Tài liệu Báo cáo thực tập tiếng anh table of contentgraduate internship report internship company auto viet technology jsc

VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL *** GRADUATE INTERNSHIP REPORT INTERNSHIP COMPANY: AUTO VIET TECHNOLOGY JSC. Address: 26/121, group 14B, Thai Thinh lane, Thinh Quang ward, Dong Da district, Ha Noi Supervisor: Ms. Tran Hong Ngan Student’s full name: Vu Thi Thuy Anh Student’s ID: 11071161 Major: International Business Class: IB2012B Hanoi, March 11th, 2016 1 ACKNOWLEDGEMENTS On my internship report, it is my chance to thank all the people who made this period an unforgettable experience in my life. First, I am very thankful for the board of director of AUTO VIET, who gave me the chance to work in an impressive environment. Second, I should thank to the staffs of AUTO VIET for supporting and to have a great internship period. Especially, I also appreciate to my sponsor - Mr. Nguyen Dang Hung– for providing me appropriate guidance and training. And finally, I am very grateful my supervisor – Ms. Tran Hong Ngan – for the efforts to supervise and give me the direction to explore a new environment. Thanks to her, I have crucial comments to successfully complete this report. 2 ABBREVIATIONS JSC Joint Stock Company Ltd Limited PET Polyethylene terephthalate VAMA Vietnam Automobile Manufacturers Association GSO General Statistics Office L/C Letter of Credit B/L Bills of Lading 3 Table of Contents PART 1: INTRODUCTION TO AUTO VIET TECHNOLOGY JOINT STOCK COMPANY........................................................................................................................4 1. The formation and development history of Auto Viet Technology Joint Stock Company............................................................................................................................4 1.1. General information of Auto Viet Technology Joint Stock Company................4 1.2. Development process........................................................................................5 1.3. Auto Viet Technology JSC’s business sectors.................................................6 PART 2: IMPORT OPERATIONS IN AUTO VIET TECHNOLOGY JOINT STOCK COMPANY........................................................................................................................9 2. Import Department’s functions and missions.........................................................9 2.1. Functions...........................................................................................................9 2.2. Missions............................................................................................................9 2.3. Relations.........................................................................................................10 2.4. Import operations............................................................................................10 PART 3: INTERNSHIP GOALS, ASSIGNED TASKS AND PERFORMANCES.......26 PART 4: ACHIEVEMENTS............................................................................................28 REFERENCES................................................................................................................29 4 PART 1: INTRODUCTION TO AUTO VIET TECHNOLOGY JOINT STOCK COMPANY 1. The formation and development history of Auto Viet Technology Joint Stock Company 1.1. General information of Auto Viet Technology Joint Stock Company Name Auto Viet Technology Joint Stock Company Transaction name AUTO VIET., JSC Charter capital VND 6,000,000,000 Head quarter’s address 26/121, group 14B, Thai Thinh lane, Thinh Quang ward, Dong Da district, Ha Noi, Vietnam Showroom’s address 38 Yen Lang street, Dong Da district, Ha Noi, Vietnam Tel +8439912992 – Fax: +8439912882 Website http://noithatotoviet.com/ Business license date February 25, 2009 Business operation since April 01, 2009 Legal representative: Nguyen Dang Hung 1.2. Development process Before 2009 5 In the period of 2006-2008, Vietnam automobile market developed quite strongly, thus the demand of car furniture increased substantially both in quantity and quality. After his graduation from National Economics University, Mr. Nguyen Dang Hung (current director) had worked for some automobile companies and had accumulated a lot of experiences as well as some capital to establish his own company. After getting the business license on February 25 th 2009, on April 1st 2009, Auto Viet Technology Joint Stock Company has been officially established and operating. Formerly, the company primarily performed their task to seek the products from worldwide reputable brands such as: leather upholstery, insulation films and alloy wheels… Most of these products were imported based on customers’ orders and in need for specific kinds of their cars. The demand has not been required a lot yet since they needed furniture for replacement of the old or damaged ones. The primary market was only Ha Noi and contiguous provinces. The personnel of the company at that time were only 4 people and the number of technical workers was 6. The period from 2009 to present Because of increasing demand from customers and views on needs to own a car with maximum comfort and meet all the needs of the aesthetic features. Taking this into consideration, the company has developed much more products and services: highend audio equipment, luxurious wood-paneled interiors, accessories for pickups, guarantee, advisory… The company extended their market into other provinces such as: Hai Duong, Hai Phong, Quang Ninh, Nghe An, Ha Tinh… On May 6th 2012, the company opened a showroom on Yen Lang Street, Dong Da, Ha Noi to provide advisory, guarantee and larger place for assembly and repair. 1.3. Auto Viet Technology JSC’s business sectors 1.3.1. Import and sell: - High-end leather upholstery Jackspeed imported directly from Singapore used in airplanes, yachts, cars (BMW, Mercedes…) 6 - Genuine alloy wheels High-end audio equipment (Sony, JVC, Alpine…) in cars Luxurious wood-paneled interiors Accessories for pickups imported from Thailand (Carryboy, TFT, - AEROKLASS, ALPHA…) BOSCH accessories Car care products Decorations for cars Exclusive distributor in Ha Noi for heat insulation film Nano Blue Diamond – FSK, 10 year guarantee 1.3.2. Services - Guarantee - Car care advisory - Assembly and repair 1.3.3. Auto Viet JSC’s featured products a. Leather upholstery Jackspeed Products are imported directly from Jackspeed Singapore PTE Ltd. 7 - Quality Assurance: All leathers are selected from tanneries certified by - strict automotive standards before intensive tests to ensure durability. The Perfect Fit: With Automotive Manufacturers certified procedures and standards, Jackspeed’s team of qualified technicians guarantee the best - craftsmanship from sewing to installation of the brand new upholstery. ISO/TS 16949: A quality management system that is recognized by OEMs (Original Equipment Manufacturers) worldwide and its conformance prerequisite of all suppliers. It applies to the design/development, - production, installation and servicing of automotive-related products. Side Airbag Certification: Leather Seat Covers with Integrated Side Airbag - certified by TUV Kraftfahft Gmbh – German Safety Monitoring Agency. ISO9001:2008: A global quality management standard used to establish an - organization quality management system. ISO14001:2004: An environment management standard that serves to help - organizations better in protecting the environment and preventing pollution. OHSAS 18001: A British standard for occupational health and safety management that is recognized globally. b. Heat insulation film Nano Blue Diamond – FSK - Place of origin: Shanghai, China - Manufacturer: Shanghai Yongguan Adhesive Products Co., Ltd. - Material: PET - Function: Decorative, Explosion-proof, heat insulation - Feature: Self-adhesive - Color: Various/Customized - Transmittance: 5-80% - Structure: 2 ply - Width: 20”(50cm), 30”(75cm), 40”(100cm), 60”(1524cm)/max - Length: 12”(30cm) to 100ft (option choice) - Durability: 3 years - Applications: Solar control films are mostly used for automobiles and buildings. As its name means literally, the films are for blocking ultra violet rays, from entering the enclosed area by applying these films on to the - window of automobiles or buildings. (The films block 98-99% of UV rays.) Excellences: 8        Reduces heat, glare and fading of interior furnishings Tough and durable with scratch resistant hard coating High quality film, easy to install Not affected by condensation Suitable for single and double glazed windows Can be removed when no longer required Well packed to ensure that it will reach you in good condition PART 2: IMPORT OPERATIONS IN AUTO VIET TECHNOLOGY JOINT STOCK COMPANY Figure 01 - Auto Viet JSC’s hierarchy structure Director Accounting Department 2. Vice Director Sales Vice Director Import Sales Department Import Department Personnel Department Import Department’s functions and missions 2.1. Functions Advising the Director on import and searching for the markets all over the world to expand operations and imported goods 2.2. - Missions Perform the import processes 9 - Make annual import plans and submit to Vice Director; propose solutions - and resources to Director to ensure that accurate plans be carried out Develop strategy for the product structure, import market based on the - diversification of business sectors Circulate and archive import documents, settle the import contracts. 2.3. 2.4. Relations Co-ordinate with Sales Department in products sales operation Work with Accounting Department and Personnel Department. Import operations 2.4.1. Market research a. Domestic market research The car furniture and accessories market in Vietnam is dependent on the automobile market. Therefore, this research may also be undertaken with the latter one. i. Some “special” characteristics of the automobile market of Vietnam in recent years - Imperative follow: “Follow” here means to race for introducing new car models, which means if there are any new models in major and developed markets, then right after that, those models would be introduced or - assembled in Vietnam. Not hesitate to spend money: In the information technology boom nowadays, whenever there are new or incomparable car models anywhere, Vietnamese car buyers grasp very quickly. They are prepared willing to spend millions - dollars to possess luxury cars: Still waiting for prices: Comparing to regional markets, the car prices in Vietnam is twice or thrice higher. Automobile joint ventures confirmed that 10 the prices are high taxes (about half the price of each sold car). There is another opinion that in 2018 the car prices in Vietnam would be much lower since the import tax and accessories in ASEAN would decline sharply. ii. The facts of automobile market in Vietnam  Supply Automobile supply of Vietnam nowadays is quite huge and it is from a lot of different sources. Most of the supplies are from three main sources: - Domestic manufacture and assembly Import Smuggling In these three sources, according to statistics in the past few years, domestic manufacture and assembly accounted for the largest number, followed by import and then smuggling. According to General Statistics Office (GSO) of Vietnam, in December 2015, there were about 14,000 cars imported into Vietnam; the turnover was about 382 million USD. In 2015, the total number of cars imported was about 125,000 with the turnover of 2.97 billion USD, increased 76.6% in the amount of cars imported and increased 87.7% in value. (baochinhphu.vn) The domestic manufactured and assembled cars were supplied essentially by VAMA with 18 members: Toyota, Truong Hai, Ford, Mercedes Benz, Daewoo… Annually each joint venture manufactures about 3,000 cars, this amount of cars only supplies for domestic market. It shows that the quantity of domestic manufactured and assembled cars is not enough for consumers’ demand even in domestic market, which makes imported cars market is still quite exciting. 11 However, according to GSO, after applying new calculation of excise tax, the amount of imported cars in January 2016 decreased for 50% with only 7,000 cars, while there were 14,000 cars imported in December 2015. According to some import cars enterprises, this new calculation of excise tax make the price of cars adding some cost such as: transport, advertisement, labor… The remaining of the total supplies of the automobile market is from smuggling. This amount of cars has significant impact to the market because of low prices, thus it has high competitive advantage.  Demand Although Vietnam has gained remarkable accomplishments in innovation of the economy, Vietnamese people’s income is not high, the GDP is 2,109 USD while the price of a domestic manufactured and assembled is about 60,000 USD, the demand of Vietnam automobile market is still quite modest with the ratio 1 car/100 people. Moreover, the streets in Vietnam do not coincide with circulating by cars, which make the demand of people to use cars is not high.  Researching on market demand means that we have to understand that which products the market would need in the present and future, amounts and prices. Based on consumers’ tastes and trends in each automobile segment, we need to take these researches into consideration to import furniture and accessories which are comply for them. - Class A: City car - small, low price, suitable for women: Kia morning, Chevrolet Spark, Hyundai i10… - Class B: Subcompact car – affordable prices, less fuel consumption, easy to drive, stable with 500km driving, safer than city car. A lot of first car buyers choose this class. 12  Hatchback: Toyota Yaris, Ford Fiesta, Mitsubishi Mirage, Kia Rio, Mazda 2S, Suzuki Swift…  Sedan: Toyota Vios, Nissan Sunny, Honda City, Mitsubishi Attrage… - Class C: Compact car: Toyota Corolla Altis, Honda Civic, Ford Focus, Mazda 3, Hyundai Elantra, Kia K3… - Class D: Mid-size car Mid-size cars in Vietnam are all in sedan model (there is also hatchback model in foreign countries) because of popular taste of elegance and noble. Customers for this segment are mainly young businessmen, businesses, wealthier households… Toyota Camry is still considered as the most purchase-worthy car model for its design, reputation and low care cost. Its competitors are Mazda 6, Hyundai Sonata, Kia Optima, Nissan Teana, Honda Accord… in which the most prominent are Mazda 6 and Hyundai Sonata because of their youthful style, modern technology and lower price than Camry. - Compact MPV: Compact MPV is very popular in Vietnam thanks to its affordable price, large space inside, low maintenance cost… Toyota Innova is dominating in this segment since its debut in 2006. It is the best choice for passenger carrier, taxi agencies, businesses and individuals for car rental, mid-class family who often travel with 5-7 people… Competitors: Chevrolet Orlando, Mitsubishi Zinger, Nissan Grand Livina, Suzuki Ertiga… and imported cars such as Ford C-Max, Mazda 5… - MPV or Minivan: Toyota Sienna, Honda Odyssey, Kia Sedona… Crossover: Ford Escape, Kia Sportage, Hyundai Tucson, Mitsubishi Outlander Sport, Suzuki Grand Vitara… And luxurious car models such as: Mercedes Benz C-Class, E-Class, SClass, GLK-Class, ML-Class, GL-Class; BMW 3-Series, 5-Series, 7-Series, X3, X5; Audi A4, A6, A8, Q5, Q7; Jaguar XF, Lexus LX570, Cadillac Escalade… 13 - Pickup: Ford Ranger, Mazda BT-50, Toyota Hilux, Mitsubishi Triton, Nissan Navara, Chevrolet Codorado…  Government’s policies for import products:  Tax bases and tariff According to Law on import and export duty No.19/VBHN-VPQH: Article 8.Tax bases, tax calculation methods and the tribute money 1. Tax bases of export, import duty is the number of units of each item actually exports and imports recorded in customs declaration forms, tax price and tax rate percentage (%); for items subjected to absolute tax, the tax base is the number of units of each item actually exports, imports recorded in customs declarations and the absolute tax rate provided for a unit of item. 2. Tax calculation methods are defined as follows: a) Number of export tax, import tax to be paid by the number of units of each item actually exports and imports recorded in customs declaration forms multiplied tax price and tax of each item recorded in Tariff in time of tax calculation; b) In the case of items subjected to absolute tax, export tax and import tax must to be paid by the number of units of each item actually exports, imports recorded in customs declarations multiplied absolute tax rates regulated on a unit at the time of tax calculation. 3. Tax payment is Vietnam dong; in cases of tax payment in foreign currency, it shall be paid in freely convertible foreign currency. Article 9.The tax price and taxable exchange rate 2. The tax prices for imported goods are the prices actually paid at the first entry gate under contract, in accordance with international commitments. 3. The exchange rate between Vietnam dong and foreign currencies used to determine the taxable price is the exchange rate by the State Bank of Vietnam announced at the time of tax calculation. Government regulations specify in detail the dutiable provisions in this article. Article 10.Tax rates 2. The tax rate for imported goods including preferential tax rates, special preferential tax rates and ordinary tax rates: 14 a) The preferential tax rates are applicable to imported goods originating from countries, groups of countries or territories made to most favored nation (MFN) treatment in trade relations with Vietnam; b) The special preferential tax rates are applicable to imported goods originating from the countries or groups of countries or territories implemented special preferential import tariffs with Vietnam; c) The ordinary tax rates applicable to imported goods originating from the countries or groups of countries or territories that do not grant MFN treatment and nonimplementation of special preferential import tax to Vietnam. The ordinary tax rates are defined not exceed 70% preferential tax rate in each respective item specified by the Government.  VAT for company’s products The tax rate shall be applied under the Circular No.83/2014/TT-BTC guiding the implementation of value added tax for the list of imported goods Vietnam in which most imported products of Auto Viet JSC’s are applied with 10% VAT. b. Foreign market research This process requires the company to know about how many suppliers for intended imported goods and supply ability, transaction and payment method… These factors affect on the import stability and durability. The price of commodity includes cost of goods sold, packaging cost, transportation cost, insurance cost and others’ cost that depend on the process and the agreements between both parties. In fact, the price of each kind of commodity is affected by a lot of elements such as: competition, supply and demand, inflation, season… Therefore, the company needs to consider and determine the impact of all the factors on the prices of imported goods, hence determine the reasonable prices for domestic consumers and for them to achieve their goals. In the imported goods prices selection issue, the 15 company usually based on the prices: in traditional trading center, in main production countries or focused manufacturers, exchange rate, political environment, law, trading practice and currency system. Auto Viet JSC has trade relations mainly with Thailand, China, Singapore and Taiwan. Among those, Thailand is the biggest business partners which accounts for 39 percent of total trading volume, followed by China (30 percent), Singapore (21 percent) and Taiwan (7 percent). This can be explained that Thais products have good quality and most reasonable price than ones from other countries. Figure 02 -Trading partners' contribution 7.00% 3.00% 21.00% 39.00% Thailand China Singapore Taiwan Others 30.00% Source: Auto Viet’s report 2.4.2. Negotiation and signing contract a. Negotiation This is the beginning stage of the formation of the contract. Both parties’ representatives would meet each other to express their requests and desires. This stage 16 requires both parties to elaborate the preparations to have beneficial agreements for both in negotiation while keeping good and stable relationships in business. For the first trading, Auto Viet JSC’s directorate often administrate to direct negotiation method in which the director or vice director would go to Thailand, Singapore, China… to directly meet, communicate and present the requests and inquiries to solve immediately. After both parties gain conversance and trust in each other, we can use the negotiation method by media such as fax and email… to save time and cost. Negotiation process includes following steps: - Enquiry: a request to enter the transaction from the buyer to request the seller to provide the information about the goods and services. An enquiry’s contents does not need to be complete like a contract but still assure some - basic terms such as: product name, quantity, quality, price, delivery period. Offer: a suggestion from the seller. An offer’s contents ensure the contents of - a contract. There are two main types of offers: free offer and fixed offer. Order: a proposal to conduct transaction from the buyer and bind the obligations to the seller. An order’s contents ensure the contents of a contract - including the clauses of technical requirements or a sample attachment. Counter-offer: Counter-offer can be sent from buyer or seller. Legally, this is an answer but not a complete acceptance for previous transaction clauses. - This is commercially also the bargain for price and transaction clauses. Acceptance: a completely unconditional acceptance with all the requests from the other party. An acceptance with an offer or an order counts as - signing the contract. Confirmation: to confirm the clauses with both parties had agreed and this confirmation counts as an agreement to sign the contract. b. Signing contract 17 The usual contents of a contract for import include: - Contract number Date, place signing contract and term of contract performance Both parties’ information: address, telephone number, account number, bank Contract’s article  Commodity, Specification, Quantity, Quality, Packing  Shipment: time, place, method  Payment: method, currency  Other clauses The contract applies Incoterms 2010. 2.4.3. Implementation of an import contract OpenL/C(if payment with L/C) Make a carriage contract Obtainan insurance contract Customs procedures Payment Unloadthe goods Claim procedures (if needed) a. Open L/C (if payment with L/C) After signing contract (normally via fax), Auto Viet JSC would proceed to escrow and open L/C at JSC Bank for Foreign trade of Vietnam (Vietcombank) or Vietnam Maritime Commercial Joint Stock Bank (Maritime Bank) Ha Noi branch and send the copy of L/C (deferred 30-60 days) via fax. Partial shipment is allowed; trans-shipment is not allowed. Required documents for payment often include: - Commercial invoice Bill of lading Packing list Certificate of origin 18 - Certificate of insurance Certificate of manufacturer DHL’s invoice informs that the original document or copy is sent to the buyer. At the same time, based on shipment clauses, the company informs the carrier agency to arrange schedule and the time they go to the seller’s warehouse to take the goods. Auto Viet urges the Seller to prepare and give the goods to the carrier on time, then they requests the Seller to send the documents to them for preparation of import procedures documents, contacts the carrier agency to get the receiving note as soon as possible and obtains an insurance contract if the goods need insurance. When the goods are arrived at Haiphong port, Auto Viet contracts the carrier agency to get the notice of arrival and prepare the documents to unload the goods including: - Contract - Copy of L/C - Bill of lading - Commercial invoice - Certificate of origin - Packing list b. Make a carriage contract Making a carriage contract is based on three conditions: - Contract’s clauses Commodities’ features Transport conditions FOB: The buyer makes the carriage contract. CIF: The seller makes the carriage contract. Auto Viet JSC commissions this to DHL – a carrier agency. 19 c. Obtain an insurance contract Vietinbank Insurance for import and export cargo: The Coverage Under the Cargo insurance rules of seaborne transport of VBI and ICC "A", "B", "C" of the Association of Insurance London , 01/01/1982. The coverage 1.      Loss or damage occur may reasonably attributed to: Fire or explosion Boats and barges were stranded, sunk or capsized Vehicles inland are overturned or derailed Collisions or crashing into any objects except for water Unloading at the port of refuge Insurance Conditions A X X X X X B X X X X X C X X X X X X X X X X O X X X X X X D D X X O O O O D D O O O O O O D D X X X X X X X X X X X X 2.Loss or damage caused by:  Liability under the term "mutually at fault collisions”  Earthquakes, volcanic eruptions and lightning  Sea, lake or river water entering the vessel, barge, cargo transporting container or storage  Commodity being swept from vessel  Bad weather  Spontaneous action or intentional actions  Pirates  Special risks  War risk  Strike risk 3.The reasonable costs  General damage sacrifice  Throwing goods into the sea for lighter vessels (when in danger)  General damage contributions  Salvage Cost