting Department)
Chart 1.2. the number and the proportion of exports in the total number of
water valves
16,743,677
17,240,528
18,435,889
5,801,627
7,849,430
8,653,254
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
2014 2015 2016
Total revenue
Revenue of water valve

16
Looking at Table 1.3 shows export activities play an important role in the business
operations of the company. Domestic market and the export market is relatively close
to equal. In 2014, exports reached more than $ 259,403, the growth rate in 2015
compared to 13.5 times in 2014 and 2016 turnover of the company has quite a rate
slower growth in 2015 is 1.1, but turnover of over $ 386,306 is still pretty. There is
growth so high is due to the strong growth in 2015 and 2016. Looking at the growth
rate of exports over 3 years from 2014 to 2016 shows clearly export activity are
gaining the most important position for the operation of the company

17
CHAPTER 2: EXPORT STATUS OF MINH HOA THANH IMPORT
EXPORT SERVICE TRADING CO.LTD
2.1 BASIS OF EXPORT ACTIVITIES
2.1.1 The concept of export activities
Export is the sale of goods or the provision of services to foreign countries on the
basis of the use of currency as payment. The basis of the export activities are the
purchase and the sale and exchange of goods (including both tangible and intangible
goods) in the country. When the production development and the exchange of goods
between countries increases, this activity to expand outside the borders of the country
or between domestic markets and export processing zones in the country.
Export is a fundamental activity of the foreign trade, long appeared that their original
basic form it is active exchange of goods between countries. So far it has flourished
both in width and depth with many different forms. Export activity today takes place
worldwide, in all sectors, sectors of the economy, not only in goods but also the
intangible goods.
2.1.2 The forms of exports
On the world market, the merchants trading with each other in certain ways. Each
export method has specific characteristics. The technique of conducting private
However in fact exports usually use one of these methods:
a) Direct exports
the export of goods and services businesses produce or purchase from the production
units in the country to foreign customers through the organization.
In the case of export enterprises are commercial enterprises is not in self produce
exporting the product consists of two stages:
+ Export supplies purchased with local units in the country.
+ Negotiations concluded with foreign business, delivery and payment with your
unit.

18
This method has a number of advantages are: through negotiations to discuss direct
access to consistent and less regrettable misunderstandings happen thus:
+ Reduce intermediary costs thereby increasing profits for the business.
+ There are many conditions that promote the independence of the business.
+ Active in the consumption of goods and products.
However besides the positive side to this method also revealed some drawbacks such
as:
+ Easy to happen risks
+ If no export staff have sufficient qualifications and experience when taking the
contract in a new market or make the mistake detrimental for themselves.
+ The volume of goods when delivered transactions usually are older can offset the
cost of the transaction.
Such as when taking a direct export to prepare some good work. Study skills on your
portfolio, to buy goods to sell, the trading conditions given in Exchange, need to
clearly define the goals and requirements of the job. Choose the qualified transaction,
it should prompt the volume of goods and services necessary for effective
transactions.
b) Export mandate
This is a form of business in which the company has export-import intermediaries
role instead of the production company signed contracts, conduct the necessary
procedures to export so that manufacturers and thereby enjoy a certain amount of
money called mandated fees.
This form includes the following steps:
+ Export Contracting mandated with units in the country.
+ Export contract, delivery and payment of goods overseas parties.
+ Norwegian export falls free from the unit in the water.
The advantages of this method:

19
The people entrusted to understand the market situation of the laws and local
customs, so that they have the ability to promote the trade and avoid less mandated
for the mandate.
For the people entrusted not put capital into the business of creating jobs for the staff
also gained a significant amount of money.
However, the use of intermediaries besides the positive side as mentioned above have
significant constraints as han:
-Import and export trading company lost the direct links with the common market
must meet the demands of the people.
-Profit sharing
c) Trade (Counter-trade)
Concept: convection trade is one method of export transactions in the export mix
chặc with import, sales people at the same time is full of buying, the volume of
exchanges with each other valuable equivalent. In this target export method is the
currency of a volume of the goods of equivalent value. Because of this feature that
this method is also known as import and export links, or barter.
d) In place Export
This is a new form of business but are widely developed, due to the advantages of it.
Characteristics of this type of export goods do not need to overcome national
boundaries that customers still purchase. Therefore, exporters do not have to
penetrate the foreign markets to which the client order to exporters.
On the other hand the enterprises also need not conduct the procedures such as
customs, insurance of goods ... which reduces costs.
In terms of the economy like the present temporary migration trend is becoming
more common that the population's foreign travel should increase rapidly. Enterprises
are aware this is a good opportunity to shake hands with tourism organizations to
conduct activities to provide services to exchange goods. In addition businesses can
take advantage of this opportunity to promote their products through the visitors.

20
On the other hand with the advent of mass-export processing zones in the country
then this is also a form of effective export is the country more emphasis. The
payment is also quick and convenient.
e) International processing forms:
In terms of ownership of materials, international outsourcing can proceed under the
following forms:
The party put his public affairs of raw materials or semi-finished products for the
receiving party and after the production, manufacturing, product recall and will pay
for the work.
The party put off selling material for machining the receiving party and after
machining, fabrication and production time will buy the finished products. In this
case the ownership transfer of material from the latest work to get work.
In addition we can also apply the form combined which side put the only machining
materials chính also receive tools provided the extra materials.
Review about the price of processing one can divide the work into two forms:
+ Actual contract, the authentic bar (cost phis contract) in which the party receiving
payment processing with the sides reaching the entire machining these actual costs
plus his remuneration.
+ Stock contract in which we define a norm value (target price) for each product,
including the cost of the quota and the level of remuneration. Although the cost of
fabrication is, how much the two sides are still paid according to norms.
The relationship between the party and the party set to work determined by the
contract. Outsourcing contracts usually stipulated a number of terms as finished
products, raw materials, prices, payment, and delivery.

21
2.2 THE EXPORT ACTIVITIES OF MINH HOA THANH IMPORT EXPORT
SERVICE TRADING CO.LTD
2.2.1 Import turnover
Table 2.1: Export turnover of the company over 3 years from 2014 to 2016
Unit: USD
Year Value Growth
2014 259.403
2015 350.421 13,5%
2016 386.306 1,1%
Source: from the report of the Mission of business apartments
Chart 2.1. Export turnover of the company over 3 years from 2014 to 2016
With the above figures shows the export turnover of the company is growing
very fast in the past years. In 2014, the export turnover reached more than 259,403
USD 2015, 13.5 times the speed increase in 2014 and 2016 the company's exports
have increased at a slower pace in 2015 is 1.1 but turnover reaching khẩuvẫn on
386,306 USD. There is such a high growth rate is due to the strong growth in 2015
and 2016. The cause is because the company has promoted the work of brand
promotion, seeking more import partners in foreign countries. Export turnover of the
company also strongly influenced from the influence the price of raw materials, the
export markets of the company currently is the Southeast Asian market.
259,403
350,421
386,306
0
100,000
200,000
300,000
400,000
500,000
2014 2015 2016
Value
Value

22
Import turnover rise are due in part to strengthen company marketing, join the
exhibition fair in the region, promoting promotions to customers, company current
tend to extend a few more new export markets such as South Korea and Taiwan
2.2.2 The structure of export commodities
Minh Hoa Thanh company's products had the reputation and trust in the domestic
market. and the company also exports to foreign markets such as Laos, Cambodia,
Iraq, ... The number of overseas export markets of the company are very limited, so
the company should try to boost exports to existing markets and expand some more
new markets.
Table 2.2: Export structure of valves
Unit: USD
No. Main products
2014 2015 2016
Value % Value % Value %
1
Electronic
valves
145.265
56,6
205.346
58,6
264.619
68,5
2 Industrial valves 51.880 20 102.322 29,2 72.239 18,7
3 Cast steel pipe 60.700 23,4 43.614 15,3 49.447 12,8
4 Total 259.403 100 350.421 100 386.306 100
145,265
205,346
264,619
51,880
102,322
72,239
60,700
350,421
386,306
0
100,000
200,000
300,000
400,000
500,000
2014 2015 2016
Electronic valves
Industrial valves
Cast steel pipe

23
Chart 2.2. Export structure of valves
Look at the table above shows, the proportion of the company's products through the
year. In which:.
The proportion of electronic valves in steady over the year representing 56.6%
highest in 2014 to 2015, the proportion increased to 58.6% and 68.5% in 2016, 2015
increased 140% compared to the year 2014, 2016 2015 compared to the increase of
117%. For 2016, the market preferred this over, the product is more reliable
customers, and because the company has a team of skilled staff have experience
working practices.
Valves variable density through the years, the highest proportion in 2015 is 29.2%,
and lowest in 2016 only accounted for 18%, 2016 compared to 67% reduction by
2015. Because in 2016 due to many other units also participated in this market should
have more significant competition.
Currently, the company's products have yet to dominate foreign markets much, the
sample code, categories cannot yet compete more than China, Japan ... This is
because the company has not had many code samples, categories; the quality is not
high; the product structure is still too scanty; the safety is not yet guaranteed, ... So
want to captured large market shares on overseas markets, the company needs to
make good on the issues and strategically expanded the market correct and
reasonable for each different market

24
2.2.3 Export Market Structure
Table 2.3: Structure of export markets
Unit: USD
Chart 2.3. Structure of export markets
Through the table on the data we see in 2016 is a fairly successful year in the
company's export activities of products out of foreign markets. The company is
slowly restoring the export market in Laos: 2014 exports to Laos accounted for 93%
of the total on the turnover of the company until 2015 this figure only accounted for
84.6%. To the year 2010, the exports to Laos is still maintained and is stable with
83%. But the Iraqi market again fell slightly: in 2015, export turnover to this market
accounted for 13.3% of total export turnover to the year 2016 this figure only
accounted for 13%. Also the Cambodian market still stamp foot in place. The good
241,244
294,353
320,633
4.5
12,970
45,554 50,219
2.8
5,188 7,358 11,589
5
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2014 2015 2016 Category 4
Laos
Iraq
Campuchia
Market
2014 2015 2016
Value % Value % Value %
Laos 241.244 93 294.353 84,6 320.633 83
Iraq 12.970 5 45.554 13,3 50.219 13
Campuchia 5.188 2 7.358 2,1 11.589 4
Total 259.403 100 350.421 100 386.306 100

25
thing for the company is that in 2016, the company has expanded two new market
which is the Polish market and the Korean market.
Laos is the largest export market of the company with a 93% and covers exports
reached 241,244 USD. In 2015 the company's exports to Laos market ascending and
descending USD 294,353 until 2016 is still 83%, because Laos does not retain its role
as the largest export market of the company anymore, which just debuted at second
and make room for emerging Middle East markets , namely the Iraqi market with
export turnover reached US $ 12970 representing 13% of the total turnover of the
company, the market in Laos in 2015 84.6% only of the company's exports. In 2016,
the company's exports have gigantic breakthrough when exports reached a record in
years past: reach over 386,306 USD. In it, the company thoroughly extraction under
the two potentially market depth available is: Laos and Iraq; at the same time catch
the early exploitation of two more new markets are: Poland and South Korea at the
end of 2016.
2.2.4 The export forms
Using form export directly help the company fully active in all activities of its
exported goods, can directly reach out to customers to collect more information about
the client as the tastes of the template code, customs or consumer habits. From which
the company can adjust or seek measures to further enhance his credibility and
reinforce our position on export markets. However when choosing this form, then the
company must also accept the need for a sizable equity advalvece. Also, ask about
the level of skilled professional staff pay and assumes that the market is always
fluctuating to avoid giving the company the risks and disadvalvetages from the other
objective factors.
* From the export of goods that the company divided into two groups, the main
exports of the company's exports, that is:
+ Group 1: exporting manufactured products. The export of these goods are products
such as valves, wiring transmission transmission available plug types due self
company manufacturing and exporting.

26
+ Group 2: re-export those goods previously imported without going through the
production or machining.
In particular, export manufacturing goods made for export under both forms of direct
exports and exports in place (85.77%), rest is goods for re-export. As such the
company exports production has always been an important role in the company's
export activities. The re-export items that companies make re-export form only one
part at least because this is the only form of business to profit from the difference in
the price, is not the main activity of the company.
2.2.5 Method of payment
Principal methods that the company uses is money transfer (T/T). Because most of
the company's clients are all reputable partners, long term business relations.
Therefore, business relationships based on trust are to form the money transfer (T/T)
is the method of choice, this form of payment at the same time just fast convenient
medium for both parties. During this time the company has to use this payment
method to dealing with most customers.
2.2.6 The modes of transport
The company international delivery focuses on three different forms: via express
delivery by sea, by land and by air. With the three forms above, currently are being
developed with the pace because the cargo import and export needs of our country at
this time, due to the growing impact of international integration and commercial
exchanges between the countries of the world with Vietnam. However, this form of
delivery through the Sea still are the company applied on most of the contract has
been made and the transaction.
2.2.7 The quality of export goods
The quality policy of the company to provide products that satisfy the requirements
and expectations of the quality of products and services. Committed to bringing high-
quality products, international standards. Production coupled with the protection of
the environment.

27
The domestic market is the market development with high consumer tastes
recommended products and consumer goods are increasingly highly sustainable
values such as ensuring human health and the environment.
The ISO 9000-2001,14000-2001 product standards
2.2.8 Pricing policies
Table 2.4: The prices of export products (2014-2016)
No.
Main products
UNIT(VNĐ)
2014 2015 2016
1 Electronic valves 100,100 100,800 101,000
2 Industrial valves 99,990 100,050 100,800
3 Cast steel pipe 63,000 63,200 63,500
Chart 2.4. the prices of export products (2014-2016)
The export price index rose through the years. By 2015, the average increase of
100.4% to 2016 increases averaged 100.4%. The cause of the move in prices is due to
the influence of the macro elements such as gasoline prices rose continuously over
the years.
The company's pricing methods
Sale price = cost price + cost +% desired lyrics
The way the company's valuation is also bringing more subjective, still higher than
100.1 100.8 101
99.99 100.05 100.8
63 63.2 63.5
0
20
40
60
80
100
120
2014 2015 2016
Electronic valves
Industrial valves
Cast steel pipe

28
the price of common ground than the market, the company also causes considerable
costs incurred in the production and export of goods
2.2.9 Customs declaration process
The company made declarations to customs directly out the customs declaration that
staff of export customs declaration company by electronic ECUS program at
corporate offices, this program is installed, the following steps to open the ECUS
program and fill out the electronic customs declaration, the person declaring will
send customs Brownie After 20 minutes, will receive a response from the customs,
the customs declaration to be printed 2 copies
2.2.10 Process exports of Minh Hoa Thanh company
Figure 2.1: Process exports of Minh Hoa Thanh company
Market and customer research
- Fair Trade
- Website
- Direct contact with customers
Negotiating and contracting
To prepare the export contract has been signed, the staff responsible for the contract
in addition to fluent English, have to use good Chinese. Although according to the
Market and
customer
research
Negotiating
and
contracting
Prepare
goods
Quality
control of
goods
Rent
transport
Buy cargo
insurance
Customs
procedures
Delivery
Payment
Dispute
resolution

29
usages of the transaction still uses English but to quickly capture information about
the happenings of the market especially the Asian market, the Chinese is essential.
According to learn tasks are only one company officers satisfy this requirement. This
is the limited manpower to do the work of the Minh Hoa Thanh company
After negotiations, the company will send a contract for partners already have the
signature of the General Manager, the company's stamp is available in four copies.
Partners will sign four contracts accepted it. They retained two copies, sent back to
the company. The contract together.
Prepare goods
The Minh Hoa Thanh company must sign the code guys are responsible for the goods
as well as the correct label products according to customer's requirements. Often the
company delivered to the production base of this work and for staff to track this
thoroughly.
Quality control of goods
Ensure benefits to both customers and the company, preventing the timely impact
reputation and long-lasting trade relationships. Before delivery the company must
check the quality, quantity, weight, packaging of goods. After checking, if found
satisfactory, the production
Buy cargo insurance
First, the paper-making company, Bao Viet insurance requirements will print form
available with the content of the record: goods, categories need insurance, the value
of the goods, packing, gate to gate, go, the name of the car, insurance requirements
(value buy insurance by 110% FOB). After opening on the Declaration, the company
filed back to Vietnam to review content and accept insurance of goods, followed by
Vietnam with single transmitter coverage for paper companies accept insurance, the
company is obliged to pay on time. This step actually done very quickly and simply.
Delivery - Rent transport

30
The airline's Board after considering going back to the price companies can, on the
basis that the company will choose the lowest price to ship rental contract. When the
contract signing party will announce its song to the schedule and the number of ships,
the number of the container to the company planning to move goods to the right
place, the right spot and the match time. The company is obliged to pay on time. As
in the contract of 150426 production to China, the airline leased a ship company Kuo
Chang to transport to the port of Shanghai-China
Customs procedures
The Minh Hoa Thanh company to employees in import-export Customs Declaration
and bringing along the Declaration through the customs surveillance zone.
Dispute resolution
Throughout the development process, the company has always maintained a good
relationship with customers, partners and create confidence in the process of
implementation of the contract does not occur in conflict or dispute. However
sometimes there are small inconsistencies occur but the company always has an
attitude seriously considering the request of the customer and the customer satisfied
resolution. The trust of customers helped the company has good relations with most
of the domestic and foreign customers. That helps the company has many contracts are
signed, the long term purchase, bringing the turnover increased significantly compared with
the previous year.
2.3 ASSESSMENT OF EXPORT ACTIVITIES OF MINH HOA THANH
COMPANY
2.3.1 Strengths
With exports to the market of Laos, Cambodia, Irad,.. is relatively large and the
following year was always higher than the year before. Category of products that the
company exports also quite varied and target many different objects from the purpose
of civil service to meet the needs of large industrial works. Besides that, even as the
company's products have a very high quality. The specifications of the product
always meets with Vietnam and international standards, as well as the specific
requirements of the customer on the amount on schedule delivery at a reasonable

31
price. When the products are delivered to customers are testing the quality of votes
by the governing body of the quality levels with beautiful packaging and sample code
on the form, correct specifications, be sure to make sure to sew the shipping and the
product is good. The company is also committed to responsible along with his
product, always the critical leg prestige care customer service and thoughtful,
preserve nurture good relations in order to maintain and enhance market share with
traditional customers, while expanding relations with customers and new markets.
2.3.2 Weaknesses
The company's export activities but gained some achievements but also the downside
issues. it is important to see the blemishes and cause to promptly fix and adjust
accordingly.
Although the export turnover in the year 2016 through the Lao market reached over 5
billion VND but look holistically in this period 2014-2016 the company's exports to
Laos. If the reviews on each separate market, then exports to Laos ' market-the main
export markets of the company also lacks stability. This shows that the company
lacked a long-term strategy in the implementation of export plans as well as for the
expansion of the market.
The company does not yet have a strategy for marketing and trade promotion
measures needed to expand its export markets. The company does not yet have
specific staff to market to meet the foreign market research to bring the products of
the company further penetrate new markets and better respond to the needs of the old
markets, and trade promotion measures the company's exports are also lacking and
weak yet high efficiency for market expansion.

32
CHAPTER 3 EXPERIENCE GAINED AND RECOMMENDATIONS

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