INTRODUCTION OF NGHI SON AQUATIC PRODUCT
Establishment and development
Nghi Son Aquatic Product Exim Co., Ltd, established in 2014 and part of the Nghi Son Foods Group, is a family-owned business with extensive experience in the seafood industry The company's vision is to become a leading manufacturer and exporter of high-quality seafood in Asia, with a particular focus on Vietnam This overview highlights the key aspects of Nghi Son Aquatic Product Import Export Limited.
Legal name: NGHI SON AQUATIC PRODUCT IMPORT EXPORT
Abbreviation name: NGHI SON CO.,LTD
Head office: Floor 7th, 85 Nguyen Huu Cau, Tan Dinh Ward, District 1, Ho Chi Minh City
Legal representative: Nguyen Van Minh
Main business fields: Processing and trading Marine fish, Freshwater fish and Dried seafood.
Leveraging family traditions in seafood knowledge, the company effectively manages its supply chain, encompassing raw material sourcing, freezing, drying, packing, and delivering high-quality products at competitive prices Continuous enhancements to processing and shipping systems support robust retail distribution, both within Vietnam and in international markets.
Consumer recognition in the home country validates the company's investment in improving its services, enabling significant expansion into international markets such as China, Japan, Korea, The Philippines, Malaysia, Spain, Thailand, India, Indonesia, and Egypt.
Functions, missions, organizational structure and human resources management
Nghi Son Aquatic Product Exim Co., Ltd specializes in processing and trading a variety of fishery products, including marine and freshwater fish, dried seafood, Pangasius, Yellowfin Tuna, and shrimp The company processes these products at its factory located in Binh Thuan Province and exports both its own processed goods and aquatic products sourced from other factories based on sales contracts While Nghi Son also imports frozen fishery products, these imports represent a small fraction of their overall exports With a vision to lead in the supply and export of high-quality aquatic food, the company is committed to enhancing its processing systems and supply chain management to ensure efficient and cost-effective product delivery.
Nghi Son is dedicated to adhering to both domestic and international laws and regulations, emphasizing integrity as a core principle in its business operations The company's commitment to ethical practices is central to its mission.
Nghi Son operates legally under business license number 0730103446345, engaging in the processing and trading of fishery products while fulfilling its tax obligations Committed to quality, the company ensures that its products meet both Vietnamese and international regulatory standards Additionally, Nghi Son is actively conducting market research to expand its trading markets and meet the growing demand for aquatic goods.
Nghi Son prioritizes human capital in its human resources management by adhering to Labour Law and fostering employee development The company's commitment to creating a corporate culture rooted in humanitarian values motivates employees to work diligently and enhance the overall contributions to the organization.
1.2.3 Organizational structure and human resources management
Nghi Son Aquatic Product Exim Co., Ltd is structured into four key departments: Documentation, Sales, Accounting, and Human Resources & Administration This functional organizational management approach ensures that specialized tasks and responsibilities are effectively handled within the company The accompanying chart illustrates the organizational structure of Nghi Son Aquatic Product Exim Co., Ltd.
Figure 1.1 Nghi Son’s Organizational Structure
(Source: Human Resources & Administration Department)
The functional structure features a well-defined hierarchy, with each function led by a head responsible for overseeing the quality and consistency of employee performance Fixed and repetitive roles within each department enable employees to enhance their skills and boost their performance The responsibilities of the Board of Directors and the various departments are clearly outlined, ensuring effective management and operational efficiency.
The Board of Directors consists of three key members: the General Director, who serves as the legal representative and oversees the company's overall performance, along with a Financial Director and a Manufacturing Director responsible for finance and production activities, respectively This board is tasked with setting the firm’s objectives and strategies, fostering partnerships with economic organizations both domestically and internationally, ensuring compliance with Vietnamese laws and regulations, and promoting employee involvement in business management to maximize performance.
The Documentation Department consists of four members: a head supervisor overseeing tasks, a logistics executive managing bookings, a documentation executive preparing essential documents, and a team member handling customs and outdoor activities This department is crucial for efficiently booking shipments, preparing necessary documents such as Commercial Invoices, Packing Lists, Certificates of Origin, and Health Certificates, as well as executing customs formalities.
The Sales Department is comprised of nine members, including one head and eight sales staff Their primary responsibilities involve identifying potential consumers and gathering contact information through various channels such as fairs, conferences, seminars, partnerships, the Internet, and social media The team engages with consumers through phone calls, emails, and direct interactions, negotiates transactions, drafts contracts, and collaborates with the Documentation Department to ensure successful contract execution.
The Accounting Department consists of three key roles: a chief accountant, a warehouse accountant, and a treasurer This team is responsible for managing financial matters, which include recording transactions, preparing monthly, quarterly, and annual financial reports, ensuring compliance with tax regulations, budgeting for business operations, and monitoring revenue, costs, and profits.
The Human Resources & Administration Department consists of a dedicated female professional who manages internal communications and oversees human capital Her responsibilities include recruiting talent, maintaining documentation, and executing various administrative tasks essential for the department's efficiency.
Since the company is small-sized, one person is enough to undertake the above mentioned things.
The Sales, Accounting, and Human Resources & Administration Departments have an adequate number of employees to fulfill their specific job functions However, the Documentation Department appears to be understaffed, as it relies on only one person to handle each critical task, including booking, documentation, and customs-related duties This leads to overwhelming workloads during peak shipment periods, creating a hectic environment for the sole staff member responsible for these essential tasks.
Nghi Son Aquatic Product Exim Co., Ltd employs a total of 23 directors and staff members Analyzing the workforce by gender, it is evident that female employees represent the majority Furthermore, the data indicates that individuals holding bachelor's degrees make up the largest segment of the company's educational qualifications.
Table 1.1 Human resources by gender and education level of Nghi Son Aquatic
(Source:Human Resources & Administration Department)
In terms of gender, the vast majority of human resources are female, which is
In a workforce of 23 individuals, 16 are female, representing 69.75% of the total, while 7 males account for 30.43% Notably, there are twice as many females as males Men predominantly occupy outdoor roles, such as operations staff, which demand high physical health standards Conversely, the accounting department is exclusively female, and a significant portion of sales and documentation roles are also filled by women.
These jobs demand carefulness, detail-orientation, and rarely require them to go outside.
Over 50% of employees possess a university degree, effectively meeting job requirements Managerial roles are typically held by individuals with master’s or bachelor’s degrees and extensive experience Non-managerial positions are filled by those with college degrees and practical skills, as well as recent graduates who, despite lacking experience, show a strong eagerness to learn.
Business outcomes
The following table shows the business outcomes of Nghi Son Aquatic
From 2017 to 2019, Product Exim Co., Ltd analyzed its business performance through revenues, costs, and profits The assessment includes annual values for each variable, along with comparisons of absolute and relative changes between 2017 and 2018, as well as 2018 and 2019.
Table 1.2 Business outcomes of Nghi Son Aquatic Product Exim Co., Ltd between 2017 and 2019
Currency: USD (United States Dollar)
Table 1.3 Comparison of business outcomes of Nghi Son Aquatic Product
Exim Co., Ltd from 2017 to 2019
Currency: USD (United States Dollar)
Between 2017 and 2019, the company's revenues, costs, and profits after taxes experienced significant growth in both absolute and relative terms Notably, profits surged at the highest rate during the periods of 2017-2018 and 2018-2019, while the growth rate of costs remained comparatively lower This analysis will delve deeper into the company's performance during this timeframe, as reported by the Accounting Department.
In terms of absolute values, the revenues in 2017 increased by USD
1.034.606,41 from USD 10.943.935,85 to USD 11.978.542,26 in 2018 In 2019, the revenues was USD 13.279.268,16, seeing a rise of USD 1.300.725,90 compared to
2018’s revenues Similarly, costs went up by USD 846.583,29 between 2017 and
2018 and recorded an increase of USD 1.107.578,14 during 2018-2019 period.
Revenues saw a higher rise than costs, thus both profits in 2019 and 2018 exceeded those of a year ago, namely 2018 and 2017, by USD 188.023,12 and USD
Regarding relative values, there was a higher growth rate in revenues during the period between 2018 and 2019 in comparison with that of 2017-to-2018 period,
10,86% and USD 9,45% respectively, which was attributable to the fact that Nghi
After five years of establishment, Son successfully built long-term business relationships with customers, resulting in numerous contracts Between 2017 and 2018, costs increased by 8.52%, while the growth rate surged to 10.27% from 2018 to 2019 This rise in costs was attributed to the expansion of the fishery-processing factory in Binh Thuan Province and the hiring of additional sales employees to support a five-year expansion strategy Although profits increased in absolute terms from 2019 to 2018, their growth rate was lower compared to the previous period, primarily due to business expansion and rising prices of raw fishery products from fishermen, which negatively impacted profit growth.
The importance of documentation department in Nghi Son Aquatic
Product Exim Co., Ltd and the topic towards the development of the company
The documentation department at Nghi Son Aquatic Product Exim Co., Ltd plays a crucial role in coordinating with the sales and financial accounting teams to manage export and import activities, which are significant to the company's operations This department is responsible for preparing essential documents, completing customs formalities, and ensuring the accuracy and completeness of all documents sent to customers Following the conclusion of contracts, the documentation team actively tracks shipments to update necessary information, thereby facilitating the smooth execution of contracts and reinforcing the importance of their role in the overall process.
Summary of internship period
From 13 July, 2020 to 14 July, 2020, I worked as an intern in the Documentation Department I have had the opportunity to learn and understand practical knowledge regarding import and export, especially the process for executing export contracts at Nghi Son during the last five weeks My internship period at the company can be summarized as follows:
Tasks: Read up on the company; having been taught about the general export process at the company; copied and scanned some documents.
Results: Learned of the establishment and development of Nghi Son, got acquainted with how the company works, gained general understanding about the process for exporting a shipment.
Tasks: Read documents of previous shipments; , observed how Customs declaration, Health Certificate application and Certificate of Origin registration were conducted online.
Results: Understood information included in the documents, improved the grasp of practical export process.
Results: Understood how to draft documents, such as Invoice, Packing List,
Shipping Instruction (SI), Verified Gross Mass (VGM)…
Week 4 and 5 (3 August – 7 August and 10 August – 14 August, 2020):
Tasks: Continued drafting documents including Invoice, Packing List, Shipping
Instruction (SI), Verified Gross Mass (VGM), Health Certificate, Certificate of Origin under the supervision of Mr Thong – Head of Documentation Department.
Results: Enhanced carefulness and skill in preparing documents, having been familiar with process for executing export contracts.
PROCESS FOR EXECUTING THE EXPORT SALES
General process for executing an export sales contract at Nghi Son
The below figure describes the general process taken place at Nghi Son
Aquatic Products Exim, Ltd follows a structured seven-step process to execute export contracts after signing a sales agreement This article will provide an overview of the execution of these contracts and analyze a specific shipment that the company is handling during my internship.
Figure 2.1 General process for executing an export sales contract at Nghi Son
7 Completing and sending the set of original documents to the Buyer
(Source: The author’s collecting data through observation)
Upon receiving the importer's email regarding the deposit sent to Nghi Son's bank account or the application of the original Letter of Credit as stipulated in the sales contract, the Sales Department will promptly forward the email for further processing.
The Accounting Department verifies the bank account's crediting or the issuance of the Letter of Credit Once confirmed, the responsible sales person emails the Purchasing Team in Binh Thuan to initiate goods preparation There are two primary methods for preparing goods: first, processing occurs within the company's factory in Binh Thuan; second, the Purchasing Team sources fishery products from local fishermen or orders from other factories based on specific buyer contracts.
Nghi Son's exports consist of aquatic products that undergo safety checks by the National Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD) For goods processed in-house or directly sourced from fishermen, Mr Long oversees marine fish, freshwater fish, and dried seafood, while Mr Phi manages catfish, ensuring that samples are sent to NAFIQAD for food safety testing In cases where products are sourced from external factories, the Documentation Department coordinates the necessary documentation, including sample information and the application for the Certificate of Origin, liaising with the processing factory's documentation staff.
Samples from factories near NAFIQAD are tested on-site, while those farther away must be sent to NAFIQAD centers Normal test results are available within five working days of sample receipt, whereas tests for antibiotics and heavy metals take seven working days for results.
NAFIQAD’s testing aims to ensure food safety and provide Health Certificates upon request from importing countries A Health Certificate is granted only when samples meet the required export standards; otherwise, samples may undergo a second test or may not be tested again.
Most export trade agreements between Nghi Son and buyers utilize C terms, specifically CFR and CIF As a result, Nghi Son is typically responsible for arranging the vessel for nearly all transactions The documentation team handles the vessel booking process.
Upon receiving NAFIQAD testing results for food safety, Mr Cuong, responsible for vessel bookings, contacts forwarding agents via email to negotiate freight rates, vessel schedules, and related terms The company typically collaborates with forwarders such as Headway Logistics, Thami Shipping & Airfreight Corporation (TMC), Oscar Logistics, Advantage Logistics, Golden Line Transport Corp., and NYD Logistics Corporation This inquiry process enables the selection of the most cost-effective forwarder based on freight and schedule Once a forwarder is chosen, Mr Cuong receives a Booking Confirmation (for FCL shipments) or a Booking Note (for LCL shipments) via email, which he then forwards to the trucking company, warehouse staff, and packing personnel, including the warehouse accountant Additionally, this information is shared with the Documentation Department's group on Viber for verification purposes.
2.1.4 Stuffing empty containers with cargo
After confirming the booking with the trucking company, Mr Cuong contacts them to arrange the pickup of empty containers from the designated shipping line location These containers are then transported to the stuffing warehouse in Hoang Lai, Long An province, where Nghi Son's operational staff will load the cargo according to the specified conditions and temperature in the Booking Confirmation The trucking company provides photos of the container details and seal numbers, which Mr Cuong receives primarily via Zalo Upon receiving this information, Ms Hanh, the Documentation executive, prepares the Shipping Instruction (SI) and Verified Gross Mass (VGM) documents, which are subsequently sent to the forwarder for the draft Bill of Lading.
Once the goods are ready for loading, the operations team expertly stuffs reefers with dried and frozen products, ensuring proper technical procedures are followed After loading, they set the reefers to the appropriate temperatures—minus 10 degrees Celsius for dried items and minus 18 degrees Celsius for frozen goods—before coordinating with the trucking company to transport the containers to the port If any issues arise during the stuffing process, such as container conditions or discrepancies in goods quantity, the warehouse staff in Long An promptly notify the head of the Documentation Department for resolution.
Draft documents are created based on sales contracts, with Ms Hanh responsible for drafting and Mr Thong verifying the documents before sending them to Sales for the Buyer's review The two parties negotiate the draft contents via email, while the Documentation Department of Nghi Son makes necessary adjustments The required documents include a Commercial Invoice, Packing List, Health Certificate (if applicable), and Certificate of Origin (if applicable) For sales contracts with CIF Incoterms® 2010, the Documentation Department must send the draft Bill of Lading and draft Invoice, confirmed by the Buyer, to the insurer prior to the vessel's departure from the loading port.
Mr Thong or Ms Hanh oversees customs and e-port declarations, while Mr Lam handles customs clearance, liquidation, and vessel records before the port's closing time E-port declarations are processed online at eport.saigonnewport.com.vn for container lifting procedures, with fees paid electronically Customs declarations are submitted through the VNACCS system, allowing for immediate feedback from the Customs Authority After completing the shipment declaration, Mr Lam prints the customs declaration form and proceeds to the port for final clearance and documentation Notably, fishery products are exempt from export duties, with approximately 80-90% of the company's products classified in the green channel, 10-20% in the yellow channel, and only 1-2% in the red channel, which are randomly selected by customs.
2.1.7 Completing and sending the set of original documents
After receiving confirmation from the Buyer regarding the documents, the Documentation Department will revise and finalize them as needed The document set includes a Commercial Invoice, Packing List, Health Certificate (if applicable), and Certificate of Origin (if applicable).
For telegraphic transfers, both scanned and original documents are sent to the Buyer The Sales Department emails the scanned documents, while the Documentation Department uses DHL Express to deliver the original documents The remaining payment is collected once the Buyer receives the scanned documents In cases of payment via Letter of Credit, the Documentation Department forwards the original documents to Nghi Son’s bank as per the sales contract agreement.
2.2 Detailed description of process for executing export sales contract of Dried Anchovy at Nghi Son Aquatic Product Exim, Ltd.
On July 13, 2020, Dried Anchovies were ordered from the Phu Hai Sea Products Factory, despite the contract being dated July 12, 2020 The order did not require any deposits, and a previous shipment had been made to the same buyer, allowing for a swift one-day turnaround for the new order The General Director oversaw this export contract, ensuring that any changes in requirements were promptly communicated via phone and email between him, Ms Rose from Nghi Son, and the responsible employees at the Phu Hai factory.