FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

------------------

MID-COURSE INTERNSHIP REPORT

Major: International Business Economics

EXPORT PROCEDURE FOR SEAWAY SHIPMENT AT

BLUE SEA TRANSPORTATION – TRADING CO., LTD

Student: Dao Nguyen Hanh Nguyen

Student ID: 1701015548

Class: K56CLC4

Supervisor: Vuong Thi Bich Nga

Ho Chi Minh City, August 2020

 FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

------------------

MID-COURSE INTERNSHIP REPORT

Major: International Business Economics

EXPORT PROCEDURE FOR SEAWAY SHIPMENT AT

BLUE SEA TRANSPORTATION – TRADING CO., LTD

Student: Dao Nguyen Hanh Nguyen

Student ID: 1701015548

Class: K56CLC4

Supervisor: Vuong Thi Bich Nga

Ho Chi Minh City, August 2020

FOREIGN TRADE UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM
HO CHI MINH CITY CAMPUS Independence - Freedom - Happiness

MIDTERM PROFESSIONAL REPORT REMARKS

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STATEMENT OF AUTHORSHIP

Except where reference is made in the text of the report, this report contains no
material published elsewhere or extracted in whole or in part from a report by which
I have qualified for or been awarded another degree or diploma. No other person’s
work has been used without due acknowledgements in the report.

This report has not been submitted for the award of any degree or diploma in any
other tertiary institution.

Ho Chi Minh City, August 2020

Author

Dao Nguyen Hanh Nguyen

ACKNOWLEDGEMENT

I would like to express my sincere gratefulness to Mr. Nguyen Thanh Tuan - Director
of Blue Sea Transportation – Trading Co., Ltd, Mr. Nguyen Tuan Anh - Sales
Manager, and all staff members in Blue Sea for their enthusiastic support during my
internship. Especially, I would like to show my deep gratitude to Mrs.Vuong Thi Bich
Nga. Without her conscientious guidance, this report could have not been completed.
Finally, I would like to present a thankful attitude to her school – Foreign Trade
University and all the teachers who have conveyed invaluable knowledge as a
foundation for her to complete this report.

Ho Chi Minh City, August 2020

Dao Nguyen Hanh Nguyen

Table of contents

LIST OF ABBREVIATIONS
LIST OF FIGURES
LIST OF TABLES
PREFACE .............................................................................................................. 1
CHAPTER 1 INTRODUCTION OF BLUE SEA TRANSPORTATION –
TRADING CO., LTD AND INTERNSHIP SUMMARY .................................... 2
1.1. General information, brief history, and development of Blue Sea
Transportation – Trading Co., Ltd. ....................................................................... 2
1.2. Functions, missions, organizational structure and personnel structure......... 3
1.2.1. Functions ............................................................................................. 3
1.2.2. Vision, missions and values ................................................................. 4
1.2.3. Organizational structure ....................................................................... 4
1.2.4. Personnel structure............................................................................... 6
1.3. Current business performance of Blue Sea Transportation from 2017 to
2020… ................................................................................................................. 8
1.4. Internship period summary ....................................................................... 10
1.5. Conclusion of chapter 1 ............................................................................ 11
CHAPTER 2 EXPORT PROCEDURE FOR SEAWAY SHIPMENT AT
BLUE SEA TRANSPORTATION – TRADING CO., LTD .............................. 12
2.1. Process of exporting goods by sea at Blue Sea Transportation - Trading .. 12
2.1.1. General process of exporting goods by sea ......................................... 12
2.1.2. Detailed process of exporting seaway LCL wooden handicraft baskets
at Blue Sea Transportation – Trading Co, Ltd ................................................. 17
2.1.3. Strengths and weaknesses of Blue Sea’s export procedure .................... 20
2.1.4. Strengths ............................................................................................ 20
2.1.5. Weaknesses ....................................................................................... 21
2.2. Conclusion of chapter 2 ............................................................................ 22
CHAPTER 3 RECOMMENDATIONS FOR IMPROVING THE PROCESS
OF EXPORTING GOODS BY SEA AT BLUE SEA TRANSPORTATION –
TRADING CO., LTD .......................................................................................... 23
3.1. Recommendations and implement schedule.............................................. 23
3.1.1. Develop strategy of attracting new customers and improving customer
services….. ..................................................................................................... 23
3.1.2. Provide consolidation service............................................................. 24
3.1.3. Expand network of agents .................................................................. 25
3.1.4. Implementation schedule ................................................................... 25
3.2. Personal lessons and experience ............................................................... 26
3.3. Conclusion of chapter 3 ............................................................................ 27
Conclusion ........................................................................................................... 28
BIBLIOGRAPHY
ANNEXES
LIST OF ABBREVIATIONS

Abbreviation Full meaning

FCL Full Container Load

LCL Less than Container Load

ETD Estimated Time of Departure

CY Container Yard

CFS Container Freight Station

ERP Enterprise Resource Planning

B/L Bill of Laing

CFR Cost and Freight

FOB Free On Board

VLA Vietnam Logistics Association

CPTPP Comprehensive and Progressive Agreement

for Trans-Pacific Partnership

FTA Free Trade Agreement

EVFTA European-Vietnam Free Trade Agreement

SI Shipping Instruction

LIST OF FIGURES

No Figure name Page

1 Figure 1.1: Blue Sea logo 3

2 Figure 1.2 Blue Sea’s operational organization 5

structure

3 Figure 1.3 Blue Sea's business outcomes 2019 - 9

6M2020 and estimated 2020 (billion VND)
 4 Figure 2.1: Process of exporting goods by sea at 11
Blue Sea

LIST OF TABLES

No Table name Page

1 Table 1.1: Brief information of Blue Sea 2

Transportation – Trading Co., Ltd

2 Table 1.2: Blue Sea’s personnel structure 6

3 Table 1.3: Blue Sea’s business outcomes from 8

2017 to 2019

4 Table 3.1: Implementation plan for solution to 24

improve the conduct of export procedure at
Blue Sea
 1

PREFACE

Vietnam is expected to witness very robust growth in international commercial

activities in the coming years, which will support the continued development and
expansion of the logistics industry. At the present, the logistics service is among the
fastest-growing industry, accounts for 15-20% of GDP in Vietnam.

Blue Sea Transportation – Trading Co., Ltd is a forwarding company with 15 years
of working in the Logistics industry. During the period of development, Blue Sea has
gradually improved the business process and organizational structure in order to meet
all strict requirements from customers.

With the orientation of self-improvement in the field of logistic, the author had a great
opportunity to practice at Blue Sea Transportation – Trading Co., Ltd. Based on the
author’s inherent knowledge along with her observation, experience, and learning at
the company, the author decided to choose the topic: “Export procedure for seaway
shipment at Blue Sea Transportation – Trading Co., Ltd” for her mid-course report.

This report consists of three main parts:

Chapter 1: Introduction of Blue Sea Transportation – Trading Co., Ltd and internship
summary

Chapter 2: Export procedure for seaway shipment at Blue Sea Transportation –

Trading Co., Ltd

Chapter 3: Recommendations for improving the process of exporting goods by sea at

Blue Sea Transportation – Trading Co., Ltd

Despite many efforts, due to limited time and knowledge, the report could not avoid
the drawbacks and deficiencies. Thus, the author would highly appreciate any
constructive comments that can help improve it.
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CHAPTER 1 INTRODUCTION OF BLUE SEA TRANSPORTATION –

TRADING CO.,LTD AND INTERNSHIP SUMMARY

1.1. General information, brief history, and development of Blue Sea

Transportation – Trading Co., Ltd.

Blue Sea Transportation – Trading Co., Ltd is a trading forwarder providing

international delivery and transportation services. It was formed on October 10th,
2005, under the business code of 0309381590. The Company came into operation on
October 27th, 2005, with the initial capital of 5,000,000,000 VND.

Table 1.1: Brief information of Blue Sea Transportation – Trading Co., Ltd

Name of organization Blue Sea Transportation – Trading Limited Liability

Short name BSTT, Blue Sea

Website http://bsttvn.com/

Head Office 11 Phu Giao , Ward 14, District 5, HCMC, Vietnam.

Transaction Branch 49 Le Trung Nghia, Ward 12, Tan Binh District,

HCMC, Vietnam.

03 Le Thanh Tong, Ngo Quyen District, Hai Phong

City, Vietnam

Telephone number +848 6293 242

Fax +848 6293 2420

Email overseas@bsttvn.com

Business code 0309381590

Registration day 23/09/2009

 3

Legal representative Thanh Tuan Nguyen

Logo

Figure 1.1: Blue Sea logo

(Source: http://bsttvn.com/)

The Company located its head office at 11 Phu Giao, Ward 14, District 5, HCMC,
Vietnam. The Company has two branches, one is at 49 Le Trung Nghia, Ward 12,
Tan Binh District, HCMC, within 2 km from Tan Son Nhat Airport and the other is
at 03 Le Thanh Tong, Ngo Quyen District, Hai Phong City, nearby Hai Phong Port.

After 15 years of formation and development, Blue Sea has gradually improved the
business process and organizational structure. Such improvement allows the
Company to utilize its best comparative advantage – well-trained, experienced, and
qualified staffs. Moreover, the Company has also developed an information system
with all of its global agents, which helps to follow the shipment schedule and solve
any problems that might arise. Therefore, the Company is committed to provide the
best services and meet strict requirements from customers.

1.2. Functions, missions, organizational structure and personnel structure.

1.2.1. Functions

Blue Sea provides the following services:

Logistics services:

 International logistics.
 Cargoes packaging, wrapping and crating.
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 Entrusted import and export service.

 Customs declaration and other export, import documental services.
 Bonded warehouse rental and related logistics services.
 Domestic transportation.

Trading services:
 Import: raw material, industrial machine, wine, etc.
 Export: furniture, article of iron, steel, ceramic, etc.
 Sourcing agent for foreign companies.
1.2.2. Vision, missions and values

Vision: Become one of the leading Vietnamese forwarders.

Mission: “Provide best logistic solutions and meet all strict requirement from our
customers.”

Values:

 Profession: offer the best value to the Company’s customers at competitive

price
 Security: protect customers’ information and do not interfere with customers’
business activities
 Integrity: take full responsibility for any loss or damage due to its lack of due
diligence

1.2.3. Organizational structure

 5

Figure 1.2 Blue Sea’s operational organization structure

Director

Document Accounting Logistic Customer Sales Overseas

Department Department Department Department Depatment Department

Export team Inland

Import
Overseas
team

(Source: author’s synthesis)

Director: managing all departments in the Company; acting as the representative and
taking responsibility under the law; controlling the conduct of strategy and business
plan and the performance of the Company; signing contracts.

Sales Department: is responsible for searching for customers, conducting market

research; consulting, negotiating with customers and drafting contracts for the best of
both sides; developing long-term relationships with customers, shipping lines and
other partners.

Document Department: is responsible for preparing all required documents for

customers; consulting customers for any issue related with import, export procedure;
storing customer records; keeping informed with the domestic and international
trading environment, news, constitutional regulations, decrees, circulars, legal
documents, etc. related to the field of import and export.

Logistics Department: following the consignment during the delivery; receiving

and delivering goods from customers' warehouse to the port or vice versa as in the
contract; customs clearance; managing packaging and wrapping and crating of goods
if required; handing over the consignment to carrier and get the necessary documents;
keeping informed with the domestic and international trading environment, news,
constitutional regulations, decrees, circulars, legal documents, etc. related to the field
of import and export.
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Accounting Department: is in charge of financial control of the Company:

preparing periodical reports, quarterly and yearly financial statements; recording and
managing the use of the Company’s capitals and assets; tracking and managing costs,
debts and financial liabilities; managing the deduction of amounts payable to the
State, storing and preserving confidential document; keeping informed with the
domestic and international trading environment, news, constitutional regulations,
decrees, circulars, legal documents, etc. related to the field of import and export.

Customer Department: is in charge of developing and maintaining long-term

relationships with customers; improving the customer searching process of the
Company.

Overseas Department: working with foreign agents to execute contracts or required

procedures; keeping informed with the domestic and international trading
environment, news, constitutional regulations, decrees, circulars, legal documents,
etc. related to the field of import and export.

1.2.4. Personnel structure

Table 1.2: Blue Sea’s personnel structure

Department Number Education Sex Average age

of
Male Female Male Female
employees

Director 1 University 1 46

Sales 4 University 3 1 28 25
and
college

Document 3 University 1 2 25 27
and
college
 7

Accounting 2 University 1 1 27 24

Logistics 2 University 2 26
and
college

Customer 2 University 2 26
and
college

Overseas 2 University 1 1 24 28

Sum 16 9 7 29 26

(Source: Blue Sea human records, 2019)

Overall, there are 16 employees in Blue Sea, including nine males and seven females.
They all graduated from university or college and have at least two years of
experience in the logistics industry.

In terms of gender, the number of men outweighs that of women. Those departments
with the majority of employees are female are Document Department and Customer
Department. In comparison, Sales Department and Logistics Department are
predominantly male.

In terms of age, the Company has a young workforce. Except for Director, all
employees are aged under 30. The average age of male employees is 29, and that of
female employees is 26.

In terms of education, the Company has a high-quality workforce. All employees

have graduated from College or University and are well-trained in Logistics. As the
nature of work requires communicating with foreign customers and partners, all
employees have at least basic English skills.
 8

Blue Sea provides periodic Training and Developing program that is specialized for
each position so as all employees have the best condition for developing themselves
and contribute to the success of the Company.

1.3. Current business performance of Blue Sea Transportation from 2017 to

2020

Table 1.3: Blue Sea’s business outcomes from 2017 to 2019 (billion VND)

2017 2018 2019 2017/2018 2018/2019

Nominated Real Nominated Real

(%) (%)

Revenue 3,149 3,565 4,180 416 13.2 615 17.25

Cost 2,142 2,437 2,894 295 13.7 457 18.75

Profit 1,007 1,128 1,286 121 12.0 158 14.0

before
tax

Profit 377 415 450 38 10,08 35 8,43

after tax

(Source: Blue Sea’s financial statements, 2017 -2019)

Table 1.3 illustrates the business performance of Blue Sea Co., Ltd, from 2017 to
2019. In details:

In terms of revenue: In 2007, the Company’s revenue accounted for 3,149 billion
VND. There was a growth of 13.2% in revenue to 3,565 billion VND, witnessed at
the end of 2018. From 2018 to 2019, revenue continued to grow by 17.25% into 4,180
billion VND.
 9

In terms of cost: 2007’s cost of 2,142 billion VND increased by 13.7% into 2,437
billion VND in 2008. 2009 observed a remarkable increase for 18.75% into 2,894
billion VND.

In terms of profit after tax: following the same upward trend, the profit after tax grew
by 10.08%, from 377 billion VND in 2017 to 415 billion VND in 2019. It reached
450 billion VND at the end of 2019.

Overall, the Company was having a steady growth as revenue and profit continued to
rise during the given period. Such development can be explained by a variety of
reasons. Firstly, Logistics service in Vietnam experiences remarkable growth in
recent years. With the successful signing of Free Trade Agreements and the gradual
improvement of infrastructure, forwarding companies have more growth
opportunities in the Vietnamese market. Second is the great effort of Blue Sea to
improve its service quality and working process. In 2019, the Company invested in
establishing its own fleet of vehicles to facilitate its inland transportation services.

Figure 1.3 Blue Sea's business outcomes 2019 - 6M2020 and

estimated 2020 (billion VND)

450
2019 2,894
4,180

180
6M2019 1,108
1,586

172
6M2020 920
1,375

430
2020 (estimated) 2,402
3,624

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Profit after tax Cost Revenue

(Source: Blue Sea’s financial statements, 2019 – 2020)

Figure 1.3 compares the performance of Blue Sea in the first six months between
2019 and 2020, and thereby, provides estimated data for 2020.
 10

Blue Sea’s business outcomes are seasonal. The Company usually receives the most
valuable orders in the last quarter of a fiscal year because the time before Lunar New
Year is when the market is most bustling. In detail, the first six months of 2019
attained 1,586 billion VND in revenue, accounted for only 38% of 2019’s revenue.

2020 has been and will be a tough time for Blue Sea due to the Covid19. According
to the performance of Blue Sea from 2017 to 2019, the Company has been having a
steady growth, as the revenue growth rate was at 17.25% in 2019. However, not only
does it not follow the upward trend, the Company’s performance in the first six
months of 2020 witnessed a drop. In detail, the revenue and profit after tax in the first
six months of 2020 declined by 13% (equivalent to 211 billion VND) and 4%
(equivalent to 8 billion VND), respectively, compared to the same period of 2019. It
also can be seen from the chart that the Company put a great effort into controlling
costs during a difficult time to minimize the loss of profit.

With the forecast that the pandemic situation is likely to continue until the end of
2020, and based on the data of 2019, Blue Sea’s business outcomes are estimated at
3,624 billion VND in revenue, 2,402 billion VND in cost and 430 billion VND in
profit after tax.

1.4. Internship period summary

The author’s internship lasted for ten weeks, started on June 1 and ended on August
7, 2020. Working in Sales Department, the author had opportunities to be exposed to
a variety of tasks, including:

 Generate, arrange and update databases of customers, shipping lines, global

agencies, local charges, etc.

 Send inquiries to shipping lines and offers to customers.

 Contact to potential customers via email, phone.

 Rewrite and translate to English some professional documents.

 Research for freight rates and schedule for customers.

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The author received guidance and training from Mr. Nguyen Tuan Anh, Sales
Manager at Blue Sea. At the end of the internship, the author had a great opportunity
to support Logistics Department receiving a shipment from a customer’s warehouse.

Details of the internship at Blue Sea are attached in “Internship diary” in the annexes
below.

1.5. Conclusion of chapter 1

To conclude, chapter 1 provides some general information about Blue Sea

Transportation – Trading Co., Ltd and summarizes the author’s 10-week internship.
With 15 years of experience as a professional forwarding company, Blue Sea
Transportation – Trading Co., Ltd is gradually improving itself and raising service
quality to provide the best value to customers. Thus, positive business performance
resulted from the great effort of the entire company. Working and learning in such a
professional environment as in Blue Sea, the author has received a lot of lessons and
experience, which are valuable for not only her study at Foreign Trade University,
but also her future career.

The next chapter will illustrate the process of exporting goods at Blue Sea
Transportation – Trading Co, Ltd.
 12

CHAPTER 2 EXPORT PROCEDURE FOR SEAWAY SHIPMENT AT

BLUE SEA TRANSPORTATION – TRADING CO., LTD
2.1. Process of exporting goods by sea at Blue Sea Transportation - Trading

2.1.1. General process of exporting goods by sea

Figure 2.1: Process of exporting goods by sea at Blue Sea

1
• Searching for new customers

2
• Signing contract, receiving customer records

3
• Preparing, checking, packing deliver cargo to the port

4
• Customs clearance

5
• Handing over cargo to the carier

6 • Issuing House Bill of Lading

7
• Sending documents to agent and liquidating contract

(Source: author’s synthesis)

Step 1: Searching for new customers:

Blue Sea's orders come from two main sources: one is long-term loyal customers, and
the other is new customers. Sales Department is in charge of searching for potential
customers and maintain long-term relationships with current customers. According
to Mr. Tuan Anh – Sales Manager, new customers bring approximately 35% of the
Company's orders.

Sales Department approaches sources of potential customers using three main

channels. Firstly, Sales employees search for customer contacts on the Internet and
online forums. After having customer contact, Sales employees will send emails and
call to discuss directly with customers. Secondly, a new customer may contact
 13

directly to the Company via its website, email, or social media. Thirdly, Sales
employees join some trade fairs and offline forums about exporting agricultural
products and seafood to meet potential customers.

Upon the receipt of the customer's inquiry, if the consignment is FCL, Sales
department will send an inquiry by email or call directly to a list of carriers providing
general information: commodity, ETD, quantity, port of loading, port of discharge.
A sales employee needs to negotiate with carriers and customers to offer the customer
the best freight and ensure benefit for the Company.

In case of LCL consignment, Sales employee contacts a list of consolidators to deal

freight rate with similar information.

Step 2: Signing contract, receiving customer records:

After a successful negotiation, the Company and customer enter into a contract. The
entrusted export contract is to be signed by legal representations of both sides at one
side's office. The content of an entrusted export contract is including:

 Contract number

 Date and place

 Name and address of parties

 Terms and conditions.

Sales Department then receives Booking records from the customer and bases on it
to send a Booking Request to the carrier or consolidator. Customer's Booking often
includes:

 Name of shipper

 Port of loading

 Port of discharge

 Types of container
 14

 Commodity

 Weight

 Estimated time of delivery (ETD)

 Requirement on CY or CFS

Step 3: Preparing, checking, packing and delivering cargo to the port

From this step, Logistics Department will follow the contract using ERP software.

In case of shipping FCL consignment, the carrier bases on booking information to

issue a Booking confirmation and Empty Release Order. Logistics employee takes
Empty Release Order to a specified location to receive an empty container. The
container needs to be carefully inspected with its floors, walls, roof and corners before
Logistics employee signs into a confirming record indicating that the container is in
proper condition. After that, Logistics employee pays Lift on - Lift off fee, receives
invoice and delivers the empty container to the customer's warehouse. As the
container is delivered to the customer's warehouse, goods are going to be loaded into
the container. Logistics employee shall follow the process of packing and marking
carefully and take photos for evident. Then, Logistics employee, by his hand, seals
the container.

If the consignment is LCL, goods are loaded directly into the truck. Logistics
employee needs to check the number and condition of packages carefully, take photos
for evidence, and then deliver the consignment to the CFS.

Step 4: Customs clearance

Document Department is in charge of preparing the set of documents including:

 Customs declaration: in 2 originals (1 kept by the exporter, 1 kept by customs)

 Commercial contract: in 1 original

 Packing list: in 1 original

 15

 Invoice: in 1 original

 Export license (if required)

Logistics employee opens the e-declaration form by using ECUS software, selects
"register" and fills in all necessary information. After the completion of the E-custom,
Document employee receives a Classified Customs Declaration Form. There are three
classifications, namely Green, Yellow and Red. Document employee prepares and
submits set of documents in compliance with classification results:

 Green stream: Barcode and Customs declaration form.

 Yellow stream: Customs declaration form and Invoice. Custom Officer

inspects the set of documents

 Red stream: Customs declaration form, Invoice and Packing list. Custom
Officer inspects the set of documents. Then the cargo is inspected fully or
partly

If there is no mistake to be found, the status of the Declaration form will be updated
to "Clear".

Step 5: Handing over cargo to the carrier

After successful customs declaration, the cargo is to be handed over to the carrier.

With FCL cargo, the sealed container is delivered to the container yard specified in
the booking confirmation. The container then is to be registered into the vessel record
book. Logistics employee signs the handover record to confirm the status of the
container.

Providing LCL cargo, cargo is loaded into the consolidator's container. Then, it is the
consolidator's responsibility to seal the container and hand it over to the carrier.

Step 6: Issuing House Bill of Lading

One day before the date of departure, or depending on the closing time of carrier,
Document employee contacts customer for Bill of Lading details, including:
 16

 Name and address of Shipper.

 Name and address of Consignee

 Notify party (if any)

 Port of loading, port of discharge

 Commodity

 Quantity of goods (Carton, package, bundle, crate, pallet ...)

 Gross Weight

 Number of containers, number of seals.

 Payment method (prepaid or to collect)

 Whether the customer requires to get House Bill or Master Bill?

 Request on the type of B/L to be issued (original or surrendered)

Document employee issues House Bill of Lading based on given information and
sends it to the customer to check and confirm.

In case of FCL consignment, Logistics employee provides carrier Shipping

Instruction for Master Bill (carrier bill) with the same information from House Bill
excepted some below correction:

 Shipper: Blue Sea Transportation - Trading

 Consignee name, Notify party: Name of the agent of Blue Sea (from the
destination port.).

 Method of payment: Prepaid / Collect fee

 Type of Bill of Lading

If the consignment is LCL, Shipping Instruction is sent to the consolidator instead of

the carrier. Consolidator issues its House Bill of Lading base on the information in
 17

Shipping Instruction. After the container is shipped on board, the consolidator will
receive Master Bill from the carrier.

Step 7: Sending agent set of documents and liquidating contract

After cargo is shipped on board, Document employee generates the set of documents
for the customer, including:

 Customs declaration form stated "Clear"

 Contract

 Commercial Invoice

 Packing list

 Certificate of fumigation, Certificate of Origin

 House Bill of Lading issued by Blue Sea

On the "Onboard date", Logistics employee sends Pre-Alert to the agent and follows
the delivery of the shipment to inform the customer immediately, providing any
incidents.

One day before the shipment's arrival, Document employee email to its agent to
release the shipment to the importer.

After finishing contract liability, Accounting Department issues a Debit note,

completes payment with the customer and finally liquidates the contract. Notice that
in the event of using House Bill Surrender, the customer is required to make payment
before House Bill Surrender is issued.

2.1.2. Detailed process of exporting seaway LCL wooden handicraft baskets

at Blue Sea Transportation – Trading Co, Ltd

Thuan Tuong Thinh Trading Service Co., Ltd was going to export an uncommercial
consignment of wooden handicraft baskets valued 480USD to Indonesia for sample
 18

purposes. In September 2019, Thuan Tuong Thinh sent inquiry directly to Blue Sea
for entrusted export service.

As given the size and volume of cargo, Blue Sea suggested that Thuan Tuong Thinh
use consolidation service to minimize cost. Then, a Sales employee of Blue Sea sent
an inquiry and negotiated freight cost with a variety of consolidators. Gateway
Container Line provided the best freight with a suitable schedule as Thuan Tuong
Thinh’s demand.

On September 24, 2019, representative of Thuan Tuong Thinh Trading Service Co.,
Ltd and Director of Blue Sea Transportation – Trading Co., Ltd, Mr. Thanh Tuan
Nguyen signed entrusted export contracted for the consignment of wooden handicraft
baskets. The shipment was shipped by sea in less container load in term CFR,
Incoterms 2010.

Blue Sea issued a Booking note, including the following details:

 Name of shipper: Thuan Tuong Thinh Trading Service Co., Ltd

 Port of loading: Ho Chi Minh port

 Port of discharge: Jakarta

 Vessel name: Kent Trader 1901S

 Name of consolidator: Gateway Container Line

 Estimated time of delivery (ETD): October 15, 2019

 CFS: ICD TRASIMEX SG

All departments cooperated to follow the conduct of the contract using ERP software,
Microsoft Excel, Outlook and Skype.

On October 8, 2019, Logistic employees went to Thuan Tuong Thinh’s warehouse to

receive cargo. The cargo was packed into 15 packages, each weighted 32kg with the
size of 60x30x30 in centimeter, marked “THUAN TUONG TINH CO., LTD”. The
 19

cargo is loaded into the truck and delivered to ICD Trasimex Container Freight
Station.

Document Department prepared a valid set of documents for customs declaration.

Because the cargo consisted of wooden products, the set of documents also included
an dispatch application for exporting goods.

Logistics employee filled all required information to ECUS software and received
classification result as Red stream and 0% tax rate. Therefore, Logistic employee
submitted the Customs declaration form, Invoice and Packing list. The cargo was
required to be inspected by 25%. After the inspection, the cargo was cleared. The
customs declaration went smoothly with the support of custom officers.

Thuan Tuong Thinh was required to send SI before October 11. Using Surrendered
B/L, Thuan Tuong Thinh agreed to clear the payment before Blue Sea issued a House
Bill of Lading with details as below:

 Shipper: Thuan Tuong Thinh Trading Service Co., Ltd. 14 Street N10, Chanh
Nghia Residential Area, Thu Dau Mot City, Binh Duong Province, Vietnam.

 Consignee: Pt. Jalesveva Jaya Sri, Ruko Grand Ancol Block C No. 2 Jl. Re
Martadinata, No.1 Ancol, Pademangan, Jakarta Utara.

 Vessel: Kent Trader 1901S

 Port of loading: Ho Chi Minh Port, VN

 Port of discharge: Jakarta, Indonesia.

 Commodity: Wooden article; Wooden handicraft basket, HS code: 44209010

 Quantity: 15 packages

 Gross weight: 480kg

 B/L Surrendered

 Freight prepaid.
 20

On October 15, 2019, Gateway Container Line issued a Surrendered House B/L with
consignee as Blue Sea. The container was sealed and loaded on board.

On October 22, 2019, the vessel came to Jakarta Port. Blue Sea finished its contract
liability. The entrusted contract was liquidated and accounting employees saved the
records and set of documents.

2.1.3. Strengths and weaknesses of Blue Sea’s export procedure

2.1.4. Strengths

Firstly, after 15 years of development, Blue Sea Transportation –Trading has

accumulated much experience and, thus, has sharpened its export procedure. The
procedure is clear in terms of each department's responsibilities, communication
channels and management methods. Therefore, employees can see the big picture and
be able to handle any incidents actively.

Secondly, professional staffs play an essential role in the successful conduct of the
export procedure. All employees are graduated from College or University, e-trained
and experienced in Logistics. Employees are familiar with the export procedure,
always coordinate well with each other to complete the job and proactively handle
any arising problems. It results from the Company's diversified and robust training
and development program. Moreover, employees also actively self-update with
changes in the Logistics industry. The Company's family-like culture also helps
strengthen the relationships among employees and results in better performance.

The third is the flexibility of the process. Depending on the nature of each order,
employees may omit one or several steps in the process. For instance, through an
agent of Blue Sea, a foreign company ordered forwarding service for an FOB
shipment exporting from Vietnam. In this case, the Company is only responsible for
booking carrier and deliver the cargo to customers. Customs declaration is the
Vietnamese exporter's responsibility. In general, Blue Sea offers a variety of services
such as documental services to forwarding services, customs clearance, etc. using the
same procedure.
 21

Fourthly, this process utilizes the Company's strong international partner network
with a variety of shipping lines, consolidators and agents. A robust global network
creates cost advantage for the Company. For instance, shipping lines usually offer
much better freight as a long-term partner compared to its official freight. As a result,
the Company provides its customers with more competitive prices and generates
more profit. Moreover, the network of more than 30 agents worldwide means that the
Company receives orders from not only domestic customers but also abroad.

2.1.5. Weaknesses

As a small-size company, it is inevitable that Blue Sea has its own drawbacks that
affect its export services’ quality, as follows:

Firstly, Blue Sea does not provide consolidation service. Therefore, in order to export
a LCL shipment, the Company depends on another consolidator. Thus, the Company
may face difficulties in competing with consolidators in terms of price, the export
process for LCL shipment is also more complicated and time-consuming.

Secondly, the Company depends on its foreign agents to export a shipment. It is clear
that a foreign agent is a compulsory element in the Company’s export process. It takes
the role of the consignee in the Master Bill of Lading and it is in charge of releasing
cargo to the real consignee as ordered by the Company. At the present, Blue Sea has
agent-relationship with more than 30 foreign transportation companies. Therefore,
the Company can only perform export service within the countries of these agents.

Thirdly, the Company has not yet developed a proper and effective strategy for
approaching potential customers. Searching for news customers is among the most
important steps of the export procedure since it is directly related to the Company’s
revenue. However, as I have mentioned, according to Mr. Tuan Anh – Sales Manager
of Blue Sea, only under 35% of the Company’s orders are from new customers. As a
result, the Company’s performance depends significantly on loyal customers. It
would be difficult for the Company to maintain its current growth rate, and its revenue
will be damaged dramatically in the event that it loses loyal customers for some
reasons, such as Covid19.
 22

2.2. Conclusion of chapter 2

Chapter 2 illustrates the process of exporting goods by sea at Blue Sea Transportation
– Trading Co., Ltd. Besides, the author also gives her opinion about the strengths and
weaknesses of this process. In the next chapter, the author will give some of her
recommendations to improve the conduct of the export process in Blue Sea and
summarize her achievement after ten weeks of internship in Blue Sea.
 23

CHAPTER 3 RECOMMENDATIONS FOR IMPROVING THE PROCESS OF

EXPORTING GOODS BY SEA AT BLUE SEA TRANSPORTATION –
TRADING CO., LTD

3.1. Recommendations and implement schedule

3.1.1. Develop strategy of attracting new customers and improving customer

services
In such a competitive business as the Logistics industry, acquiring new customers
and maintaining long-term relationships with old ones pay a significantly important
role in Blue Sea’s development, especially in export services.

Firstly, I suggest the Company develop a strategy for attracting new customers. As I
have mentioned, at the present, the Company access to potential customers via three
main channels: Internet, Website and fan page, and offline trade fairs and forums. For
each channel, the Company should identify customer insights and come up with an
execution plan. For example, a customer who is having a demand for export service
usually visit the Internet to learn about the export process. Thus, I suggest the
Company develop its Website in form of a blog providing Logistics knowledge. As
some Logistics websites such as Logistics4vn.com can get up to 6 billion visits per
month, it is a very promising idea.

As well as reaching potential customers, I also recommend Blue Sea to improve its
customer services. Several policies could be applied are: discounts and promotions,
free consultancy service, etc. The company needs to pay special attention to resolving
complaints in case of incidents, provides the best solution for the benefits of
customers.

Opportunities and threats:

On the one hand, due to the surge of FDI, more and more multinational companies
enter Vietnam. These companies are very potential customers, they need the support
of forwarding companies with high expertise about the market, import and export
procedures in Vietnam. This is a very promising source of customers.
 24

One the other hand, according to statistics from the Vietnam Logistic Association
(VLA), Vietnam's logistics enterprises only account for 25% of the market share
despite the outweigh in number comparing to foreign firms. Foreign logistic
enterprises have advantages in terms of process, facilities and international network.
Therefore, in order to compete in the Logistics industry, Blue Sea has to keep
improving the quality of its services and its added value in its customer’s supply
chain.

3.1.2. Provide consolidation service

Due to the increase in the number of export LCL orders, I believe it is now the time
for Blue Sea to start providing consolidation service. As a consolidator, the Company
has more autonomy and flexibility when exporting LCL shipments. In addition, since
there are fewer intermediaries in the export process, the Company is able to offer a
more competitive freight rate.

In order to provide consolidation service, the Company firstly needs to register for a
business license and complete all required legal procedures with the relevant
authorities. The Company also needs to prepare appropriate facilities, such as
containers, ballet, loading equipment, etc. Furthermore, it is necessary for the
Company to come up with a separate consolidation procedure and set up training
program for employees.

Opportunities and threats

The demand for LCL services is increasing due to market instability. For instance,
the petroleum sector is under complicated fluctuation. Petroleum companies are
looking for transportation solutions for small orders, fast pickup, and flexibility in
time. The growth of e-commerce leads to more consumers turning to online shopping
and the development of new business models for delivery companies with large and
small delivery frequencies and service coverage. These are Blue Sea’s opportunities
to develop its consolidation service.

The main risk of providing consolidation service is that the Company may not stably
receive a large enough number of LCL orders. In fact, Blue Sea’s number of orders
 25

is seasonal, thus, there could be a time when the Company does not have enough
orders to reach the breakeven point. Especially in the Covid19 time, order quantity
becomes much more unstable. Therefore, I suggest the Company waits until Covid19
is over to implement this plan. In addition, the Company should establish partner
relationships with other consolidators to do co-loading in case of lack of LCL order.

3.1.3. Expand network of agents

It is clear from the process of exporting goods by sea that foreign agents play an
essential role in Blue Sea’s export procedure. They help to receive the cargo from the
carrier and release the cargo to the consignee following the Company’s order in their
countries. Vice versa, Blue Sea is also a Vietnamese agent of plenty of international
forwarders.

The network is among the most important aspects to compete in Logistics industry
because transportation activities consist of the collaboration of many parties. When
the Company establishes agent-relationships with more other forwarders worldwide,
it also extends its range of destinations for export services. In addition, the Company
could receive more orders from abroad and enhance its power in not only domestic
but also international market.

Opportunities and threats

The CPTPP Agreement has opened up more opportunities for international

cooperation. In addition, the fact that Vietnam has signed many new-generation Free
Trade Agreements (FTAs) opens access for domestic import and export industries as
well as the supply market in Vietnam, specifically EVFTA. Put into practice will also
create conditions for businesses with significant export turnover such as textiles,
footwear, and seafood, leading to the development of logistics businesses. Therefore,
it is expected that there will be many forwarders wanting to cooperate with
Vietnamese forwarding companies to provide international transport services jointly.

3.1.4. Implementation schedule

I would like to suggest the expected implementation time of the solutions as below:
 26

Table 3.1: Implementation plan for solution to improve the conduct of export
procedure at Blue Sea

Recommendation Time of implementation

1 Develop strategy of attracting new 6 months

customers and improving customer services
2 Provide consolidation service 12 months

3 Expand network of agents Regularly

(Source: author finding)

3.2. Personal lessons and experience

During the author's internship, she feels grateful to have a chance to learn a lot of new
knowledge, which is essential for a forwarding employee, but most of it is not
mentioned in university.

The author was often required to submit a report on a certain subject based on
provided documents and information on the internet. For instance, in the author's first
week in the Company, she was given a database of an immense number of ports
worldwide and names of shipping lines that provide services to each of these ports.
Her task was to generate and classify these ports according to regions, countries, and
size, then learn by heart those important. The author was also supposed to research
for different shipping lines and routes of their strengths. At first, she did not
understand why she has to deal with and remember such a significant amount of
information. Later on, when Mr. Tuan Anh instructed her, he explained that a Sales
employee needs to advise customers on the suitable transportation route for their
cargo and send inquiry to a list of shipping lines that he thinks may provide services
for this route. So that is why this knowledge is essential.
 27

Moreover, while doing these tasks, the author extended her understanding of the
logistics industry. The author tried her best to generate her researches in the office
computer and hope they can be beneficial to other employees and internees.

At the end of my internship, I was asked to support Logistic Department in delivering

a shipment from customer's warehouse to Cat Lai port. It was such a valuable
experience of her. Their professional working style has taught her a lot: from how to
communicate and work with customers to which aspects of the shipments should be
checked carefully so as there would be no problem during the delivery.

After all, the author believes that all lessons and experiences that she has gained
during her time at Blue Sea are far more valuable than any contribution that she has
made. Once again, the author would like to express her sincere thank you all
employees in Blue Sea, especially Mr. Nguyen Thanh Tuan – Director of the
Company and Mr. Nguyen Tuan Anh – Sales Manager, who was in charge of
instructing her, for their support during her internship.

3.3. Conclusion of chapter 3

In chapter 3, the author provides some recommendations that, in her opinion, would
be beneficial for the conduct of export process in Blue Sea Transportation – Trading
Co., LTD. Due to my lack of experience, knowledge and expertise, these
recommendations might be far from perfect, yet the author hopes they are worth
considering. This chapter also consists of the author’s lesson and experience after her
internship at Blue Sea Transportation – Trading Co., LTD.
 28

CONCLUSION

To conclude, logistics services in Vietnam began to develop in the 1990s on the basis
of freight forwarding and logistics services. Vietnam has about 1,200 enterprises
providing logistics services (compared to 700 before 2005) such as freight forwarding
services, warehousing, loading and unloading, transport agents, forwarding agents,
integrated logistics services, etc.

Blue Sea Transportation – Trading Co., Ltd is a forwarding company with 15 years
of working in the Logistics industry. Blue Sea has gradually improved the business
process and organizational structure in order to meet all strict requirements from
customers.

In this report, the author presents the process of exporting goods by sea at Blue Sea
Transportation – Trading Co., Ltd. In general, the process is transparent, flexible and
it utilizes the Company’s advantages, which are professional staffs and reliable
international partner network. However, some drawbacks need overcoming. Thereby,
in chapter 3, the author suggests some solutions to improve the conduct of this export
procedure.

The experience at Blue Sea has broadened the author’s knowledge and mindset in
many aspects. Once again, the author would like to express her gratefulness for such
valuable lessons and experiences that she had during her internship in Blue Sea.
BIBLIOGRAPHY

Hoang Van Chau, 2009, Giao trinh logistics va van tai quoc te, NXB Thong tin va
truyen thong, Hanoi.

Trinh Thi Thu Huong, 2011, Giao trinh Van tai và bao hiem trong ngoai thuong,
NXB Thong tin và Truyen theng, Hanoi.

SONGANHLOGS, 2016, Process of exporting goods by sea,

https://songanhlogs.com/quy-trinh-lam-mot-lo-hang-xuat-khau-bang-duong-
bien.html#lam-thu-tuc-hai-quan

SONGANHLOGS, 2019, Import and export customs procedures,

https://songanhlogs.com/quy-trinh-thu-tuc-hai-quan-xuat-nhap-khau.html

Logistics4vn, 2015, Logistics Vietnam And Efforts To Find Customers,

https://logistics4vn.com/logistics-viet-nam-va-no-luc-tim-kiem-khach-hang

https://www.abivin.com/post/tong-ket-bao-cao-logistics-viet-nam-2019?lang=vi
ANNEXES

Annex 1. Dispatch application for non-commercial goods

Annex 2. Non-commercial invoice

Annex 3. Custom declaration form

Annex 4. Booking note

Annex 5. Packing list

Annex 6. Blue Sea House B/L

Annex 7. Consolidator House Bill of Lading

Annex 1. Dispatch application for non-commercial goods
Annex 2. Non-commercial invoice
Anne 3. Custom declaration form
Annex 4. Booking note
Annex 5. Packing list
Annex 6. Blue Sea House B/L
Annex 7. Consolidator House Bill of Lading
 Internship diary

Date Task assigned Personal lessons and experience

1/6 Get to know about - Get acquainted with other employees and interns
the Company: in the Company: In my first experience, Blue Sea,
- Rules, policies as a small size company, shares a family culture.
and regulations People in Blue Sea were very kind to me, they
- Rights and asked me to accompany with them for lunch.
obligations of - From the Company website, i learned about a
employees wide variety of services that Blue Sea provides,
- Website: and how the Company communicate with its
bsttvn.com customer.

2/6 – 5/6 Important ports At first, I didn't get the point of learning by heart
around the world: great number of ports. Then, Mr.Tuan Anh
I received a explained to me that customers only care about
database of ports where they want to export their products, and it's
around the world. our job to advise them suitable POL and POD and
- Classify ports in research for freight rate.
terms of: - Have a grapshing about which countries are
geographical developed in sea and air transportation.
areas, countries, - Help the Company to form better databases.
size.
- Learn by heart
important ports

8/6 – 9/6 Research on top - Learn about main or important

10 international market/geographical areas of different shipping
shipping lines lines
- Understand different shipping lines' competitive
10/6 Important
advantages and how they compete with each
shipping lines and
 its strengths with others
differents regions - Small shipping lines also have its own
advantages so as can provide good freight for
11/6 - Shipping
some specific regions.
12/6 Alliances
- Which shipping lines usually have schedule for
specific location.
- Help other employees with errants: printing,
planting flowers, cleaning document cases...

15/6 – Different types of - Sales employee needs to have these basic

18/6 containers: knowledge to advise their customers on the
research size, suitable container types for different shipments.
characteristics and
the uses of
different container
types and learn by
heart

19/6 – Understand the Understand about the Company's workflow

22/6 company
structures

23/6 - Understand the

25/6 jobs of Sales
department

26/6 – Freight, costs and Local charges is changed overtime and employees
30/6 charges in sea need to keep updated with new knowledge and
transportation information
1/7 6/7 Using Outlook Outlook is the main means of communication with
customers and partners in Blue Sea, by checking
company's outlook, I can have understanding of:
- How company negotiate with customers and
shipping lines
- How to write a proper email.
- Some common problems in this industry and
how the Company deals with them.
- Language, terms and abbreviations used in
logistics industry

7/7 – Write inquiry and - What information should be looked for?

10/7 negotiate with - Which shipping lines usually have schedule and
shipping lines and good freights for specific location/routine?
customer

13/7 – Call potential The end-purpose is to help customer and provide

16/7 customers logistic solutions, rather than complete KPI. I
realised that when i spend time to listen to my
potential customers, and try my best to help them
with their problems, whether or not they choose to
use our services, they tend to become our real
customers in the future.

17/7 – Vietnamese Local Local charges is changed overtime and employees

20/7 charges need to keep updated with new knowledge and
information

21/7 – Blue Sea process How is it different comparing to export/import

23/7 of export and process of exporter/importer?
import goods
How does company generate profit?
 Problems?

24/7 – Process of Pros: flexibility, clear orientation.

28/7 searching for
Cons: Manual, unstandardized, rely on individual
customers and
network.
pricing

29/7 – Support
31/7 accounting
department to
input data for
year-end report

3/8 Support logistics -What to check when receiving goods?

department to
- How to communicate with customers?
receive cargo from
customer' - Documents involved
warehouse