VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL *** GRADUATE INTERNSHIP REPORT PETRO VIETNAM MACHINERY – TECHNOLOGY JSC ( PV – MACHINO) Address: 13th Floor, CEO Building, Me Tri Ha, Pham Hung, Ha Noi Supervisor: Mrs Do Phuong Huyen Student’s name: Dang Thu Thao Student’s ID: 1107 1506 Major: International Business Class: IB2012B Hanoi, 10th March,2016 Table of Content Acknowledgement: A/ Overview of Petro Vietnam machinery – Technology JSC (PV-Machino): Background Information: Development History: Mission, Vision and Core Competency Organizational Structure: Business Line: B/ Report on Operational & Business Activities of PV- Machino JSC: I Overview of Company’s Financial Data:: Revenue & Profit: Capital Structure: Importing Turnover: II Operational Activities in Company’s Value Chain Business Plan: Supply & Logistic: Distribution: Sales & Marketing: After Sales Service: III Further Research on Importing Activities of PV-Machino Importing Process of PV-Machino: Critical Issues and Solutions to Enhance Operational Efficiency of PV-Machino Suggestions for Graduated Dissertation: C/ Purposes, Assigned Tasks, Measurements of The Internship: I Internship Purposes: II Assigned Tasks: III Working methods: D/ Achievements & Lessons after Internship: I Theoretical Knowledge Enhanced: II Practical Experiences Gained III Soft Skills Improved: IV Contributions to PV-Machino during Internship: References: Appendix: List of Tables & Charts   Chart 1: Organizational Structure at PV-Machino Table 1: PV-Machino ‘s Products, Characteristics and Application 2 2 3 13 13 13 14 16 18 18 19 21 21 25 26 26 30 33 33 33 34 35 37 37 37 38 39 40 41 Table 2: Importing Turnover of PV-Machino (Unit: billion VND) Chart 2: Importing Turnover of PV-Machino in Each Market (Unit: billion VND) Table 3: Income Statement of the Company in period 2012-2014 Table 4: Owner’s Equity of PV-Machino from 2012 to 2014 ( Unit: VND ) Table 5: Importing Turnovers of PV-Machino from 2012 – 2014 Table 6: PV-Machino’s Structure of Imported Products Table 7: Planning Business Targets in 2015 of PV-Machino Table : Process of Purchasing Materials at PV-Machino (PVM-KTDT-QT.04) Table 9: Executing Sales Contract of PV- Machino Table 10: Customer Satisfaction Evaluation Process Table 11: Summary of Tasks Performed During the Internship            List of Shorted Words: No Short Form Full Name PV Machino Petro Vietnam Machinery Technology PTA Preferential Trade Arangements USD United State Dollars CIF Insurance and Freight WTO World Trade Organization TPP Trans-Pacific Strategic Economic Partnership Agreement JSC Joint Stock Company VND Viet Nam Dongs CFR Cost and Freight Acknowledgement Internship is one of the most important subjects which are practical for International School’s students In the internship period, students have opportunities to approach the working environment in the company or government departments; also study and experience before accession in that company The following six-week internship at Department of Economic and Technical of Petro Vietnam Machinery – Technology ( PV- Machino ) was a milestone in my study at International School – Vietnam National University ( IS – VNU) I would like to thank to all the supports from Mrs Do Phuong Huyen, my teachers at IS-VNU, my guiding officers as well as other staffs in other divisions of the company I also praise all the efforts that our classmates have done in the internship period and student life We have shared the knowledge, the ideas and the cooperation, and this was how we can finish the Internship and complete the report I hope to receive all the support for years to come This is very important that the sharing and connecting to the practical work will be helpful for our future jobs After the internship at PV-Machino, I have an overview of the roles, duties, operation and functional departments of the Company Thus, I can understand the strengths and weaknesses as well as business plans to have better solutions helping the company achieve greater accomplishments and overcome the limitations Last but not least, I would like to express my gratitude to my supervisor, my teachers, guiding officers and all the staffs that help me complete the internship at Petro Vietnam Machinery – Technology (PV – Machino) Finally, I would like to extend the most sincere thanks to my supervisor, Mrs Do Phuong Huyen for guiding me and my friends during the internship program Thank you all! A/ Overview of Petro Vietnam machinery – Technology JSC (PV-Machino): Background Information: PETROLVIETNAM MACHINERY – TECHNOLOGY JSC (PV-MACHINO): • Headquarter: No 8, Trang Thi, Hang Trong, Hoan Kiem District, Ha Noi • Representative Office: 13th Floor, CEO Building, Me Tri Ha, Pham Hung, Ha Noi • Tel : (+84).38260344 Fax : (+84).38254050 • Website: http://www.pvmachino.vn • Email: pvma@pvmachino.com Development History: - Petro Vietnam Machinery- Technology (PVMACHINO) with the formation and long-term development: from Import and Export Machinery Corporation which was established dated 3.3.1956 and Equipment Accessary Corporation was established dated 03.03.1960 We were incorporated into the Corporation of Machinery and Accessory under the Decision No.163/02-03-1992 TMDL-TCCB dated 02.03.1992 of Ministry of Trade and Tourism which is the Ministry of Industry and Trade The Corporation of Machinery and Accessory was established again under the Decision No 225 TTg of the Prime Minister of the State into the Corporation 90 under the Ministry of Industry and Trade on 17.04.1995 - In December 2002, according to the instruction of the Prime Minister on the innovation, about the reorganization enterprise of State, the Corporation of Machinery and Accessories was established again under the Decision No 0713/2003/QD-BTM dated 13/ 06/2003 of the Ministry of Industry and Trade on the basis of reorganizing the Office of the company and the subsidiary units of the Corporation On 8/8/2005, Prime Minister's Decision No 197/2005 / QD-TTg allowed to operate under the organizational model of Holding companySubsidiaries Company - Implementing the decision receipt of Vietnam Oil and Gas Group and the Transfer Decision of the Ministry of Industry and Trade, dated 20/12/2007, The Corporation of Machinery and Accessories was handed over intact to the Vietnam Oil and gas Group and become a member unit of the Petrol Vietnam Power Corporation On 14/03/2008, Vietnam Oil and Gas Corporation issued Decision No 517 QD-DKVN of equitizing company On 10/03/2009, Vietnam Oil and Gas Corporation issued Decision No.673 / QD-DKVN about transferring the Corporation of Machinery and Accessary which belonged to Petrol Vietnam Power Corporation, into the a member unit of the Vietnam Oil and gas Group and continuing to carry out equitation - The Company held the first General Meeting of Shareholders to establish company on 09/02/2010 Department of Planning and Investment of Hanoi certificated of Business Registration and Tax Registration for Petro Vietnam Machinery- Equipment JSC (PVMACHINO) and officially operated in the form of shareholder on 01/03/2010 The authorized capital of the company is 386.386 billion VND - Since its establishment, PVMACHINO has deployed and constructed many projects in categories which are Power System, Technology System, and Installation of machinery and Equipment for manufacture; deploying multiple of providing supplies, equipment, machinery and vehicle packages to inside and outside projects of Petroleum Industry - PVMACHINO constantly strives to become one of the reliable contractor that providing machine, supplies, equipment, organization of construction, installation and implementation of after-sales services for the project, civil works, industry, traffic, medical, exploration and exploitation of oil and gas Mission, Vision, Core Competence: • For Customers: Provide long lasting, high-quality and stable products The needs of customers are PV-MACHINO best served, non-discriminating of customers • For shareholders and investors: PV-MACHINO always keeps the motto of enhancing transparency and public information of the Company operation to the shareholders and investors via many different media and also actively creating opportunities for dialogue with investors • For business partners: Maintain, nurture and develop long-term relationships on the principles of respecting the interests of both parties in order to create the best quality products to society • For society: PV-MACHINO always considered sharing with the community by both physically and mentally contribution is the social responsibility of the enterprise • For employees: Creating equal working environment, regardless of age, gender Organizational Structure: Under Shareholders Council & Board of Directors, the company has divided into four main Departments: - Administration & Organization Department: Head: Chu Van Khanh Deputy Head: Bui Huy Quang Deputy Head: Chu Thi Thanh Chung • - Finance and Accounting Department: Chief Accountant: Hoang Minh Duc Deputy Head: Ly Thi Le Ninh Planning and Investing Department: Head: Nguyen Anh Dung Deputy Head: Hoang Thanh Tung - Economic and Technical Department: Head: Kieu Minh Son Deputy Head: Ta Thi Bich Quyen Deputy Head: Chu Hai Dang Deputy Head: Hoang Long Chart 1: Organizational Structure at PV-Machino: SHAREHOLDERS COUNCIL BOARD OF DIRECTOR EXCECUTIVE COMITTIE DIRECTORATE DEPARTMENTS ECONOMY AND TECHNOLOG Y DEPARTME NT INVESTMEN T AND PLANNING DEPARTME NT FINANCE AND ACCOUNTIN G DEPARTME NT MEMBERS OF COMPANY ORGANIZAT ION AND ADMINISTR ATION DEPARTME NT PVM DAESCO DÂNG PETROL EUM MACHIN ERY TECHNO LOGY J.S.C PVM ACHI NO SG CO.L TD PETROL VIETNA M MACHIN ERYEQUIPM ENT J.S.C PETRO LVIETN AM CONTR UCTIO NJ.S.C MACHI NO AUTOPARTS COMPA NY LIMITE D VIETNA M NIPPON SEIKI LIMITE D PROJE CT MANAG EMENT DEPAR TMENT 1-3-5-7 DINH TIEN HOANG HANOI (Source: Organization & Administration Department) a) Functions of Organization & Administration Department:  The HR Organization - - - Organizational structure, management mechanism and administration of the agency's Office Apparatus Company and its subordinate units; preparing the establishment of councils, committees, delegations and working groups Management on personnel issues: the appointment, dismissal, transfer, rotation, evaluation, planning, rewarding and disciplining staff, management and record-keeping personnel; procedures for sending staff to work or study in the foreign country  The wage & labor policy: To advise and assist the company leaders the implementation of guidelines and policies of the Party and the law of the state in business, policy regimes for workers; Make wage policies, insurance policies, retirement for employees  The HR training and development: Develop strategy, planning and development of human resources to meet the development needs of the Company FCC VIỆT NAM CO LIMI TED - - Develop a plan and training policies  Business Administration – Administrator To advise and assist the Company Leader of Business Administration - Management, synthesis, receptionist, clerical - archive Management, equipment, purchase of assets, ensure infrastructure, facilities and working conditions of the office of the Company; management of rental properties, facilities; security, safety and fire prevention at the agency; reception work, and welcomes domestic and welcomes collaboration to work abroad; layout and arrange accommodation, accommodation, travel, work of the working groups by the company leaders chaired The emulation and commendation The inspection, testing, receiving and resolving complaints and denunciations b) Functions of Finance and Accounting Department: - - - Develop strategies, plans and financial policies of the Company Develop a plan and implementing the balanced, arrange, manage and use of capital, funds, finance focus of the Company Implement the loan guarantee, performance guarantee contracts for units in the company when the business plan viable System management, finance and accounting apparatus, the work of financial, accounting and tax work parent company, consolidated accounting reports throughout the Company Management of the Company invested externally Evaluating the cost estimates of the project, funding for training, scientific research, estimates of conferences, seminars, working groups the company Finalization of the project investment, construction, training, scientific research contracts and technology under the control of the Company Check the use of funds for investment projects of the Company and the investment projects of the subordinate units according to the assignment of the Company; self-test operation of the Company in accordance with the Regulation on inspection and supervision of the Company Analyze and evaluate the effectiveness of production and business operations and finances of the Company annual and capital units of the Company To evaluate and assess the effectiveness of the business plan of the Company's office and the business plans of the subsidiary units that use the Company's capital before the General Director or an authorized person for approval c) Functions of Planning and Investing Department  Business Plan: - To advise and assist the Company leaders on development strategies and plans implemented by the Company Development of strategy, planning and business planning long-term production, the Company's medium term Monthly, quarterly reports on the implementation of the plan in the company leadership to the Company; adjust timely implementation of planned targets - - Develop and implement plans to urge coordination between production and business units and the Office of the Company Manage the use of assets of the Company and monitoring the use of assets in the units affiliated companies (land, buildings, vehicles, equipment main production )  Business Investment: To advise and assist the company leaders about the investment in development of the Company Develop strategic planning and long-term investment plans, medium-term and annual plans of the Company Focal search, promotion and evaluation of investment opportunities, selecting partners and investment plans of the company Organize reporting investment needs of the Company, evaluation of investment projects as assigned in the industry Manage the preparation of investment and investment adjustments in the course of implementation of the capital units of the Company Assess investment performance of the Company  Business E-Commerce: Develop and manage electronic information of the Company, to promote the image and activities of the Company Research and development of e-commerce applications d) Functions of Economic and Technical Department: - - Advise and assist the Leadership Management Company operating business activities throughout the Company Research and negotiate with partners to advise the company leaders choose to participate in bidding plans and projects; Regulators assigned execution units Participate in building strategic, long-term business plan, medium-term and annual plans of the Company Organization of business operations, Export-Import of goods and services under the registered business lines of the Company Research, search, database establishment, assess and forecast the domestic market and abroad; construction industry, customers, markets served for the construction of production and business plans and boosting trade promotion Actively negotiating, signing and implementing economic contracts when General Director of the Company authorized The return of capital, with the efficiency of each business plan; responsible for the occurrence of the loss of capital To advise the Company leaders on managing economic contracts, business and other contracts complying room registered business lines of the Company Directly participating in the bid, the bid dossier, open packages; Develop strategic goals of the Company in procurement activities; plans for a general contractor or subcontractor supply of machines, materials, equipment and construction and installation of equipment for projects within and outside the Group; - To advise institutions signed cooperation agreements with partners have sufficient legal personality, ability and experience Subscribe to urge progress of works; participate in checking the price applied materials, equipment and workload as payment and settlement construction Business Line: PV-Machino has deployed and constructed many projects in categories which are Power System, Technology System, and Installation of machinery and Equipment for manufacture; deploying multiple of providing supplies, equipment, machinery and vehicle packages to inside and outside projects of Petroleum Industry The company constantly strives to become one of the reliable contractor that providing machine, supplies, equipment, organization of construction, installation and implementation of after-sales services for the project, civil works, industry, traffic, medical, exploration and exploitation of oil and gas Main business line of the company includes: Commercial business and building industrial equipment & in-house system for construction; manufacturing & selling / purchasing automobile / motor‘s spare parts and other commercial services; providing commercial services relating to oil machine & equipment… a Products: The company has been actively restructuring import and export business in order to serve domestic demands The company is a trusted partner & wholesaler in the field of import of machinery, equipment and spared parts for the domestic units The major import items include: Petroleum mining machines, construction; Machine tools; Means unloaded; Experiment equipment; Billets, iron and steels; Complete equipment line; Raw materials for manufacturing; Automobile tires; Wires from; Automotive Parts; Technical equipment, construction…as follow: Table 1: PV-Machino ‘s Products, Characteristics and Application 10 in the country Company has trusted & strong relationships with partners, build PV Machino prestigious brand in not only domestic but also foreign markets - As a member of the Vietnam Oil and Gas Group (Petro Vietnam), the company has many opportunities to develop the business sector, investment diversification, conditional participation in large projects, access to technology , technology manager of the domestic and international partners to implement major projects - For financial leverage, the company has effectively used debt to capitalize for the business Every year, the company use funds quite effectively to make profit for the business Profitability from operation is higher than interest rates of capital debt; this ensures the solvency capability of PV-Machino is good Therefore companies need to maintain this capacity to ensure an effective operation - For human resources management, the company has done quite well the recruitment & selection process with high quality of choice to meet the initial requirements Company mostly has been hiring qualified university students or higher education Most of them are young people who are very active, enthusiastic, passionate professional, having good knowledge and ability to work in teams effectively Especially, the management team of the company and leaders work very effectively, suitable apparatus structure with company size Therefore, we can say this is a solid foundation for ensuring sustainable development for operation of PV-Machino - For product quality, the company's products are imported from some European countries, where there testing process is most strict & professional in the world, thus the quality of company’s machine & equipment are always standardized In addition, the company not only applied a quality management system of ISO 9001-2000, but the quality inspection process of the company is also very tight, quality is checked with strict warrantee from all stages of purchase, transportation and sales - PV Machino is always confident about its modern business culture and environment, which appreciate the benefit of employees on above all In addition to the facilities serving for office activities, other operational activities rather modern construction company also invested athletic fields, so that the working environment is always creating comfort for collective team of the company, in addition to remuneration of the company is also quite good This has very positive impact on the level of commitment and work efficiency of the collective staff of the company b Critical Issues: - The company’s import-export operation of machinery from overseas markets still faces many difficulties Oil and gas equipment items often have sharp fluctuations in prices, scarcity of 33 goods, less diverse models Moreover, importing activities also affected by the impact by the objectivity & subjectivity from the foreign market - At present, the company mainly imports by direct import method, this leads to higher importing costs and big business risk and puts tremendous pressure on the company capital, less capital enlisted by sales contribution section on the company's income - In fact, PV Machino only has storage warehouse containing the machine which is has not been used, as well as after each customer's lease contract, the average area of each storage about 800 - 900m2 Among them, only one store is standardized with the design, size, and conditions for limiting the influence of weather on products This warehouse was invested and built at the first date of establishment; two other warehouses are mostly hired at the empty lot without any coverage - There is a lack of representative offices and branches of PV-Machino in foreign markets strongly impacting on the market expansion of the business - Because of joining to Vietnam Oil and Gas Group ( Petro Vietnam), the company have to spend time and resources to re-organize the structure of operations, business lines, fields of investment to match with the development strategy of the Group - Although the whole system has highly effective operation, some depending units and subsidiaries are quite passive in planning for business & operation activities This leads to an unstable development of PV-Machino Besides, the co-ordination among units under the company are limited, this leads to information asymmetry within a big company - Accessing to the market is weak, some of the domestic consumer market companies not actively seek customers and wait for customers to come for contracting through bidding meeting as PV-Machino normally does - PV-Machino only owns a land on Trang Thi Street for the Headquarter, other current facilities, factories, warehouses, offices… are rent This creates huge amount of expenses for the company, especially for distribution channels - The unfavorable economy with high inflation over the past seven years which is account for 20%, in addition, the trade deficit increased sharply up to more than 300% over the same period of year, equal to 10% of GDP; and the rise in interest rates are the three main factors that directly impact the surface to the operational activity of the company - The ventilation in the trade policy of the Government allow every businesses to import and export all kinds of products including import and export of machinery, materials, equipment, spare parts, so on… This makes the edges of competition in the industries becomes more acute 34 - The fluctuation of the exchange rate for payments makes the company and foreign partners meet a lot of risk, which greatly affect the revenue and profit of the company Besides, issuing bank cannot supply sufficient foreign currency for the company pushed the company difficulties in paying with partners, affect the company's reputation Besides, in a sales contract, PVMachino have imported from abroad and pay in foreign currency, the instability in the foreign exchange policy will affect the cost and total price of Vietnamese products, create unsecured psychology for customers - In addition, after successful TPP negotiation, the fierce competition from other countries in international economic activity is also one of the difficulties that the Company is facing - The process of transporting cargo of import and export operation is also risky due to limited traffic, infrastructure Storage Systems harbors and inland transport in our country is weak, this causes more losses with higher cost of imported goods, leading to reduced competitiveness of imported goods c Proposed Solutions: - Expanding the area of the point of sales: Building showrooms that bring more modern professionalism; maintaining direct sales channels, namely to expand to points of sale in Hanoi, then this is just which sells both the showroom just a place to store the machine construction equipment, while creating the convenience of dealing with customers Thí especially helps to minimize the time and cost of the construction site building - Improving product storage warehouse: Company needs to repair, upgrade, check for structural inventory quality assurance and occupational safety, ensuring the standard conditions of temperature, humidity, area, the height of the warehouse, light power system, camera monitoring system, security system and train the staff’s ethics for professional dedication, especially relating to the work of warehouse notes the issue of the depreciation of the product, the warehouse, reduced depreciation rates to reasonable levels, and most particularly to minimize the depreciation of intangible and warehouses must always be open, avoid high humidity as these are conditions to increase the oxygen metal corrosion that greatly affects quality machinery - Enhancing the quality of after-sales service: increase value to customers by creating long-term confidence to customers, each product specifically for machine - construction equipment, the company should have warranty in the appropriate time, the characteristics of the product the machines have high-tech features so companies need to have activities on technical assistance, guidance using operational, product consulting, installation support, quality control activities periodically for customers, contribute to reducing risks during use, and demonstrate corporate responsibility to customers - Proposing recommendations to government: To have a healthy competitive environment to create favorable conditions for the efficient trading company, the Government management 35 agencies should have a complete legal system more closely manage the activities of the company to avoid tax evasion, counterfeiting State should have the quickness administrative procedures less cumbersome than many obstruct stage companies in the business process - Enhancing government intervention: The government should complete the banking & financial system to help companies borrow more easily at the same time improving the stock market system This is a capital market that enhances the mobility quickly and efficiently Because when PV-Machino wants to increase business capital, the company may issue shares or bonds to the market This helps company raise capital more quickly, and efficiently serve business Suggestions for Graduated Dissertation: After the internship at PV-Machino, on the basis research and assessment of comparative advantages, critical issues and proposed solutions of the company’s operation I would like to suggest two topics for graduated paper as follow:  Topic 1: Solutions for improving operational efficiency and importing process in the Petro Vietnam Machinery & Technology (PV-Machino)  Topic 2: Opportunities and challenges in importing oil equipment of the Petro Vietnam Machinery & Technology (PV- Machino) before and after TPP success C/ Purposes, Assigned Tasks, Measurements of The Internship: I Internship Purposes: The main purpose of an internship is helping students consolidate theoretical knowledge learned throughout my major at International School – Vietnam National University and understand how to apply this theory into real business activities of the company, which includes: - Background information about organizational structure & operation of the company Overview of functional activities of the company such as production, sales, finance, marketing, human resource… Specific knowledge about activities relating to International Business major There are very few courses at university that provide graduates with a specific professional qualification It is generally down to you to define and implement your own personal career plans An internship can be a considerable benefit to student in this respect Internships will introduce you to potential future work environments and you will be able to decide whether these meet your career wishes and interests You can also acquire important supplementary skills during an internship and make contact with potential future employers In my circumstance, the most important goal of the internship at the Petro Vietnam Machinery & Technology (PV-Machino) is to approach the practical work in an international business sector; and learn more techniques as well as get more experiences In addition, catching the specialized 36 work in a practical environment also gives me opportunity to learn more about my ability and my potential in the future The internship also helps me improve working abilities in real enterprise with theoretical knowledge and enhance attitude, personalities to adapt company’s policy and as well as self- discipline, working ethics… II Assigned Tasks: Table 11: Summary of Tasks Performed During the Internship Week Date Tasks performed - Understand the company’s organizational structure, culture policy, operation, human resource, functional divisions, … - Explore more deeply about structure & functions of internship From 18/1/2016 department (techniques, process, colleagues…) to 22/1/2016 - Reading documents relating to foreign trade techniques, commercial law, taxation, sales contract policy…to support for job position From 25/1/2016 to 29/1/2016 - Practice using office facilities such as fax machine, printer, and projector - Find information about functions of internship’s department - Insert data on excel books, type documents if required - Organize some events within department for Tet Holiday - Help to collect every single paper and make up a full set of document under instruction of manager - Do more digital tasks like using Microsoft Office tools: Word, Excel Outlook - Assist other colleagues & directors some simple tasks such as preparing invitations for meeting, checking information in sales contracts, photocopying, printing… - Prepare for new year meeting between board of directors & From 15/2/2016 employees to 19/2/2016 - Manage & classify import/export documents - Help accountant write VAT invoices for goods/ services trading, insert accounting book sheet 37 Week III Date Tasks performed - Almost perform similar tasks as above (…) - Check import/export documents (bill of lading, packing list, Certificate of origin, certificate of quality/ quantity, insurance policy…) From 22/2/2016 - Follow orders from foreign countries, send email to partner to to 26/2/2016 ship goods at due date in sales contract - Assist to complete import/export procedures - Assist to find information & data to prepare market research about trading company - Check invoices, contracts, orders, shipping documents such as commercial invoice, bill of lading, mate’s receipt, delivery notices, VAT invoice From 29.2.2016 - Assist to open L/C applications according to sales contracts to 4/3/2016 - Learn to prepare customs declaration for import goods according to import/export documents - Search for trading partners on the Internet based on company’s requirements, send email for formal enquiry… - Directly email to oversee partners to ask for price, volume and conditions of contracts - Prepare full set of document includes: contract, invoice, packing From 7/3/2016 to list, types of certificates, transportation form, insurance, customs 11/3/2016 paper for clearance - Follow orders from foreign countries, send email to partner to ship goods at due date in sales contract - Check and Complete the internship report; Submit the internship report - Thank all the staffs in the Division Working Methods: Here are some tips of working experiences during my internship at PV Machino to complete my own tasks for best results as well as improve interpersonal skills for future jobs: • Translating & interpreting documents: This task requires high command of English or other languages because trading partners of the company not come from one certain country However, English is the most common language nowadays, so you should be good at English in both written and verbal in order to response to the foreign partner’s 38 enquiries as soon as possible If you study in an International School, It may be not a big deal Besides, thanks to all theoretical foundation learned from university, I could easily interpret import/export document and business mails • Practicing computer skills: At the internship company, you will have chances to improve your official skills such as learning to use facilities like fax machine, photocopier, printer…because first days of your internship is just to notice and help other photocopy documents Besides, you can enhance your Microsoft Office skills such as word, Excel, Power Point, Outlook or even some accounting soft wares such as Misa, Fast,…because you will a lot of different tasks during your internship such as typing contract, inserting data, writing VAT invoices,… • Keeping contact with the partners: When exchanging with the company’s partners, you need a highly respectful attitude and consciousness because each message sent contains important information, which can extremely affect company’s transactions Therefore, you need to improve your communication skill, especially in business context For example, when you talk, the information should be clearly conveyed and coherent, avoid go out of topic But then you listen, you need to concentrate on the partner’s says to understand his / her point and find out the best response After the call, you must note down important things to report to your supervisor • Managing time schedule: Working hour varies from company to company, but it normally takes nearly hours per day in weekdays and you sometimes have to further task after official hours Therefore, you need to manage your time budget in order to ensure the punctuality and company’s timetable During the internship, you not have too much things to do, but try to use that time as much effectively as you can Never waste your time at interned company because this is a valuable chance for you to learn a lot of things at work place For example, instead of waiting for task assigned, you can actively ask colleagues for further documents relating to your research and try to apply your theoretical knowledge on real transaction D/ Achievements & Lessons after Internship: I Theoretical Knowledge Enhanced: - After the internship, your knowledge about “International Trade Management” & “Foreign Trade Technique” theory has improved a lot With the Bachelor of International Business, you have studied about international transactions as well as how to complete a procedure of buying in or selling out products in foreign trade operation subjects This means I have well preparation of a certain theoretical foundation for the intern job at an import / export company However, because of work characteristics at PV-Machino only for importation field, my utilization of 39 importing skills is out-weighted exporting ones Besides, PV Machino mainly follows terms of Incoterms 2010 which are CIF and CFR, and their payment method is covered by T/T or D/P and L/C, so I not have much opportunity to practically access to other terms of Incoterms In my experience, we can apply very well the exact theories learnt for the work at PV Machino, especially in the Economic and Technical department where people manage all steps of importing process for the whole company - Besides improving knowledge in import/export field, you also have chances to expose accounting documents of the company such as VAT invoices, financial report, Phieu thu, Phieu chi, Giay bao no, Giay bao co…and try to analyze the data, figures based on theory you have learnt about “Corporate Finance”, “Accounting Principles”, “Financial Report Analysis”, “Taxation” - Another theoretical knowledge you have found practical after the internship period are about “Human resource management” & “Corporate Culture” You will have been trained under the instructions of managers and followed the regulations of company such as punctuality and responsibility with the job and respect to business ethics Especially with a big company like PVMachino, the corporate culture is very strong and followed by all employees not only in daily activities but also in some special events II Practical Experiences Gained: - Study must be accompanied by practice, and the internship raises practical issues that students must apply their knowledge to practical work During 6-week internship, you will approach to an effective working environment, where the ability and skill of the staffs were promoted At PVMachino, my main goal was to learn and get more working experiences and my main duties were office works such as typing, translating & interpretation, preparing importing documents as well as practice synthesis & analysis skill Especially, the Department of Economic & Technical was a focal business division, so I have opportunities to learn and practice a lot of foreign trade techniques such as negotiation, executing sales contracts, using Incorterm 2010 in real transactions, opening L/C, customs declaration for importing goods… - The internship helps me learn how to complete real import procedures, as we were taught before at school, international transactions and foreign trade operations were quite complicated and they offered its learners some knowledge base about general international business, business law, taxation and the ways to fulfill sales contracts or agreements among economic objects Internship at PV-Machino gives me chances to get familiar with every stages of an importing process handled by two parties from signing the contracts, hiring transportations, working with banks and insurance companies to taking delivery, transferring risk of goods then distributing to the market 40 - Executing contracts is also a big part that you will be perceived after doing internship at PVMachino In my opinion, although we have learnt carefully and accurately about contracts, content and articles of contracts through International Trade Management” subject, the real work is actually more flexible and simple Because PV-Machino and oversea partners have been creating closed relationship, contracts between them are not long and not have many articles as theory learnt, every important points are discuss completely in the negotiation meeting III Soft Skills Improved: • Time management skill: Due to nature of importing job, you have to be appropriately on time for the whole process Corresponding with oversea suppliers to ask for price, details of commodity, or negotiate for discount force you to be quickly responsive • Communication skill: PV-Machino is a big-sized corporation with hundreds of employees, so you will have many chances to practice and improve your communication skill After internship period, you also understand more business culture through chatting with colleagues, joining in company’s events…This means you will meet more people in different contexts, and your communication skill will be steadily better, especially in business world • Data analysis skill: During the internship, you are allowed to access to some source of information of the company Thus, this is a big chance for you to gather, collect and manage papers and documents to prepare for your internship report as well as completed commercial transactions When doing research about company’s partners or finding financial information for your report, you will have to analyze the data • Teamwork skill: During internship time, you may have chances to work with a lot of colleagues & other interned students to support for some projects that company organizes Each person will have to contribute to the whole department’s task and resolve conflicts incurred when there are opposite proposals • Searching skill: Internship in a company which is closely related to your major helps you change the tough theory into practical things In the office, I searched for the latest economic & financial news, the most updated product’s prices, partner’s information…on the Internet to negotiate and analyze price level and volume diagram so as to raise advices or recommendations to the manager IV Contributions to PV-Machino during Internship: 41 Under the role of Economic & Technical department, I have met Mr Son, the Head Director of this department to state my recommendation of importing source in China I filed some of my researches and analysis about potential reserve as well as the basic price of raw material there The reason for this idea is the distance between two countries Vietnam and China There is no doubt that the imports price of material in China is higher than any other current suppliers of the company With the shortening of distance; however, it is like a comparative advantage of PVMachino to reduce transportation cost and especially to decrease the time of delivery which means a lot in risk responsibility and the punctuality of goods As a result, Mr Son appreciated my ideal suggestion and decided to further researches and carefully consider of Chinese market Besides giving ideas on importing market, I also have done some important tasks as follow: • Drafted completely sales contract No.01/Topimax-PVM/2015 between Topimax marine Pte Ltd in Singapore and Petro Vietnam Machinery – Technology Joint Stock Company for importing camera controller, camera, midspan, bracket… • Fulfill L/C Application form No 09.1/BM.TF and customs declaration for commodities in sales contract No.01/Topimax-PVM/2015 Write VAT invoices No.0002446 to Saigon IPC Steels Ltd to sell rolled & sheet steels… • Supported Economic & Technical Department for managing import / export documents to the storage • Collected properly full set of documents for commercial transactions includes: Bill of lading, commercial invoice, certificate of origin, certificate of quality/ quantity, insurance policy & contract, mates receipt… • Secretary for a company’s new-year meeting on February 15 th, 2016 to celebrate previous year achievements & make plan for next year References PV Machino.com (2015) About PV Machino [Online] Available at: http://pvmachino.com.vn/[Last accessed 06 Jan 2016.] Thanh Mao (2015) So phan long dong cua PV Machino [Online] Available at: http://cafef.vn/tai-chinh-quoc-te/hang-dell-chi-125-ty-usd-nham-tham-nhap-sau-vaotrung-quoc-2015091107280992.chn [Last accessed 06 March 2015] 42 Baodautu.vn (2016) PV Machino se niem yet co phieu tren san chung khoan/ Online Available at: http://baodautu.vn/pv-machino-se-niem-yet-co-phieu-tren-san-chung-khoand25934.html/ [Last accessed 08 Feb 2016] PSG.TS.Doãn Kế Bôn (2010), Giáo trình quản trị tác nghiệp thương mại quốc tế, Nhà xuất Chính trị - Hành chính, [Published 22March 2010] PV Machino.com (2015) Quyết định số /QĐ/HĐQT-PVM 4/2010 Quy dinh co cau to chuc, chuc nang, nhiem vu, quyen han cu abo may tham muu, giup viec cong ty PV-Machino Available at: http://pvmachino.com.vn/[Last accessed 06 Jan 2016] PV Machino.com (2015) Bao cao tai chinh kiem toan nam 2012, 2013, 2014 [Online] Available at: http://pvmachino.com.vn/ [Last accessed 06 Jan 2016] Kawabata, N (2015) Iron and Steel Industry in Viet Nam: A New Phase and Policy Shift [online] Academia.edu Available at: http://www.academia.edu/6840172/Iron_and_Steel_Industry_in_Viet_Nam_A_New_Phas e_and_Policy_Shift [Last Accessed 15 Oct 2015] Serkan Kavas (2012) Five basic steps on how to import [Online] Available at: http://www.morethanshipping.com/how-to-import/ [Last Accessed 12 Jan.2016] Appendix 43 44 45 46 47 [...]... code: PVI) for 10,509VND / shares and 13.9 million shares equivalent to 36% for PVC (Petro Vietnam Construction Joint Stock Company, code: PVX) - Petro Vietnam Securities Joint Stock Company (JSC) also bought 3.27 million shares and become the major shareholder with 10.48% ownership - On 4/2011, PV- Machino became managed units under the Petro Vietnam Technology & Energy Company (PV- EIC) after PV- EIC... by the Petro Vietnam Corporation - Besides the IPO, the company also plans to sell shares to a strategic partner (1 5%), which is expected to include Him Lam Joint Stock Company (4 %) and Vietnam Joint Stock Commercial Bank (1 1%) and sell to strategic investors 15%, - However, in 2010, Petro Vietnam has transferred more than 17 million shares ( more than 44% of charter capital) for PVI JSC (Petro Vietnam. .. for graduated paper as follow:  Topic 1: Solutions for improving operational efficiency and importing process in the Petro Vietnam Machinery & Technology (PV- Machino)  Topic 2: Opportunities and challenges in importing oil equipment of the Petro Vietnam Machinery & Technology (PV- Machino) before and after TPP success C/ Purposes, Assigned Tasks, Measurements of The Internship: I Internship Purposes:... EIC) after PV- EIC owned 41.58% shares transferred from PVI, PVC - In 2014, PV- Machino became managed unit under the Petro Vietnam Electricity Power (PV Power) after PV- Power received transferred shares from PV EIC and PSI, and then became the largest shareholder with ownership rate 51, 5% Table 4: Owner’s Equity of PV- Machino from 2012 to 2014 ( Unit: VND ) Owner’s Equity -Owner’s Capital Year 2012... 5: Importting Turnovers of PV- Machino from 2012 – 2014 (Unit: Billion VND) No 1 2 Indicators Total Revenue (Billion VND) In which, Importing Revenue (1 000 USD) 2012 2013 2014 1,086 1,969 1,887 968 1,347 1,063 20,2 28,6 22,6 1,86% 1,45% 1,19% Foreign Exchange Rate (Billion VND) - 3 - In 2012: 20.828VNĐ/USD - In 2013 - 2014: 21.246VNĐ/USD Weights in Total Revenue (% ) (Source: PV- Machino’s official website)... trusted & strong relationships with partners, build PV Machino prestigious brand in not only domestic but also foreign markets - As a member of the Vietnam Oil and Gas Group (Petro Vietnam) , the company has many opportunities to develop the business sector, investment diversification, conditional participation in large projects, access to technology , technology manager of the domestic and international... growth rate increases from 2.77% to 23.59% as the following table: Table 6: PV- Machino’s Structure of Imported Products 2012 Commodity Turnover (Trillion VND) 2013 2014 2013/2012 2014/2013 Turnover (Trillion VND) Turnover (Trillion VND) Growth Rate (% ) Growth Rate (% ) Mining & Construction Machines 963 847 658 -12,05% -22,31% Petrol/Oil Exploring Equipment 759 780 964 2,77% 23,59% 631 465 325 -26,31%... also acquire important supplementary skills during an internship and make contact with potential future employers In my circumstance, the most important goal of the internship at the Petro Vietnam Machinery & Technology (PV- Machino) is to approach the practical work in an international business sector; and learn more techniques as well as get more experiences In addition, catching the specialized 36 ... on the effectiveness of the plan for the approval of company’s leaders (The Economic & Technical Division coordinate with Financial & Accounting Division) 23 About transportation channels, PV Machino has a 10-year-cooperated contract with Tuan Linh firm (Ha Noi) for delivering in provinces and cities in northern Vietnam (only to Thanh Hoa specifically) and a same-period contract with seaway transportation... Department Ended process – Save files (Source: Economic & Technical Department – PV Machino)  Step 1: Contract with Investors After obtaining the results announced by the investor or investor representatives to the Company approved the implementation of the project works, the General Director of the Company has signed with the investor or representative investor  Step 2 – Management model decision: