NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM - - BACHELOR THESIS MAJOR: INTERNATIONAL BUSINESS MANAGEMENT IMPROVING EFFICENCY OF COAL IMPORTATION AT VINACOMIN JOINT STOCK COMPANY Tran Tuan Kiet HANOI - 2020 NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM - - BACHELOR THESIS IMPROVING EFFICIENCY OF COAL IMPORTATION AT VINACOMIN JOINT STOCK COMPANY Student Major Class Student’s ID Supervisor : Tran Tuan Kiet : International Business Management : International Business Management K58 : 11162633 : Associated Professor, PhD Ta Van Loi HANOI - 2020 ACKNOWLEGEMENT In order to successfully complete this thesis, I would like to express my sincere thanks to the teacher who instructed Dr Ta Van Loi for guiding me enthusiastically during the process of my thesis I would also like to send my sincere thanks to the board of director of Vinacomin Coal Import Export Joint Stock Company and its employees In particular, I would like to thank Mr Dao Xuan Viet, Head of the Coal Import and Export department, for helping me during my internship at the company Thank you sincerely! TABLE OF CONTENTS STATUTORY DECLARATION I herewith formally declare that I myself have written the submitted Bachelor Thesis independently I did not use any outside support except for the quoted literature and other sources mentioned at the end of this paper I clearly marked and separately listed all the literature and all other sources which I employed producing this academic work, either literally or in content Ha Noi, …/ 05/ 2020 Tran Tuan Kiet LIST OF TABLES LIST OF FIGURES INTRODUCTION Rationale The energy industry of Vietnam after 20 years of renovation and development has made remarkable changes through its every step, contributing to building and renewing the country, ensuring fuel resources for manufacturing sectors and consumption sectors In the energy industry, we need to mention the essential fields such as electricity, crude oil, gas, uranium, coal especially among the above areas, we need to pay attention to the coal industry because this is considered as one of Vietnam's strengths when it is ranked 26 th in coal exportation and 23 rd in coal importation in the world Vinacomin coal import-export joint stock company, formerly known as Coalimex, is a company with extensive experience in the field of mineral coal in Vietnam With the constantly growing trend of the economy and also with Vietnam's accession to the World Trade Organization, the company has expanded its business activities in many areas such as coal import and export, importing materials and equipment, exporting labour, offices construction, renting buildings, …but coal importation and exportation is still the number one priority of the company as it contributes 80% of revenue Although the coal importation and exportation sector play an important role for the company, most of the revenue in this field is from Vinacomin's coal exportation, which is understandable given that Vietnam is a country with the 3rd largest coal reserves in the world The company's coal importation efficiency is very limited by many different reasons Facing the difficult situation because of the world economy and the youngness of the domestic economy which is integrating into the world, improving the efficiency of coal importation at Vinacomin is extremely necessary For this reason, when practicing and learning about the business process of the company, I would like to choose the topic "Improving the efficiency of coal importation at Vinacomin coal import-export joint stock company" Through the topic, I would like to offer some solutions and recommendations to help the company import coal more effectively and at the same time help businesses to have an overview and assessment of the status of their imported coal business Related literature review In 2016, the thesis “Improving the efficiency of importing materials at C&T Construction and Trading Joint Stock Company” Ms Nguyen Thanh Thuy analyzed the import activities of at C&T Construction and Trading Joint Stock Company but not in depth In 2011, the thesis “Solutions to improve the efficiency of import and export activities at Phu Mai Fiber Joint Stock Company “Mr Vo Ham Thinh showed some solutions to improve import activities However, Phu Mai Fiber Joint Stock Company is the company operating in the garment industry and the way they import is different with Vinacomin Joint Stock company import In 2012, the thesis “Enhancing business efficiency of Binh Hoa Electronics Joint Stock company” Ms Nguyen Thi Hai Hoa pointed out the organizational structure of the company but it is different from Vinacomin Joint Stock Company In 2015, the thesis “enhancing the efficiency of importing machinery at Mecanimex State-owned Limited Liability Company” Ms Vu Huong Lien provided solutions and recommendations to enhance efficiency of importation but Vinacomin is a Joint stock company which is different from Mecanimex State-owned Limited Liability Company In 2017, the thesis “ Improving efficiency of importing frozen food at Intimex Export-Import Joint Stock Company “Mr Tran Nhat Tan demonstrated the same problem with Vinacomin company but the company size of Intimex Export-Import Joint Stock Company is smaller than Vinacomin company so in my viewpoint I need to make it more accurate with the scale of Vinacomin company Research and objectives 3.1 Research goal The thesis will be focusing on the study of the coal importation performance at Vinacomin, assessing the efficiency of coal importation and therefore proposing solutions to improve efficiency of coal import activities 3.2 objectives Giving statistics on the situation of coal importation of Vinacomin coal importexport company and assessing the status of business efficiency through indicators Through the above criteria and evaluation, propose solutions to improve the efficiency of the company's coal importation and make recommendations to the government Research object and scopes 4.1 Research object Propose solutions to improve efficiency of coal importation at Vinacomin coal import-export company 4.2 Scopes Space: The thesis focuses on research to improve the efficiency of coal importation at Vinacomin coal import-export joint stock company Time: Thesis which studies the efficiency of coal importation at Vinacomin coal import-export joint stock company from 2017-2019 and vision to 2024 Research methodology 5.1 Data collection method 5.2 Research methods • Synthetic method: The purpose of this method is to systematize and contribute to more elucidate basic theoretical issues on improving efficiency of coal importation at Vinacomin Joint Stock company • Quantitative method: Using statistics and surveys to calculate, analysis and compare about the situation of improving efficiency of coal importation at Vinacomin Joint Stock company • Qualitative method: From the results of the actual survey and the interview, author make assessments and explain the results Research structure In addition to the introduction, conclusion, appendix and references, the main content of the thesis is divided into chapters as follows: Chapter 1: Theoretical framework of improving efficiency coal importation at Vinacomin Joint Stock Company Chapter 2: Situation of improving efficiency of coal importation at Vinacomin Joint Stock Company from 2017 to 2019 Chapter 3: Suggested recommendation to improve efficiency of coal importation activities at Vinacomin Joint Stock Company CHAPTER 1: THEORETICAL FRAMEWORK OF IMPROVING EFFICIENCY IMPORTATION AT VINACOMIN JOINT STOCK COMPANY 1.1 Overview of import 1.1.1 Concept of import It is unequivocal that imports are the components of international trade Imports consist of transactions in goods and services of jurisdiction (such as a nation) from non-residents Importation is the action of buying or acquiring products and services from another country to another nation The buyers of goods and services is referred to as “importers” and are based in the country of import The national accounts provide a general delimitation of imports as below: An import of good takes place when there is a shift of ownership from nonresident to a resident; this does not imply that the good in question physically crosses the borderline However, in specific cases national accounts impute changes of ownership even though in legal terms of no change of ownership occur (e.g cross border financial leasing, cross border deliveries between affiliates of the same enterprise, goods crossing the border for significant processing to order or repair) In conclusion, import is one of the core activities in the international trading business, the process of exchange goods between countries based on the principle of currency exchange or barter It is not a single act of trading but system of trading relationships in an economy that has both internal and external organizations Moreover, imports are foreign goods and services bought by residents of a country, including citizens, businesses, and the government It doesn’t matter what the imports are or how they are sent Imports are anything produced in a foreign country and sold to domestic residents They can be shipped, sent by email, or even hand-carried in personal luggage on a plane 1.1.2 Characteristics and roles of import 1.1.2.1 Characteristics of import • Market: The import markets are diverse, goods and services can be imported from many different countries, based on the comparative advantage of each country that businesses have many opportunities to expand, narrow or change their import markets to adapt to the needs of the market • Legal aspect: import activities involving owners, partners, business owners, companies in different countries, each country has different laws on economic and import As a 10 2.2.2 Criteria reflecting the efficiency of coal importation at Vinacomin from 2017 to 2019 2.2.2.1 Quantitative indicators 2.2.2.1.1 Overall import business performance Targets include revenue from imports, profits, and relative business performance of the company In which, the relative business efficiency index shows how many units of revenue a unit will spend on import business Table 1.8 Overall import business performance Unit: % No Criteria Revenue from import Cost Profit Business performance 2017 102 100,4 104,6 1.016 2018 72.5 81,4 91,8 0.89 2019 121,8 115,76 109,92 1.052 (Source: Vinacomin Finance and Accounting Department) Regarding the criteria of absolute import business efficiency: it is the after-tax profit of Vinacomin from 2017 to 2019 In the period from 2017 to 2019, the profits of enterprises have changed in both positive and negative directions In 2017, after-tax profit reached 104.6% exceeding 4.6% compared to the set target, but by 2018, the after-tax profit has been significantly reduced by 8.2% due to the impact of the crisis The world economy crisis caused domestic inflation to be high, leading to high import costs and a decrease in profits, so the company made losses and absolute efficiency also decreased However, the company has rebounded in 2019 and reached 109.92%, much higher than in 2017 and 2019, which is due to the government's import duty cut cycle from commitment There was a significant increase in profits for the company, resulting in a significant increase in absolute efficiency compared to 2018, a year of unprofitable business for companies Relative import business performance target: From 2017 to 2019, the relative import business performance of the company was not stable In 2017, this index is 1,016, meaning that for every unit of expense spent on import business, the company will gain 1,016 revenue units, meaning that the business is effective In 2018, it was an unsuccessful year for the business when the index dropped to only 0.89, resulting from the fact that the revenue decreased more than the cost The rate of revenue reduction is faster than the rate of cost reduction gradually leading to relatively reduced efficiency By 2019, an improved economic situation and new business orders led to a rise in revenue and costs, but an increase in costs was faster than the rate of increasing costs 45 At this stage, the business made a profit of 1,052, meaning that for every unit of expense, the enterprise made 1,052 dong of profit, much higher than 2017 and especially 2018 This proves that the company has taken the right steps to recover from the global economic crisis Although these set targets are still quite low compared to the wishes of the business, businesses are still looking for ways to overcome and make business operations most effective 2.2.2.1.2 Import profit margin This indicator indicates how much profit or dong of revenue is spent on a business revenue The ratio of profit to total revenue: this indicator shows how much profit is in a revenue Looking at the table below, we can see that the ratio of profit to revenue of Vinacomin Company tends to decrease steadily over the years In 2017, this index was 0.157, which means that for every VND of revenue, there was 0.157 VND of expenses By the end of 2018, this index decreased to 0.146 and slightly decreased in 2019 at 0.143 It can be easily understood that when revenue and profit in 2018 of the Company both decreased, especially the rate of revenue reduction was faster than cost reduction, so the profit-to-sales ratio decreased significantly The reason for this is that the import tax on imported coal is still in circulation, which makes the business lose part of its profits, thereby making the company's profit margin low Table 1.9 Import profit margin of the company from 2017-2019 No Criteria Total revenue from imports total cost Profit Ratio of Profit / Total Revenue Profit ratio / Total cost 2018 2019 Growth Growth 2017 (%) (%) 9845.27 7456.12 -24.26 8867.09 18.92% 8295.26 6366.02 -23.25% 7592.19 16.26% 1550.01 1090.1 -29.67% 1274.9 15.85% 0.157 0.146 0.143 0.1868 0.171 0.144 (Source: Finance and Accounting Department of Vinacomin) The ratio of profit to total cost: This indicator shows how much profit will be spent in dong As we can see, this index has also decreased steadily over the years, in 2017, this index was 0.1868, meaning that for every dollar of expenses spent, it would earn 0.1868 dong of profits, by 2010 the index dropped to 0.171 and 2019 are 0.144 So clearly here we can see that the business is not operating effectively, the indicators decrease due to the revenue growth rate is less than the cost growth rate, 46 making the business inefficient The reason is that enterprises are applying measures to improve business efficiency is not effective 2.2.2.1.3 Efficient use of working capital This indicator tells us the profitability of working capital is expressed by the profitability of working capital, working capital turnover and working capital - The rate of return on working capital: Indicates how much profit a company spends on working capital Profitability in the years from 2017 to 2019 is unstable and tends to decrease, in 2017, this index is 0.141, meaning that for every working capital that the company spent on import business, it will earn 0.141 This is a very high figure proving that the business is profitable this year, but in the following years 2018 and 2019, this index dropped sharply at 0.114 and 0.071, which proves Enterprises are operating inefficiently and tend to reduce in cost - Working capital turnover: This is an indicator reflecting the management level of the company's import business It shows the number of working capital revolutions during the year to conduct the company's business operations Looking at Table 1.10, we can see that the working capital turnover from 2017 to 2019 of Vinacomin is not large on average at about 3,421, which means that the number of revolutions is the number of days in a cycle is 106, days This is a figure showing that the Company's customers often not pay immediately but on average after 106.7 days of payment, this means that the business will have less capital to invest in other activities that cause poor business performance Table 1.10: Efficiency indicators of working capital in the period 2017-2019 Unit: Million VND No Criteria 2017 2018 2019 Working capital 2.139 2.853 4.231 Total Revenue 9845.27 7456.12 8867.09 Profit 1550.01 1090.1 1279.4 Return of working capital 0,141 0,114 0,071 Working capital turnover 3,589 3,113 3,771 Working capital undertaking level 0,286 0,334 0,291 (Source: Finance and Accounting Department of Vinacomin) - The level of working capital perception: this is the inverse of the working capital cycle It indicates the level of undertaking of working capital in import business This index of enterprises is quite small, which shows that in the process of signing contracts, enterprises use relatively little capital, enterprises often take advantage of the partner's capital by making deferred payment or making a sale to pay 47 the supplier, thereby significantly reducing the amount of capital to improve the efficiency of capital use 2.2.2.1.4 Labor productivity This indicator shows the volume of products produced per capital Table showing labor productivity per capita at Viancomin Company from 2017 to 2019 is unstable The average turnover per capita in the period of 2017-2019 reached 75.07 million VND, of which the highest in 2017 was 89.05 million VND, the lowest in 2018 was 64.8% Looking at the table 1.11, we see that the profitability of employee in Vinacomin is not high and tends to decrease year by year although the number of employees also increases, indicating that the employment of Vinacomin is still not thorough and ineffective The company needs to take more effective measures to increase labor efficiency to improve the efficiency of its import business Table 1.11: Labor productivity of the company in the period of 2017-2019 N o Criteria 2017 2018 2019 Total Revenue 9845.27 7456.12 8867.09 Profit 1550.01 1090.1 1279.4 Number of labor 110 115 125 profit rate from labor 14.09 9.47 11.32 Average revenue / employee 89.5 64,8 70.94 (Source: Finance and Accounting department of Vinacomin) 2.2.2.2 Qualitative indicators By the above analysis, it can be clearly seen that the efficiency of imported coal business of Vinacomin is not high, it is not yet compatible with the capital that the enterprise currently has Despite being a leading enterprise in the country's coal industry, the import coal business of Vinacomin has not been effective, revenue is not stable and unnecessary expenses are still too much affect the profitability of the business Businesses need to pay attention to this and find remedies to improve the efficiency of their business 2.3 Assessment of the situation of improving efficiency of coal importation at Vinacomin Joint Stock Company from 2017 to 2019 2.3.1 Highlights Firstly, the company has made strong changes in business activities after the world economic crisis, the revenue in 2018 dropped sharply to 7456.12 million VND, much lower than in 2017 at 9845.27 million VND and again impressive in 2019 This is a praiseworthy signal that the Company is on the right track and increasingly 48 favorable in its business operations, profits brought a significant contribution to the overall profit of all areas of the company The growth rate of enterprises is also quite stable and has a large growth in 2019, which is worthy and proves that enterprises are investing effectively in the aftermath of the global economic crisis Thanks to the development and progress of the Company, the company's position has changed, the company's market share has been increasingly affirmed in the three regions of the country, accompanied by the cooperation between the Domestic enterprises create strong alliances before major competitors in foreign markets Customers and orders have increased significantly, this is the top priority for businesses as this is the future source of profits for businesses The import markets of Vinacomin have customers with large positions in the market such as Russia, China, Indonesia, and Australia, focusing on developed countries with stable infrastructure systems to ensure the business of Vinacomin is favorable, the supply is strong, this helps Vinacomin to have a stable source of goods, it will be very good if it keeps a long-term relationship Currently, the company has cooperated with over 20 large enterprises in the world, including domestic and foreign enterprises Big partners are now a solid source of supply for the company Coal used in thermal power is currently the best business item accounting for about 50% of the proportion in Vietnam's coal import business, cheap coal source, the demand of the market is large so this is a favorable condition for businesses to conduct business effectively Measures to improve the efficiency of the imported coal business that the company has brought positive results, but there are still many shortcomings 2.3.2 Limitations The business brings average and uneven business performance between years Profits generated between years are uneven As analyzed above, the business performance of the Company plummeted in 2018 to 89%, which adversely affects the revenue and profit of the business The uneven increase in revenue and costs also makes the company's coal trading efficiency not high and needs to be improved The company's labor efficiency is still poor, from 2017 to 2019, the labor efficiency was not high, making the profitability from a worker continuously decreased from 14.09 to 11.32, which is unreasonable when the number of employees increases but the revenue does not increase by affecting labor productivity Enterprises need to take measures to improve business efficiency immediately The number of capital turnover cycles of enterprises is still too large, which affects the capital use demand of enterprises The average capital of enterprises is 3.41, 49 equivalent to 106.6 days, this is a very large number that requires businesses to take corrective measures to improve business efficiency The irrationalities in business activities, the stages of cooperation signing processes are still inadequate and inconsistent, the procedures are still very confusing, especially without the coordination between departments 2.3.3 Causes of limitations 2.3.3.1 Subjective causes The capital of the company is quite small compared to the scale of operation in the field of coal import 48,275,600,000 VND In addition, business in many areas makes it difficult for businesses to gather their capital In addition, it is the competition from other suppliers in the market that makes businesses face difficulties in business This leads to relatively low business performance, profit growth is still not as expected of the Company Although the level of officials and employees in the company is concerned and always has professional training classes, the effectiveness is still not high The management skills are not good yet, there are not the best views about the capacity of officials and employees The level of applying e-commerce is still poor, finding business information, activities, bidding and buying and selling in the market still face many difficulties due to language disagreements and slow communication or due to the capacity of the Company's employees 2.3.3.2 Objective causes The world economy is still facing many difficulties and fluctuations, which significantly affect Vinacomin's business in the field of coal importation and all other commodities in particular The provisions of the law are too ambiguous and difficult to understand, the laws have not been unanimously causing unnecessary misunderstandings from the enterprises, the customs procedures are still complicated, leading to many unexpected costs The direct impact on the business results of enterprises, especially on the issue of time and transportation, is still inadequate and inconsistent The organizational structure of the business is still too small, but there is an ineffective overlap with each department, many departments have the same tasks but there is no department in charge of other jobs A typical example can be mentioned here is that in the organizational structure of the Company there are no departments in charge of sales marketing, the marketing is assigned to each department but especially here is the investment department This creates a disadvantage for businesses because 50 without effective marketing system, enterprises will not be able to clearly grasp the market, which will lead to low business efficiency for enterprises The qualifications of officials and employees are quite limited, although the qualifications of the Company employees are mostly university and postgraduate, but in bidding, the Company is often not appreciated and the ability bid slip up to 30 to 40% This is a very high rate, showing the Company's weak competitiveness with competitors in the same industry when participating in the market, the level of staff needs to be improved so as to grasp the requirements of the market The ever-changing exchange rate also directly affects businesses This factor directly affects the business activities as well as the profits of the business, requiring businesses to always pay attention to conduct business effectively 51 CHAPTER 3: RECOMMENDATION TO IMPROVE EFFICIENCY OF COAL IMPORTATION ACTIVITIES AT VINACOMIN JOINT STOCK COMPANY 3.1 Advantages and disadvantages of improving efficiency of coal importation at Vinacomin 3.1.1 Advantages Joining the WTO provides businesses with many opportunities through administrative reform and legislation to comply with WTO rules to help businesses minimize administrative costs and export procedures, making the goods importation process easier and faster At the same time, the open markets of countries around the world give Vinacomin more choices in sourcing, and selecting partners, ensuring that the Company always achieve high efficiency in business activities In addition, if the business can take advantage of these advantages to expand the market and promote its brand, the Company will have strong and outstanding development steps Simultaneously with the commitment to reduce tariffs when joining WTO, the import tax rate will decrease in the coming years, by 2028 Vietnam will reduce more than 1000 import tariff lines according to the commitment of tax reduction, In which, imported coal also belongs to tax reduction products of this group, which will be reduced to 7.3% in 2028 Due to a large reduction of costs, Vinacomin will improve their competitiveness Not only that, fierce competition in integration will also help businesses increase their competitiveness with rivals in the international market Following the trend of the energy industry and Vietnam's increasing demand for energy, imported coal is the main source of fuel for the thermal power industry, which contributes a major part in energy storage of Vietnam Accompanying that is the supply of this source of coal is at a cheap price, creating good conditions for businesses to make profits in the market Information technology has been and continue to be a very developed field in our country, information technology application help the Company to analyze the situation of the market, capture prices, fluctuations in exchange rates, bank interest rates, and partner information, competitors quickly At the same time, information technology is a solid foundation for development of e-commerce, it is the basis for businesses to find orders, quickly transact between partners and sell goods It is more effective when the Company knows how to apply it in its business Flexible use of e-commerce in business activities will help businesses increase competitiveness in the market 52 3.1.2 Disadvantages 2018 was a difficult year for the world economy, VND depreciated against other currencies, USD also depreciated, so investing in real estate and stocks allowed the Company to preserve capital and price increases in the volume of assets this year During the recession and global economic crisis, real estate companies also suffered strong impacts due to rising construction costs while the demand for real estate plummeted The real estate freezing situation lasted until the first months of 2019, the projects were not implemented, making the demand for construction materials also significantly reduced The amount of cement, iron and steel has an abundant supply, but the demand is too little, causing difficulties for related companies, especially those that provide burning fuels, such as coal used in cement and steel refining Not only that, this situation still exists until today when the demand for real estate is almost too small compared with the abundant supply from the market, the market of construction materials sluggish, which causes many difficulties in the importation of coal A major difficulty that the Company has encountered is the competitiveness from rival companies both domestically and abroad Up to now, Vietnam has about 250 coal mining enterprises, large and small, most of them rely on self-exploiting and selling their products immediately their supply is limited but the advantage is that the price of the product is quite cheap, in addition to that the price of coal is quite reasonable to meet the needs of industrial plants so this is a formidable competitor for Vinacomin Other foreign coal companies will also be a potential competitor of Vinacomin, Vietnam is a good place for foreign businesses when it is a potential market with lots of opportunities The coal industry is not an exception when there are many businesses from countries with developed coal industry in the world such as Indonesia, China, Russia, these enterprises have modern infrastructure and stable payment, which will be an advantage when competing in the fledgling market of Vietnam According to the cycle, by 2022, Coalimex's estimated output will increase sharply due to domestic demand The Company may import to million tons of coal, this coal import volume will increase steadily in the coming years In 2022, the Company can import up to 40 million tons of coal This proves that Vietnam's coal import demand is increasing while the little capital is added and the weak management mechanism makes this opportunity ineffective and require businesses to take appropriate measures to capture and find ways to improve business efficiency 3.2 Goals and Orientations In order to improve the efficiency of coal importation, Vinacomin Import-Export Company has implemented the following methods: 53 Increasing sales of imported coal: this is the business that necessarily needs to be oriented to improve the efficiency of its business, the company needs to constantly look for domestic business partners, constantly looking for opportunities from the market, capturing the new trend effectively to increase revenue for businesses Reducing the cost of importing coal: Currently, the Company still has high expenses incurred, although this cost has been reduced in three years but still accounts for a significant proportion of the total cost of the company In order to improve business efficiency, businesses need to minimize their own costs and at the same time combine with measures to increase revenue to bring the highest business efficiency Finding a way to make revenue growth larger than cost reduction: In the near future, businesses are looking for ways to operate so that increasing revenues of enterprises are accompanied by reduced importation costs in order to save money and to avoid wasting on unnecessary expenses This is the direction that businesses need to consider appropriately and need special attention because this can be considered as the main method to improve business performance of the Company Vinacomin Import-Export Company is constantly looking for strategic partners with potential sources of supply to ensure an abundant supply, creating good relationships with customers and business partners At the same time, businesses are constantly accepting mining projects in countries with coal mines to increase their supply and export targets to seek profits In addition to current partners in countries with a position to export coal, the Company is actively seeking partners from Central Asian countries, where there is a large but unexploited coal reserve Importing more specific types of coal with a more prominent feature than conventional types of coal and searching for countries with coal resources In addition to common types of coal commonly used, businesses need to constantly research and search for new types of coal with higher quality and features, ensuring technical features and especially requiring low prices to improve the supply of goods and increase the supply to meet market demand and importantly, to improve the business efficiency for enterprises when selling new products with superior features Increasing financial capacity, strengthening strong capital, and promoting other businesses to develop and generate huge revenue to meet the planned projects serving the coal import business In order to have a stable capital, the enterprise has two methods: bank loans and minimizing working capital turnover In these two methods, attention should be paid to the reduction of working capital turnover because this ratio of the Company is still very high, which makes the capital of the Company always lacking when needed Especially when the capital of the company is not large, this will 54 make it difficult for the Company to business in the market Enterprises always have a lot of staff training policies to create a team of technically advanced, quickly capture information from the market, policies to encourage, reward with tourism with the goal to increase the labor productivity of each member of the company These are aimed at increasing the productivity of the company, improving labor productivity to help businesses operate more effectively Implementing the plan to list on the stock exchange successfully, this is also a channel that Vinacomin company aims at because it is a place that can raise capital quickly Vinacomin's stock keeps increasing and is one of the strongest stocks on the stock market 3.3 Solutions and Recommendations to improve efficiency of coal importation at Vinacomin 3.3.1 Solutions from Vinacomin 3.3.1.1 Capital use efficiency enhancement In the process of researching and understanding the demand for imported coal in our country today, it can be seen that the demand for coal energy is increasing in our country's industrial plants In addition, the volume of imported coal will increase dramatically in the following years, it is expected that the import volume is expected to be to million tons by 2022 and 40 million tons by 2022 will increase by 6.5 times This shows that the demand for coal is increasingly needed To be able to these projects, the capital must be certain and stable for payment and import procedures The capital of enterprises is not high, the efficiency of capital use is also at the average level of the years, the ratio of profit to revenue and profit from working capital are not high and tend to decrease from 0.141 to 0.071 through In the survey year, this requires businesses to take measures to overcome this problem The company should increase its charter capital to VND 100 billion to respond to larger orders on the other hand to ensure the money is always enough to handle many orders at once In addition, businesses should also focus on the Central market, increase market share greater than 5% of the company from 2017 to 2019, and also need strategic policies to develop this sector profits for businesses, thereby increasing capital for the company Expand cooperation with banks with strong financial potential both at domestically and abroad so that the company can borrow capital when necessary In 2017 to 2019, the import turnover of the company was quite low, requiring the following years to 2028, the company's goal is to increase the number as well as the contracts, the value brought up to 20 billion 55 The Central market is exploited so the consumption market of the business will increase in the coming years It is expected that the consumption output will reach 20 million tons by 2028, confirming the company's position in the market The increase in the number of imports will increase the company's revenue and profits, along with many import markets that will help stabilize the supply of goods to meet all business needs to help the company create reputation in the market to guarantee supplíe 3.3.1.2 Quality improvement of the company human resource Human resources of the company are quite large, but the quality is still not high, in addition, the number experienced staffs is still small, most of them are young at an average age of 30 years old In the period from 2017 to 2019, the labor efficiency achieved was not high, the profitability of one employee was still quite low, in 2017, the profitability rate for one employee decreased to only 14.09 million / person continuously economy In fact, opening the market helps Vietnam to reach out to the world, but it is also a challenge for Vietnamese businesses Therefore, increasing import-export turnover is a very important issue In the period from 2017 to 2019, Vinacomin Coal Import-Export Joint Stock Company conducted the business of importing coal to meet domestic demand and achieved encouraging success The Company's business performance of imported coal in this period is quite positive It is the impetus for the company to constantly improve its tasks and import skills to improve business efficiency However, apart from the positive results that the company has achieved, there are still many limitations that need to be overcome in order to achieve the goal of improving the business efficiency of the Company It is forecasted that in the following years, there will be many difficulties and challenges for the company, but with the right measures and orientations, the company will overcome difficulties to successfully achieve the set goals Although during the internship, I had a lot of guidance and help from the employees in Vinacomin Import-Export Joint Stock Company but due to limited internship time and limited knowledge about the coal industry and Imported coal, the thesis can not avoid the shortcomings In the future, when I have practical experience in the market, I hope to be able to make more detailed and realistic analysis and offer more insightful solutions 56 57 REFERENCES I Curriculum Assoc Prof Dr Nguyen Thi Huong (2004), Project management textbook and FDI enterprises - Volume I, Statistical Publishing House, Hanoi Assoc Prof Dr Nguyen Thi Huong, Project Management Curriculum and Foreigninvested Enterprises - FDI Volume II, Statistical Publishing House, Hanoi Assoc Prof Dr Nguyen Thi Huong, International Business Curriculum Volume I, National Economics University Publishing House, Hanoi Assoc Prof Nguyen Thi Huong, International Business Curriculum Volume II, National Economics University, Hanoi II Financial reports of the company Financial reports of Vinacomin Import-Export Company in 2016 Financial reports of Vinacomin Import-Export Company in 2017 Financial reports of Vinacomin Import-Export Company in 2018 Financial reports of Vinacomin Import-Export Company in 2019 III Curriculum 1.Nguyen Thanh Thuy, Topic “Improving the efficiency of importing materials at C&T Construction and Trading Joint Stock Company”, Foreign Trade University, Hanoi, 2016 2.Vo Ham Thinh, Topic “Solutions to improve the efficiency of import and export activities at Phu Mai Fiber Joint Stock Company “, Financial Academy, Hanoi, 2011 3.Nguyen Thi Hai Hoa, Topic “Enhancing business efficiency of Binh Hoa Electronics Joint Stock company”, University of Economics, Ho Chi Minh City, 2012 4.Vu Huong Lien, Topic “enhancing the efficiency of importing machinery at Mecanimex State-owned Limited Liability Company”, Financial Academy, Hanoi, 2015 5.Tran Nhat Tan, Topic “Improving efficiency of importing frozen food at Intimex Export-Import Joint Stock Company “, University of Finance and marketing, Ho Chi Minh City, 2017 IV Articles Vinacomin Joint Stock Company official website: www.vinacomin.com 58 10 http://vnexpress.net/gl/kinh-doanh/2011/06/lan-dau-tien-viet-nam-nhap-khauthan-cho-nhiet-dien/ http://dantri.com.vn/c76/s76-490301/hap-khau-than-vi-muc-tieu-nang-luonghay-loi-ich-Tap-doan.htm http://cafef.vn/20120126042147438CA51/trung-quoc-vuot-nhat-tro-thanh-nhanhap-khau-than-da-lon-nhat-the-gioi.chn http://kinhdoanhthan.vn/index.php?id=1 http://www.baomoi.com/Xay-dung-nha-may-luyen-than-coke-cong-suat350000-tan/50/2894994.epi http://www.congnghiepmovietbac.com.vn/?main=news&catid=11&id=363 http://vinamin.vn/modules.php?name=Content&op=details&mid=3532 http://www.tinmoi.vn/nganh-than-viet-nam-gap-kho-khan-ve-tieu-thu-sanpham-04857014.html http://www.baomoi.com/Than-dung-cho-nganh-thep-the-gioi-co-the-sut-5-dobao-lut-tai-Uc/50/5547331.epi 59 ... • International environment International political context: International business first and foremost requires executives and businessman to pay attention to international law, the laws of each... Indonesia, Australia, China, India, typical of these are Hancock companies of Hancock Prospecting Group of Australia and Sojitzs of Japan These are countries and businesses that have a lot of... stage The planning of business programs and strategies is always an indispensable and important task for Coalimex Company Programs and tasks are planned by year This helps the company save a lot of