1.4.2. Filler Master Batches 7
1.4.4. Color Master Batch tch 8
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INTRODUCTION
Since the issuance of new policies on diplomacy and economy of Vietnamese
government in 1986, namely Doi Moi era, Vietnam has set up its business relationship
with most countries in the world, even with former millitary opponents such as the
United States or Japan. Every year, exportation contributes billions of dollars to the
GDP of Vietnam. In general, our main exports consist of most agricultural products
such as rice, coffee, pepper, etc. and raw natural resources such as crude oil and ores,
as well as shoes, clothing and handicraft products, all of which are very low value-
added. Meanwhile, we import manufactured goods and luxuries like car, branded
clothing, alcohol, which has made Vietnam suffer a trade deficit for a long time. In
order to improve the balance of trade, the government has encourage Vietnamese
enterprises to shift from processing goods to order of foreign companies to producing
high value-added products for exportation.
According to the schedule of Foreign Trade University, I spent a five-week
internship at Europlast Joint Stock Company, which majors in importing raw material
and manufacturing polymer and plastic products for domestic consumption as well as
exportation. Under the training of my direct instructor, Ms Pham Thi Ngoc Mai, as
well as the condescention of the company’s staff, I have been given a great opportunity
to apply my academic knowledge to practical problems and compare with the theories I
have learned at the university. Based on my background knowledge and the experience
I gained during my intership, I decide to choose the topic for this report as: “Import-
export practices at Europlast Jsc”.
The report consits of three separate parts:
Chapter 1: General information about business practices of Europlast Jsc.,
Chapter 2: Import – export practices at Europlast Jsc.,
Chapter 3: Suggestions offered to enhance the efficiency of Europlast Jsc., in
international trade
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and technical service back-up.
Focus in modern technology, high quality product and in respect of the best
service for customers, Europlast will continue to provide innovative solutions, enable
responding to every demand of global market.
1.2. Developing history of EuroplastHistry
The relative young history of EuroPlast is a story of success. The long-term
experience of its expertise in polymer's production have been, together with multiple
international relations, the relevant starting capical.
09/2007
o Foundation of the company EuroPlast, situated in Ha Nam, Vietnam.
2008
o Establishment of the first factory in Ha Nam Industry Zone: 2 lines of
production for the capacity 700 MT/month. The company employed 31 people.
o The head office was situated in Ha Nam Province.
2009
o Establishment of the representative office in Ho Chi Minh city.
2010
o Expansion of the factory with 4 new production lines. The capacity total 2500
MT/ month.
o First international presentation of EuroPlast's product to China and EU Marrket.
2011
o Establishment of new branch in Ho CHi Minh city, in the south of Vietnam.
o Establishment of Trading Office in the center of Hanoi.
o Establishment of new branch in Nghe An Province.
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o Construction of the second factory in Nghe An, 3 hectare square total area.
o Year of exportation - The company export its product to more than 20 countries
in the world.
2012
o Expansion of the factory in Ha Nam, new building of 3000 m2 with modern and

market
- Internati-
onal market
- Trading
support
- Purchasing
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1.4.1. Filler Master Batch
Filler Master Batch is compounded of high quality filler, polymer resin and
other additive agents by twin-screw machine. It is widely used in the plastic industry
(blow film, blow molding, injection molding, wire drawing, bag molding, slip casting,
dyeing, extrusion molding) to reduce the production cost and improve the character of
final products.
EuroPlast’s Filler Master Batch is produced in a highly respective environment,
with high quality process and selective raw materials.
Application: (PE)
-Transparent film
- Injection/ extrusion
- Opaque film
- Extrusion coating film
1.4.2. Filler Master Batches
Filler Master Batches is compounded of high quality filler, polymer resin and
other additive agents by twin-screw machine. It is widely used in the plastic industry
(blow film, blow molding, injection molding, wire drawing, bag molding, slip casting,
dyeing, extrusion molding) to reduce the production cost and improve the character of
final products. Europlast's Filler Master Batch is a combination of calcium carbonate,
plastic flexibilizer and other special additives. It has good dispersion and
environmental protection, which can improve the surface antifriction, heat stability,
toughness, hardness, rigidity and increase specific gravity of plastic products.
Application: (PP)

shading power than his own pigments.
Main Color: black, blue, brown, green, grey, orange, red, violet, yellow
Application:
- Injection molding
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- Blowing film
1.5. Markets
1.5.1. Domestic market
40% turnover of EuroPlast comes from local market. Its products present
in every part of the country throughout the present of representative offices and
distributor link:
- North: Head Office in Ha Nam, factory in Ha Nam, talc mine in Ta Phu, Bac Giang,
talc mine in Phu Tho, office Representative in Hanoi
- Centre: Branch in Nghe An, factory in Nghe An
- South: Branch in Ho Chi Minh City
At this moment, the company has more than 80 loyalty customers working in
packaging and plastic manufacturing industry that produce water pipes, wires,
sheath conditioning, appliances…
Europlast’s main markets include:
Hanoi Hai Duong Ha Nam Hung Yen Hai Phong
Phu Tho Bac Giang Nghe An Da Nang Quang Ngai
TP HCM Binh Duong Dong Nai Can Tho Long An
1.5.2. Exporting market
At the moment, EuroPlast have more than 40 loyal export customers in
international market including:
- Asia: China, Pakistan, India, Japan, Sri Lanka, Indonesia.
- Europe: Russian, France, Poland, Italy.
- Africa: Camaroon, Algeria, Tunisia, Egypt.
- America: Brezil, Chile, Argentina, Ecuador.
- Australia

Find supplier
Evaluate
Stop
List of suppliers
Personnel in charge BM.08.02
General director/
Manager
Personnel in charge BM.08.02
Related
departments
Related forms
Accountant/
Personnel in charge
Prodution controller
Table 1: Importing process at Europlast
(Source: Europlast’s trading department)
Europlast has establish business relationship with both foreign and local
partners. The company purchases raw material and sells manufactured products to
customers. Raw material is bought from a variety of suppliers which provide the best
products at reasonable price regardless their geographic situation. Therefore, Europlast
has two different purchasing processes for domestic and imported goods, of which the
latter is much more complicated as it requires a number of procedures and bears more
risks and cost. In this chapter, I mainly discuss the importing process at Europlast.
The importing process generally consists of 6 steps:
Step 1: After receiving purchasing demand from some department, choosing a supplier
and getting the approval of the general director for the supplier, the purchasing
department will send an enquiry to the supplier.
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Purchase
Make payment/ Terminate

director has approved, personnel in charge will update the information of the new
supplier in the list of approved suppliers (BM.08.01)
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In case of demand arising at the turn of event, the personnel in charge can
directly consult the general director to appoint a specific supplier to ensure prompt
preparation of material for production.
- Tracking evaluation: Each department in Europlast will open a “ Supplier tracking
book” according to form BM.08.02. During the purchasing process, if any problem in
technical standard, quality, price, time of delivery, terms and conditions arise, it will be
recorded by the personnel in charge. The evaluation of the supplier will be based on
this tracking book. Head of related departments can remove suppliers from the
approved list depending on the evaluation standards. Head of departments will carry
out the tracking evaluation annually or when required to build a list of liable suppliers
for their departments. Revaluating standards include number of times of
nonconforming, seriousness of nonconforming, frequency of reoccurence, etc.
Form Code
Initiate supplier evaluation form BM.08.01
Supplier tracking book BM.08.02
Supplier revaluation form BM.08.03
List of suppliers BM.08.04
Purchase order BM.06.01
Table 2: List of related forms
(Source: Europlast’s trading department)
2.2.3. Steps in clearing importing procedure
Step 1: Europlast personne prepares a set of import clearance documents including:
contract, commercial Invoice, Packing List, Bill of Lading, Certificate of origin,
Importing Permission. Europlast personnel has to check the correctness and legality of
the documents before submitting them to custom. Any problem arising should be
promptly informed to the Seller to fix it at least cost and risk.
Step 2: Upon receipt of B/L or arrival notice, Europlast personnel will contact the

Send offer
General director/ Manager
Production & Trading
department
Accountant/ Personnel in
charge
Prodution controller
Table 3: Exporting process at Europlast
(Source: Europlast’s trading department)
The importing process generally consists of 6 steps:
Step 1: Europlast will initiatively send an offer and a sample attached to the offer to the
customer or when receiving enquiry from a customer. The trading department will
evaluate the customer’s offer to buy and negotiate to change unreasonable terms and
conditions until the two parties have reached mutual agreement.
Step 2: The two parties officially enter a contract. The contract may cover several
orders or only one order depending on the requirement of customer. It may be by fax or
foreign partner sends their representative to sign the contract directly with Europlast.
Step 3: When the contract has been signed, Europlast will ask its customers to open an
L/C as agreed in the contract. Upon receipt of notification from the bank, Europlast
staff has to check the conformity of the L/C with agreed terms and conditions and
corrects any discrepancies as soon as possible. Production department will proceed the
order in due time under strict control while trading department arrange delivery and
insurance policy if asked by customers. Customers may send their representative or ask
a third party to check the goods. Europlast is responsible to support them during
quality checking.
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Producing and making
delivery
Receive payment/
Terminate the contract

America to the Fareast. In 2011, about 50% of Europlast’s turnover comes from export
activities. In 2012, the proportion has expanded to nearly 60%. This number is
expected to reach 80% in 2015.

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46
48
50
52
54
56
58
60
2008 2010 2012
Export
contribution to
total turnover
Chart 3: Proportion of exporting turnover in 2008 – 2012 period (%)
(Source: Annual report of Board of Director from 2008 to 2012)
2.4.1. Strength
As Europlast directly imports the good instead of hiring another logistic
company, they can control all the risk and cost and prevent lengthened waiting period
due to mistakes arising in the process. In addition, they establish a separate department
that specialized in import-export practices, which helps to prevent distraction from
other activity of the company and improve the efficiency of Europlast.
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In addition, they are very careful in choosing reliable business partners and
conscious of the possibility of completing the contract in time. They are never blinded
by attracting but suspicious contract offered by untrustworthy foreign companies.
2.4.2. Weakness

time, it will introduce a new production line of household plastic
products such as bucket, raisin and cabinet, which will be the base
for the expansion to the +eld of hygienic plastic products such as rice
bowls, soup bowls, chopsticks and food containers later. These
products use plastic of higher quality that is safe for users and free of
poisons and harmful contaminants.
To prepare for this project, Europlast will upgrade some of its
production chain to satisfy all hygenical standard. They have
forcasted that if the launch of these new products is successful,
Europlast will strive for the total revenue of around 900 to 1,000
billion of VNĐ annually in less than 5 years. As a result, both their
domestic and international market share will be increased.
However, Europlast still lack a lot of necessary resources to
complete these goals and launch the plan for the new products. It will
have to face with strong opponents which are experienced in
producing hygenical plastic products such as Lock&lock Vina, Viet
Nhat Plastic and Dai Dong Tien. Therefore, to ensure its success in
the entrance to this promising market, Europlast still has to make
preparation in many aspects including investing more capital in
facility and equipments and improving technical, managerial,
+nancial and human resouce controlling skills.
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3.2. Suggestions
3.2.1. Improve quality of human resource
Foreign languages, professional knowledge of foreign trade and international
payment standard of Europlast’s staffs must be improved in order to catch up with
other competitors in import/export business. Companies active in this business without
enough good knowledge and experiences surely has to face with many risks, losses or
even bankrupts. Therefore, it is essential that import/export firms must improve their
skills of professional transactions as well as language skills.

CONCLUSION
Nowadays, exportation contributes more and more to annual GDP of Vietnam
and becomes a growing profit source for Vietnamese company. In the past, we only
focus on low value-added activities such as exporting agriculture products or simply
making ready-to-wear clothes to order of foreign fashion company. However, in recent
years, many Vietnamese companies have sought a new path that brings them more
profit: exporting manufactured goods instead of being a chain in the lowest part of the
value-added chain.
During the five-week internship at Europlast, I have learned both the advantages
and disadvantages the company has to face in doing business internationally and
detailed steps in the complicated process of importing and exporting. I have been
taught how to write and send professional enquiries, orders, offers and contracts in
practice by my considerous instructor, Miss Nguyen Ngoc Mai – Europlast Director
Assistant. These valueable experience will certainly help me a lot in my future career
in the field of import-export practices.
On writing this report, I have received careful instruction from Ms. Pham Thanh
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Ha. She helped me to choose a suitable topic for the report, make a clear outline and
write the thesis with reasonable content. Thanks for reading my report!
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REFERENCE
1. Europlast marketing department, Europlast history of development, 2012.
2. Europlast Accounting department, Europlast annual financial report, editions of
2008, 2009, 2010, 2011, 2012
3. Europlast Marketing department, Europlast polymer products, 2007
4. Europlast Trading department, Purchasing process, 2007
5. Europlast Trading department, Note on Sales and Exportation, 2007
6. James R. Pinnells, Exporting and the export contract, 1994 edition.
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