TABLE OF CONTENT

1. Overview about VINATRANS......................................................................2

1.1.

The companys operation..................................................................................2

1.2.

Personnel structure..........................................................................................3

2. Implementation Air freight forwarding for Nutrison energy by

VINATRANS........................................................................................................4
2.1. Introduction to the imported goods (buyer, seller and characteristics, total
value of the good).......................................................................................................4
2.2.

Forwarding process..........................................................................................5

2.2.1.

Receiving documents from Kuehne + Nagel International AG..............6

2.2.2.

Customs clearance..................................................................................7

2.2.3.

Issuing the delivery order.......................................................................8

2.2.4.

Consigning at the airport........................................................................8

2.2.5.

Delivering to the customer.....................................................................9

2.2.6.

Payment................................................................................................10

3. Personal observation...................................................................................10
REFERENCE.....................................................................................................12
APPENDIX.........................................................................................................13

LIST OF TABLES
Table 1.1. Revenue and profit of VINATRANS from 2009 to 2013 (VND)..1
Table 2.1. Description of the products5
TABLE OF FIGURES
Figure 1.1. VINATRANS Organization chart...............................................................3
Figure 2.1: General diagram of forwarding operations..................................................6

1. Overview about VINATRANS

Name of the Company: VINATRANS INTERNATIONAL FREIGHT
FORWARDERS HANOI BRANCH (VINATRANS)
Headquarters: 406 Nguyen Tat Thanh Street, Dist. 4, Hochiminh City, Vietnam
1.1. The companys operation
Established in 1995, VINATRANS is a fully-licensed logistics company. It is one
of the leading integrated logistics companies in Vietnam, providing a full spectrum of
third party logistics and supply chain management services including: Multimodal
transport: Airfreight Sea freight Rail & inland transportation; Transit cargo;
Exhibition cargo; Project cargo; Customs clearance; Chartering & shipping agency;
Warehouse

&

distribution;

Express

courier.

VINATRANS operates

full

comprehensive door-to door logistics service to any destination in the world.

In Vietnam, despite being a new company, VINATRANS has provided services
to more than 100 multi-national corporations and many of the worlds best known such
as: Metro Cash and Carry (Retailer); Nidec Tosok (a Japan-based corporation
specializing in manufacturing and supplying car gear systems and vehicle spare part);
Okaya

(specializing

in

manufacturing

and

supplying

all

electronic

and

telecommunication equipment); Proceeding (a Japan-based company in textile

industry); Huyndai Vinashin (dealing in ship building industry); Doosan Heavy
Industries Vietnam (a Korea based company in heavy industries); Posco E & C and
Schneider Electric. Business result of the company has been positive and profits have
increased steadily for the years, which are showed in table 1.1.
Table 1.1. Revenue and profit of VINATRANS from 2009 to 2013 (VND)
Year

Revenues

Expenses

2010

428,339,599,828

407,958,896,461

20,380,703,367

2011

641,060,433,178

612,835,284,068

28,225,149,110

Profit after taxes

2012

819,312,611,567

789,776,666,941

29,535,944,626

2013

966,594,710,641

939,907,608,784

26,687,101,857

Source: VINATRANS financial statements

1.2. Personnel structure
Operating from its headquarters in Ho Chi Minh City, VINATRANS has several
other branches in Hanoi, Haiphong, Quang Ninh, Hue, Hoi An, Da Nang, Qui Nhon,
Nha Trang, Bien Hoa, Binh Duong and Vung Tau, in which Hanoi office is one of
main branch of the company. It is located in 5th floor, Lakeview Tower, D10 Giang
Vo, Ba Dinh district, Hanoi city.
VINATRANS departments are divided according to the missions including:
Airlines; Forwarding; Shipping; Support function and administration.
Figure 1.1. VINATRANS Organization chart

A
V
II
R

N
L
IA
T
N
ER
SA
N
S
Source: VINATRANS, 2014, Company profile
2. Implementation Air freight forwarding for Nutrison energy by VINATRANS
2.1.

Introduction to the imported goods (buyer, seller and characteristics, total

value of the good)

Ollin Vietnam Corporation, a manufacturer of ammunition, chlorine, and sodium

hydroxide which is located in 781/A12 Le Hong Phong, Ward 12, 10 district,
Hochiminh city, Vietnam imported 4 pieces RCP (equivalent to 2226 kg) of Nutrison
energy made in Netherlands from Nutrica Middle East DMCC that is located in P.O.
BOX 487993, JLT JBC5, Dubai, United Arab Emirates. The total value of the goods is

 6,160.00. The payment was made by irrevocable L/C payable 100% contract value at
sight of Nutrica Middle East DMCC at the Royal Bank of Scotland PLC, Dubai.
The goods had been packed in cartons strong enough for long transportation.
Then, it were transported from Amsterdam international airport, Amsterdam,
Netherlands to Noi Bai International airport, Hanoi, Vietnam.
The carrier in this contract was Kuehne + Nagel International AG.
In

Vietnam,

VINATRANS

have

been

representative

agency

of

Kuehne + Nagel International AG who helped the company to clearance and issue the
Delivery Order for the importers for 10 years. VINATRANS participated in the
transaction as a forwarder.
After receiving the Delivery Order, the importer, Ollin Vietnam Corporation,
continued hiring VINATRANS to receive the good in the Airport and transfer the
goods from Noi Bai international airport to gathering place in L101 No.35 Cu Loc
Street, km6 Nguyen Trai Street, Thanh Xuan district, Hanoi city.
In summary, in the contract, Nutrica Middle East DMCC was SELLER, Ollin
Vietnam Corporation was BUYER, Kuehne + Nagel International AG was CARRIER
and VINATRANS was FORWARDER.
Detailed commodities information was described in Table 2.1 below.

Table 2.1. Description of the products

Commodity
NUTRISON
ENERGY

Quantyty (+/- 10%) Unit price CIP Air Noibai

250x cartons
24.64 Euro/Pack

Total (EURO)
6,160.00

Per carton 8xpacks

of 1 litre each

Product no. Product

(1)

Nutrison energy

Code

EC-approval

Total

66039

number
NL

weight
2,226.00 kg

net

Total gross
weight
2,282.00 kg

Batch no.

Product date

Expiry date

Packing

100443356

21-MAR-

21-MAR-

weight
250 cartons 2,226.00 kg 2,282.00 kg

2014

2.2.

Nett

Gross weight

2015
(8x1000ml)
Source: Sale contract and Health certificate of the imported good

Forwarding process

The forwarding process comprised the participation of 3 parties including:

Kuehne + Nagel International AG as the carrier; VINATRANS as the representative of
Kuehne + Nagel International AG and forwarder; and Ollin Vietnam Corporation as
Importer. The forwarding processes and responsibilities of the parties can be
summarized as the following diagram.

Figure 2.1. General diagram of forwarding operations

Sources: VINATRANS, 20104, internal training documents.

2.2.1.

Receiving documents from Kuehne + Nagel International AG

VINATRANS have been representatives of Kuehne + Nagel International AG for

in Vietnam 10 years. After signing the contract with Nutrica Middle East DMCC
(SELLER), Kuehne + Nagel International AG was responsible for transportation of
goods from Amsterdam international airport, Amsterdam, Netherlands to Noi Bai
International airport, Hanoi, Vietnam. After that, the company sent the import
documents to VINATRANS through the mail. VINATRANS, which was representative
agency of Kuehne + Nagel International AG in Vietnam, was responsible for customs
clearance and issuing Delivery Note to Ollin Vietnam Corporation (BUYER).
VINATRANS revived a set of documents including: Purchase Contract,
Commercial Invoice, Air waybill, Arrival notice, Health certificate, Free sale
certificate, Certificate of Original, Certificate of Analyses, and letter of
recommendation for the convenience of customs clearance in Noi Bai international
airport.
These documents provided the information for customs clearance so all the
documents could be sent via mail. After that, the original documents were sent by
courier to prepare all necessary document submitted to the customs after 2-3 days.
VINATRANS forwarder officials had to carefully check the suitability of the
information, data on the documents and the information of the customer of the
importer before Customs clearance.
2.2.2.

Customs clearance
After

receiving

all

necessary

documents

from

the

Kuehne + Nagel International AG, the VINATRANS official implemented

customs clearance via the electronic software VNACCS.
The notification process information in VNACCS included the flowing
steps:
1) IDA Pre-registration of import clearance (General and detail
information of exporter, importer, imported goods)
2) IDC import clearance (No of declaration*)
7

3) IDB Pre-registration of import clearance (No of declaration, No

of air waybill, No of electronic invoices receipt, general
management code)
4) Before the declaration of registration, the custom system would
automatically check the list enterprises that are not eligible
registration declaration (enterprises now have more than 90 days
overdue, deactivate, dissolution or bankruptcy...). In this case, the
importer was eligible to register declaration, the systems
automatically moved to the next step.
5) The systems arranged the kind of good under three different
channels (1), (2) and (3). In this case, the imported good was
accepted in the channel (2) (or yellow channel). The channel (2)
composed of imported goods that had to pay for taxes and its
declared value was up to VDN 1 million. The imported goods
which were accepted in channel (1) and channel (2) were exempt
from actual inspection.
6) The last step, the VINATRANS official printed completed
custom declaration to summit to the custom when consigning at
the airport.
All the above stages occurred in 1 day.
2.2.3.

Issuing the delivery order

After receiving all necessary original documents as mentioned above (2-3 days

after the customer sent by Courier) including Arrival notice, the field officer of
VINATRANS contacted to Kuehne + Nagel International AG then issuing the Delivery
Order.
The delivery order contained the information of the delivery including: major
airway bill number (172-05330065), Sub airway bill number (AMS-13182916), No. of
packages (04), gross weight (2282.00 kg) and detailed commodity (ASPERHAWB).

2.2.4.

Consigning at the airport

The carrier and VINATRANS could fulfill their obligations after issuing

the delivery note. However, Ollin Vietnam Corporation (Importer) continued

hiring VINATRANS to consign the commodities at the airport and move on
gathering place.
2.2.4.1. Registering delivery and printing delivery notes
The field officer of VINATRASN submitted Delivery order, letter of
recommendation and struck rental certificate to the airline agent to receive
delivery confirmation. The airline agents official stamped on the Delivery order
and returned to the field forwarder.
2.2.4.2. Customs clearance and receiving the goods at Noi Bai International airport
All activities of this process were implemented in Noi Bai International
airport.
The VINATRANS field official went to warehouse in the airport. There
were 2 warehouses in the airport, which were ACV and NTS, the imported goods
was preserved in ACV. The warehouse manager provided the official with the
original airway bill and warehousing certificate.
After receiving all necessary documents in the warehouse, the official went
to Customs Department to submit these following documents: original airway bill
and warehousing certificate that had been already provided by the warehouse
manager, letter of recommendation, customs declaration, Invoice, Packing list,
Import License, Business registration certificate of the importer. After carefully
checking these documents and saw that the documents were valid and the goods
met import requirement, the Customs official signed on the customs declaration
for custom clearance.
Then, the VINATRANSs field official went to Noi Bai International
airport border gate customs sub-department to pay for fees for parking. In this
Department, the VINATRANSs official had to submit the warehousing
certificate and Delivery Order After carefully checking the Delivery Order and

collecting the fee, the cashier issued receipts, stamped PAID and Custom
Clearance confirmation on the Delivery Order and gave the stamped Delivery
Order and Delivery notes to VINATRANSs official. After that, the
VINATRANSs official returned to ACV warehouse to receive to goods.
2.2.4.3. Commodity inspection
After checking the Delivery note, airports official would move the
packages of goods to the inspection place. However, because the imported goods
which were accepted in channel (1) and channel (2) were exempt from actual
inspection, the imported goods were accepted in channel (2), all the packages
were moved to the customs gate and loaded onto the rented struck.
2.2.5.

Delivering to the customer

The goods were loaded onto the rented struck to move on gathering place

at L101, No.35, Cu Loc Street. Km 06, Nguyen Trai st, Thanh Xuan district,
Hanoi city. The Ollin Vietnam Corporations representative received the goods
there and prepared for payment.
2.2.6.

Payment
This was the finally step of forwarding.
After all of the packages of goods were unloaded in the gathering place, the Ollin

Vietnam Corporation representative prepared for payment as follows:

Firstly, he received all the original custom declaration. The VINATRANSs
official only kept the copies of some documents.
Secondly, the VINATRANSs official made the debit note including all the fees
that VINATRANS had to paid such as Delivery Order fee, warehouse fee, imported
products inspection fee, truck rental fee; the forwarding service charges and
transportation fees under the agreement between the two companies and other
expenses incurred.

10

Because Ollin Vietnam Corporation was not a loyal customer of VINATRANS,

the company had to pay immediately after fully receiving the goods within 1 week
from the date of receipt of goods. The payment would be made via bank transfer.
Kuehne + Nagel International AG and VINATRANS have been long-term
partners. The representative agency fees for VINATRANS would be paid by
Kuehne + Nagel International AG in the end of the year.
3. Personal observation
Air freight forwarding was implemented professionally by VINATRANS.
The officials of VINATRANS were specialized and had many experiences so the
forwarding service quality and reputation of the company is increasingly
enhanced. In the course of business, the company also has created a good
relationship with the shipping agents, customs which created favorable conditions
for companies in the services operation and forwarding processes were
implemented smoothly, and the forwarder did not faced to many difficulties.
Moreover, some services expenses were much lower than other forwarding
companies.
For example, 3.5 ton truck rental cost by DV Transportation Company is
$1per

kilometer. However, because

DV Transportation

Company

and

VINATRANS have been longtime partners, DV Company agreed to reduce the

rental cost to $0.85 per kilometer.
In Hanoi branch Office, although the human resource is limited with a
manager and 5 young officials, it has become a trustworthy partner of many
enterprises in the North of Vietnam. The working environment in the Office is
relatively comfortable so the officials are not under high pressure.
However, in the future, Hanoi branch office should recruit more employees
and trainees to avoid overloading and mistakes when implementing multiple
contracts in the same time.
In general, in spite of being a new forwarding company in Vietnamese
market, the business activities of VINATRANS developed rapidly. The company

11

affirmed its brand name in the market and had credibility with customers and
partners.

12

REFERENCE
1. VINATRANS, 2014, Company profile
2. VINATRANS, 2013, Ti liu hng dn s dng h thng VNACCS
3. VINATRANS, 2013, The companys financial statement

13

APPENDIX
1.
2.
3.
4.
5.
6.

Sales Contract
Air Waybill
Commercial Invoice
Free Sale Certificate
Delivery Order
Custom Declaration

14