Professional Documents
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INTERNSHIP REPORT
Topic: Importing mining and mineral supplies at Tourism & Trading Joint
Stock Company (VTTC) - Vietnam National Coal and Mineral Industries
Group - Vinacomin period 2016-2020 and orientation towards 2025
HANOI, 2022
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TABLE OF CONTENTS
1. OVERVIEW:........................................................................................................ 3
1.1. Establishment and development: ............................................................... 3
1.2. Organizational structure: ............................................................................ 4
1.3. Functions and duties of key divisions and departments and an overview
of the Company's field of operation: .................................................................... 4
1.3.1. General Shareholders Council: ............................................................... 5
1.3.2. Governance Council: ............................................................................... 5
1.3.3. Board of Supervisors: .............................................................................. 5
1.3.4. Board of Directors: .................................................................................. 6
1.3.5. Divisions & Departments: ....................................................................... 6
1.3.6. Branches: ................................................................................................. 7
1.3.7. VTTC’s field operations: ........................................................................ 7
2. COMPANY’S INTERNATIONAL ACTIVITIES: ............................................. 7
2.1. Summary of business results of the Company in the period 2016-2020: 7
2.2. Economic - technical characteristics affecting business and commercial
activities of the Company: ..................................................................................... 8
2.2.1. Capital and Equity: .................................................................................. 8
2.2.2. Human Resources: .................................................................................. 9
2.2.3. Products and product quality: ............................................................... 10
2.2.4. Customers, Markets, Competitors: ........................................................ 10
3. OVERVIEW OF THE VTTC’S INTERNATIONAL STATE: ........................ 12
3.1. Success: ....................................................................................................... 12
3.2. Difficulties: ................................................................................................. 12
4. ORIENTATION FOR THE TOPIC: ................................................................ 13
4.1. The urgency of the subject: ....................................................................... 13
4.2. Research objectives and tasks: ................................................................. 13
4.3. Object and scope of the study ................................................................... 13
4.4. Research methods ...................................................................................... 14
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1. OVERVIEW:
Tourism and Trade Joint Stock Company -Vinacomin, formerly known as Coal
Tourism Company, was established under Decision No. 2778/QD-TCCB dated
September 25, 1996 of the Minister of Industry.
At the end of 2001, to meet the situation of development and expansion of
business lines, the Company proposed and was approved by the Board of Directors
of TKV Group to change its name to Tourism and Trading Company (VTTC)
according to Decision No. No. 1338/QD-HĐQT dated December 13, 2001.
Implementing the policy of converting State-owned enterprises into joint-stock
companies, the Company was equitized and transformed into Tourism and Trading
Joint Stock Company - TKV according to Decision No. 104/2004/QD-BCN dated
September 30, 2004 by the Minister of Industry.
On November 1, 2004, the company was officially transformed into a joint
stock company according to the Business Registration Certificate No. 0103005779
issued by the Department of Planning and Investment of Ho Chi Minh City. Hanoi
grants with charter capital of 10,465,000,000 VND.
On December 26, 2005, the Government decided to establish Vietnam Coal -
Mineral Industry Group, including Vietnam Coal Group and Vietnam Minerals
Corporation merged. With the legal status as a subsidiary of the Group, the
Company was renamed as Tourism and Trading Joint Stock Company –
VINACOMIN;
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Experiencing many stages of development, along with the changes of
VINACOMIN, the Company has also made changes to match and develop.
Currently, the Company has its head office located in Hanoi, branches and
business establishments in Hanoi, Quang Ninh and Van Long.
Tourism and Trade Joint Stock Company - Vinacomin is organized and operates
under the Enterprise Law of the National Assembly of the Socialist Republic of
Vietnam No. 68/2014/QH13 dated 26/11/2014. The Company's activities comply
with the Enterprise Law, other relevant Laws and the Company's Charter on
Organization and Operation.
Generally, VTTC includes:
GOVERNANCE COUNCIL
BOARD OF DIRECTORS
MANAGEMENT SALES
BRANCHES
DEPARTMENT DEPARTMENT
Accounting
Import-Export 1 Hanoi
&Finance
Organization &
Import-Export 2 Van Long
Administration
Tourism Services
1.3. Functions and duties of key divisions and departments and an overview of
the Company's field of operation:
Tourism and Trading Joint Stock Company - Vinacomin is organized and operated
under the model of a Joint Stock Company, in compliance with the provisions of
Vietnam's enterprise law and current leases.
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1.3.1. General Shareholders Council:
The General Shareholders Council consisting of all shareholders with voting rights,
is the highest decision-making body of the Joint Stock Company. The General
Shareholders Council holds an annual or extraordinary meeting, held at least once a
year, to decide on the development strategy of the company, the annual production
and business plan, and to approve resolutions on issues such as supplementing and
amending Articles of Association. rules, types of shares and number of shares to be
issued, annual dividends paid to shareholders, remuneration for members of the Board
of Directors and Supervisory Board,... The General Shareholders Council has the right
to elect , dismissing and replacing members of the Board of Directors and Supervisory
Board.
Being the management body of the Company elected by the General Shareholders
Council, has full power on behalf of the Company to decide on all important issues
related to the purposes and interests of the Company, excluding issues need approval
of the General Shareholders Council. The Governance Council has the right and
obligation to supervise the Directors and other managers in the Company. The rights
and obligations of the Governance Council are prescribed by the law and the
Company's Charter, the Company's internal regulations and the Resolution of the
General Shareholders Council, specifically having the right to decide and direct
implementing the plans of developing production, business and annual budget,
determine operational goals and strategic objectives on the basis of the approval of
the General Shareholders Council, and propose annual dividend payments. The
Governance Council has the power to appoint and remove the Executive Director and
other managers. Currently, the Governance Council of VTTC includes 5 members.
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Governance Council and the Board of Directors. VTTC’s Board of Supervisors
includes 3 members.
Manage all business activities of the Company, take responsibility towards the
General Shareholders Council, the Governance Council and the law for the results of
their operations. Determine the organizational structure, responsibilities and powers
of the units. subordinates and management levels in the Company. Develop long-term
and annual production plans, business plans, new investment projects, joint venture
and association plans and submit them to the Governance Council and the General
Shareholders Council for approval. Members of the Board of Directors of the
Company include 1 Director and 3 Deputy Directors.
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buying and selling process, etc. Depending on the industry and Specific departments
will focus their expertise on one or more specific objects or products.
1.3.6. Branches:
In addition to the Company's head office located on 8th Floor, Viet A Building, Duy
Tan Street, Cau Giay District, Hanoi, also the place at which the Directors, Deputy
Directors of the company base, VTTC has 3 affiliated branches, located in Hanoi,
Quang Ninh and Van Long.
Tourism and Trading Joint Stock Company - Vinacomin has the following business
functions:
• Trading business: Importing, buying and selling in the country all kinds of mining
machinery, equipment and materials; chemicals for the mining industry.
• Travel & hotel business: Airplane ticket agency, provide domestic and foreign travel
services, provide accommodation, catering services, meetings, events.
• Business serving Vietnam Coal - Mineral Group: customs clearance services,
transportation of equipment for investment projects, office services, building
management, etc.
• Industrial meal business: Providing meals for employees at companies and
enterprises of multi-industries.
• Food business: Creating VTTCFood brand, mainly serving the needs of the whole
Company and businesses and corporations.
As an intern under the Import-Export 1, the report focuses mainly on activities related
to the field of entrusted import and export. and direct import and export of materials,
goods, machinery and equipment.
Based on the Company's audited financial statements (due to AASC in 2016 and BDO
from 2017 onwards), in general the most important indicator of business growth is
maintained net profit. on the growth momentum, with the most outstanding growth in
the research period being 2016, with an increase of more than 1 billion VND.
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However, also according to the data from the financial statements, by 2020, the
Company's net profit has decreased significantly, although this can be explained in a
reasonable way with the cause stemming from Covid-19 global epidemic (appeared
from about December 2019). More specifically, as the name of the Company, the main
business activities are import and export of machinery, equipment, mining materials,
chemicals for the mining industry, therefore, when countries (including Vietnam)
simultaneously close borders, free trade becomes difficult, despite the fact that
Vietnam has signed many FTAs with many countries and economic territories.
Even so, because the prolonged pandemic in 2020 (the latest year in the research
period) is predictable, the company's business targets are adjusted to match and adapt
to the current situation. In the contemporary context, the company's indicators of net
sales and gross profit still reached over 100% of the plan.
In order to have a more comprehensive view of the Company's business situation for
the period 2016-2020, the author of the report summarizes and provides basic
information reflecting the Company's financial position as follows:
Unit: VND
2016 2017 2018 2019 2020
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Regarding the Company's capital, from the first years of establishment until the
second quarter of 2015, VTTC is considered as one of the subsidiaries under the
Vietnam Coal and Mineral Group, with the lowest investment capital of 67.87%.
At the second quarter of 2015, following the direction of the Prime Minister on
reducing the percentage of shares in joint stock companies, Vietnam Coal and
Minerals Group completed the divestment from 67.87%. down to 36%, making VTTC
officially become an associated company with Vietnam Coal - Mineral Group.
The capital structure of VTTC is shown in more detail through the following
indicators: Debt Ratio, Equity Ratio, Debt on Equity Ratio.
2016 2017 2018 2019 2020
Debt Ratio 91.62% 93.57% 90.48% 90% 88%
Equity Ratio 8.38% 6.43% 9.52% 10% 12%
Debt to Equity Ratio 10.9 14.9 9.51 9 7.33
Regarding the current human resources of the Company, the report specifically goes
into the analysis of human resources at VTTC's head office, located on the 8th floor,
Viet A building, Duy Tan, Hanoi.
As of December 31, 2020, the total number of employees at the Company's Head
Office was 632 people, an increase of 34 people compared to the same period in 2019,
with 3 affiliated branches in many business lines.
Policy for employees:
+ Policy on salary and wages: Salary paid to employees is implemented on the
principle of function, position and level of contribution. The Company pays salaries
to employees according to the regulations on management and use of the salary fund.
+ Bonus policy: The bonus level for employees is implemented on the principle of
democracy, publicity and based on the employee's achievements in the process of
production and business activities. In addition, the Company also issued its own set
of emulation and commendation regulations.
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+ Other policies: The company has a policy of training to improve professional
qualifications for employees, annual vacations, labor protection, regulations on using
the welfare fund extracted from annual net profit...
Although the report focuses mainly on the commercial business sector, it is impossible
not to mention the Tourism - Travel business, even though there are many strong
competitors in the market, such as Flamingo Redtours Joint Stock Company,
Hanoitourist Travel Company, Fiditour Travel Joint Stock Company, etc., but VTTC
has been continuously honored by the Vietnam Tourism Association as one of the top
international travel agencies bringing tourists abroad in Vietnam.
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Returning to the commercial business, the Company adheres to and promotes the
strengths of traditional materials, especially Micheline special tires, Dongil conveyor
belts, mining chemicals, etc. At Import-Export Department1 – Part of the author's
internship, the main product traded is Michelin special tires, with the main consumers
being coal mining units - opencast minerals, cement factories, seaports and other
industries. other areas. Up to now, VTTC is still the official and exclusive distribution
agent of Michelin in Vinacomin market.
Types of tires under the business responsibility of Import-Export Department1
include:
- Tires for trucks carrying soil, popular tire sizes such as: 12.00R24, 14.00R25,
18.00R25, 18.00R33, 26.5R25, 29.5R25, 21.00R33, 21.00R35, 24.00R35, 27.00R49
- Construction and industrial tires: 16.00R24, 17.5R25, 20.5R25, 23.5R25, 26.5R25,
29.5R25.
In addition, the main equipment imported through the import-export department1 can
be mentioned as follows:
Equipment Unit Origin
1 Tire patching machine EM1 Set Germany
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10 3 ton crane Set China
11 2 ton tire lifter, fixed Set Vietnam
After more than 20 years of establishment and development, along with important
changes in finance and administration, VTTC has always maintained and promoted
its strengths for Vietnam Coal and Mineral Group in particular and the industry.
mining, heavy industry in general.
In which, as mentioned in the previous sections of the report, VTTC has developed
and been recognized in both the forerunner of the travel and tourism business, and
expanded to the commercial business, as well. with key products being traditional
materials.
Just like in the Financial Statements, Income Statements and preliminary aggregated
data on the Company's financial position and resources mentioned above, it can be
seen that the Company has autonomy and stability in operation, control and business.
3.2. Difficulties:
In the short term, VTTC has to face the impact of the Covid-19 pandemic, the figures
also reflect a decrease in business efficiency, especially in 2020. Tire and chemical
products, 2 products The main contributor to the production and business results of
the whole Company is facing fierce competition from competitors, special tires are
affected in terms of delivery schedule due to some countries applying blockade
policies. to prevent the spread of disease. In addition, the Company also faces the
problem of tire import prices are still high due to the lack of preferential policies under
the CPTPP agreement, erratic commodity prices, low consumption rate, leading to
low consumption. to large inventories.
Besides, comparing the financial statements of the years from 2016 to 2022, we also
see that although the net revenue is high, the cost of goods sold of VTTC cannot be
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lowered, plus the average selling cost. in the period up to nearly 140 billion
dong/financial year, so the ratio of net profit to net revenue per year of VTTC is still
quite low.
VTTC was built with the forerunner of Coal Tourism Company, focusing on business
and development of travel and tourism. Over time, along with the development of
demand for supply chains in the coal industry in general and the scope of enterprises
in particular, VTTC has attacked and achieved certain successes in commercial
business.
As mentioned in the previous sections, commercial activities, or specifically the
import and export activities of materials for mining, chemicals for mineral
exploitation, etc., gradually play a pivotal role. , creating significant values for the
Company's business results.
More specifically, in the research period 2016-2020, VTTC alone achieved
commercial revenue of 1,135 billion VND, an increase of more than 60 billion VND
compared to the average commercial revenue of the period. in the period 2011-2015,
the average production value reached 36.14 billion VND/year.
However, VTTC still faces preliminary difficulties as mentioned in section 3.2, so it
is necessary to give honest analysis and judgment on the Company's strategy and
direction in commercial activities. , thereby proposing solutions and orienting the
operation plan with a vision to 2025.
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- Subject: The topic focuses on researching the status of commercial business
activities of VTTC in the 5-year period 2016-2020
- Scope: Study the current situation in the period 2016 - 2020 and propose orientations
and solutions to 2025.
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