Scavi Vietnam Export from 2010 - 2015

PREFACE

When all countries  from all faraway corners of the world get close to each other thanks to the effects of globalization, Vietnam is also venturing out of the dark realm of autarky and  moving towards the sunny land of  a market economy to fully realize the its potentials. Economic activities of all sectors are encouraged and facilitated. However, what provides Vietnam an greatest fast track in developments is foreign trade. The flows of goods, services and capital between Vietnam and foreign countries create an competitive and conducive environment in which all participants will profit and prosper. In particular, imports play a pivotal role in an economy. For instance, many domestic and multinational firms in Vietnam need raw materials and accoutrements from other parts of the world to produce their goods. Foreign goods and services also serve to satisfy consumers’ variegated tastes and preferences. All these inarguable advantages would not come to pass without the efficient process of custom clearance.

In view of all the reasons aforementioned, plus the low freight cost and enormous amount of goods transported by sea, I choose the topic “Import Custom Clearance for Sea Transport at SOTRANS” as my mid-course internship project. SOTRANS specializes in import-export forwarding, international freight forwarding and warehousing services in Vietnam and is widely known for its reliability and professionalism within the industry.

The report shall have three parts:

• Introduction of south logistics joint stock company – SOTRANS
• The procedure of clearing custom for sea transport import  at SOTRANS
• The outlook, oriented development and recommendations for the improvement of the custom clearance process and SOTRANS

Also, I would like to express my heartfelt thanks to my supervisor, Ms. Nga, Foreign Trade University, my lecturers, SOTRANS and my mentors for their vast knowledge, generous help and constant encouragement.

There will always be room for improvements and this internship report will inevitably have some less-than-optimal points. It is my utmost pleasure and honour to receive feedbacks for future learning and betterment.

CHAPTER ONE: INTRODUCTION OF SOUTH LOGISTICS JOINT STOCK COMPANY – SOTRANS

1. History and developments

1.1 Overview

South Logistics Joint Stock Company (SOTRANS), which was established on 14th October 1975, specializes on transportation services and main warehouse systems.

In 2007, SOTRANS was officially transformed from a State Enterprise into a Joint Stock Company. It has experienced robust developments in sectors of oil and petroleum trading, international forwarding services and multi-functional warehouse since.

Nowadays, with agents network in big ports around the world and close association with renowned forwarders, along with being the first model customs broker in Vietnam, the Company’s services aspire to provide Customers with competitive prices, tailored to Customer’s needs and demands.

Accordingly, SOTRANS has been chosen by many multinational companies such as Uni President, Samsung, P&G, Scavi, Cargil, Colgate Palmolive, PepsiCo, Holcim, etc. as reliable freight forwarders in Vietnam.

SOTRANS also actively participates in community activities such as sponsoring Charity Fund for the poor and Learning Promotion Fund; taking care of Vietnamese Heroic Mothers, etc. The company has received numerous awards from State President, Ministry of Commerce and other departments and authorities.

At present, SOTRANS is one of the leading companies in import-export forwarding, international freight forwarding and warehousing services in Vietnam.  It have had 380 devoted staffs operating in different sectors; 8 member units located nation-wide; global network of agent forwarders; hundreds thousands square meter of warehouse and ports and modern unloading machinery and containers. Significantly, with 38 years of experience, the company has built a strong brand name of professionalism and reliability domestically and internationally.

1.2 General information

• Name: South Logistics Joint Stock Company
• Abbreviation: SOTRANS
• Head office: 1B Hoang Dieu Street, District 4, Ho Chi Minh City
• Tel: (84.8) 3825 3009
• Fax: (84.8) 3826 6593
• Email: info@SOTRANS.com.vn
• Website: www.SOTRANS.com.vn
• Tax code: 0300645369
• Number of STG shares: 8.351.857
• Startup capital: 83.518.570.000 VND
• Logo: [pic 1]
• Some important figures:

• 1 Inland Clearance Depot.        
• 1 Bonded warehouse.
• 7 Subsidiary enterprises
• 38 Years of experience.
• 380 Professional and devoted staffs.
• 230.000 square meters of warehouse and container yard (150.000m2 property) in HCMC and nearby provinces (SOTRANS, 2013)

1.3 Development milestones

• In 1975, SOTRANS was established.
• In 1990, SOTRANS F&W was established.
• In 1992, SOTRANS INTERNATIONAL FREIGHT FORWARDERS (which is SOTRANS LOGISTICS nowadays) went into business signaling an important leap in the company’s development.
• In 1995, SOTRANS became a member of  Vietnam Chamber of Commerce and Industry (VCCI).
• In 1996, SOTRANS became a member of Vietnam Freight Forwarders Association (VIFFAS)
• In 1997, SOTRANS cooperated with GEMADEPT to build Phuoc Long 2 ICD. In the meanwhile, the company also became a member of The International Federation of Freight Forwarders Associations  (FIATA)
• IN 2001, SOTRANS’ quality management system was certified by DNV- one of the leading quality management company worldwide, to have ISO 9001: 2000 standard in the field of logistics services.
• In 2002, SOTRANS was awarded Third Class Medal of Labour by the government.
• In 2004, SOTTRANS became a member of The International Air Transport Association (IATA)
• In 2005, SOTRANS was awarded Second Class Medal of Labour by the government.
• In 2007, SOTRANS was transformed into a joint stock company.
• In 2009, SOTRANS received 2009 Vietnam Gold Star Award
• In 2010, SOTRANS established SOTRANS Focus, SOTRANS ICD and SOTRANS Petrol. It was also awarded First Class Medal of Labour by the Government. (SOTRANS, 2012)

1.4 Mission, vision and values

• Vision: Become one of the leading suppliers in the logistics service chain, always delivering added value benefits to customers.
• Mission:

• Supply optimal logistics solutions on demand with international standard.
• Organise training courses for professional human resources create a good working environment so each person can develop himself at his best.
• Protect the environment.

• Cultural value RICH: R – Responsibility: SOTRANS has high accountability during all stages of the process, I – Innovation: self-adapting to environment by researching and developing, C – Choice: SOTRANS is top-of-mind choice of customers when it comes to forwarding and related services, H – Home: all united under a common home.
• SOTRANS’ business philosophy was built on four pillars: cooperation, creativity, communication and closery. (SOTRANS, 2013)

2. Organizational Structure

2.1 Organizational hierarchy

[pic 2]Figure 1.1 Organizational Hierarchy Chart

Source: SOTRANS website

SOTRANS employs Linear-Functional structure, thus combining the benefits of both structures. For starters, the Managers Committee directly manage and oversee all activities within the company. However, with a view to fully utilising human resources and effectively solving the problems, they appoint managers at the offices and departments so that they can work directly with those about the related challenges in the respective fields. Such practice is extremely effective for SOTRANS as it helps the top echelons supervise all activities at the same time leveraging the skills and professional knowledge of the delegated managers, thus alleviating the burden on the top managers’ shoulders. In this structure, the department managers have complete control and responsibility over their own offices while the Managers Committee take care of the strategic direction and make the final decisions on those made by department managers. Such clear accountability will boost discipline and productivity.