Complete solution for importing complete equipment at Complete Equipment Import-Export and Technical Company

This is the fundamental factor leading to the excitement in the technical - technological market.

From there we can see the direction for the company's future business activities as follows:

- Continue to promote the leading role in the import of complete equipment, especially import on consignment. Specifically, fulfill obligations to investors, ensure project quality, urge the seller's responsibility for warranty, support buyers in technical aspects, advise customers on choosing to import modern complete equipment lines so that manufactured goods can compete in the international market.

-In addition to entrusted import, it is necessary to continue to pay attention to and exploit the form of self-trading import to create initiative and bring high profits. However, we should not invest widely, causing waste of capital and debt, but must carefully consider investment efficiency.

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-Based on the fact that project owners often do not have much experience necessary for importing complete equipment, the company needs to continue to promote investment and trade consulting activities, advising business departments to participate in the process of evaluating investment efficiency and technical design of customers.

- Strengthen the form of joint venture with other companies to participate in equipment supply bidding packages because when applying this form, the strength of the joint venture contractor increases many times, ensuring strict requirements on financial capacity, technical capacity as well as legal status of the contractor in large bidding packages. The reality of the past 10 years shows that Vietnamese contractors have very few opportunities to be main contractors in all large projects with foreign capital because they cannot meet the very high bidding requirements. Therefore, the form of joint venture contractor is an effective solution to overcome the above weaknesses.

-Continue to diversify business beyond the basic machinery and equipment industry to create stable income and support capital for the main import business.

- Strengthen joint ventures with manufacturing enterprises to create stability for export goods sources.

II. SOLUTIONS TO CONTRIBUTE TO THE COMPLETION OF THE COMPANY'S FULL EQUIPMENT IMPORT PROCESS

1. For customer demand research and advertising activities.

Competition in the market mechanism makes every business have to find every way to attract customers to their business. No customers will mean bankruptcy of the business. Also in that competitive cycle, the company needs to equip itself with a strategy to attract domestic customers, ensuring a solid position in the market.

The content of the strategy can be flexible depending on the time, but basically:

- Promote the company's reputation through advertising, participating in seminars, and holding customer conferences to collect feedback from customers to adjust the company's operations accordingly.

- Compete with other competitors by reducing import commission fees.

- Promote direct marketing to strengthen the existing customer base and attract new customers to the company.

2. For market research activities

Market research is an indispensable activity in the business process and a business will be successful when it can forecast future market needs and trends. Market research is essentially research on consumer trends of a certain type of goods. The process of collecting complete and accurate information, thereby evaluating future market trends will help the company make the right business decisions.

However, as analyzed above, the company still has many problems in this stage. To solve these problems, the company should organize a systematic and synchronous market research process. Specifically, for the domestic market as follows:

- Proactively penetrate into the production reality of manufacturing units that need to import complete equipment through the relationships that the company has had before thanks to importing equipment lines for them (this is an advantage that no competitor has) to learn about the production and business plans (items, quality standards) and thereby determine the need for specific equipment.

- Research a large number of typical manufacturing enterprises to draw out the development trend of the overall equipment demand, specifically the research objectives are the production development stages, the needs requiring the innovation of the overall equipment, the scale of that need, which departments prioritize innovation, the capital capacity to ensure payment...

- Always learn and grasp information about competitors, their strengths and weaknesses to be able to draw out for yourself appropriate ways of operating.

- Research the situation of importing complete equipment in different geographical areas in the country by actively directing and closely coordinating regularly with the company's branches in Ho Chi Minh City, Hai Phong and Da Nang.

- Research the investment trends of the State focusing on which areas to promptly seize business opportunities.

The above only discusses the domestic market aspect, there is another very important area that cannot be ignored, especially in the field of complete equipment, that is

is the market that supplies equipment all over the world. In business, finding a source of goods with advantages in price, quality, accompanying services... is half the victory.

For overseas market research, the company needs to maintain and strengthen the activities of overseas representative offices in researching the trends of the global equipment market. To effectively support market research activities, representative offices need to:

- Collect information about the entire equipment - technology enables domestic colleagues to better understand the current world's entire equipment resources.

- Continue to research the economic, political, social situation, trade policies, technology transfer, transportation conditions, insurance,... in the field of exporting complete equipment of your country.

- Actively seek export markets to serve the company's business diversification goals.

Domestic and foreign market research activities must ensure that the company has a definite conclusion on whether to accept a commission contract or whether to invest in a certain type of complete equipment.

3. For the process of testing and evaluating the advancedness of the entire imported equipment.

Testing and evaluating the advancedness of the entire equipment is a very complicated task that requires people doing this work to have high technical skills. Normally, an entire equipment line is considered advanced if it has all three elements: modern, safe and effective. But what standards are used to evaluate the level of modernity, safety and effectiveness of the entire equipment? This is a problem that is causing many difficulties not only for the company but also for many other businesses in Vietnam. Because currently, the establishment of standards for evaluating and testing machinery is carried out by the Ministry of Science, Technology and Environment. However, the implementation of these standards has many shortcomings. Therefore, many import businesses have had to use foreign standards to evaluate goods. This leads to businesses having to ask for permission from the Ministry of Science, Technology and Environment to apply foreign standards, a relatively time-consuming and laborious task.

As for the State, businesses should set their own specific standards for machinery and equipment that are both suitable for the State's requirements and convenient for their evaluation work, and should not rely entirely on foreign standards. However, most businesses, including Technoimport, have not yet been able to do this.

Therefore, to solve this problem, the company should have a specific standard system for all imported equipment. Specifically as follows:

- Standards for assessing the suitability of the entire equipment:

 The entire equipment line has features and quality suitable to the technological requirements to create products with quantity and quality meeting the set standards.

 The entire equipment chain operation process must meet the requirements of environmental protection and labor safety according to the provisions of law.

 The equipment in the entire equipment line must ensure the ability to perform operations and synchronization in the technological diagram of the entire equipment line.

- Standards for evaluating the quality of the entire equipment:

 Origin of the entire equipment (country of manufacture).

 Year of manufacture of the entire equipment.

 Technical characteristics (equipment capacity, number of revolutions, product output per unit of time,...).

 Complete equipment requirements for raw materials.

 Total equipment energy and material consumption for a product.

 Product quality indicators produced by the entire equipment.

 Evaluate the level of automation, mechanization, and human resource utilization of the entire equipment line.

- Evaluation criteria for used equipment:

In addition to the general characteristics of the complete equipment as stated above, for used complete equipment, the following must be considered:

 Current quality indicators and technical specifications of used equipment compared to new equipment of the same type.

 Number of hours the entire equipment has been operating, working conditions of the entire equipment.

 Number of times the entire equipment has been repaired or overhauled. Parts have been replaced with new ones or guaranteed to be as good as new.

 Warranty conditions for used equipment.

 Price of used complete equipment compared to new complete equipment.

4. For price formation process.

Before selecting a supplier of complete equipment, the company must determine a reasonable import price structure for the project to cover costs and make a profit. This is necessary because it will help the company avoid confusion in the following activities, especially since price is always the most controversial issue in the negotiation process later. Complete equipment is a highly specialized commodity and includes many complex devices, so determining the price is very difficult, and can only be done by referring to sales letters and catalogs of foreign companies and manufacturers. The company should refer to the prices of companies that hold a major position in the production and supply of complete equipment that the company intends to import.

5. For the bidding organization stage (selection of suppliers).

The task in the bidding process is for the company to identify a suitable supplier of complete equipment. This requires the company to carefully review the bidding documents, including the bidder's proposals on the technical and financial plan for the project of importing complete equipment, then need to discuss specifically with each contractor to agree on the requirements and technical standards. The company should set out criteria to evaluate the contractor's capacity and experience such as:

- Production and business capacity, technical facilities, and professional qualifications of employees.

- Financial capacity.

- Experience in exporting complete equipment.

After evaluating and carefully considering the contractor as well as the contractor's proposals, the company should now choose the contractor that best suits them, this is also to facilitate future negotiations.

If importing complete equipment for industries requiring high technology such as oil and gas, construction, information, telecommunications, electronics, etc., the company should choose partners in countries with developed technology such as Japan, France, Germany, Italy, and the US. As for processing and light industries, it should choose partners in countries with advanced technology such as NICs.

6. For negotiation and contract signing.

As mentioned above, the difficulties in this stage are not only encountered by the company, but in general, Vietnamese enterprises are often in a weaker position when negotiating compared to foreign partners. This condition can only be limited but cannot be resolved satisfactorily immediately. In fact, if the company has carefully prepared the negotiation methods and art, it can also gain many advantages for itself. In my opinion, the company can be successful in negotiations and signing contracts if the company follows the following order:

6.1. Prepare for negotiations.

In this preparation part, the company must determine for itself the negotiation situation, negotiation goals and negotiation participants.

The members of the negotiation team must be experienced in negotiation and have full experience in technology, trade, and law. In addition, they must also have some outstanding personal characteristics compared to others in terms of communication skills and quickness in handling situations. As for the company, there should be no unnecessary pressure on the participants of the negotiation before entering into the negotiations.

The goal of negotiation, of course, is to give the company advantages in the future import process. Experience shows that if you want to negotiate successfully, you should never start the negotiation without having options.

choose. The company must have different options in advance so that when entering negotiations, it is always proactive. When the other party sees that the company has carefully prepared such options, it will be easier to accept one of the options the company offers, then the company will achieve its goals.

For negotiation situations, the company can be proactive in preparing. However, the most important thing is that the company must probe the current situation of the opponent in terms of financial situation, position in the market, pressure from other competitors on them..., thereby finding the opponent's weak points and having a way to exploit those weak points. The company can use its network of representative offices to probe information about its opponents.

6.2. During negotiations.

During the negotiation process, for issues that are still under discussion, the company should have a strategy to gradually dismantle them, not rush because otherwise it will not grasp the whole problem, not have enough time to think carefully, which can lead to agreements that do not exploit all the advantages. However, the negotiator should not be too rigid, stubbornly protecting the benefits that have been calculated in advance, but should make certain concessions.

7. For contract implementation.

This is a stage that often encounters many problems, the reasons for which come from both the company and the State.

During the contract implementation process, errors often occur when working with Customs. Because there are many complicated procedures, plus the fact that businesses have to declare and apply tax codes themselves, mistakes can happen. Therefore, in my opinion, the company should choose officers who are knowledgeable about tax legal documents and documents of the General Department of Customs to do this work, and at the same time, must require officers to be responsible for the accuracy of the Customs declaration. After completing the goods inspection and tax calculation procedures, the business staff needs to copy a Customs declaration for the Financial Planning Department to keep so that the Financial Planning Department can coordinate and promptly monitor tax payment and payment to Customs.

For delivery and transportation, the company should have a delivery and transportation plan in advance based on the consignment contract as well as the customer's order (through the consignment contract or order to know the company's responsibility in delivery and transportation). From there, the company establishes an optimal delivery and transportation plan to save costs, shorten time and cut unnecessary intermediaries.

For payment, the company must grasp the payment deadline as well as the payment progress of domestic customers and must actively urge domestic customers to pay on time. Regarding foreign payment methods, the company should have some changes in the conditions of the payment method by L/C. For example, when using a large deposit, the company can ask the Bank to guarantee the deposit amount to avoid risks that may be encountered in business.

Above, I have boldly given some opinions on improving the entire equipment import process at Technoimport company. However, these opinions are only positive when all necessary conditions are met, which will be presented below.

III. CONDITIONS FOR IMPLEMENTING THE ABOVE SOLUTIONS.

1. On the company side.

1.1. Perfecting import perspective.

Importing all equipment is to serve the cause of industrialization and modernization of the country. Therefore, Technoimport needs to thoroughly understand the following import viewpoint:

- Imported complete advanced, modern equipment, does not pollute the environment.

Firstly, this stems from the fact that recently, we have imported a lot of equipment and technology that are decades out of date, causing huge losses, which can be said to be "losing money and getting sick").

Second, due to the low technological capacity of the country, the possibility of improving the situation in the near future is not optimistic. Therefore, it is necessary to consider importing the most advanced technology if the situation requires it and resources allow it. If importing all used equipment for efficiency reasons, business units need to determine a reasonable price, usage level and must be accepted by the inspection agency.

Third, the import of advanced technology has now become a great advantage for latecomers because they do not have to spend very expensive costs on research, development and testing. This is also an opportunity for these countries to develop to keep up with the pace of world development.

To import advanced technology equipment, it is necessary to have a team of scientific staff with professional capacity in a technology field to be able to accurately evaluate, grasp and master the technology. In addition, it is also necessary to have full information about the world technology market to facilitate comparison between different markets.

- Import complete equipment to enhance the competitiveness of domestic goods in domestic and foreign markets.

All imported equipment must ensure increased labor productivity, reduced product costs, improved product quality and design to compete effectively with imported consumer goods, and protect domestic production.

-Prioritize importing technology and equipment that use a lot of labor.

Currently, the pressure on population and employment in Vietnam is very large, requiring the State to have synchronous policies to solve it, in which the import of technology and equipment that uses a lot of labor is the direction that the State encourages to implement. Attracting many workers, especially in rural areas, to work in factories not only creates income for people but also creates jobs for the poor.

labor but also limits the flow of population from rural to urban areas and many social evils caused by that.

-Import ensures maximum efficiency of capital use.

This is a basic requirement in business and also very urgent for the import of complete equipment, because the current capital allocated by the State for this activity is still limited, most of which is still aid or borrowed capital from international credit organizations. Therefore, using capital economically and effectively is a viewpoint that must be unified from the first to the last stage of the import of complete equipment.

1.2. Perfecting the organization, management and training of staff. 1.2.1. Regarding the organization and management work.

Currently, the company's management organization is direct management, all activities are under the direction of the Board of Directors. The functional departments are in charge of each area and manage according to the company's leadership assignment. The company's operating apparatus is relatively reasonable. However, there should be some changes to adapt to current conditions. Specifically:

-It is recommended to merge some import-export departments with relatively similar business functions to streamline the apparatus, creating conditions for more effective management.

- A Marketing department should be established to conduct market research to assist the Board of Directors in their marketing strategies. Currently, this work is done by a Consulting Center, but the function of the Consulting Center is both a normal business unit and a consultant for other business units to carry out business operations, so it cannot specialize in market research.

Regarding the management of staff, the company should have regulations to enhance the sense of responsibility of staff while working, especially when performing business operations. It is possible to use economic methods, for example, if any staff violates the company's regulations, depending on the level of damage caused by that violation, they must compensate the company with different amounts of money. However, in the process of organizing and managing, the company's leaders should also correctly assess the capacity of each individual to arrange work accordingly, and should not let the situation arise where those who know are not allowed to do it, and those who do not know are forced to do it.

Another issue is that the company needs to have measures to minimize the competition between business units in the company while still ensuring the financial interests of the company.

1.2.2. For staff training

In the dynamic and fiercely competitive market mechanism, the training of staff is becoming increasingly important for every company and every business. Currently, with more than 80% of staff having university degrees and university degrees, the company's staff has a fairly high level of qualifications. However, the force

Complete solution for importing complete equipment at Complete Equipment Import-Export and Technical Company - 8

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