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<b>THE UNIVERSITY OF DANANG UNIVERSITY OF ECONOMICS </b>

<b>FACULTY OF INTERNATIONAL BUSINESS </b>



<b>GRADUATION REPORT </b>

<b>EXPORT CUSTOMS PROCEDURES FOR GLASS AT UC THINH VIET NAM GLASS SCIENCE </b>

<b>DEVELOPMENT COMPANY LIMITED </b>

Student: Nguyen Tran Linh Giang Class: 46K01.2

Instructor: Bui Huynh Nguyen, PhD

<i><b>Da Nang, May, 2024</b></i>

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<b>DECLARATIONS </b>

<i><b>I hereby confirm that the internship report on the topic "Export Customs Procedures </b></i>

<i><b>For Glass At Uc Thinh Vietnam Glass Science Development Company Limited" is the </b></i>

result of my own research and study, with the support of Uc Thinh Vietnam Glass Science Development Company Limited and the guidance of PhD. Bui Huynh Nguyen.

The data, documents, and results presented in this research are entirely truthful. All references used are cited properly and clearly acknowledged. The plagiarism check conducted through the Turnitin software yielded a similarity score of 2%, with no individual source exceeding 10%, meeting the requirements of the Faculty of International Business.

I take full responsibility for any issues that may arise.

Danang, May 2024 Student

Nguyen Tran Linh Giang

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<b>ACKNOWLEDGEMENTS </b>

To complete this graduation internship report, I would like to express my gratitude to my dedicated supervisor, PhD. Bui Huynh Nguyen, for his invaluable guidance and support throughout the process. His assistance has been truly attentive and helpful.

I would also like to extend my sincere thanks to Ms. Phan Thi Linh, the import-export staff at Uc Thinh Vietnam glass science development company limited. I am extremely grateful to her for providing me with the necessary resources, documents, and tasks related to the export customs procedures for glass at Uc Thinh Vietnam glass science development company limited. She has patiently guided me, answered my queries, and given me the opportunities to gain hands-on experience and a better understanding of this process and import-export activities in general.

Furthermore, I would like to express my appreciation to the Faculty of International Business and the University of Economics for creating the opportunity and conditions for me to undertake my internship at the company.

Due to limited knowledge, lack of practical experience, and time constraints, this report may have some shortcomings. I sincerely hope to receive guidance and valuable feedback from esteemed professors and teachers to further improve and enhance my knowledge, enabling me to better serve in practical work in the future.

I sincerely express my heartfelt gratitude!

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1.1.2. The role of export ... 4

1.1.3. Common export forms in Vietnam ... 5

1.2. Overview of customs procedures ... 7

1.2.1. Definition of procedure ... 7

1.2.2. Definition of customs procedures ... 7

1.2.3. The role of customs procedures ... 8

1.2.4. The legal basis system for applying customs procedures in Vietnam ... 9

1.2.5. The parties involved in customs procedures and the responsibilities of each party ... 9

1.2.6. Customs procedures for exported goods ... 11

CHAPTER 2 OVERVIEW OF UC THINH VIETNAM GLASS SCIENCE DEVELOPMENT COMPANY LIMITED ... 15

2.1. Company overview ... 15

2.1.1. Company profile ... 15

2.1.2. Company products ... 16

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2.1.3. Corporate culture of company ... 17

2.1.4. Workforce of company ... 17

2.1.5. Organizational structure ... 20

2.2. The company's business performance from 2021 – 2023... 22

CHAPTER 3 IMPLEMENTATION STATUS OF EXPORT CUSTOMS PROCEDURES FOR GLASS AT UC THINH VIET NAM GLASS SCIENCE DEVELOPMENT COMPANY LIMITED ... 24

3.1. Description of customs procedures at the company ... 24

3.2. Evaluation the customs procedures for export ... 36

3.2.1. Advantages ... 36

3.2.2. Disadvantages ... 37

3.2.3. Causes of the disadvantages ... 37

CHAPTER 4 PROPOSED SOLUTIONS TO IMPROVE THE EXPORT CUSTOMS PROCEDURES FOR GLASS AT UC THINH VIETNAM GLASS SCIENCE DEVELOPMENT COMPANY LIMITED ... 39

4.1. Proposed solutions basis ... 39

4.2. Proposed solutions ... 39

4.2.1. Proper execution of document preparation ... 40

4.2.2. Rectifying customs declaration process and utilizing electronic customs system ... 40

4.2.3. Training staff ... 41

4.2.4. Equipping and upgrading infrastructure, and software ... 42

CONCLUSION ... 43

REFERENCES ... 45

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<b>ABBREVIATIONS </b>

VNACCS Viet Nam Automated Cargo Clearance System

UTG ^{Uc Thinh Viet Nam Glass Science Development}Company Limited

THILOGI ^{Truong Hai International Logistics Limited Liability}Company

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<b>LIST OF TABLES </b>

Table 2.1. Business performance of UTG from 2021 – 2023 ... 22

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<b>LIST OF FIGURES </b>

Figure 2.1. Logo of Uc Thinh Viet Nam Glass Science Development Company

Limited ... 15

Figure 2.2. 12 different glass patterns produced by the company ... 16

Figure 2.3. Workforce distribution by skill level and age ... 18

Figure 2.4. The organizational structure of UTG ... 20

Figure 3.1. The process flowchart for customs procedures for export glass at at Uc Thinh Viet Nam glass science development Co. Ltd ... 24

Figure 3.2. The main interface of the FPT.VNACCS software. ... 27

Figure 3.3. The EDA transaction execution ... 27

Figure 3.4. EDA declaration information ... 28

Figure 3.5. Documents required ... 30

Figure 3.6. List of goods ... 30

Figure 3.7. Declaring container information ... 31

Figure 3.8. Signing with a digital signature ... 32

Figure 3.9. Profession list tab ... 33

Figure 3.10. EDC declaration information ... 33

Figure 3.11. List of returned messages ... 34

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<b>INTRODUCTION </b>

<b>1. Rationale </b>

Globalization and open-door policies are no longer unfamiliar terms to individuals and organizations worldwide. The process of opening up and integrating has brought numerous opportunities and great potential for all activities of countries and territories. With the rapid expansion of globalization, international trade has been increasingly developed and thriving among nations, leading to a significant boost in import and export activities.

Thanks to global trends and the utilization of available advantages, the Vietnamese economy has undergone significant changes and robust development in recent years. The total import-export turnover has consistently demonstrated positive trends and continuous growth over time.

In the field of import-export, customs procedures play a crucial role in facilitating the clearance of goods and services, allowing them to move from one country or territory to another. Customs procedures help expedite the customs clearance process for businesses, creating favorable conditions for their export activities. This function also ensures that companies fulfill their contractual obligations with partners, fostering good business relationships. In recent years, customs procedures have undergone new developments, transitioning from manual and paper-based processes to electronic methods, resulting in significant achievements. However, certain difficulties and challenges still exist for business operations. Therefore, it is essential to keep up with the changes in newly enacted customs regulations and enhance experience in customs procedures, as well as stay updated on technological advancements in customs processes. This will provide advantages for businesses, including Uc Thinh Vietnam Glass Science Development Company Limited, which is no exception.

<i><b>Hence, I have chosen the topic "Export Customs Procedures For Glass At Uc Thinh </b></i>

<i><b>Vietnam Glass Science Development Company Limited" to explore and understand the </b></i>

customs procedures involved in exporting glass at the mentioned company.

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<b>2. Objectives </b>

The study had two primary objectives. Firstly, it aimed to research and systematize the fundamental theories related to customs procedures for export goods. Secondly, it involved analyzing and evaluating the customs procedures employed by Uc Thinh Vietnam Glass Science Development Company Limited for exporting glass. The study proposes effective solutions to enhance and optimize the customs procedure for glass exports within the company.

 The analysis-synthesis method involved analyzing data obtained from the company's income statements over the years and synthesizing the necessary documents from various departments within the company's customs procedures. This analysis aimed to assess the effectiveness of the export customs procedures at Uc Thinh in order to provide an evaluation.

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Chapter 3: Implementation status of export customs procedures for glass at Uc Thinh Viet Nam Glass Science Development Company Limited

Chapter 4: Proposed solutions to improve the export customs procedures for glass at Uc Thinh Vietnam Glass Science Development Company Limited

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<b>CHAPTER 1 THEORETICAL FRAMEWORK OF CUSTOMS PROCEDURES FOR EXPORTING IN VIET </b>

Pursuant to Clause 1, Article 28 of the Commercial Law No. 36/2005/QH11 promulgated on June 14, 06, 2005 stipulates as follows: "Export of goods means the removal of goods from the territory of Vietnam or into a special area located on the territory of Vietnam which is considered a separate customs area in accordance with the provisions of law." (Luật Thương mại, 2005)

According to Albaum, G. S., Albaum, G., & Duerr, E. (2008), in the initial phases of expanding into international markets, exporting remains the prevailing method for manufacturers to engage in foreign business transactions.

The export of goods has significantly contributed to the rapid increase in foreign currency revenue and made a substantial impact on the national economy. As a result, the Vietnamese government has increasingly encouraged and promoted export activities.

<b>1.1.2. The role of export </b>

The export of goods plays a crucial role and brings numerous benefits to a country. Firstly, exporting contributes to economic growth. Selling goods in the international market generates revenue in foreign currency, contributes to foreign exchange reserves, and enhances a country's international payment capacity. The higher the quantity and value of

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exports, the stronger the financial resources available for investment in infrastructure development, education, healthcare, and other important sectors.

Secondly, export activities also play a significant role in job creation. Export-oriented industries often require a skilled workforce, thus reducing unemployment rates and improving the living standards of workers.

Thirdly, exports create opportunities for the development of domestic industries and businesses. Access to international markets opens up access to larger supply and demand sources, promoting competition and enhancing the competitive capabilities of domestic enterprises. This encourages investment in improving product quality, technology, and production processes, contributing to value-added and sustainable growth.

Moreover, export of goods plays a crucial role in promoting economic integration and strengthening international trade relations. Through exports, a country can build and strengthen partnerships with other nations, expand its network of economic connections, and drive comprehensive development. This facilitates the country's participation in global supply chains and economic integration.

In summary, the export of goods plays a vital role in a country's economy by contributing to economic growth, job creation, development of domestic industries, and enhancing economic integration and international trade relations. Encouraging and developing exports is an essential part of a nation's economic development strategy.

<b>1.1.3. Common export forms in Vietnam </b>

<b>Direct Export: Direct export is the process of selling goods or conducting </b>

commercial transactions directly with foreign customers without involving any agents or intermediaries. In this case, the business carries out every stage of the export process, from market research, product marketing, contract negotiation, to managing transportation and delivery to the end customers. Direct export requires significant investment and carries high risks, so it may not be suitable for new businesses without experience in the export industry. However, direct export allows for higher profit margins, so it is commonly pursued by reputable import-export companies with highly skilled staff.

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<b>Indirect Export (Entrustment): Indirect export refers to the method of exporting </b>

goods through intermediaries. The exporting business does not directly engage with foreign customers; instead, they utilize the services of agents or intermediaries to market and sell their products in the international market. When delegating the export, these exporting businesses (the ones receiving the delegation) need to establish two contracts: a sales contract with the foreign party and a delegation contract with the delegating party. Indirect export is often used when a business lacks the resources or experience to market and sell directly to international customers. This helps them expand their marketing scope and increase business opportunities in the international market without having to invest heavily in marketing and advertising activities.

<b>Export Processing: This is a type of export where domestic companies receive </b>

production materials (raw materials, machinery) from foreign countries. They use these production materials to process and manufacture goods according to the requirements of the ordering party. Finally, the finished goods are exported to designated countries as specified by the ordering company. Export processing is commonly used in industries such as garment manufacturing, electronics, mechanical engineering, information technology, and many others. Engaging in export processing can help companies leverage competitive advantages in terms of labor costs, raw materials, or specialized skills of the processing partners, while expanding production scale and accessing export markets that the company cannot reach on its own.

<b>On-site Export: On-site export refers to the method of delivering goods on the </b>

territory of Vietnam instead of shipping them overseas as in regular exports. This method helps businesses save a significant amount of costs by eliminating customs procedures, insurance purchases, and transportation and delivery expenses.

<b>Temporary Import for Re-Export: Temporary import for re-export is a method </b>

where Vietnamese traders temporarily import goods into Vietnam but subsequently export those goods to another country. This method involves importing goods without consuming them domestically, but rather exporting them to a third country to generate profit.

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<b>re-1.2. Overview of customs procedures 1.2.1. Definition of procedure </b>

As defined in ISO 9000:2015 (2015), procedure is defined as "a specific way of conducting an activity or process”. In more precise terms, the way entails arranging tasks in a methodical and orderly manner, following a clear and scientifically determined sequence.

<b>1.2.2. Definition of customs procedures </b>

In accordance with the 1999 Kyoto Convention, "customs procedures" refer to all activities that relevant parties and Customs must undertake to ensure compliance with the Customs Law. (Nghị Định Thư Về Sửa Đổi Công Ước Quốc Tế, 1999)

According to Clause 23 Article 4 of the 2014 Customs Law, “customs procedures” are the tasks that customs declarants and customs officials must carry out in accordance with the provisions of this Law regarding goods and means of transportation. In other words, customs procedures are a mandatory process that follows the regulations of the state, allowing goods or means of transportation to be exported or transported across the borders of a country. (Luật Hải quan, 2014)

In Vietnam, import and export customs procedures are carried out at the Customs Department of the border gate (international seaport, international airport...) or at the Customs Department outside the border gate (inland port)

Based on Article 3 of Decree 08/2015/ND-CP, "Electronic Customs Procedures" refer to customs procedures in which the declaration, receipt, processing of customs declaration information, and exchange of other information as stipulated by customs procedure laws among relevant parties are carried out through the Customs Electronic Data Processing System.

Currently, the customs procedure process has been optimized, saving businesses from spending excessive time on legal procedures. Specifically, businesses will electronically submit customs dossiers through the VNACCS software. The Customs General Department

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will notify businesses of the results of their dossier through the electronic information portal after verifying the validity of the submitted documents.

<b>1.2.3. The role of customs procedures </b>

In the realm of foreign economic development, customs procedures play a crucial role that extends beyond the mere management of import and export goods. They serve as essential tools utilized by the state to protect economic sovereignty, national security, and the interests of domestic production, consumers, and the state budget. Particularly in Vietnam, with its recent economic advancements, customs procedures have become increasingly concentrated and hold significant importance within the country's economic management system.

Firstly, customs procedures are employed as an administrative management instrument by the state to ensure compliance with relevant legal regulations regarding the import and export of goods and transportation. This ensures the protection of the rights and interests of all parties involved and upholds fairness in international trade.

Secondly, customs procedures act as a means for the state to safeguard national security and safety. They involve inspections of goods and transportation to prevent activities such as smuggling, the entry of hazardous materials, weapons, or any goods that could pose harm to the nation and its population.

Thirdly, customs procedures serve as a vital channel for the collection of taxes, fees, and other charges associated with import and export activities. The revenue generated from these sources significantly contributes to the national budget and supports public projects and services.

Lastly, customs procedures establish a favorable environment for international trade by ensuring prompt and efficient clearance of goods and transportation. This fosters economic development, promotes trade growth, and stimulates economic cooperation among nations.

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<b>1.2.4. The legal basis system for applying customs procedures in Vietnam </b>

Some documents and decrees provide detailed regulations on customs procedures as follows:

 Customs Law No. 54/2014/QH13 stipulates the state management of customs for goods exported, imported, transited, as well as for means of transport exiting, entering, or transiting the customs territory by domestic and foreign organizations and individuals. It also regulates the organization and activities of the Customs.

 Decree 154/2005/ND-CP provides detailed regulations on customs procedures, inspection, and customs supervision.

 Decree 87/2012/ND-CP dated October 23, 2012, by the Government, provides detailed provisions of the Customs Law regarding electronic customs procedures for goods in import and export trade.

 Decree 59/2018/ND-CP dated January 21, 2015, by the Government, amends and supplements certain provisions of Decree 08/2015/ND-CP, which regulates the implementation of customs laws regarding customs inspection, supervision, and control.

In addition, there are also various circulars and decrees issued by authorized state agencies that provide guidance on the execution of customs procedures:

 Circular 39/2018/TT-BTC, replacing Circular 38/2015/TT-BTC, regarding customs procedures, customs inspection, customs supervision, export tax, import tax, and tax management for goods in import and export.

 Decision 1996/QD-TCHQ dated July 10, 2015, on the issuance of customs procedures for goods in import and export.

 Circular 22/2014/TT-BTC dated February 14, 2014, by the Ministry of Finance, which regulates electronic customs procedures for goods in import and export trade.

<b>1.2.5. The parties involved in customs procedures and the responsibilities of each party </b>

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<b>For the declarant: </b>

According to Clause 21 of the 2014 Customs Law, when going through customs procedures, the declarant is responsible for:

a) Declaring and submitting the customs declaration form; submitting or presenting the documents related to the customs dossier as stipulated in Article 24 of this Law; b) Bringing goods and means of transport to the designated location for actual

inspection of goods and means of transport;

c) Paying taxes and fulfilling other financial obligations as prescribed by tax laws, fees, charges, and other relevant regulations.

<b>For customs officers: </b>

When going through customs procedures, the customs authorities and customs officials are responsible for:

a) Receiving and registering the customs dossier;

b) Checking the customs dossier and conducting actual inspection of goods and means of transport;

c) Organizing tax collection and other charges as prescribed by tax laws, fees, charges, and other relevant regulations;

d) Making decisions on customs clearance, release of goods, and confirming that the means of transport have completed customs procedures.

<b>For service providers for businesses: </b>

Customs brokerage agents operating under authorized contracts with importers and exporters, are responsible within their scope, and service companies provide services to facilitate customs procedures.

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c) For other state agencies involved in coordinating customs procedures:

d) Governmental entities, customs brokerage firms, armed forces, and organizations such as banks, police, economic police, coast guard, border patrol, judiciary, prosecutor's office, inspection agencies, etc., work together within their respective responsibilities and powers to facilitate the implementation of customs procedures.

<b>1.2.6. Customs procedures for exported goods </b>

Customs procedures for exported goods consists of five basic steps:

<b>Step 1: Check product information and policies of exported items </b>

After signing a trade contract between the two parties, the first step is to check the overall category of goods before proceeding with export customs procedures.

Not all types of goods are allowed to be exported. It is necessary to determine the classification of the goods, whether they are ordinary goods or goods subject to compliance regulations, etc. Additionally, it is important to check the policies related to the specific product, such as whether it is encouraged, restricted, or prohibited for export by the government. The list of prohibited goods for export is regulated by Government Decree No. 69/2018/ND-CP dated May 15, 2018. For products listed under restricted items that require quota or permits, it is mandatory to go through the licensing process in order to meet the conditions for export.

<b>Step 2: Prepare export documents </b>

In the export customs clearance process, it is necessary to carefully check the required documents before proceeding with customs declaration. Typically, a basic set of documents includes:

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Depending on the type of goods, there may be additional documents required according to specific regulations. For ordinary goods, the documentation preparation is relatively simple. However, for specialized items, such as seafood, additional documents such as animal quarantine certificates may be required, or for timber-related goods, additional documents confirming compliance with forestry regulations may be needed.

<b>Step 3: Declare and transmit customs declarations for export goods </b>

After completing the document verification process, you will enter the electronic customs declaration system to input the data and declare the customs declaration. If it is the first time for a business to declare customs, additional steps need to be taken, including:

 Acquiring a digital signature

 Registering the digital signature with the Customs Department

 Downloading and installing the electronic customs declaration software

The customs authority will receive and process the data, perform checks, assign a declaration number, and classify the declaration through the system. Once the declaration is successfully submitted and transmitted, the electronic customs system will provide a response to the business, including:

 Official declaration number

 Declaration classification result, categorized into three lanes (green, yellow, red) Note: If any of the following six criteria are incorrect, the export declaration must be canceled:

 Type of business

 Classification code of goods

 Transport method code

 Customs authority

 Exporter code

 Customs agent code

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<b>Step 4: Carry out customs procedures for export of goods at the Customs Department </b>

Submit taxes and necessary documents at the Customs Department as declared in the customs declaration. Additionally, depending on the classification result, it may be necessary to physically inspect the goods. Specifically:

<b>Green Lane Declaration: </b>

If the declaration is classified as "green," indicating that the goods are accepted for electronic customs clearance immediately after declaration submission, the business needs to prepare certain documents to be submitted to the customs authority, including:

 Unloading notice

 Barcode printout (from the website of Vietnam Customs)

The customs authority will stamp and seal the back of the declaration (at some ports), and at this point, the business can submit the declaration to the shipping line.

<b>Yellow Lane Declaration: </b>

If the customs declaration is categorized as "yellow," the business needs to prepare paper documents according to the regulations stated in Circular 38 (as amended by Circular 39). Subsequently, the business will bring these documents to the Customs Department for inspection by customs officials.

<b>Red Lane Declaration: </b>

If the declaration is categorized as "red," the customs authority will conduct a thorough examination of the documents and may physically inspect the goods. The cargo inspection process (also known as cargo examination) may involve the use of specialized scanning machines or customs officers may physically open the container for inspection.

 The purpose of the examination in the red lane is to verify whether the actual goods match the information provided in the documents.

 If the inspection results are consistent, the business can proceed with the customs procedures similar to the green lane.

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 If minor discrepancies are found during the inspection, the business may be required to make adjustments to the declaration.

 In case of serious discrepancies, the business may face administrative penalties. In more severe situations, there is a possibility of the goods being prohibited from being exported.

After the customs clearance of the declaration, proceed to print the barcode through the software or website customs.gov.vn and bring it to the monitoring area to finalize the declaration.

<b>Step 5: Customs clearance and liquidation of declarations </b>

After the customs approval of the declaration, submit the monitored declaration back to the shipping line to complete the customs clearance process. Submit the required documents to the shipping line. Subsequently, the shipping line will proceed with the confirmation process and load the goods onto the vessel. The export customs clearance process is completed at this stage.

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<b>CHAPTER 2 OVERVIEW OF UC THINH VIETNAM GLASS SCIENCE DEVELOPMENT COMPANY LIMITED </b>

<b>2.1. Company overview 2.1.1. Company profile </b>

Company name: Uc Thinh Viet Nam Glass Science Development Company Limited (UTG)

Date of establishment: March 25, 2016 Tax ID: 4001071089

Representative: Jiang Zhi Bin

Business field: Manufacturing decorative glass, colored glass, clear glass, coated glass Address: Lot 12A, Bac Chu Lai Industrial Park, Tam Hiep, Nui Thanh, Quang Nam Website:

Uc Thinh Vietnam Glass Science Development Company Limited is a invested company located in the North Chu Lai Industrial Park, Central Vietnam. The company was established on March 25, 2016. It is known as a specialized manufacturer and distributor of patterned glass, catering to both the domestic market and export markets, with a range of 12 different patterns.

<i><small>Chinese-Figure 2.1. Logo of Uc Thinh Viet Nam Glass Science Development Company Limited</small></i>

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<b>2.1.2. Company products </b>

Uc Thinh Vietnam Glass products are manufactured using natural materials, ensuring excellent gloss, smooth surface, and a tempering rate of 98%. Our factory offers a range of Patterned glass and coated Patterned glass varieties, including FLORA, MISTLITE, DIAMOND, SEASONS, Millennium, NASHIJI, MORU, KARATACHI, which can also be customized according to customer requirements. The product specifications available are 2.0m × 1.5m, 2.0m × 1.7m, 2.0m × 1.8m, 1.83m × 2.44m, 1.83m × 2.134m, 1.524m × 2.134m, and 2.0m × 2.4m.

Uc Thinh Company maintains a high level of technology and quality in its products, with consistent and standardized management practices. This ensures that our products consistently maintain their high quality while continuously innovating in terms of safety and quality. We also adhere to strict checks and controls during transportation and packaging to guarantee the integrity of our products.

<i><small>Figure 2.2. 12 different glass patterns produced by the company</small></i>

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<b>2.1.3. Corporate culture of company </b>

Since its early days, UTG has been committed to building a corporate culture based on core values such as diligence, simplicity, learning, and innovation. The company aims to become a loyal partner to its customers, a model within the industry, and a trusted brand in the public eye. UTG accompanies its customers by expanding its range of products to meet diverse needs, both domestically and in export markets, with increasing consumer demand.

Furthermore, UTG places great emphasis on social responsibility in its actions. The company strives to build and continuously improve its quality management system according to ISO 9001:2015 standards, as well as implementing the 5S-Kaizen system. It also has an evaluation and performance appraisal system, and a comprehensive ERP management system that covers all aspects from procurement to sales and material management in all its administrative operations.

<b>2.1.4. Workforce of company </b>

<b>Emphasis on the golden principle in labor analysis: </b>

UTG believes that the "human resources" factor plays a crucial and fundamental role in the business operations. Furthermore, it also determines the prosperity of the enterprise. This belief is clearly reflected in our policies on skill training, welfare benefits, and rewards for staffs, which we consistently prioritize. Additionally, UTG places importance on recruiting competent staffs with high professional qualifications, while also considering and evaluating their potential for development within the company. The quality of the workforce not only contributes significantly to the organization's success but also creates a competitive advantage and differentiation compared to other competitors.

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Based on statistical data, the workforce is distributed by qualification and age, showing that individuals with at least a secondary level of education account for 27% of the workforce, particularly those under 40 years old, who make up 74.6%. This creates certain advantages for the current and future development of UTG.

<b>Focus on welfare and benefits for the workforce: </b>

In addition to emphasizing professional qualifications and skill training for staffs, UTG pays special attention to the development of their cultural and spiritual well-being through outdoor activities, team building initiatives, and the construction of a mini football field with a total budget of over 1.4 billion VND to organize sports and cultural events. Furthermore, UTG organizes talent competitions, labor competitions, regular health check-ups, occupational disease screenings, and provides life insurance coverage ranging from 10,000,000 VND to 30,000,000 VND for outstanding managers and staffs.

Furthermore, the work areas and departments are equipped with essential infrastructure to ensure aesthetics and health conditions. The nutrition mechanism for industrial meals is planned and the menu is constantly changed to ensure the provision of quality meals to the workforce. Every year, a program for providing refreshing drinks is organized for all production units to ensure efficient work energy.

<i><small>Figure 2.3. Workforce distribution by skill level and age</small></i>

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<b>Emphasis on improving the quality of the management team: </b>

The management team and department heads receive high attention and guidance from the Board of Directors to enhance their management and leadership capabilities. Over 50% of the management team and department heads are personnel with a college degree or higher qualifications or have been trained to become outstanding staffs.

Building a strong Trade Union organization to protect the rights and interests of workers. In parallel with developing essential resources for the workforce, UTG also focuses on building a strong grassroots Trade Union organization, taking the Collective Labor Agreement as the guiding principle for actions, and advising the leadership to coordinate timely organization of activities such as visiting and encouraging union members who are sick, facing difficulties, and providing welfare benefits as prescribed by the Vietnam General Confederation of Labor.

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<b>2.1.5. Organizational structure </b>

<i><small>Source: Administration - HR Department of UTG </small></i>

<i><small>Figure 2.4. The organizational structure of UTG </small></i>

<small>General Director</small>

<small>Deputy General Director of </small>

<small>Accounting Dept</small>

<small>Deputy General Director of Administration - HR </small>

<small>and Business</small>

<small>Administration - HR Dept</small>

<small>Sales Dept (Domestic)</small>

<small>Material Manager</small>

<small>Planning, Purchasing</small>

<small>Transportation </small>

<small>Export, Customs</small>

<small>Chief Product Officer</small>

<small>Raw Material Dept</small>

<small>Laboratory Dept</small>

<small>Sample Lot Dept</small>

<small>Annealing furnace Dept</small>

<small>Packaging </small>

<small>Packing Dept</small>

<small>Mechanical </small>

<small>Shipping Dept</small>

<small>Warehouse and QC Manager</small>

<small>Warehouse Dept</small>

<small>QC Dept</small>

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<b>The functions of the main departments: </b>

<b>General Director: Holds the highest position in the company, leads and manages the </b>

entire organization, sets long-term strategic directions, and makes important decisions related to business operations and management.

<b>Deputy General Director of Finance: Develops financial plans, manages capital and </b>

assets, oversees accounting operations and financial reporting, and makes decisions related to finance and investments.

<b>Deputy General Director of Administration - Human Resources and Business: </b>

Ensures smooth administrative operations, manages and develops human resources, develops and implements business strategies, and ensures the company's efficiency and growth.

<b>Material Manager: Identifies material needs, plans procurement, negotiates with </b>

suppliers, manages the purchasing process, and controls inventory of materials.

<b>Chief Product Officer: Builds production plans, manages technological and </b>

production processes, ensures product quality, and improves production efficiency and effectiveness.

<b>Warehouse and QC Manager: Manages warehouse operations, conducts quality </b>

inspections to ensure compliance with quality standards.

<b>Accounting Department: Records and verifies financial transactions, prepares </b>

financial reports, conducts financial analysis, ensures compliance with financial regulations and standards.

<b>Administration-HR Department: Manages staff records, handles issues related to </b>

HR policies, ensures compliance with administrative procedures, and meets the company's personnel needs.

<b>Sales Department: Understands customer needs, seeks, and builds customer </b>

relationships, implements sales strategies, ensures sales volume, and enhances market share.

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<b>Planning and Purchasing Department: Develops production plans, plans and </b>

manages resources, negotiates with suppliers, conducts procurement activities, and manages procurement contracts.

<b>Export and Customs Department: Prepares export documentation, handles customs </b>

procedures, ensures compliance with regulations for export and import of goods.

<b>Laboratory Department: Performs testing and quality analysis of products, ensuring </b>

compliance with quality standards.

<b>Warehouse Department: Receives, inspects, and stores goods, manages warehouse </b>

operations, ensures proper arrangement of warehouse items, and controls inventory.

<b>2.2. The company's business performance from 2021 – 2023 </b>

<i><small>Table 2.1. Business performance of UTG from 2021 – 2023 </small></i>

<b>Profit after tax </b> 39,883,966,404 63,610,545,212 36,014,430,961

<i><small>Source: Accounting Department of UTG </small></i>

During the period from 2021 to 2023, the company's operations experienced significant fluctuations. The total revenue, especially domestic revenue, underwent substantial changes, increasing from 2021 to 2022 but then sharply declining in 2023. 2022 could be seen as a year of strong recovery following the COVID-19 pandemic. Vietnam, along with many other countries worldwide, implemented social distancing measures and economic restrictions to control the pandemic. When the situation was brought under control and economies reopened, there was a strong growth potential due to increased

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