MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: NGUYỄN THỊ THU HẰNG

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE THE FREIGHT
FORWARDING SERVICES FOR IMPORTING FCL CARGOES
AT GOODTRANS – HAIPHONG

HAI PHONG – 2015


MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: NGUYỄN THỊ THU HẰNG
CLASS

: GMA02

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

My topic is “Recommendations to improve the freight forwarding services for
importing FCL cargoes at GOODTRANS – Haiphong” including three major
chapters.
I declare that this report is my own unaided work. It has not been
submitted before. If violated, I am solely responsible for and bear the punishments of
the Institution and University.

Student Name and Signature

Nguyễn Thị Thu Hằng

Nguyễn Thị Thu Hằng – GMA02

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Recommendations to improve the freight forwarding services for importing
FCL cargoes at GOODTRANS – Haiphong

ACKNOWLEGEMENT
I would like to express my sincere gratitude to my advisor Mr. Doan Trong
Hieu for the continuous support of my study and related research, for his patience,
motivation, and immense knowledge. His guidance helped me in all the time of
research and writing of this thesis. I could not have imagined having a better advisor
and mentor for my study.
In addition, I am also very grateful to Mr. Nguyen Manh Cuong - Chief of
Representative Office in Haiphong, who always guides, encourages and supports me
when I have internship in company. Last but not least, I am very appreciate and would
like to thank all the GOODTRANS staffs who help me complete all of works.


1.2.2. Rights and obligations of freight forwarder....................................................... 5
1.2.3. Responsibilities of freight forwarder ................................................................. 5
1.3. Process of providing freight forwarding services for importing FCL cargoes 6
1.3.1. Signing delivery contract and receiving the imported documents ...................... 7
1.3.2. Registration of customs declaration ................................................................. 8

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Recommendations to improve the freight forwarding services for importing
FCL cargoes at GOODTRANS – Haiphong
1.3.3. Checking the goods ........................................................................................ 10
1.3.4. Paying tax, paying customs fees and retaking customs declaration ................. 11
1.3.5. Delivering the goods to the imported business ................................................ 12
1.3.6. Final settlement .............................................................................................. 13
1.4. Criteria to evaluate the freight forwarding service ........................................ 13
1.5. Advantages and disadvantages of freight forwarding services in Haiphong
city ........................................................................................................................... 15
CHAPTER 2: SITUATION OF FREIGHT FORWARDING SERVICES FOR
IMPORTING FCL CARGOES AT GOODTRANS – HAIPHONG ................... 19
2.1. Overview of GOODTRANS and Haiphong branch ....................................... 19
2.1.1. History of foundation and development ........................................................... 19
2.1.2. Overview of Haiphong branch of GOODTRANS ............................................. 20
2.1.3. Main services .................................................................................................. 21
2.1.4. Personnel structure ......................................................................................... 23
2.1.5. Situation of business operation in recent years ............................................... 24
2.2. Freight forwarding services for importing FCL cargoes ............................... 29
2.2.1. Freight forwarding process for importing FCL cargoes .................................. 29

market ...................................................................................................................... 51
3.3.6. Limit the impact of seasonality ........................................................................ 51
3.3.7. Maintain the low costs .................................................................................... 52
CONCLUSION ....................................................................................................... 53
REFERENCE ......................................................................................................... 54
APPENDICES ........................................................................................................ 55

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Recommendations to improve the freight forwarding services for importing
FCL cargoes at GOODTRANS – Haiphong

LIST OF SYMBOLS & ABBREVIATIONS
FCL

Full container load

FIATA

International Federation of Freight Forwarders Associations

B/L

Bill of Lading

THC


LIST OF PICTURES
PICTURE 1.1: Freight forwarding process for importing FCL cargoes ....................... 6
PICTURE 1.2: ROPMIS model to evaluate the freight forwarding service. .............. 14
PICTURE 1.3: Position of ports in Haiphong city..................................................... 16
PICTURE 2.1: Personnel structure of Haiphong Branch of GOODTRANS .............. 23
PICTURE 2.2: Freight forwarding process for importing FCL cargoes of
GOODTRANS - Haiphong branch ........................................................................... 29
PICTURE 2.3: Login the electronic declaration software.......................................... 32
PICTURE 2.4: Enter the information of importing enterprise ................................... 32
PICTURE 2.5: Enter the information into the import declaration .............................. 33
PICTURE 2.6 Enter the list of imported goods ......................................................... 33
PICTURE 2.7: Access homepage of Vietnam Customs ............................................ 36
PICTURE 2.8: Enter the requested contents ............................................................. 37
PICTURE 3.1: Suggestion diagram of freight forwarding process for importing FCL
cargoes in Haiphong branch ...................................................................................... 48

LIST OF TABLES
TABLE 2.1: Overview of Haiphong branch .............................................................. 20
TABLE 2.2: Result of business operation in GOODTRANS – Haiphong branch from
2011 to first 9 months in 2015 .................................................................................. 25
TABLE 2.3: Business operation of the freight forwarding services for importing FCL
cargoes at GOODTRANS – Haiphong branch from 2011 to first 9 months in 2015 .. 28
TABLE 3.1: SWOT analysis of freight forwarding services for importing FCL cargoes
at GOODTRANS – Haiphong branch ...................................................................... 43

LIST OF GRAPHS
GRAPH 1.1: Volume of goods through the Haiphong port ....................................... 16
GRAPH 2.1: Business operation in GOODTRANS – Haiphong branch from 2011 to
first 9 months in 2015 ............................................................................................... 25
Nguyễn Thị Thu Hằng – GMA02

- Present literature reviews related to freight forwarding services
- Research about Haiphong Branch of GOODTRANS Overseas Services
Company Limited
- Research the current status of the freight forwarding services for importing
FCL cargoes at GOODTRANS – Haiphong branch to determine the
strengths and limitations of the service. Also propose some solutions and
recommendations to improve freight forwarding services for importing FCL
cargoes at this branch.
3. Subject and scope of research:
- Subject of research: the current status and operational process of the freight
forwarding services for importing FCL cargoes at GOODTRANS –
Haiphong branch.
- Scope of research:
+ Place: GOODTRANS Overseas Services Company Limited – Haiphong
Branch
+ Time: analyze the statistics of 5 recent years (2011, 2012, 2013, 2014 and
first 9 months in 2015)
4. Methods of research:
- Statistical method: Analyze the data, jump and drop of statistics.
- Description method: Describe the processes and the steps.
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Recommendations to improve the freight forwarding services for importing
FCL cargoes at GOODTRANS – Haiphong
-

Analysis method: Analyze, synthesize and compare the statistics from the

Forwarders Associations), freight forwarding services can be defined as any kind of
services related to carriage, consolidation, storage, handing, packing and
distribution of goods; any advising services and other related services; including but
not limited custom issues, finance, procurement of insurance of goods, or procuring
payment and documents of transportation.1
According to Vietnam Commercial Law, freight forwarding services are
commercial operations; forwarders have responsibilities to carriage, storage,
carrying out procedures and other services to transport goods from an owner to
other owners or organizations (referred collectively to as customer). 2
In short, freight forwarding services are collection of behaviors and
procedures related to transporting process in order to deliver goods from a place (or
sender) to destination (or recipient). Forwarder can do their services directly or by
using 3rd parties (outsource).
1.1.2. Classification of freight forwarding services:
1.1.2.1. Based on the scope of activities:
-

Domestic freight forwarding services
International freight forwarding services

1.1.2.2. Based on the means of freight forwarding service:
-

Freight forwarding services by sea
Freight forwarding services by air
Freight forwarding services by rail
Freight forwarding services by road
Multi-modal transportation
…


although not as the carrier. Freight forwarder also undertakes the implementation of
all the works related to delivery and receipt contract such as preservation, storage,
transshipment, customs procedures, goods inspection...3
According to Vietnam Commercial Law, freight forwarder is a trader who
has the certificate of business registration of freight forwarding services. 4
In short, people who provide freight forwarding services are called as
"Forwarder, Freight Forwarder or Forwarding agent". Freight forwarder may be
goods owner, ship owner, handling company or warehouse, professional freight
forwarder or another person.
Forwarders have professional qualifications such as:
-

-

Know how to combine different modes of transportation.
Thank to the consolidation service, know how to take advantage of capacity
and tonnage of shipping tools maximally.
Know how to combine transport - logistics - import and export, have good
relationships with organizations related to the process of goods transportation
such as Customs, Shipping Agency, Station and Port ...
Create favorable conditions for the import and export business to help them
operate efficiently with freight forwarding services.
The import and export business can use the forwarder's warehouses to reduce
the construction costs of warehousing.
The import and export business can reduce the costs of administrative
management; and organizational structure is simple. Also they have
conditions to focus on import and export business.

3


fulfill the obligations to customers, freight forwarders must implement their
obligations in a reasonable period.
1.2.3. Responsibilities of freight forwarder:
1.2.3.1. When freight forwarder is the forwarding agent:
Depending on the functions of forwarder, the forwarder must to implement
fully their obligations according to the contract which is signed and must be
responsible for the following:
-

Shortcoming in buying insurance for the goods although there were
instructions
Shortcoming in the customs procedures
Transport goods to wrong specified location
Transport goods to wrong consignee
Deliver without collecting money from the consignee
Do not republish according to the necessary procedures or non-refundable
tax
The loss of assets and people of a third person whom forwarder caused.

However, the forwarder does not take responsibility for mistakes of the third
person if company demonstrates that the select is needed.
When freight forwarders are the forwarding agents, they must follow the
“Standard Trading Conditions”.
1.2.3.2. When freight forwarder is the carrier:
When being the carrier, freight forwarders have role as independent
contractors to provide the services that customers require. They must be responsible
for the acts and mistakes of the carriers and other forwarders who are hired to
5

“Vietnam Commercial Law”, 2005, Article 167.

Due to the nature of the goods
Due to the war or strike
Due to the majeure cases

1.3. Process of providing freight forwarding services for importing FCL
cargoes:

Signing delivery
contract and
receiving the
imported
documents

Final settlement

Registration of
customs
declaration

Checking the
goods

Delivering the
goods to the
imported business

Paying tax,
paying customs
fees and retaking
customs

seller, the characteristics and relationships between both sides.
The contract does not contain terms which are contrary to the existing laws
in the country of the buyer and seller.

1.3.1.2. Receiving and checking the imported documents:
Freight forwarding company will receive an original set of documents from
partner (import business) including: Sale Contract, Commercial Invoice, Packing
List, Bill of lading and Arrival Notice.
When receiving complete set of documents from partner, employee of the
freight forwarding company are responsible for checking the set of documents
before making the declaration for customs procedures. To ensure accuracy,
consistent and valid for set of documents, this employee have to check carefully and
ensure that all documents fit together, especially with contract. During the checking,
if finding out mistakes of the documents, they must notify immediately to the
customer in order to adjust promptly.
Checking the Sales Contract
Check name of the importer, number and date of contract, name of goods,
quantity, unit, unit price, value, foreign currency payment, terms of payment, terms
of delivery, delivery deadline and payment deadline.
Checking the Commercial Invoice
Check number and date of invoice, other details: name of goods, quantity of
goods, unit price, value and unit... All of them must be same on the sales contract.
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Recommendations to improve the freight forwarding services for importing
FCL cargoes at GOODTRANS – Haiphong
Checking the Packing list

goods to conduct the clearance of goods; goods owners are responsible for keeping
the set of documents by the period of 5 years. The remaining set in the customs
authority is reexamined and stored in accordance with the laws of the General
Department of Customs.
The duration of customs procedures for imported shipments:
In the period of 30 consecutive days, when ship comes the port of discharge
which is recorded on the bill of lading; "Customs declaration of imported goods
have to be made before or within 30 days from date when the goods comes the port
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Recommendations to improve the freight forwarding services for importing
FCL cargoes at GOODTRANS – Haiphong
of discharge; the customs declaration has the value of customs procedures within 15
days from the date of registration".6
Location to carry out the customs procedures:
Location to carry out the customs procedures is place to complete the
declaration procedures, present the issues which need to check and conduct the
obligation to pay customs taxes. Customs procedures can be made in any place
which is the most convenient for goods owners.
1.3.2.2. Calculating the tax:
The dutiable value of imported goods: is the actual price which the importer
must pay, it is accounted from the first imported gate. Also it is determined by
applying sequentially six determining methods of dutiable value. The checking
purpose of the dutiable value declaration is to determine the dutiable value, inspect
the compliance with laws in the declaration of the customs declarer, ensure correct
value and method in the declaration and collect correct and sufficient taxes for the
state budget.



Recommendations to improve the freight forwarding services for importing
FCL cargoes at GOODTRANS – Haiphong
imported goods, customs declaration must be reworked and submitted to the
customs authorities. Time for tax calculation is the date of filing the declaration
later.
Deadline for the tax notice:
- This is based on the principle that goods owners declare tax and pay taxes
themselves.
- Within a period of 8 hours from the time that customs authority has
finished the checking of real imported goods, if there are differences in the original
tax declaration, customs authority must notify the insufficient or excess tax
compared with a tax announced according to declaration for goods owner.
- Goods are required following by the rules of technical and quality standards
to ensure the accuracy of the tax calculation. Deadline for the tax notice is a
maximum of 15 working days from the date that declaration is registered by goods
owner.
1.3.3. Checking the goods:
With FCL imported goods, when the goods in the container arrive at
inspection location, customs employees who are responsible for goods inspection
must to check the number of container, the seal number of ship owner and the seal
number of Customs. If the number of container and the number of seal are incorrect
(or the seal of Customs is lost), customs employees must to make a written record
and report immediately to the leadership. If the number of container and the number
of seal are correct, customs employees open container to check the goods.
For the goods which need to check the details, customs employees check all
goods in container.
For the goods which are allowed to check the representative goods, three
requirements must to ensure when checking:

businesses must to calculate and make tax notices before releasing the goods.
In the red flow:
Check the detail of documents and the actual goods. Time of checking the
goods depends on the complexity of each case. This is the flow of goods which
have complex documents. Also this is the flow of the businesses which have many
serious violations of law, must be controlled and monitored closely, businesses
must to complete all customs procedures before releasing the goods.
Responsibilities of employees who make the customs procedures:
-

Show all the goods to customs authority to check by specified time and
place.
Arrange vehicles and employees to serve the checking the goods of customs
authority.
Always being available during the checking of goods.

In the case that employees who make the customs procedures do not agree
with the checking results of customs authority, they have the right to ask for
assessment in the inspection organization which was permitted by the State. If the
customs authority do not agree with the assessment results, the customs authority
requests the Ministry of Science and Technology or the Ministry of specialized
management to solve. Conclusion of the Ministry of Science and Technology or the
Ministry of specialized management is the final determination.
1.3.4. Paying tax, paying customs fees and retaking customs declaration:
Paying tax:
If imported goods are the materials for production:
Must pay tax in the nine months (calculated as 275 consecutive days) from
the date which customs declaration is registered. Conditions for application:

Nguyễn Thị Thu Hằng – GMA02


Make customs procedures for exported and imported goods
The goods are consigned or stored in customs warehouses
Escort and seal for goods
Reissue the customs documents and licenses for the service activities under
the jurisdiction of customs authority
Goods, luggages and vehicles in transit

1.3.5. Delivering the goods to the imported business:
1.3.5.1. Receiving the goods at port:
With FCL imported goods, when receiving Arrival notice, goods owner
brings Bill of lading (1 original) and Letter of recommendation (1 original) to ship
owner to take the Delivery order (D/O). Goods owner brings D/O to customs
authority to make procedures and register the checking of goods (goods owners can
bring the container to their own warehouse or ICD (Inland Container Depot) to
check the goods, but they must return the container box on time, if not, they can be
fined).

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Recommendations to improve the freight forwarding services for importing
FCL cargoes at GOODTRANS – Haiphong
After completing the customs procedures, goods owner must bring all
documents of receiving goods and D/O to ship management office at port to
confirm the D/O. Last is getting Goods delivery note and receiving goods.
1.3.5.2. Dispatching the means of transportation:
Frieght forwarding company prepares mean of transportation to take goods


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Recommendations to improve the freight forwarding services for importing
FCL cargoes at GOODTRANS – Haiphong
Resources

Outcomes

Process
Satisfaction
Management

Freight
forwarding
service

Image

Social Responsibility

Picture 1.2: ROPMIS model to evaluate the freight forwarding service
Source: Thai Van Vinh & Devinder Grewal (2007), “ROPMIS model”
Resources:
Staffs need to have professional qualifications, experience and dynamism.
They organize all the stages of freight forwarding activities such as transaction
activities with customers, checking documents and customs procedures. Works are

goods owner and brand
Management:

-

Manage professionally; operate and monitor the working process
comprehensively
Operate and manage effectively; have orientation and direction for the
development of company
Image:

-

Create a good image in the eyes of customers about style of service
Create the trust and the reputation with customers
Social Responsibility:

Take responsibility in contributing to the social construction and sense of
responsibility to the nation.
Satisfaction:
-

Satisfaction of customers with services which are provided
Customers continue to use these products and services
Customers advertise for everyone to use

1.5. Advantages and disadvantages of freight forwarding services in Haiphong
city:
Haiphong city is located in the most dynamic region of Vietnam currently
(the northern key economic). Not only that, it is located in a favorable position

Thus, with the above outstanding advantage, sea and coastal of Haiphong
city have role as the center of marine economic development and international
cooperation in the north and in the country. Also it is the largest gateway to help
key economic regions and the North integrate with regional and international areas.
Besides, the marine economy of Haiphong developed rapidly, contributing
significantly to the city and the coastal areas of Tokin Gulf. There are many marine
economic sectors which are the motivation for the development of the city, the
northern region and the country; attracting increasingly the resources and investors.
However, the marine economy development of Hai Phong is not
commensurate with the potential and advantages of the city, and now the city is
facing big challenges from many social problems. Firstly, infrastructure is poor and
insufficient to meet the economic growth and the quick population growth.Traffic
jam, flooding and environmental pollution... are increasingly becoming popular,
being the obsession of people. Moreover, transportation infrastructure for logistics
services in Haiphong port is lack of synchronization. Port infrastructure is weak,
while transportation infrastructure which links the port to the outside are difficult,
especially for the super weight trucks.
Nguyễn Thị Thu Hằng – GMA02

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