Analyzing the actual situation exporting cashew nut of thai gia son co., ltd to netherlands market.doc

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HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES
- INFORMATION TECHNOLOGY
DEPARTMENT OF INTERNATIONAL BUSINESS
ADMINISTRATION
---------***--------
INTERNSHIP REPORT
Major: INTERNATIONAL BUSINESS
ADMINISTRATION.
ANALYZING THE ACTUAL SITUATION
EXPORTING CASHEW NUT OF THAI GIA SON CO.,
LTD TO NETHERLANDS MARKET
Student’s name: Lương Tống Hàn Duyên
ID Number: 14dh490240
Class: KQ1402
Course: Internship Report

NHẬN XÉT CỦA CƠ QUAN THỰC TẬP
Tên Doanh nghiệp/ Công ty/ Cơ quan:
Địa chỉ:...................................................................................................................................
Mã số thuế: (nếu có) .............................................................................................................
Mã số đăng ký kinh doanh/Mã số doanh nghiệp: (nếu có)....................................................
Ngành nghề kinh doanh/ lĩnh vực hoạt động chính:..............................................................
Chúng tôi xác nhận Sinh viên:...............................................................................................
thực tập tại Doanh nghiệp/ Công ty/ Cơ quan từ ngày…… tháng….. năm……. đến
ngày…. tháng…… năm…….. như sau:
- Về tinh thần thái độ:
................................................................................................................................................
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- Về việc tiếp cận thực tế nghiệp vụ, hoạt động của Doanh nghiệp/ Công ty/ Cơ quan:
................................................................................................................................................
................................................................................................................................................
................................................................................................................................................
................................................................................................................................................
- Về số liệu sử dụng trong bài (ghi rõ số liệu được sử dụng trong THTTTN có phải do
Doanh nghiệp/ Công ty/ Cơ quan cung cấp cho Sinh viên hay không):
................................................................................................................................................
................................................................................................................................................
................................................................................................................................................
- Nhận xét khác:
................................................................................................................................................
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………, ngày …… tháng …… năm ……
Ký tên
(Ghi rõ chức vụ, ký tên, đóng dấu)

PHIẾU BÁO CÁO CÔNG VIỆC
Họ và tên SV: Lương Tống Hàn Duyên Khóa/lớp KQ1402
MSSV: 14DH490240
Tên đề tài: ANALYZING THE ACTUAL SITUATION EXPORTING CASHEW
NUT OF THAI GIA SON CO., LTD TO NETHERLANDS MARKET
STT Ngày Nội dung công việc
Tự đánh giá
(Tốt / Hoàn thành /Chưa hoàn thành)
1 19/03/2019 Nộp đề cương Hoàn Thành
2 07/04/2019 Nộp chương 1 Hoàn Thành
5 06/06/2019 Nộp final report trên
turn it in
Hoàn Thành
6 10/06/2019 Nộp bản cứng của final
report
Hoàn Thành
Ghi chú: SV hoàn thành Phiếu báo cáo công việc, đóng rồi nộp cùng THTTTN.
Tp. Hồ chí Minh, ngày 10 tháng 06 năm 2019
Sinh viên thực tập
(Ký và ghi rõ họ tên)
Lương Tống Hàn Duyên

LISTS OF TABLES AND FIGURES
Lists of Tables
Table 2.1: Results of production- business of the Thai Gia Son in 2015-2018...................7
Table 2.2: Total revenues, costs and profits 2015-2018......................................................7
Table 2.3: Export Quantity 2015-2018................................................................................9
Table 2.4: Export Revenue 2015-2018..............................................................................10
Table 2.5: Payment terms ..................................................................................................11
Table 2.6: Commercial terms.............................................................................................12
Table 2.7: Suppliers ...........................................................................................................15
Table 2.8: Human resource structure by age .....................................................................17
Table 2.9: Academic level and sex of Thai Gia Son employee in 2016-2018 ..................17
Table 2.10: Balance sheet ..................................................................................................18
Lists of Figures
Figure 1.1: Organization of management apparatus of Thai Gia Son Company ................4
Figure 2.1: Export customers of Thai Gia Son in 2018.....................................................16

TABLE OF CONTENT
INTRODUCTION ...............................................................................................................1
CHAPTER 1: OVERVIEW OF THAI GIA SON COMPANY..........................................2
1.1. History and development of the company....................................................................2
1.2. Functions and duties of the company ...........................................................................3
1.2.1. Functions of the Company.........................................................................................3
1.2.2. Duties of the company ...............................................................................................3
1.3. The organizational structure .........................................................................................3
1.3.1. Roles of Board of Director.........................................................................................4
1.3.2. Roles of Sales Department.........................................................................................4
1.3.3. Roles of Im-export Department .................................................................................5
1.3.4. Roles of Accounting Department ..............................................................................5
1.3.5. Roles of Administration Organization.......................................................................5
CHAPTER 2: THE ACTUAL SITUATION EXPORTING CASHEW NUT OF THAI
GIA SON CO., LTD TO NETHERLANDS MARKET......................................................6
2.1. Theretical basis on export business of enterprise in VIETNAM..................................6
2.2. Business results.............................................................................................................7
2.2.1. Analysis of revenue, cost, profit ................................................................................7
2.2.2. Analysis the results of export to the netherlands market...........................................8
2.2.3. Analysis result exported by export structure of netherlands market .........................9
2.2.4. Analysis result exported by product categories .......................................................10
2.2.5. Analysis result exported by type of export ..............................................................11
2.2.6. Payment and commercial terms for the netherland markets....................................11
2.3. Factors affecting export business activities of Thai Gia Son Co., Ltd .......................12
2.3.1. External factors ........................................................................................................12
2.3.2. Internal factors .........................................................................................................16
2.4. SWOT analysis ...........................................................................................................19
2.5. Evaluation ...................................................................................................................20
2.5.1. Achievements...........................................................................................................20
2.5.2. Problem....................................................................................................................20

CHAPTER 3: POTENTIAL DEVELOPMENT, THE ORIENTATION TO DEVELOP
EXPORTING CASHEW NUT TO NERTHERLANDS AND RECOMMENDATIONS
WITH THAI GIA SON CO., LTD....................................................................................21
3.1. Strategic orientation export to the netherlands by 2025 of Thai Gia Son .......... Error!
Bookmark not defined.
3.3. Solutions to promote the export activities to the NetherlandsError! Bookmark not
defined.
3.3.1. Build more warehouses............................................Error! Bookmark not defined.
3.3.2. Enhance online-marketing strategies.......................Error! Bookmark not defined.
3.3.3. Ensure raw material for production .........................Error! Bookmark not defined.
3.4. Suggestions .................................................................Error! Bookmark not defined.
CONCLUSION..................................................................Error! Bookmark not defined.
REFERENCE.....................................................................Error! Bookmark not defined.
APPENDIX........................................................................Error! Bookmark not defined.

INTRODUCTION
Since the early 1990s, the cashew nut export industry has grown rapidly, according to
the General Statistics Office, the export of cashew nuts in Vietnam has increasing every
year.
Cashew nuts are becoming one of the important export commodities of Vietnam. Our
country has grown rapidly and reached many marketshare from large competitors such as
India and Brazil. The three largest cashew import markets of Vietnam in the past years
are the United States, China and the Netherlands. For the European area, Vietnam has
found that the potential for cashew exports to this market because the capital income is
much higher than other area. In addition, processed cashew nuts demand is gaining and
become more popular, (Vietnam Economic News, 2018). However, the standard for
cashew nuts can be imported into this area is very high, also require the enterprises need
to learn technical skills and investment more professionally. In 2013, the Vietnam
cashew nut exports are to 11 markets of Europe, which led the Netherlands with 23.4
thousand tons, turn-over of 160.3 million, this shows that the Netherlands will be the
target market of Vietnam in the coming time when entering the European market,
(Xinhua, 2018)
Thai Gia Son Company is one of the largest production- export companies in the last
several years, the company has a tremendous contribution to the export turn-over of
Vietnam's cashew nut, so the export of cashew nut to Netherlands is a strategic issue for
the long-term development of the company. Facing with opportunities and challenges, the
export of the Thai Gia Son industry in particular and Vietnam in general, how to produce
more products processed from cashew nuts, not just export the kernel. That really put the
cashew nuts of Vietnam to new heights. Thus, it is necessry to analyze the export
situations of Thai Gia Son to find out the advantages and disadvantages of the company.
Therefore, the topic: "Cashew Nut of Thai Gia Son Co. Ltd. to Netherlands market"
was selected to analyze the import and export situation of the company, while offering
solutions to increase the export capacity for further development of the cashew nut export
industry, Vietnam has the advantage of having a large economic value in the international
market.

CHAPTER 1: OVERVIEW OF THAI GIA SON COMPANY
1.1. History and development of the company
 Company name in Vietnamese: CÔNG TY TNHH THÁI GIA SƠN
 Company name in English: THAI GIA SON COMPANY LIMITED
 Abbreviated name: THAI GIA SON CO., LTD
 Head Office: 220/37/1, 10 Street, 9 Ward, Go Vap District, Ho Chi Minh City
 Legal representative: THAI DOAN NGHIA Position: Director
 Capital: 1,500,000,000 VND
One of the right paths and successful results for Thai Gia Son Company during the
way of establishment and operation is the promotion of the internal force of the
workforce throughout the company. Every year, Thai Gia Son Company always devotes
an appropriate proportion of capital accumulated from profits to focus on investing in
new equipment, applying new technologies to production, maintaining and improving the
quality management system follow ISO and HACCP.
The company has invested billions of VND for the upgrading, the construction of
spacious workshops, modern machines and equipment, the working conditions of the
workers have been significantly improved. The regime related to workers such as labor
contract, social insurance, health insurance, accident insurance, mid-shift meal, the bonus
system on holidays, Tet. In addition, the annual program of performances, sport,
sightseeing, tourism in and out of the country. In addition, Thai Gia Son regularly
organizes training courses to raise the level of professional skills for managers,
technicians and laborers. There is a reasonable reward system, reasonable treatment and
more harmonious relationship between employers and employees, making the
development in all aspects of the company.
Currently, Thai Gia Son Company Limited is a member of many prestigious
organizations and associations in Vietnam and abroad: Vietnam Cashew Association
(VINACAS), Non-profit Organization (SEDEX), The Association of Exporters of Ba
Ria-Vung Tau, the American Food Industries Association (AFI), the European Food
Association (CENTA).
Over the past 11 years of development, with more than 1,000 employees, with the
slogan "Good taste of cashew nuts connecting people", the company is constantly striving
to bring high quality products to the market. Thai Gia Son Company, holding firmly the
title of Prestigious Exporter, one of the leading companies in the food processing industry
of the province, to increase its competitiveness in the international market.

1.2. Functions and duties of the company
1.2.1. Functions of the Company
Thai Gia Son investments in production, processing, trading and services in the
cashew industry. The company trades in materials, machinery and equipment for cashew
nut production, transportation, warehouse leasing, Purchasing, Processing,
Manufacturing. On the other hand, Thai Gia Son aslo expands production to solve more
and more jobs for employees, generate revenue for the company to stabilize, improve the
lives of staff.
1.2.2. Duties of the company
Thai Gia Son’s business always complies with the regulations of the limited liability
company, management, operation and maintenance of the company, production planning
business. The company must do proper business registration with state agencies, as well
as understanding the market demand, supply ability to build and implement effective
business plan, as well as plan to invest in stable supply of inputs. moreover, the company
has to complete obligations to the government such as implementation, compliance with
tax obligations and budget remittances in accordance with Vietnamese law. In addition,
the company also implements the dependent accounting system, statistical report,
periodical report according to the regulations of the company and the government, as well
as observing the regulations on recruitment, fulfillment of obligations and rights of
employees in accordance with the provisions of the Labor Code, ensuring the signing of
contracts with employees. To prioritize the use of domestic workers, respect the rights of
trade union organizations in accordance with the law on trade unions. And Thai Gia Son
implements the regulations of the govermnet on the protection of natural resources and
environment and national security.
1.3. The organizational structure
Thai Gia Son Company Limited is a legal economic organization with its own seal
and allowed to open accounts in Vietnam and foreign currencies at any bank.
At present, the company has staff team with profestional knowledge, experienced,
high responsibility and enthusiasm in work. Thai Gia Son Co., Ltd is a manufacturing
company, so it requires quite a lot of procedures. To achieve high productivity not only
due to the skill of the workers, but also the way of organization of the company is also
important. Therefore, Thai Gia Son Company Limited has organized the company's
apparatus as follows:

Figure 1.1: Organization of management apparatus
Organization management chart of the company is designed according to functional
structure. In the organization, there is two separate systems: the management system and
the service business system. Two of the system organization always coordinate and
support each other to ensure the progress of the work as well as the development of
company. Because of that, command information from upper levels and feedback from
subordinates are always quick, accurate and efficient.
1.3.1. Roles of Board of Director
The board of director plays an important roles and responsibilities in the company.
Essentially, he has the right to hire all emplyees, as well as assessing the overall direction
and strategy for his company. Moreover, they act on behalf of the shareholders to run the
day to day affairs of Thai Gia Son. The board of director is accountable to the
shareholders. Each year the company will hold an annual general meeting at which they
provide a report to shareholders on the performance of Thai Gia Son. Vice director of
production, CEO and director of finance are directly controlled by the board of director.
1.3.2. Roles of Sales Department
Sales department is one of the most important departments in Thai Gia Son. There
are 11 people in the sales department. The sales staff are in charge of looking for the sales
opportunities with the existing and new customers to sell Cashew. Whenever, Thai Gia
Son has a meeting, they will organize effective presentation to their customers for their
target products. The sales manager takes responsibilities to identify the target budget for
each year with following-up percent of the budget realization each quarter of year. To do
this, th sales manager has to definite business opportunities with each customer to be
considered in the target budget or forecast list. Moreover, they should development the
rapports with all existing and new customers to know their future plan as well as co-
ordination with im-export department to reach the strategic goals.

1.3.3. Roles of Im-export Department
Im-export Department plays an important role in managing and carrying out
external activities, as well as analyzing, expanding and introducing products to forign
markets. There are 6 people in im-export department. They are in charge of exploiting
and importing goods to supply raw materials and goods for production, business and
management. they also tak care fo import and export activities of products manufactured
and distributed by Thai Gia Son.
1.3.4. Roles of Accounting Department
This is an important department in Thai Gia Son. There are some specific roles for
7 people in the department that the accounts maintain great relationships with vendors.
the essential roles and duties of virtually any accounting staff include some working as:
Firstly, they have to make money out. It means that they are in charge of making
payments and keeping the bills paid. Secondly, they have to make money in. It means
that they are in charge of processing incoming payments. Thirdly, they have to make
payroll to make sure that everyone gets paid on time. Fourthly, they have to do report. It
means that they are preparing financial reports such as profit and loss, balance sheets and
budgets. Lastly, they have to control finance.
1.3.5. Roles of Administration Organization
General Administration Department occupies an important in Thai Gia Son. The
department is incharge of providing comprehensive administrative planning, leadership
and organization, as well as development of all departments in the company. They also
evaluate performance of all department heads and their operations. In addition,
administering all laws and policies established is their responsibilities in Thai Gia Son.
The corporate structure of Thai Gia Son is designed or adapted to facilitate the
implementation of the current strategic goals of cashew exports. However, when the
structure of too many levels of management will lead to the distance between the
decision-making place with the object of administration is extended, the speed of
decision-making is slow and can be bureaucratic. On the other hand, Thai Gia Son's
management hierarchy has always employed a lot of staff and this has led to high
decision-making costs and has resulted in low quality decisions due to "noise".
information. Modern governance models aim to reduce the number of management
levels, especially establishing direct relationships between managers and employees.

CHAPTER 2: THE ACTUAL SITUATION EXPORTING CASHEW NUT OF
THAI GIA SON CO., LTD TO NETHERLANDS MARKET
2.1. Theretical basis on export business of enterprise in VIETNAM
The concepts of export business
According to Article 27 of Commercial Law No. 36/2005/QH11 dated 14 June 2005,
the export business is: “(1) International trading of goods is carried out in the form of
export, import, temporary import/ re-export, temporary export/ re-import and
transhipment. The international sale of goods must be made on the basic of the contract
in writing or by other forms with legal value equivalent; (2) Paragraph 1, article 27 of
the law on trading of 36/2005/QH11 on 14 June in 2005 stipulates as follows: “Export of
goods means the goods are taken out of the territory of Vietnam or put into a special area
located on the territory of Vietnam are considered a separate customs area under the
provisions of the law”; (3) The purpose of export business is to exploit the advantages of
the countries in the international division of labor, to create foreign exchange earnings
for the country. Export activities take place in all areas, in all conditions with a variety of
different items. The scope of export activities is large in terms of space and time.”1
“Export business is the activity of selling goods and services (either tangible or
intangible) to another country on the basis of using the currency as the basis for
payment. The products exported from Vietnam are usually agricultural products,
seafood, clothes, footwear, fashion accessories genuine brand of international fashion
processed in Vietnam ... To be Exported to foreign countries, these items must meet the
standards of the importing country, the processed products must meet very strict
standards of each brand before being exported, (OECD, 2014). On the other hand,
export business means the removal of goods from the Vietnamese territory or the
introduction into a special area located in the territory of Vietnam, which is considered
as a separate customs area as prescribed by law, (VINALOGS, 2018).”2
The export content consists of several steps: (1) Market research is the process of
gathering and processing information to help exporters make the right decision and the
best one, and to formulate appropriate marketing policies. There are many methods of
research and market access through newspapers, the Internet, trade promotion agencies,
consultants, fairs and exhibitions. The results of research and market access are that
importers will select exports and export markets; (2) Next is the business plan. After
selecting the item, the export market needs to set up business plan, time of export. export
1
THE NATIONAL ASSEMBLY, No. 36/2005/QH11. (2006). Ha Noi, Vietnam.
2
VINALOGS. (2018). Container Transportation. Retrieved 2018, from https://www.container-transportation.com/xuat-khau-la-gi.html

partners, assess the business performance, difficulties and challenges when exporting the
product to that market and propose solutions; (3) Then, it is negotiating and signing
export contracts. After selecting a partner, the exporter must negotiate with the partner on
the time of exportation, item, form of transportation and method of payment in order to
sign the contract. Depending on each case, enterprises can choose the best way to
negotiate and get the best effect for their business. But usually at first, people often use
mail negotiations to establish and maintain relationships and negotiate over the phone to
check the information when needed. With great value contracts, people use direct
negotiation; (4) At last, it is implement of export contracts. The two sides carry out the
procedures for export: export license, goods source preparation, goods quality inspection,
freighter charter, customs clearance, delivery and receipt of shipping agency, Payment
procedures.
2.2. Business results
2.2.1. Analysis of revenue, cost, profit
This is the summary of Thai Gia Son business during four years from 2015 to 2018.
Table 2.1: Results of production- business of the Thai Gia Son in 2015-2018
Unit: Billion VND
Year Total revenues Total costs Total profits
2015 731,2 684,23 46,97
2016 901,22 835,86 65,36
2017 1304,12 1190,8 113,32
2018 1340,13 1210,3 129,83
Source: Sale Department
Table 2.2: Total revenues, costs and profits 2015-2018
Year 2015 2016 2017 2018
Total revenues 731,2 901,22 1304,12 1340,13
Difference between 2015-2016
170,02
(23%)
402.9
(45%)
36.01
(3%)
Total costs 684,23 835,86 1190,8 1210,3
151,63
(22%)
254.94
(42%)
19.50
(5%)

Total profits 46,97 65,36 113,32 129,83
18,39
(39%)
47.96
(73%)
16.51
(34%)
The total revenues increase through every year from 2016 to 2018. In 2016, total
revenue increases by VND 170,02 billion, accounting for 23% while total revenue
increases by VND 402,9 billion, accounting for 45% in 2017. This year have big sales
ever to get the good achievement, Thai Gia Son has boosted their market share by finding
new customers in UE markets. In 2017, the company has more sales contractswith the
current and new customers. Moreover in 2018, total revenue only increases by VND
36,01 billion, accounting for 3%. During three years, the total revenue always increase.
However, the total revenue in 2018 is not good like previous years. The reason is lack of
raw material, then the company has to cancel some sales contracts. By the way, the
competition is tough, thus, there are some customers leaving for other exporters.
The total costs increase yearly from 2016 to 2018. In 2016, total costs increase by
VND 151,63 billion, accounting for 22% while total costs increase by VND 254,94
billion, accounting for 42% in 2017. When the total revenue increase leading costs
increase too. Moreover in 2018, total costs only increase by VND 19,50 billion,
accounting for 5%. During three years, the total costs always increase.
The total profits also increase yearly from 2016 to 2018. In 2016, total profits increase
by VND 18,39 billion, accounting for 39% while total profits increase by VND 47,96
billion, accounting for 73% in 2017. Thanks to many new customers and mamny signed
sales contract, Thai Gia Son has earned much money than the eyear 2016. The year 2017,
the company get big profits ever. In 2018, total profits only increase by VND 16,51
billion, accounting for 34%.
During three years, Thai Gia Son always get profits. However, the profits in 2018 is
not good when comparing to previous years. There are two main reasons that make Thai
Gia Son’s business face troubles is that raw material and competitors.
2.2.2. Analysis the results of export to the netherlands market
The Netherlands is the first sights of the company to take steps further deeper into
difficult markets in particular EU and Europe in general. Therefore, in recent years the

consumption and profit brought from Holland continued to increase, marking the very
positive achievements and opening up new opportunities. In 2010 Thai Gia Son's cashew
nut is not yet on the Netherlands market, but then in 2011 - the year of the beginning of
the opportunities, the revenue earned from the Netherlands market is 550,490 USD and
increasing year by year (Appendix 1).
Up to now, sales volume, revenue, profits from the Nethelands market and the rest of
the world market all very good growth. Netherlands is the largest market of companies
today. Export sales in 2015 of the companies bring more than $ 21 million profit from the
Netherlands. However, due to the food safety and hygiene barriers and other regulations
of the EU, the products exported to the Netherlands have been carefully checked
(Appendix 1).
In summary, the Netherlands is a potential market, yielding a profit every year, always
showing a positive profit margin showing that the company is doing well in the
Netherlands market
2.2.3. Analysis result exported by export structure of netherlands market
The provinces of South Holland, North Holland, Noord - Brabant of Netherlands are
the three main export of the company over years, increasing both in output and sales.
Over many years, by 2018, the country with the highest output is South Holland, reaching
1,155.28 tons, up 201% against 2017 and bringing in 199.45 billion VND of revenue.
The next is North Holland in 2018 reached 649.25 tons brought about 126.30 billion
VND. So far, cashew nuts of Thai Gia Son Co., Ltd have been present in most of
Netherlands provinces. According to the results of the above statistics, it is seen that the
Netherlands market is increasingly expanding (Appendix 2).
Table 2.3: Export Quantity 2015-2018
Unit: Tons
Year 2015 2016 2017 2018
Export Quantity 69.87 284.87 1,478.19 2,514.54
215
(308%)
1193.19
(419%)
1,036.35
(87%)
Export quantity increases year by year from 2016 to 2018. In 2016, export quantity
increases by 215 tons, accounting for 308% while export quantity in 2017 increases by
1,193.19 tons, accounting for 419%. The year 2017, Thai Gia Son has exported much

cashew to the Netherlands. In 2018, the quantity increases by 1,036.35 ton, accounting
for 87%. During three years, Thai Gia Son always export more and more cashew to the
Netherlands.
Most of the orders are usually priced between $ 9.5592 and $ 8.5379 per kg. In
general, the orders are signed by the familiar partners, the price will be less change, only
if there is a deficit or surplus on the market to push price up or pull price down. The
products of company to Netherlands are high quality, so the price that the company
signed is usually high, (Appendix 3)
In 2015, the company signed contract with the highest unit price between 9.5592 -
9.0486. In 2018 at prices from 10.070 to 9.5593 USD/kg is quite high compared with the
general market that the company exported 843,368.86 tons of goods brought to $
8,179,763.73. Prices range from $ 9.5592 to $ 9.0486 per kg, up 51% to 537,872.30
tonnes and 50% to $ 5,091,298.12, (Appendix 3)
In general, the price of the company is not much fluctuation, mainly in the range from
8.5379 to 9.5592 USD/kg and stable over the years, (Appendix 3).
Table 2.4: Export Revenue 2015-2018
Unit: USD Million
Year 2015 2016 2017 2018
Export Revenue 0.54 2.78 14.07 22.09
2.24
(410%)
11.28
(405%)
8.03
(71%)
Source: Sales Department
Export Revenue also increases year by year from 2016 to 2018. In 2016, Export
Revenue increases by USD 2.24 million, accounting for 410% while export Revenue in
2017 increases by USD 11.28 million, accounting for 405%. On the other hand, in 2018,
the export revenue increases by USD 8.03 million, accounting for 87%. During three
years, Thai Gia Son always export more and more cashew to the Netherlands.
2.2.4. Analysis result exported by product categories
In all of kind cashew nuts exported to Netherlands over these years, cashew nut
WW320 always has the largest export volume. The highest is in 2018 reached 1,504 tons
accounting for 60% of total output and 58% of total revenue, second place is cashew nuts
WW240 reached 513 tons accounting for 20% of total output and 22% of total revenue.
Specifically, In 2010 the cashew nut of the company has not yet reached Netherlands

market, (Appendix 4). In 2015, cashew kernel of WW320 type reached 28,778.4 kg,
reached 41% of output and 43% of revenue, reached for 12% of output and 10% revenue.
Cashew kernels WW320 is the highest yield and turnover, second is cashew kernel
WW240 and lowest cashew nut WS1. (Appendix 4).
Thus, Thai Gia Son should focus much on cashew nut WW320 for export because its
item is is the strength of the company, accounting the top revenue yearly.
2.2.5. Analysis result exported by type of export
Direct export achieved the highest revenue, followed by export via intermerdiary and
final is processing export. Specifically, in four years from 2015 to 2018, there were
5,565.04 tons of cashew nuts exported by direct way, accounting for 57% while 3,966.17
tons by export via intermerdiary, accounting for 41% and 183.17, tons by processing
export, accounting for 2%, (Appendix 5). Thus, Thai Gia Son should focus on direct
export because it helps the company either save monet or directly contct with the buyers.
thus, Thai Gia Son reduce risks in export.
However, for Netherlands market, the company has not yet made any orders in the
method of entrusted processing. The company is focusing on investing in direct export.
In summary, up to now, the export business of the company quite successful. The
company has actively sought new customers, expanded business to many markets in
different continents, diversified forms of export, in which the direct export form brings
the most revenue to company. By direct export the company can be much more active in
negotiating such as negotiating on price, payment method ...
2.2.6. Payment and commercial terms for the netherland markets
The three main payment terms that Thai Gia Son uses for their customers in the
Netherlands are Letter of Credit (L/C), Document against Payment (D/P) and money
transfer (T/T) in advance. In which T/T is used most, accounting for 39%, for the
customers who have good relationship with Thai Gia Son. They believe together, so they
are ready to pay 100% value of invoice when buying cashew. On the other hand, L/C is
also used much, accounting for 32%, for almost the customers in the Netherland because
it is very safe payment terms for both of sellers and buyers. Moreover, Thai Gia Son also
uses D/P, accounting for 29%, for Netherlands cusotmers to make sure that they can save
time and money when doing business. However, it is risky for Thai Gia Son with this
payment term because the shipments are also on the ways to importers’
Table 2.5: Payment terms
Payment terms L/C D/P T/T
% 32% 29% 39%

Source: Im-export Department
With 39% of T/T in advance, it is very good for Thai Gia Son because Thai Gia Son is
subsidized a pre-financing for export production, while 32% of L/C and 29% of D/P also
ensure that Thai Gia Son have the safe payment terms in export.
To commercial terms, Thai Gia Son sells cashew to the Netherlands with CFR term
most, accoutning for 58%. in this way, Thai Gia Son take advantage of choosing the
logistics agencies to make sure that they are good logistics with competitive prices. in
addition, the company also sells products with FOB and CIF, acoounting for 21% for
both terms. With FOB, Thai Gia Son has no chance to choose logistics agencies because
the customers will choose for them while CIF terms gives the company more chances to
deal with shipping agencies and insurance companies.
Table 2.6: Commercial terms
Commercial terms FOB CFR CIF
% 21% 58% 21%
Source: Im-export Department
With 58% of CFR and 21% of CIF help Thai Gia Son take advantage of selecting
shipping agencies to export cashew. This creates favorable conditions for the public to
expand relations with shipping lines, take initiative in exporting and bring benefits to the
export of the country.
2.3. Factors affecting export business activities of Thai Gia Son Co., Ltd
2.3.1. External factors
2.3.1.1. Econmic
Over the past three years, the Netherlands has grown to become the largest importer
of Vietnamese products in the EU with the value of imports seeing a year-on-year
increase of between 18%- 25% to reach US$7.1 billion in 2018, according to the Vietnam
Trade Office in the Netherlands.
Vietnam’s cashew nut exports to the Netherlands have enjoyed a considerable hike in
the first half of the year. The country sold 222.5 million USD worth of cashew nuts in the
market, up 37.6 percent from the same period last year. The Netherlands became the
second largest importer of Vietnamese cashew nuts, behind the US (543.3 million USD).
(Thuy, 2018)
Imports from Vietnam account for only 1.06% of the Netherlands’ imports (€ 372.6
billion) in 2017. This is important for Vietnam's exports to the EU market. Thus, the
Netherlands can be considered a potential market and a gateway for Thai Gia Son.

In 2017, the Netherlands is the second largest exporter of agricultural products after
the United States, reaching 92 billion euros, of which more than a quarter (to 25.5 billion
euros) is re-exported in which the Netherlands imported more cashew nuts from Vietnam
in 2018 comparing to 2017, increasing by 41.62%. This is good news for Thai Gia Son to
choose the Netherlands as their target market, (VOV, 2018).
2.3.1.2. Culture- Society
Economic conditions are still remaining difficulties but the goverment still arranged
increased resources from the State budget at the same time promote socialization to
develop culture, society and ensure social security.
Over the past year, the cultural sector has successfully organized many national
celebrations and a series of cultural events with the theme of sea islands, with many
important meanings, and many cultural activities. The ceremony was also attended by the
masses.
This year, the whole sector actively promotes the movement "All people exercise their
bodies following the example of Uncle Ho" combined with the organization of the
Congress of physical training and sports at all levels: ASIAN, The 7th Southeast Asian
Games in Myanmar, The World Heavyweight Champion in Dubai, The Vietnamese
delegation won a total of 71 gold medals, 85 silver medals and 92 bronze medals at
international competitions.
2.3.1.3. Policies
Of reviewing policy, the implementation of incentives for frequent on 1.5 million and
the completion of the new construction, repair of about 48 thousand homes for the
people, including 13,500 homes from social sources.
In 2018, 1.18 million new jobs were created, 83,000 people went to work abroad, up
32.6% over the previous year. Labor conditions and labor relations have improved. The
number of people participating in social insurance increased. Implement good
unemployment insurance policy.
Implement the “Sustainable poverty reduction” program, focus on supporting poor
households to develop production, access basic social services and invest in infrastructure
development in special difficult areas. Flood prevention policies, housing for the poor,
low income people are concerned. Effectively implement preferential credit policies for
poor students. The rate of poor households in 2018 will decrease by 1.8 - 2%, especially
the poor districts will decrease by 4%. Over 2.6 million people receive regular social
allowances. Poor children, ethnic minority children and disadvantaged areas are

supported with expenses for study and living. Promptly implement emergency relief
activities and overcome the consequences of natural disasters.
The protection and care of people's health has been strengthened. The quality of
medical examination and treatment is improved. To continue investing in building and
upgrading many hospitals. Overcrowding in many hospitals is improving. To actively
reform administrative procedures, reduce waiting time for medical examination and
treatment; More timely response of the patient through the hotline. To attach importance
to the work of preventive medicine, epidemic prevention. Development of marine health
island. Promote non-public health development. Strengthen price management, quality of
medicines and inspect health facilities. The rate of participation in health insurance is
about 72%. Implement financial autonomy for public health service units. To step by step
adjust the prices of medical services according to the target.
2.3.1.4. Technologies
The Goverment will support enterprises to implement the tasks of scientific research,
the program of scientific and technological innovation. Improve operational efficiency of
the fund for science and technology. Accelerate the construction of high-tech zone.
Enhance protection of intellectual property rights and the development of science and
technology market. Support enterprises involved in research, transfer, technological
innovation, promote the commercialization of research results. Encouraging enterprise
search, technology transfer resources, advanced technologies from abroad. Creating
favorable conditions for the pilot building organizational models advanced science and
technology.
Previously, a silk peeling machines purchased from Italy cost up to 27,000 euros
(nearly 650 million at current exchange rates), now enterprises (enterprises) processing
cashew exports Vietnam only have to spend 250 VND million due to use of domestic
technology. Therefore, most cashew processing enterprises use domestic machines.
Not only saving billions dong of investment costs for machinery and equipment, it is
worth mentioning that the quality and technology of Vietnam machinery is effective,
accurate not inferior to foreign goods.
Especially, many companies also manufacture machines for processing high value
added products such as cashew nuts, fried rice, snack ... export. This increases the value
of Vietnamese cashews.
2.3.1.5. Suppliers

The land area of cashew growing in Vietnam is shrinking due to the people cutting off
the cashew to grow higher economic value crops such as rubber, pepper, cocoa ... The
weather changes oftenly affects the quantity and quality of the crop, resulting the
imbalance between supply and demand in the country, which can not meet the demand
for cashew nut processing plants in the country.
To ensure sufficient material for production, Thai Gia Son Company Limited has
imported raw materials from abroad. Since 2010, the company imported more than 60%
of raw materials, mainly from Africa, Cambodia, Indonesia and some other countries.
Especially now the company is directly supplying raw materials from Africa such as
Ghana, Benin, ...
Table 2.7: Suppliers
Supliers Vietnam’s Africa’s Cambodia’s Indonesia’s Others’
% 39 29 15 9 8
Source: Planning Department
2.3.1.6. Competitors
Competition has the effect of promoting the rise of enterprises but on the other hand it
also drowned the weak enterprises. The level of competition here is reflected in the
number of exporters in the same industry or other substitutes. At present, the government
of Vietnam has the policy of encouraging all new businesses to export has led to the
explosion of the number of export enterprises therefore sometimes there is unfair
competition.
In a market economy, competition is indispensable. Particularly, the cashew nuts
export industry has a long history, the ability to enter the industry is intense so
competition is inevitable. Currently in the world market, the company is also facing many
enterprises with high competitiveness such as: Tan Mondial Pte Ltd, Gelfruit Italia Srl,
Udensi Global Trading Companies Ltd, OLAM Vietnam Co., Ltd.
In the international market for many years, China has emerged as a formidable
competitor thanks to the strong work force and the ability to host raw materials. Apart
from China, there are also strong competitors like India, Brazil and Africa, …
2.3.1.7 Alternative products
Currently, Thai Gia Son Company is supplying cashew nut products to many different
markets. However, with the nutritious ingredients in the kernel as well as the cost of
products, nuts such as peanuts, almonds, walnuts, etc. These nuts can also be used for
snacks or add to the dish to enhance the flavor. In addition to the benefits of making good

food, there are also many health benefits and have been scientifically proven. Therefore,
these nuts can become substitutes for cashew nuts offered by the company.
2.3.1.8 Customers
The customer is the object that the company should serve and the factors that
determine the success or failure of the company. Thai Gia Son Co., Ltd is in the form of
business both export production and domestic sales, so right from the beginning of the
company has formed a customer-friendly system. Thai Gia Son has made a good and
impressive image for consumers, partners, distributors and suppliers, thanks to good
quality products from Thai Gia Son Company. Modern machines to ensure the products
are created with the best quality at the lowest cost to customers.
The company's products have crossed the fence control of critical food safety the
importers from different continents of the world, especially Europe. So far, the company's
products have approuched customers in many places in the world such as USA, Australia,
Holland, China, EU market, ...
Figure 2.1: Export customers of Thai Gia Son in 2018
List of foreign clients are Trade Development International BV, CATZ International
BV, Jas Trading BV, Intersnack Nederland B.V., International Food Partners B.V.,
Tricon Commodities, C.G Hacking & Sons Ltd., Barrow Lane and Ballard Ltd., Sunrise
Commodities INC, The Richard Franco Agency, Inc, Kraft Foods, (Appendix 5)
2.3.2. Internal factors
2.3.2.1. Human resource
2.3.2.1.1. Age structure
Thai Gia Son always focused on additional high-quality human resources for the
growing apparatus personnel, timely meet the demands of the competitive process and
development as today. Thai Gia Son realized that people are valuable assets of the
company and to promote the effectiveness of this valuable assets, Thai Gia Son plans to
incorporate training, human resource development, workers to save time for the

operation, the ability to stand machine, sense of energy and raw materials, improve
workmanship, ...
Table 2.8: Human resource structure by age
Age Number (person) Percentage (%)
20 – 30 782 56%
31 – 40 367 26%
41 – 50 198 14%
51 – 60 39 3%
Total 1,386 100%
Soucre: Human Mangagement Department
According to the data, we see: The labor force of the company has a relatively young
age. Mostly aged 20-40, accounting for 56% of the company's total human resources.
Because of the characteristics of the company is both production and business, the main
force of the company is at this age is very suitable, because this age is dynamic, creative
and sensitive in the work. It is a favorable condition for the company to grow.
In addition to the age group of 41 to 50, the age group can be said to be experienced in
both production and business, which is a necessary age to support and supplement the 20-
40 age group. Age is also a small percentage of 3%, this is the long-term commitment to
the company has long understood and experienced in the company's production.
2.3.2.1.2. Academic Level
The number of employees with upper university, university, college, technical
professional level rose rapidly over the years. A review on the university and college
level by the end of 2018 has 215 employees accounted for 15.5% mainly holding senior
positions to grassroots leaders. According to the level of technical profestional and
unskill labors always occupy more than 50% of employees in the company, it is the direct
labour force production of cashew nuts.
Table 2.9: Academic level and sex of Thai Gia Son employee in 2016-2018
Sort by
2015 2016 2017 2018
Number % Number % Number % Number %
Academic
level
Upper university 3 0,36% 3 0,3% 3 0,3% 3 0,2%
University 130 15,74% 136 14,8% 165 13,9% 212 15,3%
College 250 30,27% 269 29,3% 310 26,1% 314 22,7%
Technical professional 133 16,10% 157 17,1% 287 24,1% 382 27,6%
Unskill Labor 310 37,53% 352 38,4% 425 35,7% 475 34,3%
Sex
Male 482 58,35% 584 63,7% 596 50,1% 741 53,5%
Female 344 41,65% 333 36,3% 606 50,9% 802 57,9%

2.3.2.2. Finance
Enterprises processing agricultural products in general and processing cashew nuts in
particularly have a huge dificulty in accessing of loans from banks, especially foreign
exchange. In recent years the bank tightened limits borrowing and lending interest rates
in VND is high and loan terms are also heavily dependent. That has led some businesses
to buy dollars on the free market and take risks due to exchange rate differences. The
total asset of Thai Gia Son is about VND 166 billion showed in Table 2.11.
Table 2.10: Balance sheet
ASSETS RECOURCES
A. SHORT TERM ASSETS 137.715.935.490 A. LIABILITIES 101.974.105.414
I.Cash 5.403.780.688 I.Short-term liabilities 101.974.105.414
III. Short-term receivables 54.355.717.001
IV. Inventories 73.783.566.477
V. Other short-term assets 4.172.871.324
B. LONG TERM ASSETS 28.467.124.598 B. OWNER EQUITY 64.208.954.674
I. Fixed assets 28.104.048.524 I.Owner equity 64.148.754.971
1. Historical costs 31.287.927.444 7. Retained earnings 40.648.754.971
2. Accumulated depreciation - 3.183.878.920 II.Welfare and reward fund 60.199.703
IV.Other long-term assets 363.076.074
TOTAL ASSETS: 166.183.060.088 TOTAL RESOURCES 166.183.060.088
Recognizing the importance of capital support from banks Thai Gia Son Co., Ltd. has
based on its reputation as well as its internal strength to build good relationships with
banks. At present, the company is supported by three major banks, Saigon Bank (SHB),
Military Bank (MBBank) and Saigon Thuong Tin Commercial Joint Stock Bank
(Sacombank) check document, …(Appendix 6)
2.3.2.3. Company Culture
Thai Gia Son Company builds a good corporate culture that clearly defines
regulations and rules the working hours for employees as well as staffs. In the process of
work always create a cheerful atmosphere, help reduce stress, reduce the gap between
upper and lower levels, between the leadership and staff. In Thai Gia Son, management
does not mean putting employees into a rigidly permissive framework. Sometimes
employees can come late without penalty, but above all those employees must complete
their work and reach the goal of the month.
The company always made their employees feel like the company is the second home
of the staff when they come to work to help employees feel comfortable, emotional spirit
in a working day. Employees and leaders of the company often eat lunch together, the
distance between the boss and the employee is shorter,

In addition, there are compulsory regulations such as no smoking at work, no using
alcoholic beverages in the company, absolute lack of arrogance, bullying, causing
troubles in communication. For the boss, subordinate, colleagues or customers always
politely, courteously behave.
At Thai Gia Son Company, the Board is often called "Gia Phat Thai Gia Son". The
distance between the boss and staff is shortened. Because everyone is used to be with a
sincere, straightforward, well-informed, and receptive leader. If employees have
questions that can not be unscrewed, then when the leader will explain clearly, friendly to
develop together for a common purpose. This has created a beautiful image in the
customer's mind and business environment of " Thai Gia Son Family".
2.3.2.4. Material Facilities
The company has continuously upgraded, modernized production technology to the
most modern export kernel is guaranteed in both quantity and quality. Production parts
such as raw cashew, dried, peeled silk, final products are equipped with modern
production equipment and synchronous.
From the early days of establishment, the company has successfully applied the
cashsew nut steamer machine, which helps to reduce environmental pollution, low human
use, and high productivity.
The company has invested in automatic peeling machine, improving the separation
machine to increase productivity, reduce costs, protect the environment, food hygiene and
safety also in this year the company equipped with metal detectors, sorting machines,
coloring machines and modern machines according to international standards.
The company has invested in hard shell shredding machine, color sorting machine,
synchronous metal detector almost completely in the factory, minimizing handmade in
line, contributing to food safety and hygiene, productivity, help reduce production costs
and meet the orders of the company.
Machinery and equipment of Thai Gia Son in 2018 (Appendix 7)
2.4. SWOT analysis
Strength (S)
1. Be good at finance
2. Have good product quality
3. Have competitive price
4. Have good brand name
5. Have skilful and experienced employees.
Weakness (W)
1. Lack of storage facilities,
2. Be bad at marketing strategies
3. Depend on imported materials
Oppotunity (O)
1. Demand on the world market increased
sharply
2. Be supported from government and trade
Threat (T)
1.Lack of raw material because of natural
disaster (drought, flood)
2. Face tough competition about quality and

policies
3. Vietnamese cashew is famous in the world
prices
3. Face trade barriers in importing countires
Internal factors and External Factors (Appendix 8)
2.5. Evaluation
2.5.1. Achievements
From the early days of entering Netherlands market until now, the company has
overcome many barriers, including the most important and difficult issue of food hygiene
and safety standard- HACCP.
The material and technical infrastructure for production and business has been greatly
improved. Technical skills of workers are also improving. The quality of cashew nut is
also more secure, less waste, creating more prestige of quality for foreign customers in
accordance with the development orientation of the company moved to 95% export.
2.5.2. Problem
The problem of supply of raw materials is always the concern of many businesses. As
the weather conditions are unpredictable and the complex evolution has affected the
cashew crop as the supply of raw materials is often instability, the company also can not
reserve too many raw materials. The most modern equipment and fully automatic labour
saving operation is what enterprises are fighting for their factory. The company has not
organized professional marketing to research and marketing cashew nuts to new markets,
so it is quite difficult to find new partners. Funding for marketing, advertising, product
introduction, market research, brand promotion is quite limited.
Cashew nuts for export are mainly low quality packaging, design, not deep
processing, not diversify products and services resulting in low added value for export.
The majority of cashew nuts are not branded, mainly exported through middlemen,
resulting in low export value, enterprises are more dependent, not active in selling
products. Brand building, development and promotion is a strategy that needs long-term
investment, but the company has no specific plans. The company don’t participate in fairs
to actively seek customers and understand their needs, as well as have conditions to know
their competitors, the opportunity to raise their brand and expand the market.
In summary, the export of cashew nuts of the company is affected by the world
market, price and different types of export at different times require the company to be
flexible in market research and product quality.

CHAPTER 3: POTENTIAL DEVELOPMENT, THE ORIENTATION TO
DEVELOP EXPORTING CASHEW NUT TO NERTHERLANDS AND
RECOMMENDATIONS WITH THAI GIA SON CO., LTD

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