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INTERNSHIP REPORT

January April (2016)

Nguyen Duc Tuan


IRN: 1132300374

Abstract
Currently, I took an opportunity to intern at Thai Binh Shoe Company in logistic
department. In fact, Thai Binh Shoe Company business comprises 6 sectors: footwear
manufacturing industry, manufacturing industry bags, investing - business - real estate
management and industrial infrastructure, ports and logistics, trading & services. Thus, this place
is an excellent chance I encountered to enrich my knowledge and experience about supply chain
management, especially import-and-export-related understanding. After following 4-months
internships in TBS, I could apply what I study in class to the reality in reasonable way in order to
serve my future career. Besides, the purpose of the program is to fulfill the core equipment for
the award of a Bachelor Degree in Business Administration.
In this internship report, I would like to describe my experiences during my internship
period. It would contain a brief overview of the TBS company and its activities, tasks and
projects that I have worked on during my internship. Writing this report, I also will describe and
reflect my learning objects and personal goals that I have set during my internship period.

Contents
I.

Introduction...................................................................................................................1
1.

Internship objectives..............................................................................................1

2.

Expectations...........................................................................................................2

II.

Organization...............................................................................................................3
1.

Internship organization...........................................................................................3
TBS Group Corporation..............................................................................................3

2.

Culture, identity and image....................................................................................4

3.

Vietnams footwear industry overview..................................................................6

4.

TBS group corporations export condition.............................................................7

5.

The SWOT analysis in exporting products to the U.S market...............................9

III.

Literature review......................................................................................................12

1.

Export concepts....................................................................................................12

2.

Marketing concepts..............................................................................................13

IV.

Solution for TBS group in entraining its products to the U.S market.....................14

V.

Tasks, projects and activities...................................................................................16

VI.

Conclusion...............................................................................................................18

VII.

References............................................................................................................19

I.

Introduction
1. Internship objectives

II.

Like I said, it is believed that multi-sectors developed and executed in TBS company give
me a great chance to approach and exposure an extensive experience as well as to
enhance my skills and competencies in operational environment. During my internship I
worked as a purchasing official as I help to draft the purchase order, prepare payment
documents (LBC, remittance). In addition, I have to perform the necessary work on
transport (contact, and Forwarder, ...). This is a major competency that I have to conduct
and focus on during my internship. And finally I have to set up personal targets to
develop and improve my skills.

III.
IV.

Following this, I formulated it by using SMART to reflect my target:


Major Role: Purchasing official

V.

During my 4 month of internship, I want to actively contribute to the companys


objectives by applying the knowledge I obtained during my education such as
developing, and execute purchasing strategies, seeking and partnering with reliable
vendors and supplier, and negotiating to get the best quality needed goods and services
for company at the lowest price and expense.

VI.
VII.
VIII.

Major competency
Strategist:
As a Strategist, I want to come up with plans; new ideas and strategies on how to improve
the purchasing strategies.

IX.

Negotiator:

X.

As a Negotiator, I want to set up network to facilitate the acquisition of company with


reliable vendors or suppliers who provide the quality goods at reasonable prices

XI.

Along with professional competencies like above, I also improve my personal skill as I
have studied what is the best behavioral manner in group. By understanding how to work
in professional environment, I am supposed that I will harmonize better in my future
working job.

2. Expectations
XII.

I wanted to learn and specialize in how to coordinate and control the order cycle by using
information technology. Also it is important for me to learn how to improve and develop
business performance within the constraints of legislation, fuel costs and rising
environmental pressures. One more thing I hope to have relates to liaise and negotiate
with customers and suppliers. In reality, building up the network requires thousands skills
to conquer the customer and convince the supplier that could be not taught in class.

XIII.

That is why I choose this internship company. It is suitable and I knew could achieve my
learning goals.

XIV.

XV.

Organization
1 Internship organization

XVI.

Since the great improvement of Viet Nam of national construction and economy,
currently Vietnam participates in the WTO, AFTA and even TPP. In a sense, this offers
plenty of opportunities for Vietnamese companies in joining the world trade market to
gain more market and more profit without any geographical and legislative boundaries.

XVII.
XVIII.

TBS Group Corporation


The renew policy released by the government in 1986 has opened a new era of Vietnam
economy. A number of companies have been allowed to operate and one of them is TBS
Group. This firm was founded in 1992 by a group of Vietnamese shareholders as one of
the very first footwear company in Vietnam (Thai Binh Shoe Group , n.d.). At the begin,
it produced lady fashion shoes and canvas vulcanized shoes, but then specialized in sport,
casual, hiking shoes and sport sandals (Shop, n.d.). Apart from this, it has been expanding
over many sectors: manufacturing industry bags, investing - business - real estate
management and industrial infrastructure, ports and logistics, trading & services (Thai
Binh Shoe Group, n.d.). With a gradual increase in economics of scale, TBS continuously
enlarge the production capacity by building up new factories in both South and North
Vietnam to reach the output target 25-30 million pairs annually (Thai Binh Shoe Group,
n.d.). As a result, the export turnover increased sharply from a mere 1.5 million US
Dollars in 1992 to 61 million US Dollars in 2006 (Shop, n.d.). And since 1992, Thai Binh
Shoe has been listed in top 10 Vietnam footwear producers. The company takes a pride
on satisfying customer and market needs with sophisticated products, competitive prices

and on-time delivery. In addition, as OEM firm, the group becomes the trustworthy
footwear producer for brands and stores as Reebok, Decathlon, Stilman, Dcshoescousa,
Quik-Silver in the US,
EU, Japan...markets (Thai
Binh Shoe Group, n.d.).
Besides,

it

integrated
manufacturing

also

offers

supportive
resources

starting from the footwear


design to the molds, lasts,
outsoles, to name a few.
Throughout,

the

comparative advantages with great capacity, efficient productivity, flexibility and advance
management, TBS offers customers our real sense of commitment to long-term business.

3. Culture, identity and image


XIX.
XX.

Culture:
TBS is a place where Vietnamese traditional culture accordingly meets modern
technology models.

XXI.

Vision:

XXII.

By the aspiration and the determination of both competent employee and talent leaders,
TBS will emerge as a strong diversified-investment company in Vietnam and outside

well. It promises to achieve the global standard, so that it affirms itself as a delegate of
Vietnam intellectual stature and pride over the world.
XXIII.

Mission:

XXIV.

By relentless investing and innovating, TBS is proud of providing a high-quality products


and services that contribute to the Vietnam economy.

XXV.

Additionally, it guarantees to always being creative and innovative. Its development


accompanies the high benefits, responsibilities associated with community businesses,
social. This means that it always brings confidence, peace of mind for customers, partners
and employees.

XXVI.

Core company values:

XXVII. Human Resources


Focus on developing human
XXVIII.
resources. Employees
are the
most valuable assets which
contribute as a strategic weapon

for success and development


of the business.

Accompaniment
Accompanying with customers,
partners and employees to build
TBS development, success and
mutual benefit-sharing

XXIX.
XXX.
XXXI.
XXXII.
XXXIII.
Innovation and Creativity
XXXIV.
Constantly innovation as a
foundation for growth

XXXV.

Responsibility
Being responsible for benefit of
country, community, society and
employees. Trying to contribute
to life, for a better society.

XXXVI.

4. Vietnams footwear industry overview


XXXVII.

Vietnam has a huge amount of labor force. This is singificant for the success of
developing labor intensive industries in Vietnam. Footwear industries requires a lots
skilled workers for producing. According to Lefaso ( Vietnam Leather, Footwear and
Handbag Association), there are about 812 active leather and footwear companies. Those
companies are mostly located in Ho Chi Minh city, Dong Nai, Binh Duong and Ha Noi.
The footwear industry has created thousands of job supporting around 624,000 workers.
Around 80% of Vietnamese producers are subcontractors of foreign (Nguyen, 2014)

XXXVIII.
Vietnams leather & footwear export structure by market in first 6 months of
2013

XXXIX.

Source:
General

Department of Vietnam Customs

XL.

5. TBS group corporations export condition


XLI.
XLII.

Y
e
a
r XLIII.

TBS groups export turnover into different markets

2008
XLVIII.

XLVI.

LV.
LXII.
LXIX.

LXXVI.

LXXXIII.

XC.

M
a
r
k
e XLVII.
t
s
E LVI.
U
U
. LXIII.
S
A
m
e
ri
c LXX.
a
A
si
aLXXVII.
n
O
t
h
e
LXXXIV.
r
s
T
o
t
a XCI.
l

XLIV.
Pr
op
or
ti
on
(
L.
%
)
7 LVIII.
6.
6
LXV.

2009

XLV.

LIII.

7. LXXII.
8
7

2,718,
538.4
6
LXXIII.

LXXIV.
3,9

6,629, LXXV.
486.52

6.
9

LXXVIII.
4,162,9
05

7.LXXIX.
5
7

7,580,
401.0 LXXX.
8

10, LXXXI.
87

5,913,LXXXII.
903.58

6.
17

LXXXV.
873,44
3

1.
9LXXXVI.
6

5,715.
LXXXVII.
84

0.0
LXXXVIII.
8

166,11
LXXXIX.
9.24

0.
17

XCII.

1 XCIII.
0
0

69,73
7,869.
07
XCIV.

XCV.

95,753
,551.9 XCVI.
8

10
0

3,331,8
02
LXIV.

4,325,7
84

54,941,
460

LXXI.

Pro
port
ion
(%)

Pr
op
or
tio
n
(%
)

LI.
Export
turnov
er
49,91
4,157. LIX.
24
9,471,
155.9 LXVI.
8

Export XLIX.
turnov
er
LVII.
42,104,
859.29

LII.

71,
57

Export
turnov
er
48,546
,702.5
4

13, LXVII.
58

34,497
,340.1

LX.

100

XCVII.
XCVIII.

2010

TBS groups export turnover into the U.S market

LIV.
LXI.
LXVIII.

50
.7
36
,0
6

XCIX.
CIV.
CIX.
CXIV.

Ye
C.
ar
20
08
CV.
20 CX.
09
20 CXV.
10

Total export
turnover

CI.

54,941,460
CVI.
69,737,869.0
7
CXI.
95,753,551,9
8
CXVI.

Export turnover
into the U.S

CII.

Proporti
on (%)

CIII.

Growth
(%)

3,331,802

CVII.

CVIII.

9,471,155.98

CXII.

13.58

CXIII.

184

34,497,340.1

CXVII.

36.06

CXVIII.

264

CXIX.
CXX.

It is clear to see that TBS group has diversified many markets where EU and the U.S are
the main two main market accounted around 85% of total exported products. The export
turnovers have increased gradually for all markets.

Although Vietnamese footwear

industry is accused by EU the act of anti-dumping in 2006, TBS groups growth ratio is
still high. There is a significant increase of export turnover for the U.S market, coming
from 6% in 2008 to 36% in 2010. This change step by step show off market restructure of
TBS group in the future, focusing more on the U.S market.
CXXI.

By dividing exported products into different markets, the company could reduce risks and
pressure if there are any issue, and make sure steady profit for the company. Although the
company has diversified its exported market, TBS group has strategies for key markets
like E.U and the U.S in order to promote export performance and earn profit.

CXXII.

The U.S market is potential for export footwear products and the company step by step
try to reach the plan in which: 40% of products are exported in E.U, 40% in the U.S and
20% for the rest.

CXXIII.
CXXIV.

Structure of exporting footwear products of TBSgroup to the U.S market.


CXXV.

2008

CXXVI.

2009

CXXVII.

2010

CXXVIII.

CXXXV.

CXLII.

CLVI.

Pr
o
d CXXIX.
u
ct
s
S
p
CXXXVI.
or
t
sh
o
es
O
th
CXLIII.
er
s
To
ta
l

CLVII.

PairCXXX.
s of
sho
es

PropCXXXI.
ortio
n
(%)

Pair
CXXXII.
s of
sho
es

Prop
CXXXIII.
ortio
n
(%)

Pair
CXXXIV.
s of
sho
es

Ty
tro
ng
(%)

329
,59
CXXXVII.
3

CXXXVIII.
98

893
,18
CXXXIX.
8

CXL.
93,5

3,4
CXLI.
35,
772

98.
7

CXLVIII.

1.3

CLXII.

100

CXLIV.

CLVIII.

CXLV.

CXLVI.

100

CLIX.

CLX.

6,5 CXLVII.

100

CLXI.

CLXX.
CLXXI.

Most of products exported into the U.S market are sport shoes accounted around 98% of
total exporting products. Focusing only on sport shoes could bring both benefits and
risks. The company could focus on one kind of products, and invest machine as well as
increase quality of the product in order to meet foreign requirement. However, that is
risky as the company is dependent on one kind of product. If there are any problems in
regard of sport-shoes products, the company would suffer huge negative impacts.

6. The SWOT analysis in exporting products to the U.S market.


Strengths:
TBS group has a young labor force and they are active.

Most of machine at TBS are modern and they are imported from Italy
TBS has achieved ISO 9000
TBS groups has achieved trusts from many famous shoe brand and received many subcontract
contracts from foreign partners, like Skechers, Decathon.

The company has a department for research and develop product designs.
The company has a great capacity with many factories located in Thuan An and Di An district.
There is good facilities and safety working condition for staffs and employees, like restrooms
and modern cafeterias.
Weaknesses:
TBS is 100 % domestic owned firm, so fund for operation is still low in comparison with famous
brands like Nike, Puma, Adidas. Besides, TBS groups has already operated around 20 years, so
the company lacks of experience for developing a owned brand.
There is not a department for research and development of foreign information market. This
department is actually important if the company want to expand its brand to international market.
TBS group is a subcontractor, so the company is dependent much on foreign partners. The
company usually wait until the contract to begin the production line and this could lead to
waiting cost or overproduction.
TBS groups only focus on subcontract products from foreign partners design, the company lacks
of foreign market information. Besides that, shoes designs at TBS still limited.
There are still many defects in productions that may increase cost.
Opportunities:
Vietnam is one of the largest footwear producers and exporters in the world. Recently, Vietnam
has joined WTO and AFTA as well as TPP.
Vietnam has the stable reputation and safe environment for production.

The scandal of an-dumping in 2006 makes Vietnam achieve more attention from many other
countries. If Vietnam could exploit that, this would be positively potential.
Plentiful work force and low labor cost.

TBS (Thai Binh Shoe) is a famous fashion brand in Vietnam.


The company locates in the key economic zone, near to Tan San Nhat airport and Cat Lat port.
Threats:
TBS groups lack of market information, so there is not forecast for the market and production
plan
Materials are important from China and Taiwan, and the company has to wait for orders from
foreign partners before producing. This increases carrying cost and warehousing cost. Besides

that, the company has to import materials from different resources, so product quality is not the
same and standardization.
TBS groups has to compete Chinese products in which products from China are usually low
price. The average price of product of TBS is 10-12 USD per one whereby 8 USD per one for
product from China.
Although TBS groups products could compare to Chinese products, Chinese products are
diversified in regard of designs, color and price.
In order to attract foreign contracts, the company has to offer new shoe designs every month and
that would increase cost.
TBS is a subcontractor for foreign partners, and the products are sold with the brand of foreign
partners. So, not many foreign users know about TBS brand. In order to expand the market, TBS
need to create a new brand for itself.
Although participation in world trade organizations reduce tariff and tax, this increase pressure
for local organizations to compete foreign brand with foreign direct investment for foreign
companies.
CLXXII.

CLXXIII.

Literature review
1 Export concepts

CLXXIV.

Export is a function of international trade whereby organizations earn profit by buying


products and services to foreign markets, not local market (Investopedia, n.d).

CLXXV.

The role of export: Export plays an important role in generating national funds for
importing, promoting the process of industrialization. This process contributes to
economic restructure, increasing production, development of technology and upgrading
new equipment. Focusing on export would bring a huge amount of foreign currencies to
the country as well as create jobs for workers. Besides, export is also considered as a way
to exchange cultures and strengthen relationships with other countries.

CLXXVI.

Significance of export: Export is a key in reaching international exchanges of the country


by exploiting competitive advantages like resources, natural conditions, and labor force
to get profits and foreign currencies. This creates funds for national constructions and
step by step improve citizens standard of living.

CLXXVII.

By export, domestic products would be put in the international market to compete with
foreign products in terms of price and quality. In order to get success and compete with
foreign organization, Vietnamese organizations need to restructure the production process
as well as apply new methods to satisfy international requirement and standards.

7. Marketing concepts
CLXXVIII.

Marketing definition: According to American Marketing Association, marketing is the


activity, set of institutions, and process of creating, communicating, delivering and
exchanging offering as well. That brings value for customers or users. (AMA, 2013)

CLXXIX.

Another simple definition comes from Meldrum and Mike in the book named Marketing
in a nutshell: key concepts for non-specialists / Mike Meldrum and Malcolm McDonald.
Marketing is the link, creating relationship between the customers and suppliers, and the
link between production and consumption (Meldrum & McDonald, 2007).

CLXXX.

International marketing: it is the application of marketing principles in which products


and services are marketed oversee and across national borders. Although there are not
much difference in definition between domestic market and international market, there
are significant difference in marketing management between those two strategies
( domestic marketing and international marketing). International marketing is more
complicated than domestic marketing as marketers face with difficulties in currency,
finance, culture and law between countries. (International marketing, n.d.)

CLXXXI.

The American Marketing Association (AMA) defines international marketing is


the multinational process of planning and executing pricing, promotion as well as
distribution of goods and services. In this case, marketing activities are undertaking in
many countries.

CLXXXII.

CLXXXIII.

Solution for TBS group in entraining its products to the U.S


market.

Improving competitiveness

CLXXXIV.

Improving quality of initial material for production: TBS group could establish a
purchasing department. The role of the department is to find, research and deal with the
procurement of materials, make sure the quality of the inputs. Besides, the organization
should build up the relationship with suppliers to make sure that materials will be
delivered on time. TBS group could link with local footwear producers, such as Thuong
Dinh or Bitis, in order to exchange information. Moreover, it is necessary to find a new
kind of material instead of only relying on materials imported from China and Taiwan.

CLXXXV.

Improving labor skill and knowledge: apply gross-training to labor force to raise worker
skill. Sometime, the company should send some employees to foreign countries, such as
Korea and Italy to study experiences as well as quality management methods. In addition,
TBS group should apply new methods like 5S or Lean in its production process. By doing
so, the company could save costs and raise productivity.

Diversification of methods for export to the US market

CLXXXVI.

Diversifying product designs to reach more customer segments: the role of research and
development of design department is important in reaching customers need.

CLXXXVII.

Building up Thai Binh brand: instead of only focusing on subcontract, TBS group should
create some owned product designs and bring them to customers. By doing so, TBS
group brand could be strengthened and expanded in the world.

Promote marketing strategies in the US market.

CLXXXVIII.

Market expo is an effective way for TBS groups products to reach American users. The
company need to identify which kind of product they want to show off and who target
customers are. Besides, providing catalogs to customers as well as admissions counselor
if there is any questions from customers at the market expo show. In addition, the
company could use the Internet as a marketing channel.

CLXXXIX.

Diversification of methods for export TBSs products to the US market: instead of being
subcontractor of foreign footwear companies, TBS group could build up the relationship
with retailers at the U.S like Walmart to bring TBS groups products to American users.

CXC.

CXCI.
CXCII.

Tasks, projects and activities


In the internship period from 11/2015 to 2/2016, I has learnt useful lessons as well as
practical experiences as the role of a document staff. Firstly, I would like to thank the
manager of import and export department as well as staffs. They create a favorable
working conditions for me to study and work at TBS group Corp in the internship time.

CXCIII.

Although I am majoring supply chain management, the job I deal with at the company is
about international logistics, specifically customs documentation. This makes me
confused and worried in the early days at the company. Most of key tasks likes, planning
for exporting products and importing materials, purchasing job and finance are
undertaken by experienced staffs who has many years working at the company. In
contrast, young staffs, like me,are assigned the job which requires traveling a lot, such as
working at ports, meeting carriers and forwarders in Ho Chi Minh city. They have to
work with the Ministry of Industry and Trade to get CO (certificate of origin), take bills
from carriers and forwarders (mostly located in Ho Chi Minh city), or meet customs
officials at the ports if there is any problems related to exporting products.

CXCIV.

By working at Export and Import department in the internship time, I understand more
the working process of the export and import office. The department is divided into two
small departments. One is responsible for footwear products customs declaration and the
other is responsible for handbag products. At TBS group, I am assistant for Mr. Quan,
who is responsible for getting certificates of origin, taking bills and pay money for
forwarders. Some days in week, I follow Mr Quan to come to the footwear factory
located in Thuan An district. We talk with supervisors to the problems about shoes and

receive packing lists of product. Every shoe at TBS is designed followed several steps
before checking and parking for oversee shipments. I also helps people in typing
documents, solving technical problems related to computer softwares. I am impressive to
the automatic customs clearance software (e-declaration), Thai Son software. In addition,
Vietnam is developing a new customs clearance named VNACCS/VCIS system, this is
promised to reduce costs and time for customs declaration.
CXCV.

Exporting products at TBSg roup could be used by vessels or planes. As each carrier and
forwarder specialized in certain routes, and TBS group Corp diversified its exporting
products in different forwarders. This may increase documentation jobs, but it reduces
transportation cost by exploiting competitive advantages of each carrier. We travel to the
forwarders office in Ho Chi Minh city in order to receive bills and pay transportation
cost. TBS group Corps carriers are DHL, Expeditors, Vinatrans, etc. we also deal with
banks for transfer money. By meeting carriers, forwarders and banking staffs, I could
build up the relationship and understand more about logistics process in Vietnam

CXCVI.

CXCVII.
CXCVIII.

Conclusion
It is potential for TBS groups to expand its exporting product to the US market. There is
huge demand in the U.S and American are also willing to pay money for fashion.
However, there are challenges for the company in expanding in this market. In order to
do that, TBS group need to complete two work: improve competitiveness and promoting
marketing strategies. There is an issue remaining in all of Vietnam footwear companies is
that. We mostly focus on subcontract orders from foreign partners, there is not any
owned brand for Vietnamese footwear firm, although Vietnam is one of the largest
footwear producers. Developing an owned brand is an important task for footwear
industry in order to expand the footwear industrys impact on the world and get profit.

CXCIX.

CC.

References

CCI.

Shop. (n.d.). Retrieved from Exporters: http://exporters.com.vn/shop/THAI-BINHHOLDING--SHOES-MANUFACTURING-CO-/35471/about.html

CCII.

Thai Binh Shoe Group . (n.d.). Lich su phat trien. Retrieved from TBS Group:
http://tbsgroup.vn/ve-tap-doan-tbs/lich-su-phat-trien/

CCIII.

Thai Binh Shoe Group. (n.d.). Linh Vuc Hoat Dong. Retrieved from TBS group:
http://tbsgroup.vn/linh-vuc-hoat-dong/

CCIV.
CCV.

Investopedia
(n.d.),
Export.
http://www.investopedia.com/terms/e/export.asp#

Retrieved

AMA
(2013).
Definition
of
export.
Retrieved
https://www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx

from
from

CCVI.

Meldrum, M & McDonald, M. (2007). Marketing in a nutshell: key concepts for nonspecialists, 294: pp43

CCVII.

International marketing (n.d). Retrieved from http://www.marketing-schools.org/types-ofmarketing/international-marketing.html#link1

CCVIII.
CCIX.
CCX.

Nguyen, P. M. (2014, July 16). New Boost


http://vccinews.com/news_detail.asp?news_id=30750

Needed.

Retrieved

from