Recommendation to enhance business efficiency of Namsung shipping agency
department at VOSA Hai Phong

PREFACE
In the current economic integration, the competition among domestic
enterprises and the competition between domestic enterprises and foreign
enterprises have been fierce ever. Enterprises need to have strategies and different
way to survive and develop. In fact, companies which have new and creative
perspectives, flexible business methods; will exist and develop and vice versa.
Thus, collection and dealing with information to evaluate business result are very
necessary for each company.
Business results of company show ability and status of operating activities and
financial capacity, marking development or declination of company in certain
period. Therefore, business results are guidance helping administrators have real
look about current status of entrepreneur. From that company can set up next plan
for operating activities which is suitable with ability of enterprise; coincidently
helping avoid existing mistakes.In other word, analyzing business results is very
important which help company handle the difficulties and find ways to improve
business efficiency.

I declare that this report is my own unaided work. It has not been
submitted before.
If violated, I am solely responsible for and bear the punishments of the
Institution and University.

Student Name and Signature

Dinh Thi Hao
Dinh Thi Hao – GMA02 – ISE - VIMARU

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Recommendation to enhance business efficiency of Namsung shipping agency
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ACKNOWLEGEMENT
Firstly, I would like to express my sincere gratitude to my advisor – Hoang
Bao Trung for the continuous support of my dissertation, for his patience,
motivation, and immense knowledge. His guidance helped me in all the time of
research and writing of this thesis.

Dinh Thi Hao – GMA02 – ISE - VIMARU

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Recommendation to enhance business efficiency of Namsung shipping agency
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CONTENTS

PREFACE .......................................................................................................... i
ACKNOWLEGEMENT ................................................................................... ii
LIST OF ABBREVIATIONS .......................................................................... vi
LIST OF TABLES .......................................................................................... vii
LIST OF FIGURES ........................................................................................ viii
INTRODUCTION ............................................................................................. 1
CHAPTER
I:
FOUNDATION
OF
BUSINESS

EFFICIENCY
ENHANCEMENT ............................................................................................ 3
1.1 Definition nature and role of business efficiency enhancement ................. 3
1.1.1Definition of business efficiency .............................................................. 3
1.1.2Nature of business efficiency enhancement .............................................. 6
1.1.3Role of business efficiency enhancement in company ............................. 6
1.2 Factors impacting business efficiency ........................................................ 7
1.2.1External factors ......................................................................................... 7
1.2.2Internal factors .......................................................................................... 8
1.3 Indicators of business efficiency ................................................................. 9
1.3.1Some definitions related to business performance.................................... 9
a) Revenue ....................................................................................................... 9
b) Cost ........................................................................................................... 9
c) Profit ......................................................................................................... 10
1.3.2Indicators of business efficiency ............................................................. 11
a) Ratio of profit to cost ................................................................................ 11
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Recommendation to enhance business efficiency of Namsung shipping agency
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b) Ratio of net profit to net revenue .............................................................. 11
c) Ratio of revenue to cost............................................................................. 12
CHAPTER II: EVALUATING BUSINESS EFFICIENCY OF NAMSUNG
SHIPPING AGENCY DEPARTMENT AT VOSA HAI PHONG ................ 13
2.1 Overview of VOSA Hai Phong ................................................................. 13
2.1.1 Formation history ................................................................................... 13

2.1.2 Organizational structure ......................................................................... 13
a) Organizational chart .................................................................................. 13
b) Functions and duties of each department .................................................. 14
2.1.3Personnel ................................................................................................. 16
2.1.4 Business scope........................................................................................ 16
2.1.5 Business results of company .................................................................. 17
2.2 Evaluating business efficiency of Namsung shipping agency department
at VOSA Hai Phong ........................................................................................ 18
2.2.1 Analysis of revenue ................................................................................ 18
2.2.2 Analysis of cost ...................................................................................... 23
2.2.3 Analysis of profit .................................................................................... 26
2.2.4 Evaluating business efficiency of Namsung shipping agency department30
a) Gross profit coefficient ............................................................................. 30
b) Profitability ratio ....................................................................................... 31
c) Efficiency of cost using............................................................................. 32
2.2.5 Advantages & disadvantages in business activity of Namsung shipping
agency department........................................................................................... 33

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Recommendation to enhance business efficiency of Namsung shipping agency
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CHAPTER III: RECOMMENDATION TO ENHANCE BUSINESS
EFFICIENCY OF NAMSUNG SHIPPING AGENCY DEPARTMENT AT
VOSA HAI PHONG ....................................................................................... 36
3.1 Purpose and development orientation of Vietnam maritime sector from

now to 2020 ..................................................................................................... 36
3.1.1 Purpose and development orientation of Vietnam maritime sector from
now to 2020 ..................................................................................................... 36
3.1.2 Orientation and strategy of economic – social development of Hai
Phong city by 2020 include purposes: ............................................................ 37
3.2 Purpose and development orientation of company to Namsung shipping
agency department in the future ...................................................................... 40
3.3 Recommendation to enhance business efficiency of Namsung shipping
agency department........................................................................................... 41
3.3.1 Advertising image to customers ............................................................. 41
3.3.2 Price strategy .......................................................................................... 42
3.3.3 Measures to reduce cost ......................................................................... 43
3.3.4 Measure to increase revenue .................................................................. 44
3.3.5 Personnel ................................................................................................ 44
CONCLUSION ............................................................................................... 48
REFERENCE .................................................................................................. 49

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Recommendation to enhance business efficiency of Namsung shipping agency
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LIST OF ABBREVIATIONS
COSP

Cost of service provided

Dept.


Department

NS shipping agency department

Dinh Thi Hao – GMA02 – ISE - VIMARU

Namsung shipping agency department

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Recommendation to enhance business efficiency of Namsung shipping agency
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LIST OF TABLES

Table 1: Personnel in VOSA Hai Phong ........................................................ 16
Table 2:Revenue, cost and profit of VOSA Hai Phong from 2010 to 2014 .. 17
Table 3:Revenue of Namsung shipping agency department 2011-2014 ....... 19
Table 4: Contribution of revenue from NS shipping agency department into
total revenue of whole company ..................................................................... 21
Table 5:Fee for serving container ship of shipping agency ........................... 22
Table 6: Cost of NS shipping agency department(2011-2014) ..................... 24
Table 7: Cost structure of Namsung shipping agency department ................ 25
Table 8: Factors affecting to profit of Namsung shipping agency department26
Table 9:Summary of factors affecting to profit.............................................. 29
Table 10:Profit coefficient of Namsung shipping agency department (20112014) ................................................................................................................ 30
Table 11:Profitability ratio of Namsung shipping agency department .......... 31
Table 12: Cost efficiency of Namsung shipping agency department ............ 32


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Recommendation to enhance business efficiency of Namsung shipping agency
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LIST OF FIGURES

Figure 1: Organizational chart of VOSA Hai Phong ..................................... 13
Figure 2: Revenue structure from 2011 to 2014 ............................................ 20
Figure 3: Number of ship NS shipping agency department served from 2011
to 2014. ............................................................................................................ 23
Figure 4: Revenue growth of Namsung shipping agency department from
2011-2014........................................................................................................ 23
Figure 5: Cost of NS shipping agency department in four years (2011-2014)
......................................................................................................................... 24

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Recommendation to enhance business efficiency of Namsung shipping agency
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INTRODUCTION
1.

Necessity


Vietnam has been in the path of international economic integration. Economic
integration has brought many opportunities and challenges to Vietnam. If
Vietnamese enterprises want to survive and growingly develop in the domestic
market as well as in the international market, it is necessary to study and analyze
business activities of company, giving measures to enhance business efficiency for
company.
VOSA Hai Phong – a branch of VOSA Group – is one of leading company in
shipping agency in Vietnam. So as to exist and increasingly develop, enhancement
of business efficiency of company has become a major concern ever. With such
awareness together with process of exposing to business activities of agent at
VOSA Hai Phong, I finally decided to choose topic about business efficiency.
However, due to limited time and ability, I only can analyze business efficiency of
Namsung shipping agency department at company. That’s why my final chosen
topic is: “Recommendation to enhance business efficiency of Namsung shipping
agency department at VOSA Hai Phong”.
1.

Research Object

General purpose is to access business efficiency of Namsung shipping agency
department at VOSA Hai Phong through evaluating fluctuating pattern of this
department in the period of 4 years (2011-2014) and analyzing factors affecting
business efficiency. From this, some basic suggestions will be given to enhance
business efficiency of department.
Specified purpose:
- Systematically theoretic basis of business efficiency of Namsung shipping
agency department.
- Accessing business result of Namsung shipping agency department in
surveyed years.


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Recommendation to enhance business efficiency of Namsung shipping agency
department at VOSA Hai Phong
- Evaluating business status, analyzing impacting factors and impacting level
of such factors to business efficiency of Namsung shipping agency department in a
given periods.
- Recommending some basic solutions to enhance business efficiency of
Namsung shipping agency department.
2.

Research scope
Topic is researched in VOSA Hai Phong - No.25 Dien Bien Phu Str., Hai

Phong city. Data is collected from accounting department of VOSA Hai Phong.
Research is implemented from August 10 toNovember20 and uses statistics
from 2011 to 2014 to complete this report.
3.

Research Findings

In period of internship at VOSA Hai Phong, statistics and materials related to
topic are collected from financial report of company. Besides, data are also
collected from internet and books.
Through data collected, it can be concluded that even though there are some
fluctuations during surveyed periods, business results of Namsung shipping agency

department at VOSA Hai Phong still sees the optimistic results from the beginning
to the end of surveyed time in general.
4.

Research’s method

This research used method of comparison, observation and analysis to assess
business efficiency of Namsung shipping agency department. Afterwards, several
recommendations would be given based on statistics analysis to improve business
efficiency of Namsung shipping agency department at VOSA Hai Phong.

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Recommendation to enhance business efficiency of Namsung shipping agency
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CHAPTER I: FOUNDATION OF BUSINESS EFFICIENCY
ENHANCEMENT
1.1
Definition nature and role of business efficiency enhancement
1.1.1 Definition of business efficiency
Business is implementing one, some or all stages of investment from
production to consumption of products or supply service in the market with the aim
of profit making1. Efficiency in business helps enterprise exist and develop. High or
low business efficiency depends on ability to organize production and management
ability of each company2.
Business activities are suitable activities and within law framework of

organizations or individuals. The aim of business activities is to satisfy needs of
human beings via supply of products and services in the market. Coincidently
business activity is to search for profit.
One thing which all enterprises concern the most is issue of business
efficiency. “Business efficiency is economic category reflecting ability of using
available resources such as human resource, materials, machinery and capital of unit
as well as of economy to get specified target”3. Business efficiency is efficiency
collected from operating activities of company. It is shown directly by profit or loss.
Business efficiency is calculated by deviation between revenue and cost. Business
efficiency is determined in relation between cost and revenue during operating
activities under monetary form with one business service or total business services
in a certain period of time. Efficiency is maximum benefit on minimum cost.
Business efficiency is maximum output on minimum input cost. Generally, ability
of using of resources can only be accessed in relation with results obtained to see to
what extend results can be created with each specified resource wastage. Therefore,
business efficiency can be described by this formula:

𝐻=

𝐾
𝐶

(1)

1

Vietnam business law, 2005
Phan Quang Niem, 2008,”Giao trinh phan tich hoat dong kinh doanh”, nha xuat ban Thong ke
3
Phan Quang Niem, 2008, “Giao trinh phan tich hoat dong kinh doanh”, nha xuat ban Thong ke

2

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Recommendation to enhance business efficiency of Namsung shipping agency
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Where:
H: Business efficiency
K: outputs measured by criteria like revenue, profit, total output value
C: total cost to obtain such output
According to modern economists, business efficiency is a category which
reflects level and quality of business operation and is determined by relation
between outputs and cost. Or business efficiency of an enterprise is an economic
category reflecting managing level and operating ability of that enterprise and aims
to ensure maximum output compared with target on minimum cost.
Nature of business efficiency is reflection of quality of operating activities,
reflection of level of use of resources (labor, machinery, equipment, material and
capital,…) to get final specified target of all operating activities of enterprise –
target of profit maximization. Business efficiency is relative category and only
reflected by ratio between outputs and input cost.
In order to clearly understand the nature of business efficiency, it is necessary
to distinguish definition of efficiency and definition of results of operating
activities. Results of operating activities of a company are results obtained by
company after certain process of operating activities (often 1 year). Results which
need to be obtained are essential targets of enterprise. Results of operating activities
of company may be measured elements such as number of consumable products,
revenue, profit, market share,… and can be quality-reflecting elements (qualitative

elements) like prestige of enterprise, product quality,… results usually are targets of
enterprise.
If results are targets of business, efficiency is aspect to implement such targets.
Thus, to calculate business efficiency of company, obtained results and cost must be
shown. In relation between results and efficiency, results are basis to calculate
business efficiency.
Furthermore, formula (1) shows that definition of business efficiency uses two
criteria (outputs and input cost) to assess business efficiency. To facilitate good
condition to determine business efficiency, it is needed to use the same value unit
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Recommendation to enhance business efficiency of Namsung shipping agency
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for both criteria (outputs and input) – currency. Criteria of business efficiency
depend significantly on targets of company so business efficiency in different stages
will be different. In long term, criteria reflecting business efficiency during
operating activities are profit and revenue - related criteria.
- Base on scope to calculate business efficiency, there are general business
efficiency and business efficiency for department.
General business efficiency: is business efficiency calculated for the whole
company.
Business efficiency for department: is business efficiency calculated for each
department of company.
- Base on aspect of business efficiency, there are social efficiency and
efficiency of social economy.
Social efficiency reflects level of use of resources to get specified goals of
society. Goals of society usually are creating job for labors, enhancing educational

level, enhancing living standard, ensuring environment,
Efficiency of social economy reflecting level of use of resources to get goals of
both economy and society in scope of whole national economy as well as scope of
each region of economy.
- Base on time, there are current efficiency and long term efficiency.
In terms of current efficiency, business efficiency depends on current targets
of company. In fact, to implement long-term target of enterprise (profit
maximization), many enterprises at present do not hit target of profit; otherwise,
they implement target of enhancing productivity and product quality, improving
prestige of enterprises, expanding market… thus, efficiency criteria (about profit)
are not high but criteria relating to current specified target of enterprise are high. In
such situation, it couldn’t be concluded that enterprise is operating inefficiently.
Instead, it should be said that enterprise is operating efficiently. Overall, criteria of
current efficiency can be different from long-term efficiency criteria but their final
goal is to implement long-term efficiency criteria.

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Recommendation to enhance business efficiency of Namsung shipping agency
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1.1.2 Nature of business efficiency enhancement
Business efficiency enhancement actually is improving social labor
productivity and saving social labor. Those are two elements which have intimate
relation with each other of business efficiency. Due to scarcity of resources and
competitive use to meet increasing needs of society require exploitation, thoroughly
making use of and saving resources. To get target, enterprises must care about inner

conditions, promotion of its capacity and potential, improvement of producing
factors and save all costs. So, requirement to enhance business efficiency is
obtaining maximum outputs on minimum cost, in other words, obtaining maximum
efficiency on certain cost or vice versa obtaining certain efficiency on minimum
cost. Cost in this case should be understood as wide meaning being cost to generate
resources and cost to use resources and also opportunity cost.
1.1.3 Role of business efficiency enhancement in company
-

In term of company

Every company which operates in market, especially in a very fierce
competition has major concern of business efficiency. This is one general economic
indicator reflecting business process; coincidently it is an indispensable of
company. Company can only exist when business is efficient. Efficiency in business
is condition ensuring reproduction, quality and quantity enhancement of products/
services, helping company strengthen its position and working condition of labor.
When company run inefficiently, revenue cannot offset cost, such company
may go bankruptcy or stop running due to inefficiency in business.
-

In terms of economy-society

When company operates efficiently, obtains high profit, it can contribute to
economy- society of country:
+Increase products for society
+Increase income for budget
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Recommendation to enhance business efficiency of Namsung shipping agency
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+Improve product quality, reduce price, contributing to stabilize economy
+Create condition and enhance living standard for citizens
1.2 Factors impacting business efficiency
1.2.1 External factors
- Institutional & legal factor: this is factor affecting all business sectors in a
specified territory. Institutional and legal factors can create good condition or threat
to the survival and development of any sector. When doing business in one
administrative unit, companies have to follow institutions and legal factors at that
area.
+Stability: stability in politics and foreign affairs. Any institution which has
high stability facilitates good conditions for operating activities and vice versa.
+Taxation: taxation on export and import, income tax, … widely affect
revenue and profit of company.
+Policies: These are macroeconomic measurements to adjust activities of
national economy in accordance with developing orientation of each nation. Policies
can facilitate good condition or generate threat for enterprise such as commercial
policies, policies to develop sector and economy, policies to adjust competition,
policies to protect consumers. Besides, there are several relating laws such as
maritime law, investment law, enterprise law and labor law.
- Impact of economy: enterprises often base on economic factors to decide to
invest in sector and areas:
+Economic impacts: interest rate, inflation
+Economic policies of government: orientation and strategy to develop
economy of government, incentives from government such as tax reduction and
support…incentive policies decide to curb or facilitate development of each sector,
affecting directly to outputs and business efficiency of company in certain field.

+Potential of economy in the future: growth rate, GDP growth,…

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Recommendation to enhance business efficiency of Namsung shipping agency
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- Customer: customers are basic factors to exist and develop of a company.
Finding and attracting customer relate to issues of determine needs, hobbies and
psychology of customers to give suitable way of marketing.
- Technology: now, with advance of technological science; IT and internet
plays important role in business. Many business activities are completed by
computer and via the internet. Information between parties is also transferred by the
internet. Advanced technology brings high productivity, quantity and quality of
products or services.
- Infrastructure: several factors like transport system, communication system,
electricity, water system,…are those which strongly affect to business efficiency of
company. Company operating in region with convenient transport system, good
supply of electricity and water, convenient consuming market will have many
opportunities to develop producing, increase consumption speed, attract foreign
investment and foreign customer, leading to business efficiency enhancement.
1.2.2 Internal factors
- Developing strategy: when preparing developing strategy, company in
general and Namsung shipping agency department in particular need to consider
strength and weakness and targets to see whether they are suitable with
requirements inside company and whether they can make use of resources.
- Finance: financial status is an important element affecting business
efficiency. Ability to raise capital and circulate capital is basic issue to be concerned

to bring maximum efficiency.
- Labor factor: human always is essential factor in decision of success or
failure of operating activities. Suitably arrangement of labor contributes
enhancement of business efficiency.
- Leading factor: leading plays important role in survival and development of
company.
+Building business strategy and develop company. If administrators can give
strategy being suitable with business environment and ability of company, they can
create good orientation for company to implement operating activities efficiently.
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Recommendation to enhance business efficiency of Namsung shipping agency
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+Arrange labor suitably.
+Organize and implement specified plan.
+Organize to check, assess and adjust operating activities.
- Technology: in the era of IT, application of IT in enterprise is indispensable.
This facilitates process of serving and exchanging information between agents and
relating parties. Good technology and machinery contribute to enhance service
quality and bad technology and machinery will surely give bad quality service.
1.3

Indicators of business efficiency

1.3.1 Some definitions related to business performance
a) Revenue
Revenue is total amount of money collected from selling product, goods,

service for customer in a specified period of time. Revenue has been determined
since customers accept to pay (regardless of money received or not)4.
Revenue of company is reflected by 2 criteria: net revenue and revenue from
sale. Particularly, revenue from sales is total value collected from sale of product,
goods and service in a specified period of an enterprise. Revenue of sale reflects
real number of goods or service soled in specified period. Net revenue is revenue
after deducting from revenue of sales some things such as tax on revenue in certain
period (special consumption tax, import-export tax), price reduction, discount and
returned commodities …This criterion reflects net value of goods or services soled
of a company in reporting period.
b) Cost
Cost used for operating activities of company is one revealed by money of all
inputs that company uses to implement specified goal in a certain period of time5.
Nature of cost is loss to take result; result may be in object form like product,
money, factory … or none-object form like service. It is costs related to production
and consumption of products or service.
4
5

PTS Vu Duy Hao, 1997, “ Quan tri tai chinh doanh nghiep”, nha xuat ban thong ke, Hanoi.
Khoa KTVTB, 2015, “Bai giang quan tri tai chinh”, VIMARU, p.54

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+Producing cost: is expressed in money of all expense related to producing

process in a specified period of an enterprise. When product or service hasn’t sold
yet, product cost lies in price of inventory in balance sheet. When product or service
is consumed, product cost becomes “cost price of sold product/ service” in financial
report.
+Cost of consumption (cost of sale): includes cost arising in process of
consuming product, service such as: cost for packing, transporting, advertising,
service after sale. …
+Enterprise managing cost: includes cost related to organizing, managing and
common cost related to the whole operating activities of enterprise. Managing cost
consists of many types: salary allowances and other payments based on salary
(social insurance, health insurance, union dues) of board of directors and employees
in departments, depreciation and fixing cost for common asset of company,
stationery cost, and cost to go on business …
c) Profit
Profit is different amount between total revenue and total cost expended to get
such revenue in business6.
+ Gross profit: is received profit of company after subtracting total revenue by
deducting amount like price reduction, product/ service return, import-export tax

Profit before tax = R – C

+Profit after tax is difference between profit before tax and corporate income
tax. Where:
Corporate income tax = profit before tax * corporate income tax rate

6

Khoa KTVTB, 2014, “Bai giang Phan tich hoat dong kinh te”, VIMARU, p.47

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Recommendation to enhance business efficiency of Namsung shipping agency
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+Net profit is criteria reflecting result of operating activities in reporting
period of company. It is calculated as gross profit from sales of goods or services
minus sales cost, enterprise management cost and minus tax …
1.3.2 Indicators of business efficiency
a) Ratio of profit to cost
This is one of the most important criteria that are usually used to evaluate
business efficiency. It is ratio of profit after tax to total cost in a specified time. It is
described by this formula:

Ratio of profit to cost =

𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥
𝑥 100 (%)
𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡

This criterion reveals how much profit can be created for every 100 dong of
total cost. In other word, it describes how much out of every 100 dong of cost a
company actually keeps in earnings.
b) Ratio of net profit to net revenue
This is a financial ratio that is widely used to evaluate a company’s
operational efficiency. It is calculated as profit after tax divided by net revenue. It is
calculated using this formula:

Ratio of profit to net revenue =


𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥
𝑥 100 (%)
𝑁𝑒𝑡 𝑟𝑒𝑣𝑒𝑛𝑢𝑒

The result shows percentage of revenue of a company converts into profit. The
ratio is simply put it as a measure of profitability. It reflects ability to make profit
based on revenue in specified period. This measure is helpful to management,
providing insight into how much profit is being produced per 100 dong of sales.
The higher the ratio of profit on net revenue is, the more efficient the business is.
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Along with many ratios, it is often used to compare profitability of different
companies in the industry or the same company over different years to look for
trend. An increasing ratio of profit on net revenue indicates the company is growing
more efficient and vice versa a decreasing profitability ratio could be a signal of
financial troubles.
c) Ratio of revenue to cost
This ratio reveals cost efficiency. It is calculated using following formula:

Ratio of revenue to cost =

𝑁𝑒𝑡 𝑟𝑒𝑣𝑒𝑛𝑢𝑒
𝑥 100 (%)
𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡


This criterion shows how much revenue is generated for every 100 dong of
total cost.

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CHAPTER II: EVALUATINGBUSINESS EFFICIENCY OF
NAMSUNG SHIPPING AGENCY DEPARTMENTAT VOSA
HAI PHONG
2.1
Overview of VOSA Hai Phong
2.1.1 Formation history
VOSA Hai Phong was established in 1957 as a subsidiary company of VOSA
Corporation, being one of the earliest units established by VOSA Group. Since
1957, VOSA Hai Phong had been a center of VOSA Corporation till 1989 at which
point VOSA Corporation head office moved to Ho Chi Minh City. After 58 years of
operation, VOSA Hai Phong at present is well-known as a shipping agency and
agent for foreign forwarder.
 Address: No.25 Dien Bien Phu Str., Hai Phong city
 Tel: 84.313.551408/ 3551032/3551321/3855846/ 3551319
 Fax: 84.313.859915/ 3859842/ 3550864/ 3551131
 Email:
2.1.2 Organizational structure
a) Organizational chart


Board of director

Namsung
shipping agency
department

Finance &
accounting
department

Ship’s shipping
agency
department

Transportation
agency
department

Organization &
administration
department

Figure 1: Organizational chart of VOSA Hai Phong
(Source: Human resources Administration in VOSA Hai Phong)

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Recommendation to enhance business efficiency of Namsung shipping agency
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b) Functions and duties of each department
Board of Director: Control all activities of all departments of VOSA Hai
Phong; simultaneously, guide departments to operate according to orientation of
VOSA Corporation.
Organization and administration department: Handle all work relating to
administration such as: organizing staff, appointing staff to study, advising director
about personnel organization, preparing policy to award staff and handling work in
terms of security
Shipping agency department: This department is agent for ships and includes
three small part
-

Cargo part

Handle works relating to cargo such as: Delivering cargo for warehouse and
tally unit, delivery documents for cargo owner,checking name of consignee,
quantity, volume as required by carrier and inform related parties,check documents
like original B/L, introduction paper and procuration to issue D/O and issuing COR
or CSC so that cargo owner can ask for compensation
-

Shipping agent part

The duty of this department is to work directly with ship and serve ship. As
receiving notice from captain or carrier, agent notifies related parties to complete
procedure and arrange to help ship arrive at port.
Clearly know about ship’s operation and do all work delegated by ship owner

or captain. In case there are some arising requirements from captain, agent must
complete as soon as possible.
-

Business part

This part is responsible for keeping contact and exchange information with
ship owner and captain, signing contract with ship owner, pilot and towage;practice
maritime brokerage regarding to ship chartering, crew employment and especially,
confirming agent fee when signing contract with ship-owners.
Dinh Thi Hao – GMA02 – ISE - VIMARU

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Recommendation to enhance business efficiency of Namsung shipping agency
department at VOSA Hai Phong
Namsung shipping agency department: VOSA Hai Phong also acts as a
general agent for foreign container carrier–Namsung shipping Co., Ltd. (the liner
carrier of Korea). When vessels of Namsung carriers arrive, this department will be
direct agent for its ships.
The duties of this department is to organize to serve and handle documents for
container ships, do work delegated by ship owner or captain, sign contract and
negotiate directly with Namsung shipping Co., Ltd; seek for cargo owner who has
container cargo being suitable with shipping lane and organize and manage empty
container of carriers and lend cargo-owner the empty container to pack exported
cargo.
Transport shipping agency department: is agent for both domestic and foreign
cargo owner who want to transport their cargo regardless of retail cargo or container
cargo. It includes multimodal transportation, door-to-door and implements all types

of transport (by sea, road, and air). This department on behalf of cargo owner
handles all related documents to export or import cargo such as license for package,
customs procedures, arrange and supervise the transport means to carry cargo. This
department is also responsible for marketing and seeking customers (cargo owner),
providing forwarding service (CFS, consolidate and delivery FCL and LCL),
delivering retail cargoes and collect money. Coincidently, it consults customer
about forwarding market, protect cargoes of customers.
Finance and accounting department:
-

Foreign payment
Account fee and collect money
On behalf of ship owner to pay and collect fee for ship owner
Calculate value of damage of total shipment

-

Domestic payment

To be in charge of finance of internal company: calculate revenue, price, cost
and manage financial situation of company

Dinh Thi Hao – GMA02 – ISE - VIMARU

Page 15


Recommendation to enhance business efficiency of Namsung shipping agency
department at VOSA Hai Phong
Prepare financial report to send to VOSA Corporation and pay tax for

government.
2.1.3 Personnel
Up to now, VOSA Hai Phong totally has 55 people. Through finding
information about personnel in VOSA Hai Phong, I had divided them into 4 groups
by degree as below:
Table 1: Personnel in VOSA Hai Phong

Degree

Quantity

Percentage

Postgraduate

3

5.45%

Bachelor

43

78.18%

College

2

3.64%


Other

7

12.73%

Total

55

100%

(Source: from organization and administration department of VOSA Hai Phong)

It can be said that staff in VOSA Hai Phongare well educated. Look at the
table, with 78.18%, almost staffs in VOSA Hai Phong graduate from university. In
addition, all staffs in VOSA Hai Phong are very good at their occupations.
Especially, up to 87.27% of all employees in the company are good at English. This
facilitates very good condition for VOSA Hai Phong to communicate and work with
foreign carriers.
2.1.4 Business scope
Sum up, VOSA Hai Phong has three major service fields as follow:
 Agent
- Brokerage and maritime services
Dinh Thi Hao – GMA02 – ISE - VIMARU

Page 16



Recommendation to enhance business efficiency of Namsung shipping agency
department at VOSA Hai Phong
 Acting as a general agent for container carriers (Namsung Shipping Co.,
Ltd.)
 Transport agent:
- Transporting retail and container cargo (multimodal transport, transport
by road, sea, air),
-

loading and discharging, packing imported and exported cargoes
Customs clearance service,forwarding service (CFS, consolidate FCL
and LCL)

2.1.5 Business results of company
Table 2: Revenue, cost and profit of VOSA Hai Phong from 2011 to 2014
Unit: Billion dong
Year

Deviation

Criteria

2012/2011
2011

2012

2013

2014


2013/2012

2014/2013

Bil.
dong

%

Bil.
dong

%

Bil.
dong

%

Total
revenue

29.84

30.54 35.22

45.27

0.7


2.35

4.68

15.3

10.1

28.
5

Total
cost

23.50

24.90 28.56

37.84

1.4

5.96

3.66

14.7

9.28


32.
5

Profit

6.34

5.64

7.43

-0.7

11.0

1.02

18.1

0.77

11.
6

6.66

(Source: accounting department of VOSA Hai Phong)

Above is table showing the business result of VOSA Hai Phong from 2011 to

2014 via some criteria: revenue, cost and profit. Generally, all criteria increased in
spite of some fluctuations of profit criteria in certain period of time. Particularly,
total revenue increased significantly from 2011 to 2014. Revenue in 2012 increased
by 0.7 billion dong;corresponding to an increase of 2.35% compared with that in
2011.Revenue in 2013 saw a rise by 4.68 billion dong (15.3%) compared with that
in 2012 and revenue of 2014 increased 10.1 billion dong (28.5%) compared with
Dinh Thi Hao – GMA02 – ISE - VIMARU

Page 17