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IMPORT SITUATION OF LAPTOP PRODUCTS OF FPT DISTRIBUTION COMPANY LIMITED IN THE PERIOD OF 2009 – 2012

FOREIGN TRADE UNIVERSITY
FACULTY OF ECONOMICS AND INTERNATIONAL BUSINESS
---------***--------

MID-TERM INTERNSHIP REPORT
Major : External economics
IMPORT SITUATION OF LAPTOP PRODUCTS OF FPT
DISTRIBUTION COMPANY LIMITED IN THE PERIOD OF
2009 – 2012
Student name:
Student ID:
Class:
Course:
Instructor:

Trịnh Thị Minh Hường
1112150060
A28 External Economics of high quality class
50
M.A. Hoang Thi Doan Trang


Ha Noi, August 2014


TABLE OF CONTENTS


3

ACKNOWLEDGEMENTS
My midterm internship report would hardly be completed without the
enthusiastic helps from my advisor, my lecturers, my friends and colleges in FPT
distribution Company Limited (FPT Distribution Co., LTD).
I would like to express my gratefulness to my supervisor, MA Hoang Thi Doan
Trang for her guidance, insightful comments about my detailed outline and extreme
patience throughout my study. I highly thank her for sharing her knowledge, advises
with me by email.
I am also grateful to all lecturers of Foreign Trade University who have created
valuable lessons and help me enhance my knowledge during the time I studied External
Business Economics there. Without the basic knowledge they convey to me, my
internship would be much more challenges.
Furthermore, I wish to thank to Mrs. Do Mai Linh, Deputy of Procurement
Department of FPT Distribution Co., LTD who has been helpful with general advising
and supporting from beginning to end of my internship period. What is more, I would
like to send my billion thank to Mrs. Dang Thi Le Trang and all of my colleges in
Procurement Department of FPT Distribution Co., LTD for their training and providing
some helpful data for my internship report.
I would like to thank my friends; especially those are in the same midterm
internship group because of their kindly support. Had it not been for their exchange
knowledge, my report would have been impossible.


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LIST OF ABBREVIATIONS
No.
1
2
3
4
5


6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Abbreviations
B/L
C/O
CIF
COR
CSC
D/O
FCD
FCO
FDC
FPS
FPT
FTG
L/C
ROROC
SWOT
T/T
USA
USD
VND
WTO

Full words
Bill of Lading
Certificate of Origin
Cost, Insurance, and Freight
Cargo Outturns Report
Certificate of Shortlanded Cargo
Delivery Order
FPT computer distribution
FPT Computer and Office Equipment Center
FPT distribution company limited
FPT Project Supplier
Financing Promoting Technology Corporation
FPT trading group
Letter of credit
Report on Receipt of Cargo
Strengths, Weaknesses, Opportunities, and Threats.
Telegraphic Transfer
United States of America
United States of Dollars
Viet Nam Dong
World Trade Organization


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LIST OF FIGURES AND TABLES

CHART

FIGURE

TABLE

Chart 1.1: Allocation of human resource base on gender
Chart 1.2: Allocation of human resource according to degree
Chart 1.3: Number of employees from 2009 to 2012
Chart 1.4: Revenue of FDC from 2009 to 2012
Chart 2.1: Import structure of main imported laptops
Chart 2.2: The proportion of import value from markets in
2012
Chart 2.3: Market structure of laptops FDC imported in 2012
Chart 2.4: Import value of laptops from 2009 to 2012
Chart 2.5: The number of imported laptops from 2009 to
2012
Figure 1.1: Organizational structure of FDC
Figure 2.1: Importing Process of laptop products
Table 1.1: Allocation of Human resource base on
functionality
Table 1.2: Employees by age range
Table 1.3: Summary of financial statement in FDC in 2009
and 2012
Table 2.1: Imported products of FDC from 2009 to 2012
Table 2.2: Import market value of FDC from 2009 to 2012
Table 2.3: The average number of days in inventory of
laptops from 2009 to 2012

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PREFACE
Rationale to the study
In the modern world, international trade is booming dramatically in many fields,
especially in economic ones. After joining WTO – 7 th November, 2006; Vietnam has
already enhanced trade with many countries all over the world. In many international
trade activities, importing activity would be particularly mentioned. The reason for this
is that importing activity has brought lots of benefit to not only internal economics but
also organization, person inside one economy. Import plays an integral part in Vietnam
economy, which should be much more paid attention.
In particular, importing activity is a key role in boosting revenue and remaining
the existence of FDC. There are three main reasons to explain for that: Firstly,
Importing helps FDC to have more resources for distribution. For example, each year,
FDC imports many kinds of information technological equipment such as mobile
phones, laptops and so on that are used to distribute to many retailers. Secondly, thank
to import, FDC has golden opportunity to get products with high quality, competitive
price. It leads to the fact that import creates benefits for not only FDC but also
consumers. Finally, import also creates a good environment for FDC to enhance
experience, business knowledge and stabilize relationship with big suppliers such as
Apple, Dell, and IBM.
Moreover, in the period from 2009 to 2012, Vietnam witnessed economy crisis
that had put lots of individuals and companies under excessive pressure. In spite of
that, FDC had tried their best to increase revenue, boosting import activity to get
products for distribution. With the hope that I can understand more about importing
situation of FDC in this period, I have already chose importing field to research.
However, it is clearly seen that FDC has distributed a variety of technological products.
If I did not choose a specific type of product, it would be difficult to have a deep
understanding about problems that I want to research. In recent years, demand for
laptops in Vietnamese market has boomed, the number and kinds of laptops has
increased at unprecedented paces.


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For all the reasons above, I choose topic: “Import Situation of laptop products
of FPT Distribution Company Limited in the period of 2009-2012” to research.
Aims of the study
This topic is implemented base on the purpose of understanding and researching
the import situation of laptop products of FDC from 2009 to 2012, from which some
solutions will be given to promote importing activity in the next five years.
Research objective: Import situation of laptop products of FDC in the period
from 2009 to 2012
Scope of the study
Due to concentrated content and limitation of time, my study will focus on the
following main points:

• Studying FDC: history and development process, organizational structure,
functions of the whole FDC as well as its departments and FDC’s business
activity from 2009 to 2012
• Examining import situation of laptop products of FDC between 2009 and 2012.
• Giving out some solutions to promote import situation in the next five years.
Methodology: This research is conducted by mainly qualitative method. Data
and information for both chapters in this study are collected from Human resource
department, Accounting department, Procurement Department and other trustful
sources from the Internet.
Other methods applied in my study are comparison, description, generalization
base on data and information appeared in this research.
Design of the study
The study consists of two chapters as following:
Chapter 1: General introduction to FDC: In this chapter, I will present
overview of FDC and its general business activity from 2009 to 2012
Chapter 2: The status of importing laptop products of FDC between 2009
and 2012. This chapter will go into detail about actual situation of laptop products
imported from 2009 to 2012 by giving out data, information before analyzing it. After
that, SWOT analysis will be used to assess this situation. The last part of chapter two
will give some solutions to promote laptop product import situation in the next five
years.


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CHAPTER 1: GERNERAL INTRODUCTION TO FDC
1.1. Overview of FDC
1.1.1. History and development process of FDC
FDC is a member company belonging to FTG which is a branch of FPT
corporate company. In 1998, FDC was established based on the combination of FCD
and FCO Company
The year of 2001 and 2002 witnessed an establishment of FPS and FPT
Computers Products Center. And in 13 April, 2003, FDC was established based on the
integration of 3 above companies (FCD, FPS, and FPT Computers Products Center) to
meet the unprecedented paces of distribution market (at that time, there was 86 staff in
this company)
FDC developed and included Distribution Nokia mobile phone center (F9) and
Distribution technological products & Project support Center (such as FCN, FHP, F1,
FPS and so on)
In 13rd, March 2009, FPT Information Technology Distribution was established
and then integrated into FDC. At that time, there were 206 staff in FDC but FDC did
not include F9
According to the statistics of Human Resource Department, there were 252 staff
in FDC (15th May, 2014), which is much higher compared with that in 1998.
At the moment, FDC becomes distributor for over 60 international branches
such as Dell, Asus, Acer, IBM and so on.

1.1.2. Organizational apparatus and human resource management of FDC
1.1.2.1.
Organizational structure

Figure 1.1: Organizational structure of FDC


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Administration
department

Company
president

Procurement
department
Business
department
Marketing
Board of Directors
department
Technical support
department
Accounting
department
Human resource
department
“Source: Human resource
department of FDC”

In which:
Company president is legal representative of the company and has the highest
responsibility about the business results of FDC. Company president will manage
board of directors. Moreover, he/she also has the right to decide organizational
structure of company with the rule “fastest, effective”
Boards of Directors are the persons who help company president to point out the
specific tasks to staff. The tasks herein are, for example, technology, marketing, and so
on. Boards of Director even solve other problems that are assigned by the company
president.
Each department will carry out a specific task. I will explain it in detail in the
later part of my report.

1.1.2.2. Human resource management
a. Allocation of human resource
“Source: Human resource Department of
FDC”
As we can see from the pie chart, approximately two – third of the human
resource in FDC was males, which were much higher compared with the proportion of
females (41%)

“Source: Human resource Department of FDC”


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“Source: Human resource Department of FDC”

The chart above shows that the majority of human resource in this company has
university degree – 64% while post graduators count for 30%. A mere of 6% was staff
who had diploma, vocational training.
Table 1.1: Allocation of Human resource base on functionality
Unit: %
Functionality

Percentage of employees
2009
2010
2011
2012
Management
2
4
3
7
Specialists
43
40
40
37
Sales
27
22
25
20
Back office
21
30
31
36
“Source: Human resource Department of FDC”
The table 1.1 indicates employees by functionality from 2009 to 2012. There

were obvious an upward trend for the percentage of managers and back officer.
However, the rate of specialists and sales decreased dramatically. Moreover, in 2012,
managers made up for a mere of 7% while the percentage specialists and sales were
both five – times higher than that of the former ones (37% and 36% respectively).
Table 1.2: Employees by age range
Unit: %
Age range
Below 25
25 – 30 years old
31 – 40 years old
41 – 50 years old
Above 50

Proportion
15.33
51
30.92
2.32
0.43

“Source: Human resource Department of FDC”
The table 1.2 points out allocation of employees by age ranges. Clearly, half of
the staff was at the age between 25 and 30 year – old (51%) while only a mere of


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approximately 0.4% and 2.3 % respectively were the group of 41 – 50 years old and
above 50 year age group. 31 – 40 year – age group also constitutes for a large part –
approximately 40%, which stands the second biggest group of human resource based
on age

b. Labor situation (from 2009 to 2012)
“Source: Human resource Department of FDC”
The bar graph reveals the number of staff in the year from 2009 to 2012. It is
clearly seen from the chart that this number increased gradually from 206 to 214
people between 2009 and 2011. Until 2012, the number of staff soared considerably to
225 people than the number of employees in 2009

c. Assessment the conformity of workforce, size and organizational structure with
business sector of FDC
Base on these above tables and charts that reveal the human resource of FDC,
we can easily assess the suitability of labor with the business situation of FDC (in the
period from 2009 to 2012).
The majority of employees in FDC is bachelor and post graduate (count up to
94%) who have specialized in economic and technical knowledge. This combined with
the surge of staff (225 people in 2012) and a large percentage of specialists (37% in
2012) have helped FDC not only adapt to the increase of consumer demand for
products that FDC distribute but also promote importing process, enhance foreign
partners.
Another point is that below 30 years – old people make up for big proportion in
the total percentage of human resource (66.33% over 100%). It is a “golden resource”
of FDC and a base for successes of this company.

1.1.3. Mandates and functions of FDC
1.1.3.1. General functions and responsibilities of FDC
Generally, the main function of FDC is to distribute technological products such
as laptops, mobile phones, hardware and so on from big braches all over the world to
the end users. The company will order and buy product before shipping it to shop


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selling modern technology products. If products were out of order, FDC also bears
responsibility for checking and amending faults in order to meet customers’
expectation. Moreover, FDC, as far as I know, is also distributing technological
products for projects related to technology in schools, hospitals or banks. If these
public places want to establish modern equipment like computers or projects, FDC will
provide products and helps them to install.
In terms of responsibility, FDC has to expand distribution network technological
products and to increase International Corporation. Another responsibility of FDC is to
enhance labor skills in the modern world and remains working culture of company.

1.1.3.2. Duties of each department
The duty of Administration Department is sealing the legal documents, transfer
documents from boards of directors to the staff, pay monthly salary for staff.
Because I interned in Procurement department so to some extent, I know its
duties quite exactly. Main function of this unit is implementing import procedure,
doing statistics for import products (both value and volume), making orders for
products from big suppliers, caring about logistics problems of one consignment.
Another duty of this department is making payment for supplier’s bank. For each week,
staff has to prepare payment documents which include purchasing order, commercial
invoices, B/L and customs declaration. This department also has to link to accounting
and administration department to check all the legal documents before transferring it to
the bank.
Business department shall be responsible for analyzing business activity,
supervise orders intended to import before Procuring Department will order the
products, claim money from suppliers for wrong products.
Marketing Department is responsible for exacting the trend and forecasting
customer demand in order to adjust the volume of importing products. Moreover, this
unit is liable for giving out effective and efficient strategic plans that are needed to
promote company’s products.
Technical Department is responsible for creating information sharing system
used for internal access to data and information of company. Furthermore, this division
has to warranty products that are found to be wrong when being distributed to retailers.


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Accounting department bears responsibility of checking debts, presenting bills,
deploying deliver the goods, keeping products, managing costs.
Human Resource Department is in charge of managing, evaluating weekly and
quarterly performance; working progress of staff, and recruiting new staff for company.

1.1.4. Field of business of FDC
The main field of business of FDC is to distribute information technological
products. Herein are products that are listed in details:

• Laptop Division: distribute laptops taken from big branches: Lenovo, Apple, Asus,





Acer, Hp, Dell.
Mobile phone: from Apple, Lenovo supplier.
Printer: from HP branch
Computer: IBM and so on
Computer accessories: from the following suppliers: Transcend, Seagate, Kingston

technology, Intel, Asrock, Art of colors.
• Products for projects: taken from many branches: Linksys, Dell, Ca technologies,
Microsoft, Lenovo, Asrock, HP, Art of color, IBM, Intel, Asus, Acer, Cisco, Oracle,
Corel,
1.2. General Business Situation of FDC in the period 2009- 2012

“Source: Business Department of FDC”
The chart 1.4 shows the growth in revenue of FDC during four years from 2009
to 2012. Revenue of FDC increased gradually and peaked at 4693.33 billion VND in
2011 before declining slightly to 4437 billion VND in 2012. There was obviously an
upward trend of revenue and growth rate of revenue increased 12.36 % over the period
researched (from 3949 to 4437 billion VND between 2009 and 2012). It can withdraw
the conclusion that revenue of FDC had risen considerably over the period studied.
This is a big success, huge effort of FDC in the period of economic crisis.

Table 1.3: Summary of financial statement in FDC in 2009 and 2012
Unit: Billion VND


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No.
1
2
3

Items
Revenue
Profit before tax
Profit after tax

2009
3949
205.67
182.02

2012
Growth rate (%)
4437
12.36%
330.97
60.92%
285.06
56.61%
“Source: Accounting Department of FDC”
Moreover, the table 1.3 reveals that profit before and after tax rose 60.92% and

56.61% respectively. From the chart and table, we can see that FDC had gained lots of
success: Revenue of company soared considerably, profit after tax stood at a high level
(285.06 billion VND)


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CHAPTER 2: THE STATUS OF IMPORTING LAPTOP
PRODUCTS OF FDC BETWEEN 2009 AND 2012
2.1. Import laptop products – actual situation from 2009 to 2012
2.1.1. The proportion of laptop imported compared with other products in FDC and
laptop import structure
2.1.1.1. The comparison between laptop imported and other products in FDC
Table 2.1: Imported products of FDC from 2009 to 2012
Unit: million USD
Items

Year

2009

2010

2011

2012

Laptops

6.896

7.804

10.983

11.714

Mobile phone

2.159

2.16

2.3

5.41

Printer/fax

0.2

0.1

0.4

0.3

Computer

7.251

6.9

6.54

5.32

Computer accessories

3.533

4.183

2.567

2.545

Products for projects

1.81

0.569

1.21

1.53

Total

21.849

21.716

24

26.819

“Source: Procurement Department of FDC”
A glance at the table 2.1 shows that laptops constitute a big value in the total
value of imported products (from 31.56% to 43.68% between 2009 and 2012).
Imported value for laptops soared from 6.896 in 2009 to 11.714 million USD in 2012
(nearly doubled) and had highest value compared with other products FDC imported.
In 2009, economic crisis covered all the field of business; however, information
technology still faced with these difficulties and developed more than before. In that
year, Microsoft issued Windows 7, for that reason the import value of products for
projects in FDC was much higher than three years after that (1.81 million USD). It can
be clearly seen that in 2009, imported computer has biggest value compared with other
imported products in FDC (7.25 million USD). Laptops only followed slowly computer
in terms of import value – 6.896 million USD which was tripled import value of
mobile phones.


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Over the period considered the imported value of laptops soared up to 11.714
million USD – increased nearly two times compared with the year of 2009. Another
product also witnessed a surge in the imported value is mobile phone (from 2.159
million USD to 5.4 million USD in four years). A reverse pattern was seen in the value
of imported computers in FDC, which declined to 5.32 million USD in 2012 - by far
lower than that of laptops in the same year. Unlike other products, the import value of
printers always made up for a very small proportion during the period studied.
All the things commented above can be explained by the fact that laptops are
products of great value. Price paying to buy one laptop was very high compared with
computers. In 2009, because of economic crisis, people did not consumed more to buy
laptops so FDC imported it at a lower value compared with computers. In 2012, our
economy has improved considerably, and at that time price of laptops declined
compared with the year of 2009 because many big producers competed together to give
out new products into markets. Together with that, consumers found that laptops were
more convenient than computers – which were heavy and could not be brought to
anywhere so they tend to use laptops instead of computers.

2.1.1.2. Laptop import structure
FDC imported different kinds of laptops Lenovo, Apple, Asus, Acer, Hp, Dell
and so on; however, because of the limit for one laptops combined with the data
provided by Procurement Department, I will mention some main imported laptops in
the period from 2009 to 2012
“Source: Procurement Department of FDC”
The chart 2.1 represents the import structure of main laptops that FDC imported.
A first glance shows that proportion of Dell imported outweighed that of Apple and HP
brands. The justification for this is that Dell was very durable, and has a reasonable
price. These three kinds of laptops imported all witnessed an upward trend in the total
percentage of all laptops, in which the proportion of Apple imported surge considerably
(from 10.3% to 16.8% from 2009 to 2012). The reason is that in the year of 2009 –
FDC wanted to try import a proportion of Apple to see the customer’s behaviors


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because it was a very expensive brand. The percentage of imported HP also rose
gradually and reached 24.5% in 2012 – a little bit below that of Dell. Hp also has a
reasonable price as Dell, however, many people still like Dell because Hp is not as
durable as Dell.
Other laptops such as: Lenovo, Asus, Acer counted for a biggest value during
the period studied; however, the proportion of the others plunged from 46.8% to
30.8%. If in 2009, the rate of other laptops imported nearly doubled that of Dell (46.8
% and 22.4% respectively), in 2012, the proportion of the former ones was only a little
bit higher that of the latter, namely 30.8% and 27.9%.

2.1.2. Import market structure of laptop products
Initially, FDC has orientation to import laptops from countries which have
strengths in information technology and trusts in international markets. In particular, as
I mentioned before, laptops have high value so it is better for FDC to import products
from these nations in order to create trusts for Vietnamese customers.

2.1.2.1. Import market value of FDC from 2009 to 2012
According to Procurement Department, we have some information about import
market value imports (of all products) from main market of FDC in the period of 2009
to 2012
Table 2.2: Import market value of FDC from 2009 to 2012
Unit: Value: Million USD; Rate/Proportion: %
Year
2009
Market

2010

2011

2012

Value

Rate

Value

Rate

Value

Rate

Value

Rate

China

14.486

66.3

16.195

74.6

18

75

12.517

51

USA

2.525

11.6

1.308

6.02

1.3

5.4

4.642

17.31

Singapore

0.828

3.8

0.533

2.5

0.5

2.1

1.175

4.38

HongKong

0.148

0.7

1.734

8

2.1

8.8

3.157

11.78

Other
nations
Total

3.862

17.6

1.946

8.9

2.1

8.8

4.165

15.53

21.849

100

21.716

100

24

100

26.819

100


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“Source: Procurement Department of FDC”
The table 2.2 represents that the import market value of FDC from 2009 to
2012. In 2009, FDC imported its products mainly from China (14.486 million USD).
Followed closely by China, USA and other nations supplied to FDC quite a high value
(2.525 and 3.862 respectively), which was extremely higher compared with Hongkong
and Singapore market. After increasing dramatically to 18 million USD, the import
value from China plunged to 12.517 million USD but it still remained the first rank in
the markets FDC imported. A reverse pattern can be seen in HongKong, Singapore and
USA market, which witnessed a soar in the import value of FDC in the period
considered. However, the import value from these markets FDC imported was still
much lower compared with that from China market.
Source: Procurement Department of FDC”
When considering the proportion of import value from markets in 2012, it is
clearly seen that over half of import value FDC imported belonged to China market,
which was tripled that in USA market. FDC also imported quite a large part (15.53%)
from other markets; however, it imported a mere of 4.38% from Singapore market.

2.1.2.2. Market structure for laptop products in 2012
From 2.1.2.1, we have already known the market structure for all products in
FDC. It is worth to note that there are four main markets FDC imported their products:
China, USA, Singapore, Hongkong. However, there was a little bit different when we
come to market structure for laptop products in 2012. We can look at the pie chart 2.3:
“Source: Procurement Department of FDC”
When it comes to market structure for laptops only, we can see from the pie
chart 2.3 that there are only 3 main markets and the proportion for laptops imported
from each market is completely different from that for all products FDC imported. If
most of products were imported from China, laptops which were imported from USA
counted for over a third quarter of the total proportion of market structure for laptops
(76.86%) – extremely higher compared with percentage of laptops imported from
China market (only 8.39%). This can be easily explained by the fact that USA is a big


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country which is very strong in producing laptops. A famous brand name – Apple when
being introduced to customers has attracted lots of distributors. The second biggest
market FDC imported laptops is Singapore (12.25%). This country is near from
Vietnam and there is some big branches located this nation so it is much easy to import
from Singapore.

2.1.3. Import value and volume of laptop products
Firstly, in terms of import value of laptop products, base on the data of this line
graph 2.4, we can have some comments:
“Source: Procurement Department of FDC”
A glance at the line graph 2.4 reveals that there was obviously and upward trend
in the import value of laptops from 2009 to 2012. Staring from 6.789 million USD in
2009, the import value of laptops rose slightly to over 7.8 million USD before climbing
up to 10.98 million USD in 2011. From this time to 2012, the import value of laptops
continued to increase to approximately 11.7 million USD, which was far higher
compared with that in 2009.
Turing to the volume of laptops products, we have the run chart below:
“Source: Procurement Department of FDC”
The line graph reveals that the number of laptops imported increased over the
period considered. In 2009, FDC imported over 13 million set of laptops but in 2010,
this number rose to over 16 million units. The next year witnessed a surge in the
number of laptop imported (above 25 million set) and till 2012, the laptops imported
peaked at over 27 million set – doubled the number of laptops FDC imported in 2009.
Two run charts above gave an overview of trade volume and value of laptops
imported. There was obviously an upward trend in both trade volume and value of
laptops imported from 2009 to 2012

2.1.4. General import process of laptop products
Before going in to details, I need to kick off with the fact that FDC uses direct
import as a main import mode for most of its products and laptops are not exceptions.
The freight term FDC uses when importing laptops from foreign suppliers is CIF so I


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will go details for CIF terms only. Occasionally, in importing procedure, people will
mention the step of arranging carriage and insurance (seller’s or supplier’s obligations).
However, as I mentioned, FDC uses CIF terms for importing laptops so I will remove
this step in my flow chart below. Process for importing laptops is also the same as other
products, but the important thing here is that laptops were transported by sea so the
documents required may be different from other products which are conveyed by air.

2.1.4.1. Flow chart of importing procedure of laptop products
Figure 2.1: Importing Process of laptop products
Step 1
1
Step
Acquiring for import license

Step 2
2
Step
Asking to open L/C and make payment

Step 3
3
Step
Custom clearance

Step 4
4
Step
Taking delivery of import/ discharge the import .

Step 5
5
Step
Inspection

Step
Step 6
6
Claim and settle the claim (if any)

2.1.4.2. Detail explanations about the process of importing laptop products
a. Step 1: Acquiring for import license
Initial step for importing laptops requires FDC to obtain import license which
was issued by Ministry of Industry and Trade. In this document will specify the volume
of import laptops allowed and the total volume allowed cannot exceed the quota.
Government, in this case, may put certain restrictions on what is imported as well as
the number of laptops imported in each consignment.


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b. Step 2: Asking to open L/C
Actually, FDC uses some methods of payment (T/T, L/C, deferrable payment
and so on) for some kinds of products. Because consignment of laptops has high value,
FDC use L/C to make payment for laptop products. For that reason, in this part, I will
mention about L/C only. Clearly, this method of payment is the safest and brings lots of
benefits to both suppliers and FDC. Because method of payment FDC uses to pay for
its suppliers is by irrevocable, confirmed L/C, FDC will ask his bank to open an L/C on
the favor of the suppliers. Base on the letter asking open L/C of the importer.
After requiring to open L/C, FDC has to fill in the L/C opening form, pay the
fee and the L/C deposit for his bank. Moreover, it is duty of FDC to pay the L/C value
and check the payment documents. When the suppliers apply main required documents
that importer’s bank asks for, importer’s bank will bear the responsibly to make
payment to the suppliers.

c. Step 3: Customs clearance
When receiving original documents of suppliers or import documents from and
arrival note of the shipper, Procurement Department will declare customs the
consignment of laptops which prepare arriving to the port of destination. The customs
procedures will be implemented base on the following steps:
• Buying customs declaration
• Declaring with full set of documents include: Purchasing order, Commercial
Invoice, B/L, Packing slip, C/O.
• Bringing customs declaration to clearance the goods and asking for accepting
declaration note
• Registering time for customs staff to check the goods
• Giving set of documents stated above and cooperating with customs staff to
clearance the goods
d. Step 4: Take delivery of the import and discharge the import
After receipt of Arrival note, the company prepares to take delivery of the
goods. The importer must obtain D/O before going to the port to receive the goods. The
staff that bears responsibility for receiving the goods will have to declare to the


22

customs. A set of documents which are used to declare to the customs for the import
goods include:







Customs declaration for import laptops
Purchasing order
Commercial invoice
Packing list
Ocean B/L
Recommendation letter.
After taking the delivery of the goods, the company will discharge the

consignment of laptops.
e. Step 5: Inspection the goods
An important step in importing procedure is to inspect the goods. All the laptops
must be checked to ensure the right for the importer. Before discharging, they have to
prepare survey record at ship. Then, during discharging, FDC is responsible to inspect
the quality, quantity of laptops (whether they meet specifications, terms in the
contract). If there are problems with these laptops, the importer (FDC) will list all the
necessary documents such as COR, CSC (if shipper delivers shortage number of
laptops)

f. Step 6: Claim and settle the claim (if any)
If there is any dispute, FDC will settle the claim. Occasionally, there are some
ways to settle dispute such as Settlement by court of justice, Settlement by arbitration
but FDC uses to contact directly to its suppliers to settle the dispute, they can ask for
discount so that it does not take time of both parties.

2.2.

Assessment about importing laptop situation of FDC from 2009 to 2012 –

SWOT analysis
2.2.1. Strengths
Firstly, FDC has advantage of enormous capital (110 billion VND) which is big
enough to importing products with high value (laptops are good example). It can be
said that capital stands among many important factors to create success for one’s
company, especially in doing business of laptop products which bring high benefits;
capital for investment has to enormous enough to import this kind of technological


23

goods. FDC has huge capital for importing because FPT filled capital for its member
company in which FDC is a good example. Business activity of FPT was supported by
credit organization and partners. Particularly, in 2006, the two biggest credit
organizations: TPG and Intel Capital became strategic partners, which created a good
capital environment for business activity of its member companies such as FDC or F9.
Secondly, as specified clearly in the first part of this report, FDC has young staff
of high qualifications and enthusiasm with their jobs. Their deep understanding in field
of business together with dynamic working environment has created high affectivity in
import activity. For example, in Procurement department where I interned in five
weeks, there are 15 staff in which 12 people graduated from Foreign Trade University
and has specialized knowledge about import – export procedure. They work in
intensive environment to take products from big suppliers in time. Moreover, every
stage of import product will be performed tightly in order to avoid risks when receiving
goods from suppliers.
Thirdly, working procurement is clearly stated and supervised daily. Take
Procurement Department as a good example. Deputy would arrange the jobs into sub –
group: Logistics and Order group. Logistics would bear responsibility to supervise the
goods from date of departure (at the port of suppliers) to date of arrival and prepare
document to declare customs. Moreover, logistics group also contacted to prepare
customs declaration documents. In the order group, each of the staff would make an
order of one branch, prepare document to present to the bank for making payment.
Another point to note is that they exchanged their jobs weekly, which means they
would know how to order from every branch that FDC takes import products.
Finally, FDC has good infrastructure and modern equipment that boosts
productivity of import activity. The justification for this is that staff was equipped
computer, laptops and other information technological products

2.2.2. Weaknesses
The first weakness is that in import activity, the number of staff who received
import laptops seemed to be shortage. No doubt, laptop products require good
preservation so quick receipt is necessary. However, in FDC, the number of employees


24

for this unit cannot meet the demand of importing activity especially when the volume
of laptops imported soared from 2009 to 2012.
The second negative point of importing laptops lies in the fact that the average
number of days in inventory has stayed at high level.
Table 2.3: The average number of days in inventory of laptops from 2009 to 2012
Unit: Day
Year

2009

2010

2011

2012

Days in
inventory

28

24

24

20

“Source: Procurement Department of FDC”
From the table above, we can see that the number of days in inventory of
laptops imported declined slowly from 28 days to 20 days in the period of four years
starting from 2009. However, 20 days remained quite high and this number also stand
among main factors that affected business productivity of FDC. Because the functions,
shape of laptop products were innovated every year, prices of laptops have just
decreased in recent years; the days in inventory toward this kind of products were a big
weakness to the company.
Thirdly, I see that term and condition of packaging for products is not clearly
stated (See in Appendix No 1). Especially, laptops are product of high value, if the
term contains only “commodity must be packed in accordance with standard for
export”, it can create disputes when products are wrong. Moreover, FDC uses direct
import as a main import mode - buy products from suppliers without intermediary
parties. This sometimes means FDC have to bear all the costs and risks to import the
goods.
The most important thing I would like to highlight in terms of weakness of FDC
is its ability in predicting market and demand of customers. Although there is
Marketing Department which specializes in giving predictions for market that can have
lots of consumers in order to adjust the trade volume, it sometimes does not give
precise predictions. This, in turns, makes the number of import laptops become surplus
in some markets but shortages in other ones.

2.2.3. Opportunities


25

It is clear that FPT trade mark was known in not only domestic market but also
international market. For that reason, importing products, particularly laptops of FDC
got a good chance to have lots of benefits in trade transaction, negotiation and
discounts for buying products.
Moreover, the trend of using laptops for personal purpose was obviously
upward. Everyone found it difficult to work, or to learn without a laptop. The demand
for laptops has increased annually so FDC has had a golden opportunity to distribute
their information technological products into market.
Partners of FDC are big co-operations all over the world such as IBM, Oracle
(see in appendix No.2). When FDC does business with them, they can enhance their
knowledge of international trade and get products with good quality. Furthermore,
these huge companies also create good chance for FDC to boost up its fame in
international market.
Vietnamese government always create chances to develop field of information
technology with the hope that Vietnam will become the third big supplier all over the
world in 2015 (after USA and India). Thanks to that, FDC – a company specializing in
distributing information technological products can grasp this opportunity to be known
by many suppliers.

2.2.4. Threats
Firstly, FDC has lots of competitors. Facts have shown that information
technology which has brought huge revenue for firms who do this field of business has
boomed since 1997 in Vietnam. FDC used to distribute products for many big retailers.
However, since FPT shop appeared, FDC has distributed directly to its shops. Along
with that, big retailers such as Media Mart, Tran Anh Computer also sell range of
information technology products especially laptops. This creates a big pressure for
pricing strategy, marketing strategy of FDC. Moreover, companies such as SEATIC
which have strength in information technological products, THAKRAL which accepts
to sell at very low price in case of immediate payment are big competitors of FDC.
Secondly, FDC used USD as main currency in payment. Factors such as
exchange rate, inflation rate usually change so importing contract is forced to amend


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