UNIVERSITY OF UEH

BUSINESS SCHOOL
FACULTY OF INTERNATIONAL BUSINESS - MARKETING

GLOBAL STRATEGIC MANAGEMENT

ESSAY

Lecture: Ph.D Tran Thi Anh Tam

Class code: 23D1BUS50309705
Name: Tu Thi My Hien
Course-Class: 46 –IBC08
ID: 31201026542

TP Hồ Chí Minh, April 24, 2023

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TABLE OF CONTENTS
LIST OF TABLES
SUMMARY......................................................................................................................3
I. INTRODUCTION...................................................................................................4
II. MAIN CONTENTS.................................................................................................5
2.1. Trade Documents and Transportation................................................................5
2.2. Risks In International Payments.........................................................................8
III. EXPORT DEAL CASE.........................................................................................10
3.1. Case of content....................................................................................................11
3.2. Analyze the market situation.............................................................................11
3.2.1.Overall analysis..............................................................................................11
3.2.2. Macroeconomic Environment........................................................................12
3.3.3. Competitiveness of Vietnamese enterprises to the Canadian market.............13
3.2.4. Politics in Canada for Foreign Business........................................................14
3.3. The export package requirement to transport in container, route planning
from seller’s warehouse.............................................................................................14
3.4. The total cost, selling price and profit per unit for each condition with
Incoterm conditions...................................................................................................16
CONCLUDING REMARKS.........................................................................................20
Bibliography...................................................................................................................21

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LIST OF TABLE
Table 1. Order Information..............................................................................................11
Table 2. The total cost, selling price and profit per unit for each condition with Incoterm
conditions......................................................................................................................... 18

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SUMMARY
Contracts for import and export are important to international trade. Import and export
contracts are fundamental to international trade, revolving around a variety of connected but
different interactions such as cargo insurance, transportation, and payment agreements. Price is a
significant component in determining a company's competitiveness in the global market. Many
businesses keep their pricing policies and procedures private and do not make them public.
Products are rarely sold just on price, and exporters must compete with different forms of non-
price variables. All of these variables influence the price and profitability of trades. The paper
focuses on examining the key material of International Trade Valuation and Export Sales
Contract in the sphere of import and export, with the assumption that exporting cashew nuts to
the Canadian market will supplement knowledge for the following content.

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I. INTRODUCTION
The legal system of each country may differ, but the fundamental concepts of a contract,
such as good faith and consideration, are widely recognized and accepted in many countries. In
the realm of international business law, there is also a tendency for diverse legal systems around
the world to converge. Price may be used by the firm to obtain a certain level of market share,
profit, or return on investment, or to achieve some other specific aim. These factors have an
impact on the prices and earnings of import and export businesses. "Incoterms" is a brief and
simple way of expressing International Trade Terms. Incoterms are a set of 11 rules that outline
the responsibilities of each party in an international transaction. They were first drafted in 1936.
Incoterms cover all of a transaction's obligations, risks, and costs. Buying and selling items from
one seller to another. The value of an export consignment can be calculated using the Incoterms
guidelines.

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II. MAIN CONTENTS

2.1. Trade Documents and Transportation
Transport documents are simply understood as documents issued by the transport unit
(master and ship owner) confirming receipt of goods for transportation.
Transport documents usually include:
– Bill of lading (sea waybill): sea waybill, mate's receipt, manifest, consignment note, list
of events, stowage chart, broken cargo record damaged, spreadsheets of rewards and penalties
for loading and unloading goods, certificates of missing goods, receipts of goods.
Each payment method will have different requirements for the set of documents in which
the transport documents are according to the L/C payment method. With LC - the payment
method commonly used today because of its safety, the preparation of documents is somewhat
more complicated than other international payment methods.
When paying by documentary credit, the Open bank retains ownership of the shipment by
keeping the documents in hand before the buyer receives the documents and goes to the port to
receive the goods. In the event that the buyer is unable to pay the bank (because the deposit is not
100%), the bank will keep the documents and, in the worst-case situation, they will have to resell
this document to the bank. As consequently, Open Bank will conduct a thorough examination of
the documents. If their complaint is reasonable and valid, they will reimburse the seller.

The set of documents includes

Number of originals and copies:
If the L/C is not specified: it is best to submit 3 originals and 3 copies
If the L/C requires "at least two B/L:", two originals and one copy are required. (The
leftover original is supplied to the importer as proof that that the goods were delivered by the
provider.)

Name of bill of lading:

If the requested L/C is Bill of Lading, the name must be Bill of Lading
If the requested L/C is Sea Way Bill, the name must be Sea Way Bill
Names do not need to contain the words "ocean" or "marine".

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Name of shipper:
The name of the Shipper must be exactly the same as the name of the exporter - Expoter,
according to common understanding and custom.
In case of two-party trade:
The name written in the shipper box is also the name of the exporter Export, is the name
of the seller Seller
In the case of tripartite trade (through intermediaries)
* Use transfer L/C. (now there is a Supplier, the person in the middle - a Trader, and the
final buyer - a Client): The name of the Shipper will be the name of the Supplier.
* Use back to back L/C. (now there is a Supplier, the person in the middle – a Trader, and
the final buyer – a Client)
The name written in the Shipper box on the B/L (in the set of documents that the Supplier
sends to the Trader) is the legal title of the Supplier, according to the L/C that the Trader opens
for the Supplier.
The name mentioned in the shipper box on the B/L (in the set of paperwork that the
Trader sends to the Client) is the Trader's name, according to the L/C that the Client opens to the
Trader. Because the Trader is interested in concealing the Supplier's name by using back-to-back
L/Cs, he went to the shipping company to switch B/Ls and changed the name that was written in
the Shipper box from the Supplier's name to his own.
In brief, if you are a trader, your business is three-party, and the L/C has no other
requirements, it is reasonable to write the name of the Shipper and avoid being caught
unconstitutionally by the bank.

Name of Consignee:
Normally, when paying by L/C, Open bank will ask for the name of Open Bank in the
consignee box.
As the writer has reviewed in the portion of the bill of lading according to the order, the
back of the bill of lading will endorse in three ways + two types. In summary, whichever the
Open bank or L/C requires, this item will be written as that request.

Name of Notyfy Party:

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Enter the name of the importer (the person requesting the opening of L/C)
Name of vessel, number of trips, port of departure, port of destination (add domestic
pick-up point of exporting country and final delivery point in inland of importing country - if
using multimodal transport)
Must show exactly as required by L/C.
The loading port must be a cluster of ports in Ho Chi Minh City, according to the L/C.
"Port of loading: HCMC Port", the B/L merely needs to show the name of any port in the HCMC
area. Ho Chi Minh City (such as the Cat Lai Port or VICT Port...). The same interpretation works
for the port of discharge.
If the L/C prohibits transshipment, the bank will still accept multimodal transport
documents even if they show the transfer of cargo, as long as the entire carriage of the goods
(whether using multiple modes of transport) is accomplished using only a single multimodal
transport document (provided the goods are shipped according to the itinerary specified in the
L/C).
Description of goods – Description of goods.
The goods do not need to be described in detail on the bill of lading. This section just has
to include the information that the L/C requires. Other transport documents must match other
L/C payment methods such as INV, PL, CO, and so on.
If the L/C demands the bill of lading to indicate "on board" (goods have been placed in
the ship's hold), then the phrase "on deck cargo" (loaded on the deck) will not be permitted. The
case on the B/L only shows the date of issue of the bill of lading, not Laden on Board or Shipped
on Board. The exporter wants the documentation to satisfy the specifications of the L/C (the date
of issue of the bill of lading will become the date of delivery). The exporter must request the
shipping line to add the words "Loaded on board date...month...: shipped (or laden) on board
date..." and sign the seal, as stipulated in the L/C and sales contract. It will then become the bill
of lading loaded on board and payable under the L/C and contract of sale on this line.
2.2. Risks In International Payments
Classification by causes of international payment risks

a. Credit risk

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This is the risk of insolvency of one of the parties to the payment, especially in the mode
of documentary credit. Causes of this type of risk:
To get started in a market economy, businesses must operate in a fiercely competitive
environment, and are heavily influenced by the laws of supply and demand, competition laws,
and so on, causing a chain reaction that causes businesses to face difficulties, losses in business,
even losses, defaults, bankruptcy, and thus they are insolvent.
Second, because of insufficient credit information, if a party does not have a strong
understanding of the partner's financial status, creditworthiness, solvency, does not comprehend,
cannot examine the technical parameters, and efficacy of For projects that we finance, credit risk
is unavoidable. This is known as information asymmetry.
For example, the QD opens an L/C worth USD 699,556 to buy DOP oil from ELOPI for
VIMEXCO, Vung Tau. VIMEXCO Company does not use all of the goods by the due date and
does not have enough money to pay.
Finally, the Military Bank had to pay for it and requested that VIMEXCO accept the
compulsory loan. As a result, selecting foreign consumers and banks with solid credit
relationships is critical in international payments.

b. Country risk
These are risks associated with a country's political, economic, and foreign exchange
management policies, which cause exporters to not receive money for goods and importers to not
receive goods.
The danger to the importing country arises as a result of fluctuations or extraordinary
events in the importing country, which force the importing country's government to restrict its
companies from paying foreign currency overseas or importing commodities. Imports are
prohibited from being imported, so they are not permitted to carry out customs clearance
procedures. When the exporting country's foreign trade policy changes, the tariff of that country
makes it difficult to supply goods and receive money. the exporter's goods
Country risk can also affect both exporters and importers if, after signing a foreign trade
contract, the governments of the importing and exporting nations refuse to let the import and
export of such items.

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c. Moral hazard
Are the risks that arise when a party purposefully fails to perform its commitments
adequately, causing harm to others' interests. In business, ethics is synonymous with credibility
and distinction. This is a major issue in international trade and payment because partners are
frequently separated, even if they do not meet during the negotiation process. Importer risk,
exporter risk, carrier risk, bank risk, and so on.

Classification by international payment methods

a. Risk of money transfer (TTR) payment method

This strategy is typically used when the buyer and seller know and trust each other. This
payment option is straightforward and inexpensive. However, this is the riskiest method for both
the seller and the buyer. There are two methods for transferring money:
+ Prepaid money transfer (TT): is the importer paying an amount in advance to the
exporter before delivery. Risk of advance remittance:
✓Risk for the exporter (low): Delivery after receiving the goods, so the exporter does not
bear any risk
✓Risks for importers (high):
▪ The exporter may deliver goods that do not conform to the quality requirements
▪ Exporter may not deliver or deliver late
▪In the above case profit will be reduced
+ TT after shipment: the importer pays the exporter after receiving the goods. The
following remittance risks:
✓Risks for exporters (high):
▪ Person responsible for payment of draft, non-payment-due to dispute
▪ Person responsible for payment of bill of exchange, unable to pay- unable to pay/ no
cash
▪ Not enough foreign currency
▪ No longer control the goods
✓Risks for importers: none
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III. EXPORT DEAL CASE

3.1. Case of content

Vietnam's Khang Gia Co., Ltd with a factory in Dong Mango Industrial Park - Binh
Phuoc sells 20 tons of W240 processed cashew nuts (HS code 200819) to company A,
headquartered in Ottawa, Canada. For this shipment, Khang Gia chose a 20-ton container
because the 20-foot High-HC container is quite popular with a slightly higher height than a
regular 20-ton container, carrying a maximum volume of 20-30 cubic meters.

Item Price / VND

Packing 1,800,000
Mark and Label 40,000
Export customer clearance 1,200,000
Export documents 500,000
Inland freight to main carrier 3,000,000
Original terminal charges 2,800,000
Vessel loading charges 2,800,000
Port loading and unloading fee 2,500,000
Ocean Freight 235,000,000
Table 1. Order Information

3.2. Analyze the market situation

3.2.1.Overall analysis
Among 80 major export markets, Canada is the market where Vietnam exports, with a
large export surplus, with a forecast of over 7 billion USD in exports in 2022, 6 billion USD in
trade surplus. Aggregation from local data shows that on average each year Canada imports
about 17-18,000 tons. The average import per month is 1,300 tons. The average price in 2021
will reach nearly 7,000 USD/ton. This price increased sharply compared to the 2020 price due to
the high shipping price. The three largest cashew processing centers of Canada are Quebec

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(Montreal), Ontario (Toronto) and British Colombia (Vancouver). After processing, the average
price of cashew nuts is 9,800 USD/ton, or about 10-12 USD/kg. The average price of processed
cashew nuts exported from Canada is 12,000 USD/ton.
However, the market has increasingly high requirements for food quality and safety
(including the percentage of impurities, pest marks on the grain surface, product uniformity in
taste and color). The issue of preservative residues is also something to keep in mind to avoid
returned goods without customs clearance. The process of importing cashew nuts is similar to
other food products. In the long term, due to increasing labor costs in Canada, it is likely that
large Canadian cashew nut processing and packaging enterprises such as Basse, Kirkland will
shift production links to Vietnam to process for trade. their mark. Canada's Dan D Park
Company has been at the forefront of this trend and is entirely manufactured in Vietnam for Dan
D Park's brand and the brands it outsources.
3.2.2. Macroeconomic Environment
Analysis of the macroeconomic environment in Canada, about the economy, Canada is
the second largest country in the world by area, located at the northernmost tip of North
America. Canada is known as one of the most prosperous economies in the world. In terms of
agriculture, despite being one of the largest countries in the world. However, the amount of land
available for agriculture in Canada is relatively small. However, Canada's agricultural industry
has achieved many great achievements. Accordingly, by applying advanced technologies as well
as high quality inspection stages. Canada's agricultural industry still produces quality products
and is always appreciated. Examples include wheat and cereal grains. These are the two most
famous products of the country of maple leaves. Canada's agricultural industry also receives
significant support and subsidies from the government. About 4% of Canadians work directly in
the agricultural industry and account for about 6.2% of the country's GDP.
In Canada in the post-Covid period, the Central Bank of this country in the short term
will maintain interest rates at 1.75%, in terms of monetary policy, Canada has a different view
from the United States and many other countries, where central banks recently lowered interest
rates. With the "backing" of food prices and durable goods prices. Stronger inflation will be a
reason for the Bank of Canada to question the need to lower interest rates, which will directly
affect import-export businesses in the Canadian market.

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Going deeper into the analysis of the Canadian cashew nut market, currently, the country
has a rapidly increasing demand for processed nuts over the years due to the need to eat clean,
eat plant-based protein sources to protect health. strong. Nuts are known for being a great source
of fiber, easily digestible protein, and a source of heart-healthy fats, as well as many minerals
and vitamins. According to the annual Statista Market Forecast, Canada consumes nearly $1.8
billion worth of nuts, which means each person consumes an average of nearly $50 per year, or
about 4kg per year. This market is forecast to continue to grow at a rate of about 5.4% per year
from now until 2027. In general, Vietnam's cashew exports to the region have entered a stable
phase, even tended to decrease. There have been periods, cashew nut was in the top 10 items
with the largest export value to the area (top 7 in the years 2015-2018 and then dropped to the
top 9 in 2019-2020). In 2021, cashew nut only occupies the 14th position in Vietnam's key
export products to the area. The good news is that although the market has reduced imports in
terms of import volume, due to high prices, export turnover in 2021 is still higher than in 2020.
3.3.3. Competitiveness of Vietnamese enterprises to the Canadian market
Vietnam is considered by most Canadian businesses as a reasonable gateway to enter the
region thanks to its advantages in geographical location, infrastructure, labor, and socio-political
stability. Secondly, both Vietnam and Canada are members of the CPTPP and APEC, especially
the two countries have soon established a mechanism of the Joint Economic Committee to
periodically exchange views on economic and trade cooperation prospects. The Vietnamese
community in Canada currently has about 300,000 people, is the 4th largest Asian community in
Canada, very successful integration and quite attached to the country. Especially, the increasing
number of Vietnamese students studying here has served as a bridge not only in culture, art and
cuisine but also in economics and commerce.Recently, the two countries have put into operation
a large container ship route running directly from Hai Phong to Vancouver, reducing the transit
time to 17 days, significantly reducing transportation costs for Vietnamese exporters.Regarding
Vietnam's strong exports to Canada, according to information from the Vietnam Trade Office in
Canada, including: Seafood; tea, coffee and spices; textiles, footwear, furniture and furniture.
Although there are many advantages in the ability to increase import and export turnover
with Canada, the representative of the Vietnam Trade Office in Canada also recommended that:
Not out of the general context, the Canadian economy will still be affected by many impacts in

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2023. Positive from the world market, consumption continued to be tight. Canada's trade policy
creates many challenges for businesses exporting to this market.
In order to support businesses of the two countries to strengthen connectivity and trade
exchange, in 2023, the Vietnam Trade Office in Canada will focus on implementing a number of
key trade promotion activities.Specifically, continuing to support businesses to exploit the
advantages brought by the CPTPP, helping to increase the export of strong products to the
market by organizing delegations to return home to buy goods; online trade promotion;
dissemination seminars, taking advantage of free trade agreements of both sides.
3.2.4 Politics in Canada for Foreign Business
The Government of Canada has just announced a number of amendments related to the
ban on foreigners buying homes to ease some restrictions on non-Canadians, including
newcomers to the country. In addition, Canadian International Trade Minister Francois-Philippe
Champagne said the new agency is called the Investment Agency of Canada.The agency will
help navigate investment activities in Canada and attract new investments, especially foreign
direct investment (FDI). The federal government of Canada has decided to dedicate 218 million
Canadian dollars (CAD), or 170 million dollars, over the next five years to this agency. The
Investment Canada Agency will be managed by the federal government, tasked with attracting
global investment and simplifying investment processes in Canada to facilitate foreign investors.
By attracting new investments, the agency will indirectly promote job growth, improve
labor efficiency, expand access to new technologies, encourage innovation, enhance trade,
expanding connections between Canadian businesses and global supply chains, and providing
development opportunities for the middle class.To this end, Investment Canada will work with
all levels of government, as well as private sector partners, to provide a one-stop service for
foreign investors..According to statistics, the total FDI in Canada reached nearly 800 billion
CAD (about 623 billion USD) and currently there are nearly 1.9 million employees working in
foreign investment companies, accounting for 12% of the total number of employees. jobs in
Canada and 12.5% of all jobs in the country.
3.3. The export package requirement to transport in container, route planning from
seller’s warehouse
With a shipment of 500 tons of cashews exported to the Canadian market in May, Khang Gia
Co., Ltd. should note and comply with the following requirements:

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1. Container inspection before packing export goods into containers is very necessary for
shippers before packing import and export goods in sea transportation. There are many
cases where goods are damaged, one of which is due to improper use and packing of
goods in containers. Therefore, it is necessary to check the following factors before
packing the goods into the container:

(1) Inspect the outside of the Container

When we observe and detect tear marks, holes, deformation due to impact ... we must
check the roof, the corners of the Container because this is the place that is often overlooked
but is an important factor. of the Container in relation to the safety of carriage.

(2) Check inside the Container

The watertightness must be checked by closing the door from the inside and observing
the light rays passing through to detect holes or cracks. Check the studs and rivets for
damage or protrusion. Check covers for other equipment such as cold air duct vents.

(3) Container door inspection

Check the operation situation when opening and closing the door and the latch to ensure
the safe opening and closing. Sealed to prevent water from entering the container.

(4) Check container hygiene

Containers must be clean, dry, free from odors and dirt
If the goods are packed into containers that do not meet hygiene standards, it will cause
damage to the goods and be easily rejected when detected by the health authorities.

(5) Check specifications

The specifications of the container are written on the outer shell, including:
 Maximum weight or total weight of the container (Maximum Gross Weight) when the
container is full of goods to the allowable safe limit. It includes the maximum
allowable cargo weight plus the container weight.

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 Net tonnage of the container (Maximum Payload) is the maximum weight of goods
allowed in the container. It includes the weight of the goods, packaging, pallets,
materials used for lining, supporting goods in the container.
 Weight of container (Tare Weight) Depends on the material used to make the
container.
 Container capacity (container intrrnal capacity) means the maximum cargo capacity
of the container.
2. When packing, the weight of the goods must be evenly distributed over the entire floor
area of the container.

3. Determine the center of gravity of the cargo and place it as close to the center of the
container as possible.

4. In case the goods are not uniform, we should use the method of packing goods into the
container according to the principle of placing heavier and larger goods on the bottom,
lighter and smaller goods on top. Liquid should be placed above the solid.
Loading goods into the container must be placed close to each other, leaving no space
between the cargo units.

5. Ensure that the goods are fixed, do not move, do not fall inside the container by tying or
tying the goods together

6. In the process of packing export goods into containers, it is necessary to limit and reduce
strong forces or shocks, to avoid overheating, which will affect the quality of goods.

The shipment's journey will be from Khang Gia Factory in Dong Mango, Binh Phuoc, move
to Cai Mep port in Ho Chi Minh City, then the ship will move to Canada's largest port, Port of
Vancouver (CAVAN), from this port, the shipment will be moved to company A's headquarters
warehouse in Ottawa city - the capital of Canada

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3.4. The total cost, selling price and profit per unit for each condition with Incoterm
conditions

With the above schedule, below are the results of the total cost, selling price and profit
per unit for each condition.
LINK DRIVE

Product W240 processed cashew products (HS code 200819)

Export locat CANADA

CIF Vancouver
EXW Binh Phuoc FOB Cai Mep Port DDP Ottawa
Cost Service Unit Quantity
Incoterm 2020 Incoterm 2020
(CAVAN) Port Incoterm
Incoterm 2020
Source
2020
Cost of go Cost Kg 1 295,000 295,000 295,000 295,000

International Standard
TOTAL COST OF GOODS 20 354,000,000 354,000,000 354,000,000 354,000,000 http://agro.gov.vn/vn/tID27213_Gia-die
Bag (60kg/Bag)

Cost Incot Pre-carriage

Packing Bag 20 1,800,000 1,800,000 1,800,000 1,800,000 https://cokhi247.net/san-pham/bao-jum

Mark and Label Bag 20 40,000 40,000 40,000 40,000
Block and Brace Carton

Export customer clearance 20'DC 1 1,200,000 1,200,000 1,200,000 https://dichvulogistics.vn/dich-vu-hai-q

Export documents
www.oocllogistics.com/eng/
ourservices/
oceanplusfreightforward/
oceanplusfcllcl/
vietnamtariffpublication/
Documents/
20210623_OB_IB%20Local
%20Surcharge
Set 1 500,000 500,000 500,000 %20Vietnam.pdf

Inland freight to main carrier container 1 3,000,000 3,000,000 3,000,000 https://proship.vn/news/dich-vu-van-c

Original terminal charges 20’GP 2,800,000 https://lacco.com.vn/news/194-Kich-thuoc-contai

Vessel loading charges 20’GP 2,800,000

Port loading and unloading fe20'DC 1 2,500,000 2,500,000 2,500,000
Main-carriage
Ocean Freight Container 1 360,500,000 360,500,000
Surcharges
Outbound B/L fee for agent Bill 1 1,000,000 1,000,000 1,000,000

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Product W240 processed cashew products (HS code 200819)

Export locat CANADA

CIF Vancouver
EXW Binh Phuoc FOB Cai Mep Port DDP Ottawa
Cost Service Unit Quantity
Incoterm 2020 Incoterm 2020
(CAVAN) Port Incoterm
Incoterm 2020
Source
2020
Cost of go Cost Kg 1 295,000 295,000 295,000 295,000

International Standard
TOTAL COST OF GOODS 20 354,000,000 354,000,000 354,000,000 354,000,000 http://agro.gov.vn/vn/tID27213_Gia-die
Bag (60kg/Bag)

Cost Incot Pre-carriage

Packing Bag 20 1,800,000 1,800,000 1,800,000 1,800,000 https://cokhi247.net/san-pham/bao-jum

Mark and Label Bag 20 40,000 40,000 40,000 40,000
Block and Brace Carton

Export customer clearance 20'DC 1 1,200,000 1,200,000 1,200,000 https://dichvulogistics.vn/dich-vu-hai-q

Export documents
www.oocllogistics.com/eng/
ourservices/
oceanplusfreightforward/
oceanplusfcllcl/
vietnamtariffpublication/
Documents/
20210623_OB_IB%20Local
%20Surcharge
Set 1 500,000 500,000 500,000 %20Vietnam.pdf

Inland freight to main carrier container 1 3,000,000 3,000,000 3,000,000 https://proship.vn/news/dich-vu-van-ch

Original terminal charges 20’GP 2,800,000 https://lacco.com.vn/news/194-Kich-thuoc-contain

Vessel loading charges 20’GP 2,800,000

Port loading and unloading fe20'DC 1 2,500,000 2,500,000 2,500,000
Main-carriage
Ocean Freight Container 1 360,500,000 360,500,000

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Product W240 processed cashew products (HS code 200819)

Export locat CANADA

CIF Vancouver
EXW Binh Phuoc FOB Cai Mep Port DDP Ottawa
Cost Service Unit Quantity
Incoterm 2020 Incoterm 2020
(CAVAN) Port Incoterm
Incoterm 2020
Source
2020
Cost of go Cost Kg 1 295,000 295,000 295,000 295,000

International Standard
TOTAL COST OF GOODS 20 354,000,000 354,000,000 354,000,000 354,000,000 http://agro.gov.vn/vn/tID27213_Gia-die
Bag (60kg/Bag)

Cost Incot Pre-carriage

Packing Bag 20 1,800,000 1,800,000 1,800,000 1,800,000 https://cokhi247.net/san-pham/bao-jum

Mark and Label Bag 20 40,000 40,000 40,000 40,000
Block and Brace Carton

Export customer clearance 20'DC 1 1,200,000 1,200,000 1,200,000 https://dichvulogistics.vn/dich-vu-hai-q

Export documents
www.oocllogistics.com/eng/
ourservices/
oceanplusfreightforward/
oceanplusfcllcl/
vietnamtariffpublication/
Documents/
20210623_OB_IB%20Local
%20Surcharge
Set 1 500,000 500,000 500,000 %20Vietnam.pdf

Inland freight to main carrier container 1 3,000,000 3,000,000 3,000,000 https://proship.vn/news/dich-vu-van-c

Original terminal charges 20’GP 2,800,000 https://lacco.com.vn/news/194-Kich-thuoc-contai

Vessel loading charges 20’GP 2,800,000

Port loading and unloading fe20'DC 1 2,500,000 2,500,000 2,500,000
Main-carriage
Ocean Freight Container 1 360,500,000 360,500,000

Table 2. The total cost, selling price and profit per unit for each condition with Incoterm
conditions

With total cost of 663,770,000 total profit is 504,517,000 and Price Per Unit in Ottawa is
43,145,050 shipment W240 processed cashew products (HS code 200819) will help Khang Gia
company have high profit.

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CONCLUDING REMARKS
The Incoterms 2020 were created to explain the commercial terms that apply to trade.
Accordingly, the delivery conditions in Incoterm 2020 will clearly divide the responsibilities,
obligations, risks and costs related to the delivery of goods between the seller and the buyer.
Incoterms are a set of rules to systematize international trade practices that are commonly
applied by business people around the world as an international language in the forwarding and
transportation of foreign trade goods. and is an important means to speed up negotiations, build
foreign trade contracts, organize the implementation of foreign trade contracts. Valuation in the
world market is often used as a tool to complete the contracts. corporate marketing goals. As in
the case of Khang Gia, the company can use price to gain some level of market share, profit or
return on investment, or to achieve some other specific objective when with export cashew
products. to Cana

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