INTERNSHIP REPORT

UNIVERSITY OF ECONOMICS AND LAW
FACULTY OF INTERNATIONAL ECONOMIC RELATIONS

INTERNSHIP REPORT THE PROCESS OF IMPLEMENTING IMPORT CONTRACT AT BINHDINH PHARMACEUTICAL AND MEDICAL EQUIPMENT JOINT STOCK COMPANY

Lecturer: Master Dao Thi Ngoc Student’s Name: Ton Quy Dong Student Code: K114020112 Class: K11402T

Ho Chi Minh City, 08/2014

LECTURER’S EVALUATION

Contents
1. AN OVERVIEW OF BIDIPHAR 2
1.1. Foundation and Development 2
1.1.1. Basic information 2
1.1.2. Foundation and Development 2
1.1.3. Scale of BIDIPHAR 3
1.2. Function and Commission 4
1.2.1. Business and Commission 4
1.2.2. Major products and services 5
1.3. Structure 5
1.3.1. Model 5
1.3.2. Basic functions and commissions of each department 6
1.4. Financial situation in 2011 – 2013 8
2. Process of implementing import contract at BIDIPHAR 10
2.1. Involved Departments 10
2.2. Time 11
2.3. Process 11
2.3.1. Application for Import License 11
2.3.2. Application for L/C 12
2.3.3. Application for Insurance 13
2.3.4. Payment 13
2.3.5. Implementation of Customs Procedures 13
2.3.6. Receipt of goods 15
2.3.7. Inspection of goods 16
2.3.8. Claim 16
2.3.9. Liquidation of Contract 16
3. EVALUATION AND SUGGESTION 17
3.1. Evaluation 17
3.1.1. Strength 17
3.1.2. Weakness 17
3.2. Suggestion 18
3.2.1. Promote the professional qualification in foreign trade for the staff 18
3.2.2. Promote the professional qualification in Customs Procedures 18
3.2.3. Promote the professionalism in chartering and buying insurance 19
3.2.4. Promote the professionalism in payment 19
CONCLUSION 19

LIST OF TABLES AND PICTURES
PICTURES
Picture 1.1. Model of BIDIPHAR’s management system 5
Picture 2.1. E-Customs Procedures of Goods for trading 15

TABLES
Table 1.1. Short Balance Sheet 8
Table 1.2. Income Statement 8
Table 1.3. Some Financial ratios of BIDIPHAR 9

LIST OF ABBREVIATIONS

B/L Bill of Landing
BIDIPHAR BinhDinh Pharmaceutical and Medical Equipment Joint Stock Company
Co., Ltd Limited Company
Dept Department
D/O Delivery Order
IT Information Technology
L/C Letter of Credit
N/A Notice of Arrival
THC Terminal Handling Charge
INTRODUCTION
New diseases appear in Viet Nam and on over the world almost every day. The diversity of diseases creates necessitous demands for high quality drugs to pharmaceutical companies. At presents, the level of technology in Viet Nam can only fulfill a part of these demands. Therefore, the import of high quality material and finished products becomes more important. However, to avoid high transportation fees and unexpected damages of imported goods, the integration among involved departments in the process of implementing import contract needs to improve.
With one-month internship at Export – Import Department of BIDIPHAR, I had a chance of carrying out the report of “The process of implementing import contract at Binhdinh Pharmaceutical and Medical Equipment Joint Stock Company”. Based on my own perspectives, I would like to present some suggestions to help the company to have the materials in the best situation for manufacturing and trading. It would be my grateful to the guidance from the company and Master Dao Thi Ngoc to help me to carry out the report.
PURPOSE OF RESEARCH
To learn experience from the process of implementing import contract at BIDIPHAR and making suggestions to improve it.
SCALE OF RESEARCH
The activities in implementing importing contract of BIDIPHAR from 2011 to 2013.
METHOD OF RESEARCH
Analysis and compare secondary data to evaluate the process of implementing import contract at BIDIPHAR.
STRUCTURE OF THE REPORT
Chap 1: An overview of BIDIPHAR Chap 2: Process of implementing import contract at BIDIPHAR Chap 3: Evaluation and suggestion
1. AN OVERVIEW OF BIDIPHAR
1.1. Foundation and Development
1.1.1. Basic information
Trade name: BINHDINH PHARMACEUTICAL AND MEDICAL EQUIPMENT JOINT STOCK COMPANY.
For short: BIDIPHAR.
Headquarter based on: 498 Nguyen Thai Hoc St, Quy Nhon City, Binh Dinh Province.
Phone: [phone] Fax: [phone]
Website: www.bidiphar.com Email: [e-mail]
Foundation date: 15/05/1995.
Type: Joint stock company (Equitized since 01/03/2014).
Legal representative: Mr. Nguyen Van Qua – CEO and Chairman of the Board.
1.1.2. Foundation and Development
No 2 Nghia Binh Pharmaceutical Factory, established in September 1980, was the precursor of BIDIPHAR. Until now the company has been an over-30-year-old one, and it has had a good time to improve and approach to a popular and prestigious enterprise.
At the first time, the company fell in a poor condition. For the next period from 1984 to 1988, a lot of events happened. The factory was emerged into Nghia Binh Pharmaceutical Associative Factory. At the end of 1987, the unit was moved to new headquarter at 498 Nguyen Thai Hoc Street.
In 1989, when Nghia Binh Province was divided into Binh Dinh and Quang Ngai, the unit was then split back and renamed Binhdinh Pharmaceutical Factory (BIDIPHAR for short). The company started reorganizing, going into stability, investing for modern equipment and improving the level of employees. In 1994, BIDIPHAR formed a joint venture called CBF Pharma Co., Ltd with Champaasac Pharmaceutical Factory, in which BIDIPHAR held 80 percent of charter capital.
On May 15th in 1995, Binhdinh Pharmaceutical and Medical Equipment Company was formed by emerging Binhdinh Pharmaceutical Factory and Binhdinh Pharmaceutical - Medical Materials Company. The period of 1998 to 2009 is the time to significantly elevate the value of the brand. In 1999, BIDIPHAR was certificated for GMP – ASEAN standard. In 2000, the quality system of the company was converted to ISO 9001:2000 and certificated by BVQI (Bureau Veritas Certification). In 2002, BIDIPHAR launched the project for the biggest factory of infusions in Viet Nam.
In September of 2006, the model “Holding Company – Subsidiary Company” was applied to BIDIPHAR. Now, the company has six subsidiaries and fourteen accounting dependent units. In 2007, it held 30 percent of charter capital in Bidiphar Rubber Joint Stock Company, which focused on developing at Laos. In 2008, BIDIPHAR formed Bidiphar 1 Pharmaceutical Joint Stock Company, which then formed Bidiphar 2 Pharmaceutical Joint Stock Company. Later, Bidiphar 2 established a joint venture called Fresenius Kabi Bidiphar Joint Stock Company (FKB) with Fresenius Kabi Corporation (Germany). In 2009, it withdrew all capital CBF Pharma to focus on other projects.
Until 2010, BIDIPHAR was still a state enterprise. It was converted to a limited liability company owned 100 percent by Binh Dinh People’s Committee. And recently on March 1st in 2014, it was officially converted to a joint stock company and executed under the Enterprise Law.
1.1.3. Scale of BIDIPHAR
At the end of 2013, the charter capital was 268.267 billion VND. The number of employees reached 791 people and was distributed based on skills and qualifications.
BIDIPHAR has six associated units including: Bidiphar 1 Pharmaceutical Joint Stock Company, Quy Nhon Mineral Water Joint Stock Company, Bidiphar Rubber Joint Stock Company, Binh Dinh Printing and Packaging Joint Stock Company, BIOTAN Mineral Joint Stock Company and Binh Dinh Salt and Food Joint Stock Company.
In general, BIDIPHAR has a large scale. It produces many types of drugs to meet domestics and overseas demands. Besides, it has associated units which operate business in different fields.
1.2. Function and Commission
1.2.1. Business and Commission
1.2.1.1. Business
Manufacturing and trading pharmaceutical and medical products, equipment, tools.
Manufacturing, trading, installing, repairing and maintaining refrigeration electrical engineering equipment, cool sterilized air supplying system, oxygen and nitrogen supplying system used for health care.
Drug inspection and quality assurance advising service.
Manufacturing and trading agricultural and forestry materials. Planting and processing products from short and long day industrial plants. Manufacturing and processing timbers. Trading agricultural and forestry products, handicrafts.
Trading chemicals, vaccine, immune biological.
Manufacturing mineral water, soft drinks, papers, cartons, iodized salt and printing.
Manufacturing glass bottles and tubes for medical industry.
Exploiting and processing minerals. Land transport.
1.2.1.2. Commission
Manufacturing and trading according to registered business.
Researching domestic and overseas demands.
Complying with government’s policies, economy and export – import managing systems.
Complying with engagements in contracts.
Managing employees according to government’s policies, improving working condition, quality and efficiency.
Implementing labor safety, environmental protection tasks.
1.2.2. Major products and services
At present, the company is manufacturing and trading twelve types of medical equipment and nearly 400 pharmaceutical, divided into 19 groups:
Antibiotic Antiviral and Antifungal Diabetes treatment
Cold medicines Muscle – Bone - Joint Painkiller
Antihistaminic Respiratory system Eye drops
Cardiovascular Nervous system Digestive system
Vitamin Blood Dialysis Liquor Hormone
Antidote External Medicines Cancer
Supplement Dietary
1.3. Structure
1.3.1. Model
BIDIPHAR’s management system is structured after model “Immediacy – Coordination”.
Picture 1.1. Model of BIDIPHAR’s management system

1.3.2. Basic functions and commissions of each department
Board of Director includes a chairman, a vice and five other members. Each member has max term of five years. This board discusses about development strategy, share dividends and other important matters.
Board of Supervisor includes three members. This board supervises Board of Director and President in operation.
President is the most powerful manager in operating the company’s business. He takes part in transaction, signs contracts and takes responsibilities in front of Shareholder Congress and Board of Director.
Vice President in Business assists the President in charge of trading strategy and marketing strategy and supervises the assigned departments.
Vice President in Finance assists the President in managing the company’s finance. He supervises Finance – Accounting Department and IT Team.
Vice President in Manufacturing supervises manufacturing activities and gives advice to the President. He was assigned for operating the manufacturing of associated companies.
Business Department builds the business network in the country and business strategy for each area. This department also sets the targets, builds the plan and calculates the results of selling products in each period and for each product.
Marketing Department plans and makes budget for PR activities in short term and long term, builds events, builds relationship with media. This department also builds internal events for the solidarity of the company. They ensure that the marketing goals are in consolidation with the business goals, update and propose reaction to market and competitors.
Export – Import Department makes sure the input and output of the company. This department provides information, translates documents and interprets to the higher managers. Their advices were counted when the company signs an international trade contract and they also take responsibility of exporting or importing goods. In addition, they also watch and urge the progress of other shops and departments to make sure that the products are finished to meet the shipment date in contract or propose proper solutions.
Medical Equipment Department assists the managers in manufacturing medical equipment, makes plan of manufacturing for each period and buys materials and chemicals for manufacturing.
Transportation Team implements transportation, registers, evaluates the designs of reparation and upgrade for the means of transport. They implement, watch, check and ensure the safety in transportation of the company.
Mechanical – Electrical Shop evaluates, maintains, repairs or produces electrical appliances and machines for production.
Quality Management Department sets, implements and maintains quality management system to meet the standards of GMP and ISO 9001:2000
Technology Department builds the process of manufacturing and leaves the guidelines to the shops, watches the process and solves technical problems. They set the distribution of materials in manufacturing, make sure to produce high quality products.
Human Resources Department manages and organizes the staff, records, company’s policies and training, builds the system of salary and reward, makes the reports about employees, manages the culture, administration and security at the office.
Finance – Accounting Department manages and operates all financial performances at the company. They make financial report and plan the budget for all operation of the company. They manage the capital, forecast financial data and analysis the information. They give advices to the President about financial situation and strategy.
IT Team searches and develops IT applications for all operation at the company. Besides, they develop data security system, transaction system and others.

1.4. Financial situation in 2011 – 2013
Table 1.1. Short Balance Sheet (Unit: VND)
ASSETS
31/12/2011
31/12/2012
31/12/2013
CURRENT ASSETS
429,305,968,282
463,528,045,138
515,425,673,922
NON-CURRENT ASSETS
212,552,636,895
270,419,478,161
273,016,279,640
TOTAL ASSETS
641,858,605,177
733,947,523,299
788,441,963,562
LIABILITIES AND EQUITY
31/12/2011
31/12/2012
31/12/2013
LIABILITIES
445,742,708,285
465,320,703,252
520,444,422,979
Current liabilities
428,603,619,261
437,446,743,252
500,980,315,067
Non-current liabilities
17,139,089,024
27,873,960,000
19,464,107,912
OWNER’S EQUITY
196,115,896,892
268,626,820,047
267,997,530,583
TOTAL LIABILITIES AND EQUITY
641,858,605,177
733,947,523,299
788,441,963,562
Source: Finance – Accounting Dept
Table 1.2. Income Statement (Unit: 1,000 VND)
INDICATORS
2011
2012
2013

Revenue
1,071,564,686
1,182,682,472
1,307,407,904
Cost of goods
865,054,537
938,965,144
1,004,495,812
Operating Costs
147,792,763
188,344,250
253,471,882
EBIT
58,717,386
55,373,078
49,440,210
Interest
25,735,631
20,094,127
8,591,902
Tax
10,245,439
10,522,022
15,245,273
Net Income
22,736,316
24,756,929
25,603,036
Source: Finance – Accounting Dept
From two tables above we can calculate some important following ratios:
Table 1.3. Some Financial ratios of BIDIPHAR
RATIOS
2011
2012
2013
Sector’s Average in 2013
Current ratio
1.00
1.06
1.03

Sales-to-total assets ratio
1.67
1.61
1.66
1.24
Debt ratio
0.69
0.63
0.66

ROS (%)
2.12
2.09
1.96
6.00
ROA (%)
3.63
3.60
3.36
10.00
Current ratio measures whether or not a firm has enough resources to pay its debts over the next 12 months. In this period, the ratio was not less than 1 and varied between 1.00 and 1.06. This means the company has good and stable liquidity. However, it witnessed a significant increase in current liabilities, by about 63 billion VND, in 2012-2013 compared to just 9 billion VND of the last period. This may forecast a bad trend of the current ratio for the next few years.
Sales-to-total assets ratio measures the efficiency of a company 's use of its assets in generating sales revenue or sales income to the company. It can be seen from Table 1.3 that this ratio remained quite stable from 2011 to 2013. The figure 1.66 in 2013 was much more than the figure 1.24 of the sector’s average. This proves efficiency in total assets management.
Debt ratio indicates the percentage of a company 's assets that are provided via debt. This ratio at the company has been high recently, which means the company has been dependent heavily on the outside capital. Because of this, the company will have to face a lot of risks. For example, the capacity of borrowing will be in low state and lower financial flexibility. That is the reason why the company should take some measures to reform the capital structure.
ROS ratio gradually declined from 2.12 to 1.96 in the period of 2011-2013. The main reason came from the growth rate of revenue was more than that of net income. This reflects a sharp increase in the input costs of the company’s products. In addition, this ratio was much less than the figure 6% of the sector’s average. Therefore, the necessary thing to do is to cut down the input cost or and revise the present marketing strategy to get a higher revenue.
ROA shows how profitable a company 's assets are in generating revenue. Similarly to ROS, ROA at BIDIPHAR also witnessed a steady decline in this period. In details, the figure fell slightly from 3.63 to 3.36. This is the result from the correlation between Sales-to-total assets ratio and ROS ratio above. While the former was quite stable, the latter dropped down so ROA also went downward. Furthermore, like ROS, ROA was just more than one-third of the sector’s average, at 10% in 2011-2012 and 9% in 2013. And the same way to do is to enhance the net income somehow.
In general, the company has been in a healthy financial situation even though there are still “germs” inside. The main problem is that the company has used a lot of debt instruments which did not present the efficiency of financial leverages. This lowered down a vast of profit and then the Profitability ratios. These financial leverages will need revising so that they can benefit the financial situation.
2. Process of implementing import contract at BIDIPHAR
2.1. Involved Departments
The two departments which are involved in the process are Export – Import Department and Finance – Accounting Department.
When a sales contract is transmitted to the Export – Import Department, the staff at this department will compile an application for L/C in the form issued by the bank, with the content based on the contract. This application then will be checked by the Head of the department. If this is valid, documents including sales contract and application for L/C will be transmitted to the Finance – Accounting Department. Right here, these documents will be revised to ensure their validity. Later, the application for L/C will be officially approved by the President.
Most of the next steps will be implemented by the staff of the Export – Import Department while the responsibility of payment will be fulfilled exactly and tightly by the Finance – Accounting Department.
2.2. Time
The time gets started from the moment the contract is signed and lasts until the final obligation is fulfilled and there is no more claim.
2.3. Process
2.3.1. Application for Import License
Goods imported by the company can be divided into three groups including material, finished product and medical equipment. At each group, not only Import License but the company may also have to apply for some additional Licenses.
About materials, this group includes materials, excipients, capsules and direct packages. The company is required to submit a certificate for quality issued by an inspection agency. Furthermore, it is also required for a phytosanitary certificate if the materials are botanical. Usually, these two additional documents are prepared by the Seller, and sent to the company through the bank under the L/C payment.
About finished products, there is a differentiation between the ones which already have been registered (or have visa) and the ones which do not. Products which have visa can be imported with an automatic license while the other will need an Import License. Both groups also need a certificate for quality issued by an inspection agency like the materials above.
About the third group, it is required to submit the Import License and certificate for quality when the company fulfills the Customs Procedures.

2.3.2. Application for L/C
The term of payment in most of import contracts are Irrevocable L/C and L/C at sight. A staff must come to the bank to make an application for L/C. The company‘s favorite banks are VIETINBANK, VIETCOMBANK and BIDV (Binh Dinh Branch). The form of this application varies from bank to bank but they often have the same terms to fill in. The content to fill in must be compatible with the content in the contract. This means the contract is the basis for the application and for the L/C as well.
To apply for L/C, the company has to prepare a set of documents including an Application for L/C, Sales Contract (01 copy), Import License (issued by Ministry of Health). With this set of documents, the staff from Finance – Accounting Department will implement the procedures at the bank, receive the original L/C and then make a copy to transmit to the Export – Import Department.
In case the Seller asks to change some terms of the L/C, the Head of Export – Import Department will take consideration. If this change is accepted, an acceptance will be informed to the Seller. A staff from the Department will fill in the Application for L/C form again with the content now has changed. The process is then repetitive until the staff from Finance – Accounting Department receives new L/C. If the change is not accepted, a request for unchanging will be informed.
Procedures at the banks also require the company to submit two Payment Orders, one for transaction fees and another for deposits. Generally, the former one often costs 0.35% of the contract’s value while the latter costs 20-30% in case the company is the bank’s favorite partner, or 100% in case the two enterprises do not have enough trust in each other.
After the Seller implements the delivery term, they will send the delivery documents to the company through the bank. These documents will come before the goods if the transportation line is long, or they will come with or after the goods if the line is short. These documents are needed for the next steps.

2.3.3. Application for Insurance
The Unit Prices in most of the company’s contracts are understood to be CIF. However, if the import volume is small, CFR will be more favored. Because the goods imported often have some features such as fragile, denatured or dangerous, Insurance is still always required.
If CFR term is used in the contract, the company will buy Insurance from Bao Viet Insurance. Staff from Bao Viet will guide staff of BIDIPHAR to fill in the Proposal - Marine Cargo Insurance Policy by the form of Bao Viet. The procedure also requires the company to submit additional documents including B/L, Commercial Invoice, Packing List, L/C,… Later, Bao Viet will allocate BIDIPHAR the Marine Cargo Insurance Policy with the content based on the Proposal. All the information about the goods and the Insurance value is presented on the frontal page of the Marine Cargo Insurance Policy, while the insurance rules of Bao Viet are printed on the back. These rules include the rights and liabilities of the Assurer and the Insurant, behaviors if unexpected loss happens for the insured goods.
2.3.4. Payment
The payment term in most of the import contract of BIDIPHAR is by Irrevocable L/C and L/C at sight because these are great value contracts and the Seller is not familiar enough. By this payment term, the required documents in L/C will be sent by the Seller to the issuing bank to get paid. The bank will then ask for payment from the Buyer.
Goods are mainly transported by ocean vessels. The set of documents usually reach the L/C issuing bank before the vessel reaches the port. The bank checks the documents and informs BIDIPHAR. Staff from Finance – Accounting Department will come to check the validity of documents, implement payment procedures and receive the documents, transmit to the Export – Import Department.
2.3.5. Implementation of Customs Procedures
When BIDIPHAR has received prepared all necessary documents, the company starts implementing e-customs declaration on ECUS5-VNACCS. This software was designed to communicate to VACCS/VCIS System, which has been applied in Binh Dinh since the end of May 2014. This new system is judged to have a faster speed of processing but also a more complicated system than the old one. It is hard and complex to the users who is not trained and do not practice usually.
Staff of the Export – Import Department often starts declaration 1-2 days after the Notice of Arrival is received. The staff will fill in the form on the computer about the goods imported and run the digital signature which was registered to send the declaration to the System. The system then receives, classifies the declaration into the Green Line, Yellow Line or Red Line, and sends back the result to the company. Later, depended on the result, a staff will bring some necessary documents to the port to receive the goods or make the other procedures.
In case the result falls in the Green Line, the company will print the Declaration and submit to Customs Officer at the Customs Supervising Area sign and stamp into the first page. However, because most of goods imported by the company usually have to get Import License, the Declaration is rarely classified into Green Line.
In case the result falls in the Yellow Line, the company will be required to submit full set of documents to the Officer. These include: 02 E-Declarations, 02 Value Declarations, 01 Appendix, 01 Sales Contract (copy), 01 Commercial Invoice (copy), 01 Packing List (copy), 01 B/L (copy), 01 Import License, 01 C/O, 01 Certificate of Quality (by the Seller ‘s Competent Authority), 01 Business Registration Certificate (copy). If the documents are not valid, the Officer will request to change or supplement them. If they are valid, the Officer will print the Declaration, sign and stamp into the first page to submit to the Customs Supervising Area.
In case the result falls in the Red Line, the Officer will require checking the full set of documents and the goods. There are three levels of checking: no checking, partly checking (5% or 10%) and full checking. Because BIDIPHAR executes exactly the regulations and there was no bad precedent before, the Officers just check 5% or 10% of the goods. They will check the goods about name of the goods, marks, quantity, weight, types, quality, origin, brand, labels, date of manufacture, date of expire. Later they compare the results with the information in the records of the System, compare the goods with samples and so on. In case there is disagreement, the Officer requires the staff to declare again.
Later, the Officer will calculate the tax again and compare to the declaration of the company to find out the final result. The company will pay the tax or ask to release the goods. When the procedures are done, the Officer will give the staff a set of documents including Declaration, Tax and Fee Payment Notice, Fee Receipt.
Picture 2.1. E-Customs Procedures of Goods for trading

Source: Nguyen Thanh Long, 2014, E-Customs Procedures of Goods for trading, 23.
2.3.6. Receipt of goods
Before the vessel comes to the port, the carrier’s agent will send BIDIPHAR the Notice of Arrival (N/A). After receiving the N/A, the company will submit the Bill of Landing to the carrier’s agent to receive the Delivery Order (D/O), and have to pay a lot of fees and charges to the carrier like THC, Handling fee, D/O fee, and so on. The staff then brings a set of documents including the original B/L, D/O, Letter of Authorization and BIDIPHAR Legal Profile to the port to receive goods. Goods are discharged out of container and loaded on company’s trucks. Inland transport from the CY to the company’s storage is handled by the company’s Transportation Team.
2.3.7. Inspection of goods
In the time of transportation, there may be unexpected loss to the goods about labels, quantity or quality, and so on. When staff from Export- Import Department comes to receive the goods, he will invite a staff from an inspection agency, usually VINACONTROL, to come with. The steps to break the seal and open container are done in transparency and recorded by camera to give evidence if claim happens. BIDIPHAR often asks the staff from VINACONTROL to check accidentally 5% of the goods. After that, BIDIPHAR will receive a certificate of inspection about quality, quantity, weight, origin, estimated loss. If there is loss, it will be estimated again by the insurance company. After the goods are received, all parties will sign in the record.
2.3.8. Claim
If claims happen when the company implements import contract, the company will base on the causes of loss to get the compensation. The claim is made to the Seller if quantity or quality does not match the contract or unqualified packages cause the loss or delivery time is offended. The claim is made to the carrier if quantity is less than the figures in B/L, or the goods get loss in transportation time by the fault of Carrier. However, in fact, in this case BIDIPHAR will make claim to the Assurer because this case falls in the insurance terms. The claim is made to the assurer if the loss is created by the insured risks.
The documents for claim include Claim Letter, evidence (records, captain’s confirmation, etc.), invoice, B/L, Cargo Insurance Policy, etc. To solve the claim, two parties usually negotiate to find out the best solution. Court and Arbitrator are seldom involved.
2.3.9. Liquidation of Contract
Liquidation is implemented after all obligations have been done and there is no more claim. Two parties will make the record to liquidate the contract to avoid later trouble.

3. EVALUATION AND SUGGESTION
3.1. Evaluation
3.1.1. Strength
Implementation of import contract at BIDIPHAR has contributed to provide materials for manufacturing high quality products to meet the demand of Vietnamese people.
BIDIPHAR has built prestige all over the world, built the trust of banks and government agencies.
Besides, the company has also built an efficient human resources policy in implementing import contract. Responsibilities are assigned clearly for each department and employee. Policies about salary, reward and training have also helped to promote and expand enthusiasm and specific skills for employees.
Communication with the foreign sellers is mainly executed through fax, this helps to cut the cost of travelling and working overseas. In addition, more and more activities in implementing import contract is executed on the computer, this boosts up the progress and lets BIDIPHAR make prompt decisions to take more advantages.
3.1.2. Weakness
The entanglement of the company may come from objective and subjective factors.
Objective factors are diffusive and complex administrative procedures, especially customs procedures. These procedures cost the company a lot of time to receive goods. Furthermore, bureaucratic habits still exist in customs officers. The lordly attitude from these officers and the staff of the port has annoyed the company’s staff. Negative events here happen frequently and complicated, which have decreased the trust in government. Finally, new policies and changes are promulgated in short time, this makes the company hard to adapt and run efficiently. For example, before VNACCS/VCIS System was applied, there was Circular marked 22/2014/TT-BTC to conduct it but then there were Official Letters to change or conduct the Circular.
Subjective factors are the limitations from the company itself. The staffs involved in the process of implementing import contract are young, active but the experience is not plentiful. Professionalism in chartering and buying insurance is not excellent, this leads to the situation that the company has to pay under CIF or CFR prices. The company does not also take concern about studying international convention, culture and regulation. Therefore, the company finds it hard in searching for new partners and faces a lot of risks in international trade.
3.2. Suggestion
3.2.1. Promote the professional qualification in foreign trade for the staff
The process of implementing import contract requires for professionalism and acumen in problems solving. One feature of this career is to communicate with foreign partners. It means the staff must take foreign language proficiency and communication skill. In general, they must take professionalism and language skills.
The staffs at BIDIPHAR have working experience and the bedrock of knowledge from universities and colleges. But the fast development of foreign trade forces them to update their knowledge to adapt. That is the reason why the company asks them to come back to universities or attend short – term training courses. Especially, the company has organized foreign business tour and sponsored for overseas training courses of key managers. It is clearly that BIDIPHAR is on the right way of human resources policies and if they keep it on that way, they will have a squad who always self-improve and self-develop.
Enthusiasm of the employees is affected by how they are rewarded. The company is evaluating staff’s efficiency based on the department’s efficiency. In fact, many staffs are excellent in their job but the result of their department is not good. Therefore, they are not rewarded as they deserve. That is the reason why the company should evaluate staff’ qualification by the result of their job, not by the result of the department.
3.2.2. Promote the professional qualification in Customs Procedures
Implementing customs procedures is complex and costs a lot of time. The company should have some staffs to always update new policies or come to get trained by experts. Otherwise, the company can found an advisory board including some experts to quickly overcome the procedures. However, the latter option only benefits the company in short time because the cost is high and in long term the procedures get towards stringency, simplicity and transparency.
3.2.3. Promote the professionalism in chartering and buying insurance
BIDIPHAR should bravely sign the contracts in which the company is responsible for chartering and buying insurance. This will cumulate experience for the staff, even though there might be mistakes and loss in the first times. This also presents the trust of the company in its employees, helps them to become self-confident.
3.2.4. Promote the professionalism in payment
L/C is the most favorite payment term in import contracts of BIDIPHAR. This term is the safest to ensure the benefit of both parties but the procedures are complicated with a lot of steps. BIDIPHAR can take consideration of some other simpler and faster terms even though they are less safe than L/C.
When the company needs to apply for an L/C, the staff often comes to VIETCOMBANK, a prestigious and familiar partner. Because BIDIPHAR and VIETCOMBANK have made a lot of transaction together, BIDIPHAR can negotiate to decrease the deposit rate for issuing L/C at VIETCOMBANK.
The company should ensure the right to decide additional fees and charges in customs procedures, payment procedures or receipt of goods for the Export – Import Department so that they can be active and faster in implementing import contract. This will avoid imperfect integration between Export – Import Department and Finance – Accounting Department.
CONCLUSION
Binhdinh Pharmaceutical and Medical Equipment Joint Stock Company usually imports materials to manufacture drugs for people’s health care. The company always tries it best to improve business operation, including its process of implementing import contract. The main goal of the company is to increase the efficiency of business operation and create the solid advantage in the severe race on the market.
With the effort to study the process of implementing import contract at Binhdinh Pharmaceutical and Medical Equipment Joint Stock Company, the report has mentioned the matter to improve that process so that it is compatible to the feature of the company. That is also the main purpose of the report to get towards shortening the time and saving costs of the process.
Because of my limited knowledge, the report cannot avoid mistakes. However, with guidance from the company and Master Dao Thi Ngoc, together with my own experience from my internship at the company, I expect the reader can benefit from this report. Once again I would like to express my gratefulness to Master and all staff at the company to help me to fulfill this report.

REFERENCES
1. Nguyen Van Tien, 2007, International Payment Course Book, Statistic Publisher.
2. Huynh Thi Thuy Giang, 2014, An overview of Enterprise’s Financial Management, PDF File.
3. Nguyen Thanh Long, 2014, E-Customs Procedures of Goods for trading, PPT File.
4. Pham Thi Leo, 2014, Government Policy to Exported – Imported Goods, PPT File.
5. Circular 22/2014/TT-BTC and Official Letter 5665/BTC-TCHQ.

References: 1. Nguyen Van Tien, 2007, International Payment Course Book, Statistic Publisher. 2. Huynh Thi Thuy Giang, 2014, An overview of Enterprise’s Financial Management, PDF File. 3. Nguyen Thanh Long, 2014, E-Customs Procedures of Goods for trading, PPT File. 4. Pham Thi Leo, 2014, Government Policy to Exported – Imported Goods, PPT File. 5. Circular 22/2014/TT-BTC and Official Letter 5665/BTC-TCHQ.