Banking Academy

Faculty of International Business

Assignment
International Trade and Finance
TOPIC: THE SALE CONTRACT OF RED DRAGON
COMPANY

Teacher: Mr. Do Phu Dong

Group: 05

Members
1. Nguyễn Tiến Đạt 22A4050261
2. Nguyễn Ngọc Khánh 22A4050315
3. Phạm Ngọc Linh 22A4050411
4. Hà Hải Huyền 22A4050400
5. Lê Nguyệt Mai 22A4050521
6. Trương Thị Diệu Linh 22A4050506
7. Bùi Bảo Ngọc 22A4050392
8. Đàm Ngọc Ánh 22A4050052
Mục lục
I. INTRODUCTION OF RED DRAGON COMPANY
1. Overview the company

- RED DRAGON SERVICE TRADING MANUFACTURE is a company

specializing in exporting fresh fruits and vegetables in Vietnam, established
in January 2007, with headquarters in Ho Chi Minh City, Vietnam. Red
Dragon's product lines are dragon fruit, rambutan, sweet potato, pomelo,
lime and other Vietnamese fresh produce, which are exported to many
markets around the world, such as USA, Canada, Netherland, Germany,
France, UK, Switzerland, Spain, UAE, China…
- Red Dragon is a type of private limited companies (Ltd). A private limited
company is a type of enterprise with a legal entity recognized by law. This is
the type of company that offers limited liability, or legal protection for its
shareholders. 
2. Benefits of the company

This type of organization has many advantages:

- The company is considered to be a separate legal entity. Therefore a

company form of organization has wide legal capacity and can own property
and also incur debts.
- A company has ‘perpetual succession’, that is continued or uninterrupted
until it is legally dissolved.
- Free & Easy transferability of shares
- Private limited companies enjoy tax advantages: They pay tax on taxable
profits and are exempted from higher personal income tax rates.
- Ease of Raising Funds: shareholders allowed are up to two hundred and
another two hundred members are allowed, this many numbers and the
reputation of the private limited company makes it easier to compare capital
in raised capital to other forms of companies.
3. Barries of the company.

Besides the above advantages, a private limited company has disadvantages

such as:

- There are certain restrictions on company ownership,

- Private limited companies cannot trade their shares on a stock exchange
- Many legal requirements apply to private companies
- Higher administrative costs and taxes.
I. ANALYSIS PEST MODEL OF THE COMPANY.
 Red Dragon Production Trading Service Co., Ltd specializes in growing,
packing and exporting/domestic fresh vegetables and fruits.
Exporting products include:

- Agricultural products and fruits: mango, grapefruit, rambutan, passion fruit,

longan, custard apple, dragon fruit, ..
- Agricultural products and fresh vegetables: pumpkin, cabbage, tomatoes,
fresh peppers, asparagus, corn,...

Red Dragon was established in 2007, after more than 10 years of operation
in the agricultural products industry, the company has attracted many
international customers, main markets: USA, Canada, UAE, EU, other
countries Southeast Asia, China and domestic market.
Moreover, Red Dragon Company won the title of Trustworthy Exporter in
3 years 2010,2011 and 2012.

1. Political environment

Vietnam has a single party that controls the whole country, the Communist
Party of Vietnam. With a one-party system, Vietnam is showing its stability
in politics, which is always a great advantage compared to other countries in
the world. Before the Covid-19 pandemic, it can be said that Vietnam has
prevented the disease very well, maintaining non-negative economic growth
in difficult years.

Regarding diplomacy,currently, Vietnam has established diplomatic

relations with more than 178 countries around the world. We have joined
and developed alliances such as World Trade Organization (WTO), APEC
forum, ASEAN, Non-Aligned Movement. Historically, Vietnam and the
United States have been at odds with each other in political issues and war
conflicts, but in the past two decades, we have all noticed a good cohesion
and cooperation between the two sides. The enhanced role of Vietnam in the
international arena is a good premise, creating favorable conditions for
Vietnamese enterprises to promote exports, including Red Dragon. At the
same time, it also brings the company great challenges when it has to
compete with similar products of foreign companies imported into Vietnam.

2. Economic environment

According to estimates of the International Monetary Fund (IMF), Vietnam's

nominal GDP in 2020 will reach 340,602 billion USD, ranking 35th in the
world. However, our per capita income is 3,498 USD, ranking 115 in the
world. According to the General Statistics Office of Vietnam, the gap
between rich and poor is increasing markedly and rapidly.

The socio-economic situation of our country in 2021 takes place in the

context that the world economy tends to recover when countries promote
vaccination programs against Covid-19 but the emergence of new strains
slowing down the economic recovery. In the area of agriculture, forestry and
fishery, the productivity of most crops is quite good compared to the
previous year, livestock has grown steadily, and the export turnover of some
agricultural products will increase in 2021, contributing to maintaining the
growth rate. leader of the whole region. The agricultural sector increased by
3.18%, contributing 0.29 percentage points to the growth rate of total added
value of the whole economy; forestry increased by 3.88%, contributing 0.02
percentage points; the fisheries sector increased by 1.73%, contributing 0.05
percentage points.

Agriculture and forestry production in 2021 will take place in relatively

favorable weather conditions, with good crop and livestock productivity.
However, due to the complicated development of the Covid-19 pandemic,
many localities have implemented prolonged social distancing, affecting the
supply chain of production - processing - consumption of agricultural,
forestry and fishery products. . Facing the intertwined advantages and
difficulties, the Agriculture sector has many timely response solutions along
with the effective implementation of the Government's Resolution No.
128/NQ-CP to stabilize and develop production, reaching a high level. high
growth. The agricultural sector's performance in 2021 has clearly
demonstrated the supporting role of the economy.

Ensuring the supply of food, food and essential goods is an important basis
for the implementation of security and people's safety during the pandemic.

3. The social environment

Nowadays, people are becoming more and more conscious about their
health. People began to choose foods that improve nutrition, freshness, and
health. Moreover, Vietnam has a tropical monsoon climate suitable for the
development of tropical foods, so it focuses on cultivating and producing
foods such as pomelo, lychee, durian, .. which are not available in other
countries. to boost exports.

The labor structure of Vietnam also shows backwardness, the proportion of

labor in agriculture
 Occupation accounts for more than 50%, in addition untrained labor force is
common, the training method is in the style of vocational transmission,
hand-holding is the main thing, so the skill level is low, the uniformity is not
high. There are few highly skilled workers, lack of training planning.
Currently, the country's labor is concentrated in industrial parks and urban
areas such as Ho Chi Minh City, Dong Nai, Binh Duong... Labor from the
state sector is moving. to the non-state sector, from the countryside to the
city... This is a natural shift according to the law of "water flows to the
valley", a market regulation. The majority of Vietnam's population still lives
in rural areas, accounting for 75% of the country's population, the migration
to large urban centers will have an important influence on consumption
habits for many years to come. Predicting in this year 2022, the population
of Vietnam

II. MARKET PENETRATION METHOD OF RED DRAGON

SERVICE COMMCERCIAL MANUFACTURING.

Red Dragon Commercial Production Co., Ltd is a Vietnamese specialized unit for
processing, wholesale and exporting food and fresh fruits.

Domestic market: AEON Mall, E-Mart, Big C, etc.

Export markets: USA, Canada, Netherlands, Germany, France, UK, Switzerland,

Spain, U.A.E, China, Hong Kong, Thailand, Malaysia, Singapore, Indonesia,
Russia, New Zealand, Japan, Paris, etc.

On June 12, 2021, Red Dragon Trading Co., Ltd exported fruits directly to the EU:
- According to the Ministry of Industry and Trade, 2021 is considered an
important milestone when fresh fruits such as litchi and longan are directly
exported to European countries such as the Netherlands, Belgium, France,
Germany, and the UK by Vietnamese companies, after being supported to
connect, introduce to import companies.
- The first shipment of 1-ton lychee with the traceability stamp itrace247
developed by the Trade Promotion Department (Ministry of Industry and
Trade) can be officially imported into France via air. This order, originating
from Thanh Ha growing area, Hai Duong province, was successfully
brought to France by Red Dragon Production Trading Service Co., Ltd.,
 taking advantage of tariff incentives from the Vietnam Free Trade
Agreement South - EU (EVFTA).
- After many efforts to promote, introduce and connect by online methods, the
perseverance to connect businesses of the two countries as well as the
reputation of the Vietnam Trade Office in France, based on coordination
with the Trade Promotion Agency selecting a capable export business, the
export order of Vietnamese lychee fruit, originating from the Thanh Ha
growing area, Hai Duong province has been brought to France by the Red
Dragon Production Trading Service Co., Ltd. public and will be available on
the shelves of Asian supermarkets in Paris.

On the past 2-6-2021, the Manufacturing, Trade, Red Dragon Service Limited has
latched the order to export the lychee to two new and important partners in Japan -
the Asian market:
- It is expected that Thanh Ha (Hai Duong) and Luc Ngan (Bac Giang) lychee
shipments will be exported by Red Dragon Company to Japan on June 15
and the next few days. Besides these shipments, Red Dragon Company has
also been exporting lychee fruit to AEON Japan. The weekly event from
June 25 - 27, which will take place at 300 AEON stores nationwide, also
focuses on introducing and promoting to Japanese consumers and a large
number of Vietnamese people in Japan about lychee fruit's famous
Vietnamese food.
- The building of the image and brand for the product of the business
originates from the story of the product's journey from the time of formation,
the development until it reaches the customer. Product traceability is a tool
that helps users not only experience the production process of products but
also have the opportunity to enjoy the value of history, geography,
understand the care and process to create products.

III. BILL OF EXCHANGE’S RED DRAGON COMPANY

No: 01/XK HCMC, 3 March 2022

For: USD 30,300

At sight of this First Bill of Exchange (second of the same tenor and date being
unpaid). Pay to the order of MILITARY JOINT STOCK COMMERCIAL
BANK - HOCHIMINH CITY BRANCH the sum of United States Dollar thirty
thousand three hundred only.

Value received as per our invoice No 4567 date 2 May 2022

Drawn under Contract No RD-SEA202015 date 3 March 2022

To:

LANDGARD Obst & Gemuse GmbH For RED DRAGON CO., LTD
Chemnitz Dresden signed

Hermann-Poege-Strabe 15, TRUONG THI THANH THAO

09120 Chemnitz, Deutschland

IV. BILL OF LADING’S RED DRAGON COMPANY

V. CONCLUSION
International Trade has become very significant in this era, as many
countries exchange goods and services from each other. There are many
conventions and treaties related to international commercial contracts,
especially international sale contracts, which are applied in international
trade and are regarded as beneficial for the parties to the contract. These
conventions help to ensure the integrity of international law by maintaining
uniformity and fairness in international trade. Parties should take some
points or clauses into consideration while preparing the contract for sale with
mutual consent.
This article discussed the need for these clauses in detail and some brief
introduction of Red Dragon Company, analysis model PEST in this
manufacture, the market penetration methods with the aim to sevice and
export products more advantage, bill of exchange and bill of lading in this
company.
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