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<b>VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY </b>

<b>FACULTY OF BUSINESS ADMINISTRATION</b>

<b>EXPORTATION FROM VIETNAM TO LOS ANGELES, USA</b>

<i>Mentor:Miss. Vuong Thi Tram</i>

<i>Student:1. Tran Tuong Minh- 720H05452. Luong Tieu Vy- 720H16363. Nguyen Yen Vy- 720H16374. Ho Trong Nam- 720H15635. Huynh Thanh Thao - 720H16056. Le Thi Kim Yen- 720H06707. Nguyen Ngoc Thao - 720H16068. Nguyen Dang </i>

<i>- 720H05229. Ngo Thanh Nhu- 720H158110. Dam Dinh Hoang- 720H1539</i>

<b>HO CHI MINH CITY, DECEMBER 2022</b>

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Table 1: List of achievements of Kuehne+Negal

Table 2: Top 5 main export/import products from/to Vietnam in the first 7 months of 2022 (Source: General Statistics Office)

Table 3: FCL Sea - quotation of Kuehne+Negal in DecemberTable 4: FCL Air - quotation of Kuehne+Negal in DecemberTable 5: Sea local charge

Table 6: Air local charge

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Picture 1: Logo of Kuehne+NagelPicture 2: Logo of Peek KidsPicture 3: Sailing schedule of HPLPicture 4: Sailing schedule of ONEPicture 5: Sailing schedule of CMAPicture 6: Flight schedule of Korean AirlinePicture 7: Flight schedule of China AirlinePicture 8: Invoice

Picture 9: Packing listPicture 10: Bill of ladingPicture 11: TalonPicture 12: Airway bill

Picture 13: Air Cargo Advance Screening (ACAS)Picture 14: Ocean cargo manifest form

Picture 15: Vietnam Customs Manifest Declaration TemplatePicture 16: ACE manifest

Picture 17: Showing results after declarationPicture 18: ISF form

Picture 19: Air cargo manifest

Picture 20: Homepage of Air manifest system

Picture 21: Filling information page of Air manifest system Picture 22: Result page of Air manifest system

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4. Existing Customers – Peek Kids...7

5. Requirements from Peek Kids...7

CHAPTER II: VIETNAM SITUATION...8

1. Overview of the infrastructure...8

1.1 Sea Ports...8

1.2 Airports...8

1.3 Warehouses...9

1.4 Main import/export products to/from Vietnam...9

1.5 Main Sea carriers operating in Vietnam...10

1.6 Main airlines operating in Vietnam...11

2. Market in Vietnam...12

2.1 General actual situation...12

2.2 Factors affecting the sea-market...12

2.3 Factors affecting the air-market...13

CHAPTER III: SOLUTION...15

1. Suggest a solution...15

2. FCL Quotation and shipping schedule...16

2.1 FCL Quotation and sailing schedule of Sea way...16

2.2 FCL Quotation and flight schedule of Air way...18

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<b>CHAPTER I: OVERVIEW OF KUEHNE NAGEL VIETNAM</b>

<b>1. General information </b>

Kuehne & Nagel is a global transportation and logistics company founded byKuehne and Friedrich Nagel in 1890 in Germany. It operates through the followingsegments: Sea Freight, Airfreight, Overland, and Contract Logistics. With over82,000 employees at more than 1,300 locations in over 100 countries, Kuehne &Nagel is the largest sea freight forwarder globally and holds the number-two spot inair freight. At present, Kuehne+Nagel is headquartered in Switzerland, with apresence all over the world

<i>Picture 1: Logo of Kuehne+Nagel</i>

In 1994, Kuehne & Nagel officially launched in Vietnam. During more than 25years in Vietnam, Kuehne+Nagel has built a team of leading local and internationallogistics experts with a deep understanding of the Vietnamese market and in-depthindustry knowledge. With more than 600 logistics professionals in 10 locationsacross Vietnam, Kuehne & Nagel has become the country's leading logisticscompany.

+ Address: Floor 11, Vincom Center, No. 72 Le Thanh Ton Street, BenNghe Ward, District 1, Ho Chi Minh City

+ Phone: 028 3828 2200

+ Email: + Website:

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Over the last 130 years, Kuehne+Nagel has evolved from a traditional shippingcompany to a global logistics partner that offers highly specialized solutions for majorindustries worldwide. Kuehne+Nagel is engaged in the provision of Sea Freight andAirfreight Forwarding, Contract Logistics, as well as Overland Businesses that focuson providing IT-based logistics solutions. Moreover, the company provides logisticssolutions and services related to supply chain 4PL, warehousing, retail, anddistribution.

Award “Best Companies To Work For InAsia” by HR Asia

2022 ^{Ranking 396th in The Fortune Global 500}_list

<i>Table 1: List of achievements of Kuehne+Negal</i>

<b>4. Existing Customers – Peek Kids</b>

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Peek Kids designs unique clothing for the little ones in comfort and style. Peek Kidsare passionate about building on the Peek Kids values they have stood for since ourfounding in 2006. At Peek Kids, they love creating fun clothes in comfortable shapesfor kids to play in. When designing each piece of clothing, they lead with their hearts,act seriously funny, mix in nostalgia for the magic that is childhood, and care for theworld and everything that is part of it.

<i>Picture 2: Logo of Peek Kids</i>

Address: Mamiye Brothers, Inc. 1385 Broadway, 18th floor in New York, N.Y.10018

Website: Requirements from Peek Kids</b>

Peek Kids Company found a forwarder to move their shipment for both sea and airtransportation from Binh Duong Province, Vietnam to Los Angeles, USA, underINCOTERM FOB (HCM ports). Their products are clothes for children. The cargo'sready date is on Thursday weekly and estimated at 4.000kg, 18cbm/week/factory,40x50x70cm. Therefore, our company - Kuehne+Nagel is offered to provide quotationsfor both means of transport, by sea and by air for Peek.

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<b>CHAPTER II: VIETNAM SITUATION</b>

<b>1. Overview of the infrastructure</b>

<i>1.1 Sea Ports</i>

Vietnam is located right next to the South China Sea - a particularly important tradechain on the world maritime map. Vietnam also owns 3,260km of long coastline, manydeep-water bays, close to international maritime routes. Currently, the country has 49seaports (in 166 ports) distributed throughout from Northside to Southside. TheNorthern seaport area of Vietnam is connected with Northeast Asian countries such asChina, Japan, Korea, and Hong Kong. Moreover, Vietnam's seaport area has a positionto connect Asian countries on international transport routes to other continents.After nearly 20 years of implementing seaport development plans, Vietnam has formeda complete seaport system from North to South with 45 seaports, divided into 6 groupsof ports. Port infrastructure in some areas such as Cai Mep - Thi Vai, Lach Huyen iscapable of receiving mother ships with a large tonnage of 100-200 thousand tons,contributing to turning Vietnamese seaports into an important link in the global supplychain (Vietnam Maritime Administration, 2020). Currently, Ho Chi Minh City ownsmany seaports, notably Cat Lai port, Vietnam International Container Terminal (VICT),and Saigon Premier Container Terminal (SPCT), etc.

Besides, traffic connection is also a "bottleneck" for seaport development. Most of theroads connecting to ports in areas such as Hai Phong, Ba Ria - Vung Tau, and Ho ChiMinh City are not commensurate with the seaport's capacity. Although the ports ofLach Huyen, and Cai Mep - Thi Vai are planned as gateway ports and internationaltransshipment ports, there is no railway connection and weak waterway connection,leading to goods being traded mainly by road. On foot, the roads leading to the port areoften congested.

<i>1.2 Airports</i>

Currently, Vietnam owns 22 civil airports, including 12 international airports and 10domestic airports. Although they are civil airports, these airports all have a sectiondedicated to military flight operations for use in special cases. Among internationalairports in Vietnam, there are 5 important airports: Noi Bai (Hanoi), Da Nang (Da

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Nang), Tan Son Nhat (Ho Chi Minh City), Van Don (Quang Ninh) and Phu Quoc (KienGiang).

Tan Son Nhat International Airport is located at Truong Sa Street, Ward 2, Tan BinhDistrict, Ho Chi Minh City. This is the largest international airport in Vietnam in termsof area, terminal capacity as well as the number of passengers and goods. Tan Son Nhatairport meets 4E standard and is a level 1 civilian airport with the ability to receiveaircraft such as B747, A350, A321, B787, B77 and other similar aircraft. Every day, onaverage, there are about 700 flights taking off and landing at this airport, during peaktimes, the number of flights can be up to 900 flights/day.

In which, Noi Bai and Tan Son Nhat gateway airports are seriously overloaded.Although these two airports are currently being tried to optimize, the capacity of thesetwo airports has exceeded the design.

<i>1.3 Warehouses</i>

Currently, the demand for warehousing is still on a strong upward trend despite thefluctuations of the economy. The reason is that manufacturing enterprises are steppingup their operations, on the other hand, warehouse rent is also forecasted to grow at anaverage rate of about 1.5% to 4% per year.

According to a report of the Ministry of Industry and Trade, the warehouse system inVietnam is unevenly distributed. More than 70% of the warehouse area is distributed inthe southern economic centers. Moreover, the logistics market in the southern region isconsidered to be more vibrant thanks to the system of highways and more deeplyconnected seaports and ports.

Shortage of warehouses is mainly due to the fact that industrial land is currently stilloccupied with high rental rates because the current rental demand is still increasingstrongly. Accordingly, the land for lease in industrial zones is scarcer.

<i>1.4 Main import/export products to/from Vietnam</i>

Generally, in the first 7 months of 2022, the total export value reached US$217.34billion, up 16.6%, equivalent to an increase of US$30.92 billion over the same periodlast year. In which, there are many commodity groups that keep a good growth ratesuch as machinery, equipment, tools and spare parts; Cell phones and accessories…

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Phones US$33.9 billionElectronic goods/Computers US$31.7 billion

<b>Top ImportsImport Value (the first 7 months of 2022)</b>

Electronic goods/Computers US$50.1 billion

<i> Table 2: Top 5 main export/import products from/to Vietnam in the first 7 months of2022 (Source: General Statistics Office)</i>

<i>1.5 Main Sea carriers operating in Vietnam</i>

Vietnam currently has about 10 container shipping lines, Vietnam's container fleet issmall in number and tonnage, so most of them only handle domestic routes and somehave intra -Asia routes. Therefore, the increased exploitation of new routes by shippinglines in Vietnam and Asian countries also creates competition with domestic shippingcompanies.

According to the Vietnam Maritime Administration, there are currently about 34foreign container shipping lines operating in Vietnam, including all the largest shippinglines in the world such as Maersk, MSC, COSCO, Evergreen, OOCL, etc. Meanwhile,Vietnam has 10 container shipping lines, operating mainly in the domestic market.Foreign shipping lines operating in Vietnam have representatives in Vietnam in theform of enterprises, with 100% foreign capital. These representatives will act on behalfof the shipping line to carry out business activities in Vietnam and act as contractagents.

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In the project of developing Vietnam's international shipping fleet, it is reported that inthe past, when Vietnam's ports could not receive mother ships, Vietnam's goods toEurope and America would be transshipped to transshipment ports. in China, HongKong, Singapore…

Routes to Europe and America are currently implemented at Lach Huyen port area andCai Mep - Thi Vai port, with a transport frequency of 18 routes to America (Cai Mep16 routes, Lach Huyen 2 routes), 2 route to Europe (Cai Mep). The container freightroute to Europe and the US is mainly handled by 10 foreign shipping lines, namelyMSC, Maersk, CMA - CGM, Hapag - Lloyd, ONE, OOCL, Evergreen, COSCO, HMMand Yang Ming. These are all the largest shipping lines in the world.

According to experts, Vietnam has an attractive import and export goods market,attracting major shipping lines in the world. Since then, a highly competitive marketfor providing container freight services has been formed among service providers.However, because of a prolonged economic recession with a slow recovery, manyshipping lines faced difficulties in exploiting, even some large shipping lines had to gobankrupt. Therefore, in recent years, many shipping lines have started to merge andmerge to increase efficiency, typically alliances such as 2M (Maersk and MSC), Ocean(CMA - CGM, COSCO, Evergreen, and OOCL) and THE (Hapag - Lloyd, ONE, YangMing and HMM).

<i>1.6 Main airlines operating in Vietnam</i>

There are currently 4 airlines operating in Vietnam including Vietnam Airlines, VietjetAir, Jetstar Pacific and Bamboo Airways. These airlines operate up to 49 domesticroutes to major airports in Hanoi, Da Nang, Nha Trang, Saigon, Da Lat and manyinternational routes to countries in Europe and Asia, Australia, the Americas, andAfrica. According to Nikkei Asia, in 2022, Vietnam's air freight traffic is expected toreach more than 1.52 million tons, up 17% compared to last year, higher than theaverage growth rate in Vietnam in the last 30 years (15%/year). This comes amidgrowing demand for domestic and foreign freight as Vietnam cements its place inglobal supply chains for everything from electronics to textiles. Vietnam currently doesnot have a cargo airline. Many domestic airlines have shown their ambition todominate the potential market in the hands of these foreign airlines.

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Vietnam Airlines is the first and only Vietnamese airline licensed to the US by the USDepartment of Transportation. Vietnam Airlines is allowed to transport commercial,passengers and goods or parcels from Vietnam to the US

<b>2. Market in Vietnam</b>

<i>2.1 General actual situation</i>

Vietnam’s industrial production and exports showed signs of slowing down. Financial,monetary and banking markets face increasing pressure due to tightening monetarypolicy and increasing interest rates to reduce inflation by many national banks,especially in economic partners. It is important to put great pressure on the exchangerate, interest rate and foreign currency market. So that the situation of labor reduction,reduction of working hours, and rotational layoffs reappears.

Besides, the USA is known as the largest exporter of Vietnam. However, in the firstquarter in 2022, imports from the USA year-on-year fell 7.8% to $3.4 billion. Since,the area is geographically far away, leading to increasing the cost and time oftransportation. So, this issue affects declining imports to Vietnam from the USA.Instead, Vietnam is reducing shipments from the U.S. and European Union in favor ofmore imports from China.

<i>2.2 Factors affecting the sea-market</i>

The conflict between Russia and Ukraine is the cause of increasing prices in the marketfor a number of fuels and raw materials for production and consumption such as gas -petroleum, wheat, aluminum, nickel, corn, etc. Their production and export share arehuge. As a result, sea freight rates around the world have increased sharply. Regardingtransportation and circulation of goods, currently, some shipping lines have refused toaccept orders to transport goods from Vietnam to Russia. In addition, this war willaffect Vietnam's economy and increase inflation, and delays in transportation willseriously affect goods trade. Up to now, the price of gasoline has also dropped sharplyafter many recent adjustments, which are considered the main reasons for the sharpdrop of sea freight rates, and the congestion at ports has also decreased much comparedto the beginning of the year.

China has experienced the worst Covid-19 outbreak since implementing the "ZeroCovid" policy in early 2022, the continuous increase in infections caused the country to

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implement many blockade measures, including strict isolation. The blockade of somebig cities by China negatively affected the seafood export of Vietnam and many othertypes of goods in Vietnam because the sudden decrease in goods consumption limitedtrade activities between the two countries, thereby causing a decline in seafoodconsumption, and reducing the volume of goods through the port system of Vietnam.This is the reason why the volume of Vietnam’s exports to other countries havedecreased, especially the US.

Currently, inflation and freight rates have stabilized and tended to decrease. However,the volume of sea transactions is still not incredibly positive, the number of containershas decreased sharply, which makes container ships not as full of goods as before.

<i>2.3 Factors affecting the air-market</i>

At the beginning of 2022, the aviation industry is currently facing difficulties due tohigh gasoline prices. This also puts upward pressure on costs for airlines operating airtransport. In addition, the price of kerosene fluctuates more frequently than other fuels,making air freight rates unstable.

But at the moment, the air transport market in Vietnam is considered dynamic andgrowing very fast. Compared to other means of transportation, air freight has theadvantage of speed and time when it is possible to deliver worldwide within 2-3 days.However, the price for that convenience is not low, and so only high-value, low-volume goods with special transportation needs seek this mode of transportation.From the beginning of 2022 up to now, according to statistics of the General StatisticsOffice, the export turnover of goods from Vietnam to the US reached 185.94 billionUSD, up 17.3% over the same period last year. Vietnam reached $185.23 billion, up15.5%. The goods imported from the US to Vietnam are usually computers, electronicproducts and components; Cotton; Machinery, equipment and spare parts; Plasticmaterials.... This proves that the amount of goods imported and exported betweenVietnam and the US is very large, especially by air since the US allows direct flightsbetween this country and Vietnam.

In the current situation, when the relationship between Vietnam and the US isfavorable, it is predicted that the import and export turnover of goods between Vietnam

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and the US will increase in the future. As a result, air freight transportation from theUS to Vietnam will be more and more bustling in the future.

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<b><small>Service</small></b> <small>+45+100+300+500+1000</small>

<b><small>X’RAY(KGS)</small></b> <small>0.0170.0170.0170.0170.017</small>

<b><small>TCS(KGS)</small></b> <small>AT COST AT COST AT COST AT COST AT COST</small>

<i>Table 6: Air local charge</i>

<b>4. Documents and Manifest</b>

<i>4.1 Documents </i>

<i>4.1.1 Documents for Sea</i>

When transporting goodsfrom Vietnam to theUS the, most basic documents willinclude:

InvoicePacking ListBill of lading

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<i>Picture 8: Invoice</i>

<i>Picture 9: Packing list</i>

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