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Since the issuance of new policies on diplomacy and economy of Vietnamese government in 1986, namely Doi Moi era, Vietnam has set up its business relationship with most countries in the world, even with former millitary opponents such as the United States or Japan. Every year, exportation contributes billions of dollars to the GDP of Vietnam. In general, our main exports consist of most agricultural products such as rice, coffee, pepper, etc. and raw natural resources such as crude oil and ores, as well as shoes, clothing and handicraft products, all of which are very low value-added. Meanwhile, we import manufactured goods and luxuries like car, branded clothing, alcohol, which has made Vietnam suffer a trade deficit for a long time. In order to improve the balance of trade, the government has encourage Vietnamese enterprises to shift from processing goods to order of foreign companies to producing high value-added products for exportation.
1.4.2. Filler Master Batches 7 1.4.4. Color Master Batch tch 8 1 INTRODUCTION Since the issuance of new policies on diplomacy and economy of Vietnamese government in 1986, namely Doi Moi era, Vietnam has set up its business relationship with most countries in the world, even with former millitary opponents such as the United States or Japan. Every year, exportation contributes billions of dollars to the GDP of Vietnam. In general, our main exports consist of most agricultural products such as rice, coffee, pepper, etc. and raw natural resources such as crude oil and ores, as well as shoes, clothing and handicraft products, all of which are very low value- added. Meanwhile, we import manufactured goods and luxuries like car, branded clothing, alcohol, which has made Vietnam suffer a trade deficit for a long time. In order to improve the balance of trade, the government has encourage Vietnamese enterprises to shift from processing goods to order of foreign companies to producing high value-added products for exportation. According to the schedule of Foreign Trade University, I spent a five-week internship at Europlast Joint Stock Company, which majors in importing raw material and manufacturing polymer and plastic products for domestic consumption as well as exportation. Under the training of my direct instructor, Ms Pham Thi Ngoc Mai, as well as the condescention of the company’s staff, I have been given a great opportunity to apply my academic knowledge to practical problems and compare with the theories I have learned at the university. Based on my background knowledge and the experience I gained during my intership, I decide to choose the topic for this report as: “Import- export practices at Europlast Jsc”. The report consits of three separate parts: Chapter 1: General information about business practices of Europlast Jsc., Chapter 2: Import – export practices at Europlast Jsc., Chapter 3: Suggestions offered to enhance the efficiency of Europlast Jsc., in international trade 2 Due to my limitation of knowledge, skills and experience, mistakes and faults are inevitable. I welcome all comments, advices and suggestions that help me improve the quality of the report. Finally, I would like to express my gratitude to my instructors and Europlast staff for helping me complete my mid-course internship. Ha Noi, July 18 th , 2013 Lương Kim Anh 3 1. General information and history of development of EuroPlast Company: EuroPlast Jsc. Type: Joint stock company Years active: 2007- present Trading Office: N11, Block 1A.1.2 - N02, My Dinh 1 Urban Area, Tu Liem District, Hanoi, Vietnam Industry: Plastic & Polymer Products: Master batch and additives Website: http://www.europlast.com.vn 1.1. General information of Europlast Founded in 2007 in Hanoi, EuroPlast Joint Stock Company is an expertise in polymer industry and mineral resources (Talc production). Its primary products are Filler Master Batch, Color Master Batch and Additive Master Batch. As one of the main producers in Vietnam polymer market, Europlast has expanded equally its activity to exportation. The company exports over 60% of its turnovers to more than 20 countries in the world. 4 Its strategic goal is to develop tailor-made solutions and technically advanced master batches and compounds for the polymer industry by using an exclusive advance plastic solution. We offer a comprehensive sampling service with excellent laboratory and technical service back-up. Focus in modern technology, high quality product and in respect of the best service for customers, Europlast will continue to provide innovative solutions, enable responding to every demand of global market. 1.2. Developing history of EuroplastHistry The relative young history of EuroPlast is a story of success. The long-term experience of its expertise in polymer's production have been, together with multiple international relations, the relevant starting capical. 09/2007 o Foundation of the company EuroPlast, situated in Ha Nam, Vietnam. 2008 o Establishment of the first factory in Ha Nam Industry Zone: 2 lines of production for the capacity 700 MT/month. The company employed 31 people. o The head office was situated in Ha Nam Province. 2009 o Establishment of the representative office in Ho Chi Minh city. 2010 o Expansion of the factory with 4 new production lines. The capacity total 2500 MT/ month. o First international presentation of EuroPlast's product to China and EU Marrket. 2011 o Establishment of new branch in Ho CHi Minh city, in the south of Vietnam. o Establishment of Trading Office in the center of Hanoi. o Establishment of new branch in Nghe An Province. 5 o Construction of the second factory in Nghe An, 3 hectare square total area. o Year of exportation - The company export its product to more than 20 countries in the world. 2012 o Expansion of the factory in Ha Nam, new building of 3000 m2 with modern and quality equipment. o Total capacity of EuroPlast reaches 6000 MT/month for 14 production lines. o Purchase Talc mine in Tafu, north part of Vietnam: 99 hectare square total area. o Purchase Talc mine in Phu Tho: 44 hectare square total area. o The company has actually 260 employees for 40.000 MT product sales/ year. 1.3. Managerial Structure Chart 1: Managerial structure of Europlast (Source: Europlast human resource department) 1.4. Strategic products Board of directors General Director Board of controllers Production R&D Trading Marketing Financial Administrative Factory in Ha Nam - Factory in Nghe An - Talc mine in Tafu - Talc mine in Phu Tho -R&D - Quality control - Quality consultant - Local market - Internati- onal market - Trading support - Purchasing 6 1.4.1. Filler Master Batch Filler Master Batch is compounded of high quality filler, polymer resin and other additive agents by twin-screw machine. It is widely used in the plastic industry (blow film, blow molding, injection molding, wire drawing, bag molding, slip casting, dyeing, extrusion molding) to reduce the production cost and improve the character of final products. EuroPlast’s Filler Master Batch is produced in a highly respective environment, with high quality process and selective raw materials. Application: (PE) -Transparent film - Injection/ extrusion - Opaque film - Extrusion coating film 1.4.2. Filler Master Batches Filler Master Batches is compounded of high quality filler, polymer resin and other additive agents by twin-screw machine. It is widely used in the plastic industry (blow film, blow molding, injection molding, wire drawing, bag molding, slip casting, dyeing, extrusion molding) to reduce the production cost and improve the character of final products. Europlast's Filler Master Batch is a combination of calcium carbonate, plastic flexibilizer and other special additives. It has good dispersion and environmental protection, which can improve the surface antifriction, heat stability, toughness, hardness, rigidity and increase specific gravity of plastic products. Application: (PP) - Woven bag - Jumbo bag - Injection moulding - Extrusion 1.4.3. White Master Batch atch 7 White Master Batch is a type of polymer materials, it gives whiteness, brightness and opacity in the final product. To provide these properties in platics, many chemicals such as Zinc Oxide, Zinc sulphide, Antimony oxide, Titanium dioxide are used. Titanium dioxide is mostly used in plastic application because of its unique properties such as high refractive index, average particle size (0.19-0.22 micron). EuroPlast’s White Master Batches are based on international quality Titanium dioxidewith excellent optical properties such as opacifying/tinting strength, undertone, and color. This Titanium dioxide has a unique surface treatment which gives good dispersion in plastics and also has no effect on rheological properties of the polymer. White Master Batch contain speciality additives which makes the resin compatible with titanium pigment and give an ideal color for final product. Europlast has a lot of varieties of White master batches, depending on the percentage of Titanium dioxide (up to 70%). Application: - Film for complex printing - Film for the application of packaging - Film for the application in Se Food and Agriculture Industry - Injection and blowing mold 1.4.4. Color Master Batch tch Color Master Batch is a type of polymer materials dedicated colorants, pigments, also know as preparation of materials (Pigment Preparation). It consists of pigments or dyes, and additives vector composed of three basic elements, is the extraordinary amont of pigment or dye evenly attached to the resin contained in the aggregate have been, can be said to concentrate pigment (Pigment Concentration), so shading power than his own pigments. Main Color: black, blue, brown, green, grey, orange, red, violet, yellow Application: - Injection molding 8 - Blowing film 1.5. Markets 1.5.1. Domestic market 40% turnover of EuroPlast comes from local market. Its products present in every part of the country throughout the present of representative offices and distributor link: - North: Head Office in Ha Nam, factory in Ha Nam, talc mine in Ta Phu, Bac Giang, talc mine in Phu Tho, office Representative in Hanoi - Centre: Branch in Nghe An, factory in Nghe An - South: Branch in Ho Chi Minh City At this moment, the company has more than 80 loyalty customers working in packaging and plastic manufacturing industry that produce water pipes, wires, sheath conditioning, appliances… Europlast’s main markets include: Hanoi Hai Duong Ha Nam Hung Yen Hai Phong Phu Tho Bac Giang Nghe An Da Nang Quang Ngai TP HCM Binh Duong Dong Nai Can Tho Long An 1.5.2. Exporting market At the moment, EuroPlast have more than 40 loyal export customers in international market including: - Asia: China, Pakistan, India, Japan, Sri Lanka, Indonesia. - Europe: Russian, France, Poland, Italy. - Africa: Camaroon, Algeria, Tunisia, Egypt. - America: Brezil, Chile, Argentina, Ecuador. - Australia 2. Import – export practices at Europlast Jsc. 2.1. Terminology & Definition - Purchase Order(P/O) 9 - Commercial Invoice: the request from the Seller to the Buyer asking for the amount of money as stated in the invoice. Commercial Invoice should specify the properties of the Good, unit price, total amount, delivery terms and condition, mode of delivery and mode of payment. - Packing list: the list of all the goods packed in a consignment - Bill of lading: a certificate issued by the Carrier for the Consignor to verify that the Good has been shipped. - Certificate of Origin (C/O) - Delivery order (D/O) 2.2. Importing practices at Europlast 2.2.1. Steps in importing process Responsible personnel Activity Related documents Departments Related forms General director/ Manager Personnel in charge Personnel in charge BM.08.01 Related departments Personnel in charge BM.08.04 10 Approve Purchasing demand Contact, send enquiry Find supplier Evaluate Stop List of suppliers [...]... dramatically throughout the year As Europlast s orientation is to concentrate in exportation, they has built a long-term plan to research and produce new polymer products that is competitive in international products Its main exports include filler master batch PE, filler master batch PP, white master batch and color master batch Chart 2: Europlast s exported product structure in 2012 Source: Europlast. .. vessel, Europlast staff will collect the B/L Step 5: Europlast will bring a full set of shipping documents to the bank and proceed international payment After Europlast have received money, related files and documents will be transferred to Accounting Department and the contract will be terminated Step 6: Responsible department must save files 2.4 Evaluation on import-export practices of Europlast Europlast’s... Personnel in charge Related departments Accountant/ BM.08.02 Purchase Check/ Receive Personnel in charge Related forms Make payment/ Terminate the contract Prodution controller Stop Save files Table 1: Importing process at Europlast (Source: Europlast s trading department) Europlast has establish business relationship with both foreign and local partners The company purchases raw material and sells manufactured... payment/ Terminate the contract Save files Table 3: Exporting process at Europlast (Source: Europlast s trading department) The importing process generally consists of 6 steps: Step 1: Europlast will initiatively send an offer and a sample attached to the offer to the customer or when receiving enquiry from a customer The trading department will evaluate the customer’s offer to buy and negotiate to change... official process at Europlast This can be considered as a preventive method that protects Europlast from risk of bankrupt and fraud because any mistake in the process will negatively affect and sometimes may delay the whole producing chain because of lack of raw material 3 Suggestion offered to improve the efficiency of Europlast in international trade 3.1 Future goals and Development orientation In an... as exporting agriculture products or simply making ready-to-wear clothes to order of foreign fashion company However, in recent years, many Vietnamese companies have sought a new path that brings them more profit: exporting manufactured goods instead of being a chain in the lowest part of the value-added chain During the five-week internship at Europlast, I have learned both the advantages and disadvantages... consignment will be transported to Europlast s warehouse Step 6: Europlast will make payment on the base of agreed terms and conditions 2.3 Exporting practices at Europlast Responsible personnel Activity Trading department Receiving enquiry Trading department Send offer Trading department Trading department Related departments Trading department Receiving order & Evaluate and Negotiate Making contract 14 Stop... import/export, Europlast must have import/export specialists or skillful employees who can handle all the complicated procedures Those staffs have to be trained about foreign trade, international commercial law and law of international payment Their knowledge of Incoterms, UCP, URC, partners’ laws, shipment and international payment terms must be updated from time to time, so that they can achieve agreements that... evaluation - Evaluation for choosing potential evaluation: This type of evaluation is only applied for new suppliers that have not been approved When a department needs to purchase something, it will make an application form approved by the general director or head of department and submit to the responsible department Then the responsible department will send someone to collect the price quotes of at. .. On writing this report, I have received careful instruction from Ms Pham Thanh 21 Ha She helped me to choose a suitable topic for the report, make a clear outline and write the thesis with reasonable content Thanks for reading my report! 22 REFERENCE 1 Europlast marketing department, Europlast history of development, 2012 2 Europlast Accounting department, Europlast annual financial report, editions . report consits of three separate parts: Chapter 1: General information about business practices of Europlast Jsc. , Chapter 2: Import – export practices at Europlast Jsc. , Chapter 3: Suggestions. be terminated. Step 6: Responsible department must save files. 2.4. Evaluation on import-export practices of Europlast Europlast’s turnover has risen dramatically throughout the year. As Europlast s orientation. Importing process at Europlast (Source: Europlast s trading department) Europlast has establish business relationship with both foreign and local partners. The company purchases raw material and sells