FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

----------***----------

MID-COURSE INTERNSHIP REPORT

Major: International Business Economics

IMPORTATION OF NON-FERROUS METALS AND

PRECIOUS METALS AT KIM THINH TRADING
LIMITED COMPANY

Student: Trinh Huyen Linh

Student ID: 1701015421

Class: K56CLC3

Supervisor: Ph.D Nguyen Thi Minh Ha

Ho Chi Minh City, July 2020

 STATEMENT OF AUTHORSHIP

Except where reference is made in the text of the thesis, this thesis contains no
material published elsewhere or extracted in whole or in part from a thesis 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 thesis.
This thesis has not been submitted for the award of any degree or diploma in any
other tertiary institution.

Ho Chi Minh City, 21/08/2020

Author
(Signature with full name)
 ACKNOWLEDGEMENT

Upon completing this report, the author would like to express sincerest thanks to
Board of Directors and all the staffs of Kim Thinh Trading Co,.Ltd, specifically
Mrs. Nguyen Kim Uyen for guiding the author through the internship period. The
author is also very grateful for providing specialized knowledge, support and
guidance of all lecturers in Foreign Trade University - Ho Chi Minh Campus,
especially the author’s supervisor, Ph.D Nguyen Thi Minh Ha. Due to the limited
time to prepare and insufficient knowledge, this report cannot fully satisfy all the
expected requirements, and shortcomings are unavoidable. Therefore, the author is
really looking forward to straightforward and contributive feedbacks from the
Supervisor for this report and supervisor at Kim Thinh Trading Co,.Ltd to improve
the performance of this report.

Ho Chi Minh City, 21/08/2020

Author
(Signature with full name)
 TABLE OF CONTENTS

LIST OF ABBREVIATIONS
LIST OF TABLES
LIST OF FIGURES
PREFACE.........................................................................................................................

CHAPTER 1. INTRODUCTION OF KIM THINH TRADING LIMITED

COMPANY.......................................................................................................................

1.1. Introduction of the company..............................................................................

1.1.1. Formation.......................................................................................................

1.1.2. Development..................................................................................................

1.2. Functions and missions.......................................................................................

1.2.1. Functions........................................................................................................

1.2.2. Missions.........................................................................................................

1.3. Organizational structure and human resources condition..............................

1.3.1. Organizational structure.................................................................................

1.3.2. Departments’ functions..................................................................................

1.3.3. Human resources management.......................................................................

1.4. Business outcomes from 2016 to 2019...............................................................

1.5. Roles of the Importing activities in Kim Thinh Trading Co,.Ltd...................

1.6. Summary of the internship..............................................................................

CHAPTER 2. THE IMPORT ACTIVITIES OF NON-FERROUS METALS

AND PRECIOUS METAL AT KIM THINH TRADING LIMITED
COMPANY.....................................................................................................................

2.1. An analysis of current importing performance of non-ferrous metals

and precious metal at Kim Thinh Company from 2016 to 2019.............................

2.1.1. Import turnover from 2016 to 2019..............................................................

 2.1.2. Structure of imported goods.........................................................................

2.1.3. Market structure...........................................................................................

2.1.4. Method of payment......................................................................................

2.1.5. Method of transportation..............................................................................

2.2. Overall evaluation of the business performance.............................................

2.2.1. Achievements...............................................................................................

2.2.2. Limitations and causes.................................................................................

CHAPTER 3. LESSON LEARNED AND RECOMMENDATION AFTER

THE INTERNSHIP AT KIM THINH TRADING LTD.............................................

3.1. Self-lessons learned...........................................................................................

3.1.1. Professional knowledge...............................................................................

3.1.2. Soft skills.....................................................................................................

3.1.3. Career path...................................................................................................

3.2. Recommendations for improving business performance...............................

3.2.1. Distribution channel enlargement................................................................

3.2.2. Recruiting additional labor forces................................................................

3.2.3. Improving specialized expertise for the staffs..............................................

CONCLUSION..............................................................................................................

REFERENCES...............................................................................................................

APPENDIX.....................................................................................................................
 LIST OF ABBREVIATIONS
Abbreviations Meaning
D/P Document against Payment
L/C Letter of Credit
TTR Telegraphic Transfer Reimbursement
MT Metric Ton
FTA Free Trade Agreement
CEO Chief Executive Officer
CFO Chief Finance Officer
CCO Chief Customer Officer
 LIST OF TABLES
Table 1.1. Human Resources Management in Kim Thinh..................................................
Table 1.2. Business outcomes from 2016 to 2019..............................................................
Table 1.3. Import turnover and total revenue.....................................................................
Table 1.4. Summary of the intern.....................................................................................
Table 2.2. Value and proportion of imported goods from 2016 to 2019..........................
Table 2.4. Importing market of KimThinh from 2016 to 2019.........................................
 LIST OF FIGURES
Figure 1.1. Main Business Sectors.....................................................................................
Figure 1.2. Organizational structure of Kim Thinh Trading Limited Company.................
Figure 2.1. Import turnover of non-ferrous metals and precious metals from 2016 to
2019.................................................................................................................................
 1

PREFACE
With the fast and rapid industrial development of global as well as Vietnam,
demand for metal for production is higher and higher. One of the most favorable metal in
production is Aluminum and zinc for its amazing characteristics: lightness, reliability,
and durability. And more importantly, they can be applied in a wide range of industries
such as:
Much consideration was taken into these potential conditions, due to that
reason, Kim Thinh Trading Limited company decided to join this potential market in
2009.With approximately 11 years of experience, the Company has gained some certain
achievements and proved themselves on such a competitive market.
From the above – mentioned context, the author decided to choose the topic
“IMPORTATION OF NON-FERROUS METALS AND PRECIOUS METALS AT KIM
THINH TRADING LIMITED COMPANY” to obtain the overview of metal import
situation by engaging in the reality and then analyze the opportunities and challenges in
order to suggest some recommendations for improving process with the author’s
viewpoints. This report is composed of three main parts as the following:
Chapter 1: Introduction of Kim Thinh Trading Limited Company
Chapter 2: The Import activities of non-ferrous metals and precious metals at Kim
Thinh Trading Limited Company from 2016 to 2019
Chapter 3: Lesson learned and recommendation after the internship at Kim Thinh
Trading Limited Company.

Ho Chi Minh City, 21/08/2020

Author
(Signature with full name)
 2

CHAPTER 1. INTRODUCTION OF KIM THINH TRADING LIMITED

COMPANY

1.1. Introduction of the company

1.1.1. Formation
Considering there was a potential context to develop in providing metal into
Vietnamese production, Mr. Nguyen Hung Quoc, with his own capital established the
company in 2009. Kim Thinh Trading Co.,Ltd  is now a private company with 11 years
experience in supplying Aluminum, Zinc, precious metals and precious metal salts. The
company is also the representative and distribution channel for well-known global
corporations such as Metalor Group, Luvata, Korea Zinc, Nyrstar, Vale Inco to provide
customers in Vietnam with the highest and most consistent quality products.

Here is some general information of the company:

Full name in Vietnamese: Công ty TNHH Thương mại Kim Thịnh

Name: Kim Thinh Trading Limited Company
Abbreviated transaction name: Kim Thinh Trading Co.,Ltd
Tax code: 0309117250
Headquarter office: 52 Tran Binh Trong, Ward 5, Binh Thanh District, Ho Chi Minh
City, Vietnam
Establishment date: July 17th, 2009

1.1.2. Development
Since taking advantage of being the sole representative of Metalor in Vietnam and
having long term relationships with famous metal producers worldwide as mentioned
above, the company has gradually developed and gained a considerable range of
customers and their beliefs. Until now, Kim Thinh focused mainly on these business
sectors: Aluminum, Zinc, or I may call non-ferrous metals, precious metals such as Gold,
Silver and precious metals salts such as Rhodium, Gold, Silver, Palladium imported from
Australia, Singapore, Korea. The following figure briefly illustrate the mentioned
business sectors of the company:
 3

Figure 1.1. Main Business Sectors

Aluminum
Non-ferrous metals Zinc

Palladium Gold
Precious metals Rhodium Silver

Gold Cyanide 68.3%

Precious metal salts Silver Cyanide 80.5%

(Source: Background report of Kim Thinh Trading Co.,Ltd and compiled by the author)

With the increasing demand for input supply of such industries, the company is
extending its products provided with new innovative metals such as Zinc Aluminum
Alloy and with new exporters. 

The main partners of the company for non-ferrous metals are Hoa Sen Group,
Nam Kim Steel Vietnam, Dong A Steel & Metal in plating solutions of corrugated roof.
Other main partners for precious metals are PNJ, BHFlex Vina. 

In 2016, the company opened a new branch in Hanoi with 10 employees in order
to find more customers and enlarge the market shares. Up to now, Kim Thinh has had
two warehouse together with two bonded warehouses and consignment stock in HCMC
and one warehouse in Hanoi. In order to expand the business activities, in 2018, the
company has built a factory with 100-employees large to produce its own special metal
alloy.

1.2. Functions and missions

1.2.1. Functions

Kim Thinh Trading Limited Company is a Vietnamese firm specialized in

providing two main non-ferrous metals which are Aluminum and Zinc from Australia,
Singapore and Korea for electroplating industry. Some significant partners can be
mentioned are Hoa Sen Group, Nam Kim Steel Vietnam, Dong A Steel & Metal. Other
main product categories are precious metals and precious metal salts used in jewelry
industry which are in the supply or two main partners: PNJ and BHFlex Vina. Kim Thinh
 4

is also looking forward to integrate exportation of the company’s reproduced metals in

Laos and Cambodia.

1.2.2. Missions
Firstly, the Company always keeps performing the business operation in
accordance with the registered industry and the purpose of establishment (non-ferrous
metals and precious metals).

Secondly, the Company also has to comply with the economic policies and
constantly do research and establish the appropriate types of business suitable for
Vietnamese law.

Thirdly, maintaining available core values and developing and expanding import
and also export activities with other foreign customers to build up business relationship is
another duty of the Company.

Last but not least, along with above duties, the Company also cares about
developing staff’s knowledge and skills, labor safety, environment and natural resources
protection.

1.3. Organizational structure and human resources condition

1.3.1. Organizational structure
The organizational structure is a pyramid-shaped one. Mrs. Nguyen Kim Uyen is
the General Director of Kim Thinh Trading Trading Co., Ltd and the legal representative
of the company, who is responsible for managing all business activities of the company
and last but not least, making critical decisions in development orientation for the
company. The following is a diagram illustrating the organizational structure of the
Company:
 5

Figure 1.2. Organizational structure of Kim Thinh Trading Limited Company

CEO Human Resource Department

Sales Department

Import-Export Deparment

General Director CCO

Market Research Department

Logistics Department

CFO Accounting Department

(Source: Human Resource Report 2020 compiled by the author)

Under the General Director, there are other positions who are CEO, CFO and CCO
take overall control and manage inferior department. Each department is in charge of
certain business activity of the company. Through this model, the uniform and association
in implementing policies and rules of the Company is clearly shown through such way of
management. As a result, the Company is able to fulfill their goals properly and has
proven the definite place in the fully competitive market.

1.3.2. Departments’ functions

Boards of Directors
Including the General Director and other vice directors, who are CFO, CEO, CCO.
In particular, Mrs. Nguyen Kim Uyen is the General Director of Kim Thinh Trading Co.,
Ltd and the legal representative of the company, who is responsible for managing all
business activities of the company and last but not least, making critical decisions in
development orientation for the company.

Sales Department
The major activities of this department are in the territory of Vietnam such as
finding new customers, keeping the business relationship with past customers, and
 6

advising the best products that are suitable with the customers’ needs in order to push
sales volume for the company.

Import - Export Department

This department has the responsibility for all stages related to foreigner supplier such as
contacting the suppliers or the customers based on the plan of the Sales Departments then
preparing all necessary documents for customs clearance and transactions. 

Logistics Department
This function plays an important role of one transaction as their job relates to most of the
other departments. They will prepare any other required documents for customs clearance
inside the country such as Import License, accomplish customs clearance procedures in
ports, and in case of exporting, book vessels. All of their tasks must based on appropriate
delivery plans created at first.

Market Research Department

Their mission is to grasp the market conditions, opportunities and threats in Viet Nam
and also the world, make research and report data about the development of industry that
consumes metals especially Aluminum and Zinc.

Accounting Department
Their role is to calculate, analyze and evaluate the financial activities, manage the
investing project and monitor all assets and capital of the company for the most
efficiency of the company operation. The Department has the well-qualified and
experienced employees as this function of the company manages the flow of money and
an assessment base for the Board of Directors.

1.3.3. Human resources management

It is undeniable that human capital is an indispensable and vital element for the
development of one company. Overall, at the end of July 2020, Kim Thinh has 33
employees in total as the company is small and has insufficient changes during 4 years.
The table below illustrates the current human resources management of the company:
 7

Table 1.1.The current Human Resources Management in Kim Thinh

Quantity (People) Percentage (%)

Male 15 45,5%
Gender
Female 18 54,5%
Above 30 25 75,8%
Age
Under 30 8 24,2%
University 23 69,7%
Qualification College 6 18,2%
High school 4 12,1%
(Source: Annual Human Resources report 2019, summarized by the author)

From the above table, we can see that the number of male and female employees
doesn’t have much differences (45.5% and 54.5% respectively). In the age perspective,
employees who are above 30 are three times larger than those who are under 30. It can be
assumed that the company is old based on the reason being that most of the employees
are transferred from Gia Kim Company - the premise company of Kim Thing Trading
Limited Company and have been working until now. Moreover, the company does not
have much changes in the number of staff in the last 4 years, every year increases one or
two members only.

In term of education, the number of employees with a university background is

highest with 69.7 percent. This is because the company’s structure and operation requires
well-qualified labor forces. 

To sum up, the company is a small type of business. However, the company is
being rejuvenated by recruiting a number of young candidates to create a dynamic and
balanced working environment. Therefore, the Human Resource Department should have
a renewal of the labor forces to make it consistent with the development of the company
and also with day-by-day advancement of the economy.
 8

1.4. Business outcomes from 2016 to 2019

The data of turnover is a crucial element to analyze and determine the
performance of the trading activities. In terms of the orientation of the company which is
importation, import turnover is extremely vital. The following chart is summarized by the
author based on the data provided by Import- Export Department:

Table 1.2. Business outcomes from 2016 to 2019

Unit: billion VND

2017/2016 2018/2017 2019/2018

2016 2017 2018 2019
Value % Value % Value %
Total 623,50 1.021,90 1.532,10 1.895,8 398,4 163,9 908,6 149,9 1.272,3 123,7
revenue
Total 620,00 1.016,60 1.529,4 1.891,2 396,6 164,0 909,4 150,4 1.271,2 123,7
cost
Profit 3,50 5,30 2,70 4,60 1,8 151,4 -2,6 50,9 1,9 170,4
before
tax

(Source: Annual Financial Report 2016 -2019, summarized by the author)

The above table indicates the comparison of revenue, cost and profit before tax
between 2016, 2017, 2018 and 2019. In general, the business outcome of the company
follows an upward trend in the period of four years but it still has a fluctuation in the
profit before tax over the years. 

In 2016, the profit was 3,5 billion VND with the revenue and the cost were 623,5
billion VND and 612,0 billion VND respectively. In the next year, there was a sharp
increase in three figures, especially in the profit, which was 5,3 billion VND. This is
because the period from 2016 to 2017 was a prosperous stage of the economy in Vietnam
as well as the world. The required input supply increased in canned industry, housing
equipment, transportation.

With a vision of this potential market and the increase in profit in the previous
year - 2017, in 2018, the company decided to operate a factory producing special alloy of
zinc and aluminum. For this reason, the cost in 2018 was very high (1.529,4 billion
 9

VND) that almost reached the total revenue of the year, leading to a decrease in profit
which was 2,6 billion fewer compared to the previous one. However, the company
recovered remarkably in 2019 with the increase of 1,9 billion VND by 4,6 billion VND,
nearly double the previous year figures. Moreover, because of the characteristics of the
products which are metals and precious metals, it depends heavily on the world market
prices, especially the gold prices. The more fluctuating the world prices are, the more
unstable the trading activities are. This challenge requires the company to quickly adapt
with the unexpected changes and flexibly build plans for recovery and development. And
it seems that Kim Thinh was successful in maintaining a positive rate of return
continuously and having effective and efficient strategies.

1.5. Roles of the Importing activities in Kim Thinh Trading Co,.Ltd

With the beginning aim of the company’s establishment which was to bring
quality metals into Vietnam production, importation was the oriented operation of Kim
Thinh that can be seen from the increase of volume of total import revenue from years to
years illustrated from the following table:

Table 1.3. Import turnover and total revenue

Unit: billion VND
2016 2017 2018 2019
Total revenue 623,50 1.021,90 1.532,10 1.895,80
Import turnover 612,00 908,00 1.227,70 1.208,60
Percentage (%) 98% 89% 80% 64%

(Source: Annual Import and Export Report 2016 -2019, summarized by the author)

The increase in revenue is due to many opportunities from economical conditions in

Vietnam: the tax applied for this field has the preferential tax rate of zero percent.
Obviously, it plays an important role of the company’s business orientation in current
times and is expected to be boosted in the future. However, the proportion of total import
revenue against total revenue depreciates annually, from 98% to 64% within only 4 years.
The reason is that the company has been expanding their activities not only in
importation but also in exportation.
 10

1.6. Summary of the internship

The author has been working as an intern in the Import- Export Department of the
company. After the internship period, the author gained more knowledge and experience
through some real cases and instructions of her mentors by accomplishing assigned tasks
listed in the below table. These tasks helped her to have a clearer perspective about the
practical working environment and her future career.

Table 1.4. Summary of the intern

Week Task achieved

1 (13/07/2020 - Meeting and getting to know with the supervisor and all staff
– 18/07/2020) members.
- Learn about the basis of the company (organizational structure,
departments, history
- Being instructed to use photocopier and scanner, photo and scan
documents.
- Being introduced about basic procedures of processing an orders.
Gathering data for the report
2 (19/07/2020 - Read scanned documents: Contract, Invoice, Certificate of Origin,
– 25/07/2020) Packing List, Copy Bill of Lading, Custom Clearance form
- Being instructed to read figures on documents
- Writing a draft of contract base on purchasing orders of Sales
Departments
- Having a trip to Tan San Nhat Port and making custom clearance for
imported goods.
3 (26/07/2020 - Continuing to collect information and data from departments
– 01/08/2020) - Having a trip to Kim Thinh factory and also bonded warehouse for
aluminum and zinc
- Researching and reading information about markets for the
company’s products – non-ferrous metals and precious metals
- Having a trip to Cat Lai Port to accomplish an Import custom
clearance.
 11

4 (02/08/2020 - Being instructed to add required information on E-port for custom

– 08/08/2020) clearance.
- Assisting the department with paperwork, sorting out documents
- Asking the supervisor for revision of second draft of report
5 (09/08/2020 - Finishing the internship period and wrapping up the report
– 15/08/2020)

(Source: summarized by the author)

To sum up, Chapter 1 briefly presents some general information about Kim Thinh
Trading limited company. To be specific, the readers can approach the company’s
formation and development progress, organizational structure and human resources
management as well as the business performance from 2016 to 2019. From that, it can
be implied that the company is a developing and potential firm in the trend of
globalization. Further more, these information and data would be a fundamental basis
for further analysis of the importation of non-ferrous metals and precious metals in the
next Chapter.
 12

CHAPTER 2. THE IMPORT ACTIVITIES OF NON-FERROUS METALS

AND PRECIOUS METAL AT KIM THINH TRADING LIMITED COMPANY

2.1. An analysis of current importing performance of non-ferrous metals and

precious metal at Kim Thinh Company from 2016 to 2019
2.1.1. Import turnover from 2016 to 2019
The data of turnover is a crucial element to analyze and determine the
performance of the trading activities. In terms of the orientation of the company which is
importation, import turnover is extremely vital. The following chart is summarized by the
author based on the data from 2016 to 2019 provided by Import- Export Department from
annual report:

Figure 2.3. Import turnover of non-ferrous metals and precious metals from 2016 to 2019

Unit: billion VND

(Source: Annual Import and Export Report 2016 -2019, summarized by the author)

The import turnover experienced the highest rate in 2017 with 48.36% compared
to 2016, and occupied 98% of the company’s revenue compared to the next three years.
After only one year, the total import revenue had an amazing turnover of 908 billion
VND in 2017. The year of 2017 was an amazing breakthrough with a significant increase
in both figures. This expansion of volumes can be explained by the advancement,
 13

development of the whole economy and a prosperous period in Vietnam as well as the
world at that time, especially in the production line using these metals as input supply.

In 2018, Kim Thinh recognized the signals for economic growth, the company
reached out in exporting activities into smaller and less developed countries such as Laos,
Cambodia. Consequently, at the end of the year, Kim Thinh decided to enlarge the
exported quantity by producing special alloy on its own. For that reason, the import
turnover declined with the growth rate of 35.20%.

The sharp decline in proportion of import activities and total revenue and cost in
2019 compared to 2017 was a consequence of developing exportation and the cost of
building the factory which led to a negative growth rate of -1.55%. However, the
company considered this market would be conceivable and worth investing in the future
and this was proved by all the numbers in the above chart, increasing after only one year
and seemed to continue to widen.

2.1.2. Structure of imported goods

The main business category of the Kim Thinh is three types: non-ferrous metals,
precious metals and precious metal salt. To be more specific, non-ferrous metals are
Aluminum and Zinc, precious metals are Palladium, Rhodium, Gold and Silver, and
precious metals are Gold Cyanide, Silver Cyanide and some additives or what the author
may call “Other”.  The table below shows the proportion and import value of these
products from 2016 to 2019:

Table 2.5. Value and proportion of imported goods from 2016 to 2019
Unit: billion VND

Value (Billion VND) and Percentage (%)

Year Total
Aluminum Zinc Precious Metals Other
2016 224.00 36.6% 158.00 25.8% 80.00 13.1% 150.00 24.5% 612.00
2017 380.00 41.9% 338.00 37.2% 98.00 10.8% 92.00 10.1% 908.00
2018 437.70 35.7% 632.00 51.5% 100.00 8.15% 58.00 4.72% 1227.70
2019 512.00 42.4% 483.60 40.0% 123.00 10.2% 90.00 7.4% 1208.60

(Source: Annual Import and Export Report 2016 -2019, summarized by the author)
 14

It can be inferred from the table that the non-ferrous metals occupy most of the
import revenue which is about 70% - 80%. Orders of Aluminum and Zinc are made
almost every week and increase every year. This is rational because these metals can be
applied in many different productions for its characteristics: durability, lightness such as
canned food and beverage, electrical circuits, transportation, kitchen utensils, window
frames. Moreover, the escalation of demand for these products has led to the increased
use of input metals. 

The second most important sector is Precious metals. The percentage of this
sector is stable and minor, around 10% every year. The reason is that demand and the
development of jewelry production in the domestic market fluctuate slightly. However, in
2016, orders for this sector increased due to the fact that the price of gold declined,
everyone bought gold for their reservation in the future.  For the same factor, in 2018, the
upward trend of gold price caused a revenue decrease for precious metals in Kim Thinh
as people had less demand for gold reservation. In addition, import license for precious
metal specifies specific quota each year. Consequently, the import turnover for this sector
is minor compared to Aluminum and Zinc, which has the preferential tax rates from some
of the Free Trade Agreement.

Besides the main categories mentioned above, other imported products

are supplementary elements for production of precious metals. They are precious metal
salts such as Gold Cyanide 68.3%, Silver Cyanide 80.5% and some additives applied in
plating solutions for jewelry. The percentage of this field in 2016 and 2017 is higher than
in 2018 and 2019, for the same reason of gold price fluctuation. In 2016 and 2017, the
gold price declined, the jewelry industry developed, so tools and equipment used for this
industry increased as well. In the same manner, the proportion of these kinds of products
fall off respectively, from 10.1% in 2017 to 7.4% 2018.

The structure of imported goods in the Kim Thinh Company does not have a wide
range of products due to the direction of the company which is supplying metals.
However, in the near future, the company has an intention to develop both dimensions:
horizontally and vertically, enlarge the market but also enlarge the current market deeper.
 15

2.1.3. Market structure

Table 2.6. Importing market of KimThinh from 2016 to 2019
Unit: percent %

Year
2016 2017 2018 2019
Rank
1 48.6% (Australia) 50.6% (Australia) 52.1% (Australia) 49.3% (Australia)
2 26.5% (Malaysia) 19.2% (Malaysia) 20.2% (Korea) 18.6% (Malaysia)
3 10.9% (Korea) 15.6% (Korea) 16.3% (Malaysia) 18.1% (Korea)
4 5.4% (Singapore) 6% (Singapore) 4.9% (Singapore) 6.2% (Singapore)
5 3.9% (Brazil) 3.6% (Brazil) 2.8% (Thailand) 3.8% (Thailand)
6 3% (Canada) 2.8% (Thailand) 2% (Brazil) 2.4% (Indonesia)
7 1.6% (Thailand) 2% (Indonesia) 1.5% (Indonesia) 1.3% (Brazil)
8 0.1% (Indonesia) 0.2% (Canada) 0.2% (Canada) 0.3% (Canada)
Total 100% 100% 100% 100%

(Source: Annual Import and Export Report 2016 -2019, summarized by the author)

In terms of market structure, Australia, Malaysia and Korea are the main markets
for the company’s imported goods. To be specific, Australia is the dominant import
market of Kim Thinh, which occupies nearly half of the total value since the company
imports two of the main metals in this country which are Aluminum and Zinc. The
percentages of import turnover in Australia from 2016 to 2019 are 48.6%, 50.6%, 52.1%
and 49.3% respectively.  Depending on the import volume of these two metals, the rank
of Korea and Malaysia may change because Aluminum is imported from Australia and
Malaysia the most, while Zinc is imported from Australia and Korea. As we may know,
Australia is one of the world’s largest economic bauxite resources for mining. For that
reason, metals which have origin in Australia are always high quality, large scale and
reasonable price and steady fluctuation. Furthermore, importing metals from these three
countries has a preferential tax of 0% thanks to the Free Trade Agreement which are
CPTPP, VKFTA, AFTA, AANZFTA. These markets have been in a long-term
relationship with the company at the early beginnings. Being able to do this, the company
has assured to maintain a stable and developmental growth of product capacity from
years to years. 
 16

Additionally, Singapore is the next important market providing precious metals for
Kim Thinh which occupied 5.4%, 6%, 4.9%, and 6.2% in 2016, 2017, 2018 and 2019
respectively. As what the author has mentioned before, Kim Thinh is the representative
of Metalor, the well-known supplier of precious metals. The headquarters of Metalor is in
Switzerland but the company chose to import goods from a branch of Metalor in
Singapore to minimize the time, risks and transportation costs.However, because the
import value for this kind of products is not as substantial as Aluminum and Zinc, so the
percentage of Singapore in market structure against other import markets is also small. 

Apart from these markets, the company also imports from other countries such as
Canada, Brazil, Thailand and Indonesia. However, the turnover is not significant. Total
percentage for these four markets fluctuates between 7.8% to 8.6% only. The reason is
that they are only small retailers so the orders are made only when the prices are
attractive and the company needs small quantities.

2.1.4. Method of payment

Three commonly used methods for payment are Letter of Credit (L/C), Document
against Payment (D/P) and Telegraphic Transfer Reimbursement. The company divides
these methods of payment into two categories: for non-ferrous metals and for precious
metals. This classification is constituted based on the size of the shipments and type of
goods.

If the goods of shipment are non-ferrous metals which are Aluminum and Zinc,
they will use Letter of Credit and Document against Payments. The reason is that
shipments for these goods are large, normally above 50MT and payment is made through
banks which makes the transactions more reliable. As a rule, the company will use Letter
of Credit for importing orders from above 100MT because they have to pay only 35% of
the total value of one transaction, the remaining amount will be subtracted from the
corporate financing leverage offered by Techcombank - the company’s applying bank.
For shipments of goods from 50MT to 100MT, Document against Payment will be used
instead of Letter of Credit which is costly and more complicated. After the bank checks
for required documents, the company then accepts payment by withdrawing money from
their account in the bank. Last but not the least, payment for precious metals’ order is
 17

simpler and more convenient as they use Telegraphic Transfer Reimbursement TTR
because the value and size of the shipment is small, normally under 100kgs and the good
business relationship also. Nevertheless, in term of exporting activities and new policies
of enlarging the market and reducing dependence on common markets, utilizing the
method of payment has always been a top priority for the reduction of risk and
complicated procedures.

2.1.5. Method of transportation

Kim Thinh is flexible in using not only sea but also by air transportation. Mode of
transport is classified by the size of the shipment. For the purchase of precious metals
from Metalor, the company will choose to receive by air transportation because of its
safeness, speed in spite of the high cost. However, as the Logistics Department of Kim
Thinh do not specialize in this kind of transport, they decide to facilitate the process by
outsourcing to a forwarder. Since importing precious metal is not very regular, the
shipment is small in size but substantial in value, this outsourcing is considered to be
effective for its reduction of time and risk.

Another mode of transportation is by sea vessels which is commonly used in

export and import activities. This kind of transport occupied about 90% in shipping
activities due to the characteristics of the goods which are bulky, heavy, durable and low
at risk while shipping. Even though this shipment is low at speed but not costly, the
Logistics department can plan and organize the shipment in advance for the appropriate
stock reserved. As a result, the company is able to supply their customers with quality
goods on time. In the near future, the expanding of business activities as well as the day-
by-day development of the whole economy will obviously boost the company to become
more specialized and flexible.

2.2. Overall evaluation of the business performance

2.2.1. Achievements
Looking at the statistics and brief analysis of the import activities of non-ferrous
metals and precious metals from the above part, the growth over years witnessed stable
and developmental rate despite the fluctuation of the economy and strict regulations in
importing metals, especially from 2016 to 2019. Consequently, Kim Thinh acquired
 18

certain achievements in this field even though it is a small company, but still in the
progress of development.

Firstly, one of the most outstanding achievements of the company is the

enlargement of business activities. The company was successful in both horizontal and
vertical dimensions: enlargement and enrichment also. To be specific, in 2016, Kim
Thinh opened a branch in Ha Noi reaching out to the North area and obtained a sharp
increase in total revenue in 2017 (from 623,50 billion VND to 1.021,90 billion VND with
63.9% growth rate). Moreover, in 2018, a new production line was formed and Kim
Thinh started to export these produced goods to inferior markets in Asia. 

Secondly, the key success factors of Kim Thinh is its philosophy in business.
Therefore, the company can have a firm position in this competitive market, and gained
trust from many important customers such as Hoa Sen Group, Nam Kim Steel Vietnam,
Dong A Steel & Metal, PNJ and BHFlex Vina,… and many other small retailers in the
South and North areas.

Thirdly, Kim Thinh has always diversified to more kinds of products and offered
their customers the most suitable products for their problems. The list of products of the
company has been up to about 200 types of products for every detail, solutions,
specifications. Also, they have made a wise decision in price policy with clear goals and
in accordance with the current business situation.

On the whole, Kim Thinh has made good use of competitive advantages and other
external factors to develop its business. For that reason, in January of 2020, Kim Thinh
has received a reward from General Department of Vietnam Customs “Doanh Nghiệp
tiêu biểu năm 2020” for their excellent contribution to the government budget.

2.2.2. Limitations and causes

Apart from certain achievements of Kim Thinh Trading Co., Ltd, the author
cannot deny some disadvantages the company has to face in this market from the author’s
perspectives. 
Firstly, due to the government regulations for this product line which are metals
and precious metals, the importing activities still face many limitations, especially in the
 19

custom clearance process. Being able to import metals requires strict licenses, quotas, and
procedures from the government. As we may know, for this kind of product, it always
has to be classified in red or yellow gate at the port of customs which causes more time
and money to accomplish a shipment.

Secondly, the domestic market for metals is really competitive, remarkably that
Vietnam is also a bauxite resource that produces Aluminum and Zinc. The price is even
more volatile when competing with imported Chinese products which are much cheaper
than metals in other countries. The price competitiveness is always a matter of concern
since the Vietnam Government has once set the anti-dumping law for Aluminum in order
to protect domestic suppliers. Yet, Kim Thinh surely has to face more obstacles when
competing in this potential market though.

Thirdly, the company structure is small which limits the ability to reach out to
more potential customers in the market and enlarge the volume compared to others. Also,
being a limited company restricted them from being invested in more capital and boosted
the growth rate higher.

To conclude, Chapter 2 provided information about the importing activities of

non-ferrous metals and precious metals at Kim Thinh Trading Limited company through
six main criteria: Import turnover, structure of imported goods, market structure, price
fluctuation of imported goods, method of payment and method of transportation from
2016 to 2019. The data demonstrates that the development is stable and positive. The
company has also achieved certain goals and objectives: enlargement and enrichment,
good reputation in the domestic market and new foreign markets: Laos, Cambodia,
Thailand. Besides such performance, there are many obstacles and limitations such as
government regulations, price competitiveness and organizational structure. Finally,
based on the available information along with the rapid change in the domestic market
and global market and some achievements and limitations above, the author has given
some evaluation in order to figure out the recommendation for improvement in the last
chapter.
 20

CHAPTER 3. LESSON LEARNED AND RECOMMENDATION AFTER

THE INTERNSHIP AT KIM THINH TRADING LTD

3.1. Self-lessons learned

3.1.1. Professional knowledge
As a third-year student at FTU, the author has been taught about general
knowledge of international business economics thanks to many important subjects, for
instance, International Business Transactions, Logistics and International Transportation,
Risk management and Insurance. In addition, five-weeks internship at Kim Thinh had
helped the author broaden her knowledge to a higher level.

Firstly, the author got used to the procedure in reality for importing metals, a
special field in economy. She can now specify clearly all steps in this procedure, what
they mean and how to perform them. This professional knowledge gained during the
internship period is extremely necessary for a junior student compared to the theory
learned from school. This internship is an effective way for the author to review the
lessons better and apply them into practice. Meanwhile, understanding the expertise
thoroughly could also enable the author to quickly adapt and keep up with the workflow
easier.

Secondly, the internship provided the author a chance to approach the foreign sale
contract and documents being used in reality, so that she can understand these documents
compared with those taught at school. Up to now, the author is able to differentiate and
read important information in some typical documents required in import and export
activities, for instance, the Sale Contract, Packing List, Certificate of Origin, Bill of
Lading, Certificate of Weight, Quality and Quantity, etc.

Thirdly, the author is instructed to use e-customs declaration software, which is

not learned through compulsory subjects. It was a breakthrough during the internship
period because using this software is a way of digital transformation. Thanks to it, the
procedure is reduced in time, length, and effort.

Last but not least, there are small but important things that the author has learned
- office paperwork. It involves in photocopying, scanning, stamping, signing and saving
 21

the documents. Such practices seem to be ordinary and unnecessary but are really crucial
for each student when coming to the real workplace.

3.1.2. Soft skills

After experiencing a difficult period of internship and writing the report, the
author has realized a number of valuable lessons about soft skills for herself.
To begin with, the author has acquired skill in business etiquette. It is the first time the
author has spent her time as an intern at a formal and professional company like Kim
Thinh Trading limited company. At this Company, the author observed how the staff here
worked and gained an understanding of some business etiquette, including choosing
appropriate and formal clothes in the workplace, being careful of her verbal and non-
verbal communication and being punctual for work.

Moreover, time management is an overly important skill that the author obtained.
During five-weeks internship period, the author had to do multitask because she had
different tasks to do at the same time (worked as an intern, part-time job as a English
tutor and wrote this report). In order not to be overwhelmed by this enormous amount of
daily work, the author decided to use a bullet journal along with an application in her
smartphone to take note of a to-do-list every single day and check at the end of the day.
She must make decisions daily between what is prioritized and what is not. By such
actions, the author could avoid stress and tackle problems effectively while having too
many things to handle.
Finally, the author learned that adaptability plays an important role in the skillset of every
employee when working in any environment. The world is changing so quickly today, the
human knowledge is updated more frequently than ever before, which leads to a large
number of things the author cannot know, especially when she worked for a new and
specialized major which is metals and chemistry.

Therefore, the author always maintains her willing-to-learn attitude and not to
satisfy with her achievements to prepare for a better working experience in the future.

3.1.3. Career path

For almost all students like the author, it is hard to have detailed and long-term
career path for themselves. However, after having experience as an intern at Kim Thinh
 22

Trading Limited company, the author spent her time considering her professional
orientation in the future.

At first, the author will continue her last academic year at FTU in order to
graduate with her major in international business economics which she has been studying
for the last three years.

Besides, she will not forget to improve her foreign language proficiency because
being fluent in a second or third language enables the author to take more opportunities to
get a better job and promotion. Before graduating, she focuses on her English skills to
take the IELTS certificate. The second foreign language that the author wants to continue
learning is Korean since the author has a basic knowledge of this language and Korean is
new and not commonly studied.

After graduation, the author has the intention to apply for jobs related to her major
which may be in import-export companies, logistics companies or forwarders in Ho Chi
Minh City. Her objectives are to gain and improve her expertise as well as her soft skills
to the competent level.

3.2. Recommendations for improving business performance

3.2.1. Distribution channel enlargement
Broadening market is the essential measure for sustainable development. The goal
of this activity is to meet the third objective of the company – expanding the brand, being
the supplier of top production and gaining a certain reputation in the domestic market.
For that, the company will reach out, and seek out more potential customers that not just
familiar customers.

In the past, the company did consider that marketing is important. However,
traditional and normal marketing is not helpful and applicable to the field the company is
working: metals. The company has to seek out customers themselves but not the
customer finds them through marketing. Nevertheless, with the development of Fourth
Industrial Revolution 4.0 and rapid changes in economic conditions everyday, the author
suggests that the company should enhance this issues by recruiting a digital marketing
officer in the Market Research department who will be in charge of marketing online to
 23

improve the website and social channel by updating information, pictures, maximizing
market search tools on the Internet, participating in online payment gateways and
utilizing social networks. The current team in charge of this job is working fairly
efficiently in the Market Research Department, so there is no need to hire anymore. The
staff just need to be trained monthly to get access to new marketing methods and trends
as well as soft skills to support creativity. Then, they can transfer information and support
the Sales Department for final settlement and result.

3.2.2. Recruiting additional labor forces

As what the author has mentioned above, the whole company are insufficient
compared to workload. What Kim Thinh should do right now is to carry out an effective
recruitment policy to attract new employees so as to relieve the work pressure of the
current staff and also to meet all the needs of the business operations. Recruitments shall
be executed in a strict way for the aim of attracting new, young, energetic and talented
employees.

Moreover, the Company should associate with and advertise itself to related-
industry Universities, such as foreign trade majors, to select high-qualified students and
provide them with opportunities to intern at the company whilst studying at school for
them to get access to practical operations, especially in the import and export aspects.
Thus, after their graduation, the Company can have an available source of new
employees who are passionate about international trade and proficient in practical
application.

3.2.3. Improving specialized expertise for the staffs

Obviously, Human is the determining factor in the success of any organization and
labor force investment and development play a crucial role in enhancing the operational
capacity of a system, especially in international trade, where the requirements for Human
factors are also higher and more sophisticated.

At the above parts the author has mentioned, the company needs to enhance the
capability of all staff who get involved in the performance of import and export activities,
which is the main element for the development of the company. To implement this, the
Company should establish or sponsor classes and courses training import export
 24

operations, customs formalities, international payment, customer relations as well as info

days displaying amendments in laws and regulations which influence the professional
operations of the Company, particularly tax modifications. Guiding activities should
occur in both short-term and long-term programs.

To conclude, the last Chapter is the author’s self assessment after the internship.
This period is really beneficial for the author in her future career path. The author had
realistic experiences based on her theoretical knowledge about International Business
Economics which is her major in Foreign Trade University and Import- Export field
specifically. Consequently, the author could acquire valuable knowledge and career
awareness to improve herself in the future. In addition, the author suggests some
recommendations for the company on her viewpoints.
 25

CONCLUSION

Even though the metal industry has faced many difficulties for many years,
demand for metals for industry started to increase about 25% per year. In terms of non-
ferrous metals and precious metals cannot ignore Kim Thinh Trading Limited company, a
developing importer and distributor of metals in Vietnam. After more than 11 years of
establishment and growth, Kim Thinh has recognized outstanding achievements. The
performance of Aluminum and Zinc, one of the most important aspects of the company
business operations, has also been perfected and improved during such a long time of
existence and development of the Company. As a result, this process has several striking
strengths such as time and cost efficiency, high level of security and cooperation, and
high technology. Yet, such a process also contains inevitable limitations, including
governments regulations, price competitiveness. Thus, it is time for Kim Thinh to
consider some necessary remedies such as enlarging the distribution channels, recruiting
potential personnel, improving specialized expertise for the staffs more strictly.

I strongly believe that the currently-executing process and innovative policies

together with the positive development of the metal industry and related industry along
with the economic growth potential of the Company will ensure the promising future of
Kim Thinh. Although the internship period has been over, this precious chance has left
the author with valuable practical experience which helps consolidate the specialized
knowledge the author has learned at the university.

Finally, the author would again send her sincere thanks to all staff members and
her mentors in Kim Thinh Trading Limited company and especially Mrs. Nguyen Thi
Minh Ha for her support and guidance during the internship period.
 26

REFERENCES

1. Import- Export Department, ‘Kim Thinh Limited Company’s annual report’ in 2016
2. Import- Export Department, ‘Kim Thinh Limited Company’s annual report’ in 2017
3. Import- Export Department, ‘Kim Thinh Limited Company’s annual report’ in 2018
4. Import- Export Department, ‘Kim Thinh Limited Company’s annual report’ in 2019
5. Mordorintelligence.com, (2019). ‘Vietnam Aluminum Market – Growth, Trends and
Forecast (2020 -2025)’ [pdf]. Available at:
https://www.mordorintelligence.com/industry-reports/vietnam-aluminium-market
6. Mohit Oberoi, (2019). ‘ Overview: An investor’s guide to the Aluminum industry’.
Available at: https://bit.ly/31cDBGv
7. Customersnews.vn, (2019). ‘Vietnam enjoys surge in export of gems and precious

metals’. Available at: https://customsnews.vn/vietnam-enjoys-surge-in-export-of-

gems-and-precious-metals-12394.html
 27

APPENDIX
28