Topic

Management of Hatraco Tourism and Trade Joint Stock Companys rice export process.
ABSTRACT On the basis of the studied theories, the real situation analysis of the company and the internship at the company, I dicided to choose the topic Management of Hatraco Tourism and Trade Joint Stock Companys rice export process. In the topic, I would like to study the topic Management of Hatraco Tourism and Trade Joint Stock Companys rice export process. And then, I will analyze the current situations of the Company and suggest the solutions to improve the effectiveness of the companys rice export process management. I hope this study will help me apply the learned theories into practice and be useful for my future job.

ACKNOWLEDGEMENTS During the internship at Hatracos Tourism and Trade Joint Stock Company, with the gained knowledges of export activities and rice export process as well as the officials helps of company, I have finished my graduation paper. Foremost, I would like to express my sincere gratitue to my supervisors MA.Nguyen Thi Thuy Chung and Assoc. Prof. Doan Ke Bon, who have supported me throughout my graduation paper. My sincere thanks also go to the officials in the Import- Export Department, Financial Accouting Department, Foreign Economic Chamber, Organizational and Collective Department in particular and all companys staff in general who created conditions for me to examine and collect the informations during my intership. I have tried to my best, however, there are some mistakes in my gaduation paper left due to the knowledge shortage . Therefore, I look forward further suggestion and helps from teachers and readers to finish my graduation paper. Sincerely thanks!

TABLE LISTS 1

Figure 1

Export goods collection process

Table 1.1 Companys target of the production effectiveness during 2008 and 2010 Table 2.1 The companys goods export results between 2008 and 2010 Table 2.2 Rice export turnover in the markets Chart 1 Fluctuations of USD/VND from 2008 so far

Table 2.3 The areas whose volumes of purchased rice are the highest

ABBREVIATIONS

USD XNK DN GDP USD NHNN TGH

: Dollar : Import- Export : Enterprise : Gross domestic : US dollar : State Bank : Exchange rate

Chapter 1: Introduction
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1.1.

Rationale

In the market economy, improving the effectiveness of production in general and export goods preparation in enterprises is of great significance and is the survival of businesses when looking for their markets. To become a profitable enterprise, its necessary to find out a suitable market for their target. However, the most important thing is that manager should identify the markets needs, choose the appropriate form of business from different economic situation to keep it on strong footstep in the market and they should make full use of their available advantages . Goods preparations is an important stage in improving export goods quality and it often accounts for big ratio in manufacturing enterprises. It can be said that preparation stage plays the most important role in manufacturing enterprises as it directly influences enterprisessuccess or failure. Requirements of current market economy regulations is really strict for enterprises, so each enterprises should constantly improve their products quality. To do this well, preparations stage plays an extremely important role in the companys export process .In fact, preparation stage will decide the companys export goods quality as well as the survival and develpoment of the enterprises which are in manufacturing.

1.2. Statement of the study Based on the important and role of export process to the companys business activities and my internship at Hatraco Tourism and Trade Joint Stock Company, the study aims to: - Analyse the current situation of Hatraco Tourism and Trade Joint Stock Companys export process - Understand the strengths and limitations of the Companys export process more clearly and then suggest the solutions to improve the process.
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Therefore, during the interships at the Company, I decided to choose the topic Management of Hatraco Tourism and Trade Joint Stock Companys rice export process for my graduation paper.

1.3. Aims of the study - Examine Hatraco Joint Stock Companys implementation process of export goods preparation - Analyse and evaluate the current situation of Hatraco Joint Stock Companys implementation process of export goods preparation - Suggest solutions to improve Hatraco Tourism and Trade Joint Stock Companys management of export goods preparation process.

1.4. Scope of the study -Survey the real effectiveness of the companys export goods preparation between 2008 and 2010. - Analyze statistical data, research results ( primaryand secondary data) of the Company.

1.5. Some basic concepts and contents

1.5.1. Definitons on export preparation process

1.5.1.1. Definiton on export goods preparation Export goods preparation is the preparation of goods with precise name, quantity, quality, packaging, coding, delivery time regulated in international trade contract.

1.5.1.2. Definition on export goods preparation process

Export goods preparationthe description of a goods prepareration process under a certain regulated by the WTO contract. The process is evaluated by the certificate issued by the organization when the business could meet the given requirements. The process is apply to all enterprises joining export market and it is a standard process applied to all export enterprises because applying such a standard one can ensure the quality to serve the customers in the best way.

1.5.2. Related theories to export goods preparation process

1.5.2.1. Export goods collection: Export goods collection is the collection of goods having suitable quality, punctual delivery and maximizing costs. Creating goods sources is all measures and methods related to goods sources to meet export enterprises requirements in time and with full quantity. Collecting and creating goods resources is a very important activities of export enterprises. However, export goods collection depends on different kind of enterprises to ensure the effectiveness of export process. Export goods sources are the suppliers who can provide standard goods for export.

Export goods collection process is described in following diagram:

Figure 1: Export goods collection process

Export goods demand

Export sources identification and classification

Export sources general and detailed examination

Export goods sources selection and transction method

Export goods collection system

* Identify the demand for export goods Based on the export plan, its necessary to determine the needs for export goods including quantity, kinds, quality requirement, packaging, delivery time to select the goods sources.

* Identify and classify export sources Classification is the arrangement of goods surces according to certain criteria in oder to create goods sources with consistant characteristics so that the business can have appropriate policies, measures, options and priority which are suitable for each goods sources to make use of each ones advantages.

Export goods sources are classified the following criteria: -Volume of purchased goods: 2 kinds +Main source: is a source providing a large volume of quality goods for enterprises +Sub-source: is a source providing a small volume of goods for enterprises

- Delivery unit: 3 kinds

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+ State owned enterprises: is a source providing a various, stable, prenium and large volume of goods . + Joint venture company: t is a potential source because products are improved constantly. +Private companies, cooperative, households: are sources with small scale and different quality,etc.. However, they can provide produces, foodstuff, handicraft products for export.

-Geographical areas: domains, region, province, city, etc.. +Domains: North, Central, South +Provinces, cities: H Ni, Hi Phng, TP H Ch Minh, Thi Bnh, etc.. +Regions: delta, midland, moutainous, Cu Long Delta, Northern Delta, etc..

-Relationship to sources: 3 groups +Traditional source: is a source which the business has long lasting, regular and highly stable transaction relationship +Occasional source: is a source which has irregular and inconstant transaction with the business. +New source: is a source which has a new transaction with the business. It may become traditional source and help enterprises to extend their business and develop in the future.

* Examining and select goods source: - Examining: To exploit stable sources and develop their business, the important task of export process is that they should research and approach the sources to get optimal export goods purchasing system and method. The content of research is to identify all available and potential sources, classify and research them according to the following criteria: +Production capacity of the sources
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+Financial and technological capacity of the sources +Management ability +Goods development and innovation capacity +Approaching capacity

-Evaluate and selet goods sources: Goods sources should be evaluated to select the best one. Different sources are evaluated in different ways. The exporter must always evaluate the current and new sources .

- Goods source evaluation and selection -Exisiting source evaluation -Transaction method selection -Export goods collection system

1.5.2.2. Export goods packaging: In international trade, although many goods are unpacked separated each other, the majority of goods must be packaged during transport and storage. Therefore, packing and marking is an important step of goods preparation process. * Export goods packaging: To have efficient packaging step, its necessary to determine agreed type of package in the contract as well as specific requirements of packaging. Type of packaging: Packaging is a material used for packaging and storing goods, limiting the impact of external environment in order to protect goods during transportation, storage and for advertising instructing thecustomers to use the products. In international trade, various types of packages are used. The typical types are:

-Case: All relatively high value fragile items are packed into cases. The typical cases are used such as: normal wooden case, stick wooden case, double case, mental inlaid wooden case . -Bag: Some produce and chemical raw materials are usually packaged. The typical packages are used such as jute, cotton fabric, paper and rubber bags. -Bale: All items can be pressed into a small package which can ensure the goods quality. These are packed into bales or package, often kept by iron wire. -Barrel: liquid, powder items and others should be kept in barrel. The typical barrels are used such as: wooden barrel, iron barrel, aluminum barrel. Besides the type of package mentioned above, others can be used such as crate, bundle, rolla and bottle, etc.. Those are external packaging. Besides, there are internal and direct packaging. The material for internal packaging are cardboard backing, canvas, jute cloth, paper tin, oil and grease. In the packaging, the maker should sometimes add more materials such as: shavings, waste paper, plastic foam, etc..even cotton lining. In recent decades, compound substances are used to make pakaging material such as PE, PVC, PP or PS film. * Essential factors in packaging: General requirements of export goods packaging is: safe, inexpensive and aesthetic. That means packaging must ensure the goods integrity of quality and quantity from the manufacturer to customers guarantee, lower price and attract the customers at the same time. When choosing the kind, material and method of packaging, trader should consider the agreements in the contract first, and then take consideration of goods natures ( such as physical features, chemical features, appearance, color and status of goods) under the impact of environment and loading, unloading conditions, etc.. Besides, there are following other factors to consider:

-Transport conditions: When choosing the packaging, the distance, method and time of transport, loading capacity on the way, collision with other goods should always be taken consideration during transportation. -Climatic conditions: When goods are transported to countries with high humidity (up to 90%) and average temperature ranges from 30 to 40 degree C or just pass through such countries, its necessary to pack goods with specially sustainable packaging. Normally, they are wooden cases or metal welded or sealed. Inside layer may be water proof paper and PE film while metal parts should apply more grease on the outside. -Legal conditions and tariffs: In some countries, legislation ban importing the goods with packaging made from certain material is prohibited. For example, in America, grass, straw packaging are banned. -Shipping costs conditions: Charges are usually calculated by weight or volume of goods. Therefore, reducing the weight of the packaging and shrinking the volume of goods will save transportation costs. In addition, theft prevention during transportating also makes contribution to save the costs. To meet these conditions, lightweight and sustainable packaging are usually used and people should take advantage of packing space, scale back the goods themselves and at the same time not to reveal signs of goods inside.

1.5.2.3. Export goods marking Marking is signs of letters, numbers or images written outside the package to inform the necessary informations for delivery, handling or storage of goods.

*Aims of the marking: -Ensure the convenience of forwarding -Guide the methods, storage technique, delivery and handling.

*External export goods marking must ensure the following requirements:

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-The content of coding must meet the below goals -Marking must be simple, integrative on every main details and make use full of the international standardization which makes customers easy to read and understand. -Coding should be laid at visible and recognizable position and its necessary to use the materials and marking techniques which ensure the quality of codes but do not affect the goods quality.

*The contents of marking: -Necessary signs for importers such as recipents name, senders name, netweight, gross weight, contract code, shipment and package codes. -Essential information for the delivery organizations such as: country and location of destination, source country and location, bill of ladings number, ships name and carrier number. -The signs guiding how to arrange, handle and store goods during transport from manufacturers to customers such as: fragile, open here, avoid rain, dangerous, etc..

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CHAPTER II RESEARCH METHODOLOGY AND REAL SITUATION ANALYSIS

2.1. Reasearch methodology 2.1.1. Data collection *Secondary data collection method - Internal data collection: Data are collected from internal documents of the company such as financial report, the export performances, the company export rices contract. -External data collection: Data are collected from mass media such as: magazines, newspaper, researches related to the content of graduation paper. The theoretical information related to the export and the export goods preparation process was collected from textbooks, references books and in other graduation papers with the same topic.

2.1.2. Data analysis -The comparision method: The method is used for evaluating and analyzing secondary data system. With the secondary data collected over the years, the comparision of necessary indicators is set to evaluate the changes of each factor and general overview as well as the influence of environmental factors the export rice preparation process in Hatraco Tourism and Trading Joint Stock Company.

2.2. Overview of the current situation and influence of environmental factor on Companys rice export management process
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2.2.1 Companys overview *Companys history -Hatraco Tourism and Trading Joint Stock Companys origin was a state-owned company which specilise in import and export business and tourism service. -In June, 2004 the Company was converted into the Joint Stock Company under the Decree 103/1999/ND-CP of the Government. *The name of the company: Hatraco Trading and Tourism Joint Stock Company

*Transaction name: Hatraco- Trading and Tourism JSC *Abbreviation: HATRACO *Address: 31-33 Minh Khai-Hng Bng-Hi Phng city *Tel: +84.313.745726-810646 -810647-745716 * Fax : +84.313810848-745060 *Email : info@hatraco.vn ;Thuongbv@hatraco.vn ; hatraco@vnn.vn * Website: www.Hatraco.vn *Core business areas

Trading: -Providing materials and spare parts, machinery for mining projects, construction and transportation.

-Trading and processing produce, forestry, fisheries, foodstuff, handicraft products. -Hotels, motels and travel agency.

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-Import-export goods, transshipment service, temporary import- reexport, warehousing, shipping agent.

-Drinking water and pure ice production.

-Production and processing building materials, civil steel.

-Production and processing animal food. Services: -Import- export service, customs declaration service * Companys slogan: cooperation and development for our benefits *Companys structure and organization - The total number of employees and officials of the company: 300 people

- Qualifications: + Post-Graduate Education : 10 people + Bachelor + College : 120 people : 50 people

- The number of people are above university educations: 130 people -The number of graduated people having economics and business administration degree: 70 people - The number of graduated people from University of Commerce: 06 people - Companys structure and organization: ( Appendix 3) *Companys business performance result for the last few years

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Table 1.1: Companys target of the production effectiveness during 2008-2010 Unit: VND

Target Net revenue

2008 810.625

2009 693.400

2010 777.704 85.519 59.466 46.794 46.794

Gross profits 54.065 85.536 Export profits 24.313 63.834 After-tax profits 19.487 49.714 Shareholders after-tax profits 19.535 49.714 (source:The report of Business performance results)

Comments: As can be seen from the table, the companys net revenue had significant fluctuations. So the companys performance was not stable. In 2008, the export profits was not high, just about 3%, because of the world economic fluctuation leading to an increase in costs and low profit at the same time. In 2009, the profit gained around 9%, but it went down to 7.5 % in 2010, which shows that the companys performance was not stable.

2.2.2. Companys rice export situation:

Hatraco Tourism and Trade Joint Stock Company operates in different fields of trade and tourism. In which, the company also engaged in import-export of
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agricultural and aquatic products. And the large quantity of agricultural products for export are rice, coffee and pepper. Their export markets are: England, Malaysia, USA, Japan, Singapore, etc..

Table 2.1 The companys goods exportmresults between 2008 and 2010 (Unit: ton)

Year Products 2008 Rice Coffee Rubber 2010) 33.719,44 7.012,64 1.855 2009 91.112,01 6.943,23 2.700 2010 83.264,04 8.297,18 2.106,73

Rate 2009/2008 270,2% 99,01% 145,55% 2010/2009 91,38% 119,5% 78,02%

(Source: The summary report of the Companys export situations from 2008 to

Table 2.2 Rice export turnover in the market Unit: 1000USD 2008 Import markets Turnov er Indonesia M 369.4 283 Market (%) 39.85 30.53
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2009 Turnov er 504.9 374.2 Market (%) 42.89 31.79

2010 Turnov er 810.6 357.1 Market (%) 57.88 25.50

Singapore Total turnover

274.5 926.9

29.62 100

298 1177.1

25.32 100

232.7 1400.4

16.62 100

( Source: The report of the Companys import-export performances from 2008 to 2010)

Comments: The above table shows that Indonesia is the largest rice export country ( 39,85% in 2008, 42,89% in 2009 and 57,88% in 2010) because it is a big and potential market. 2.2.3. Factors affecting to the agricutural products export process: 2.2.3.1. External factors: - Legislation: Legislation change is the first factor affecting the implementation of export contracts. They are regulations and rules related to international trade. The changes also create difficulties in selectting the goods as well as long-term partners. -Exchange rate: The exchange rate makes the price increase or decrease. Therefore, it influences on goods purchasing and production process. When the exchange rate of foreign and domestic currency increases, the export process will be in favorable conditions because the differences of exchange rate, domestic price and international price brings about big profit for the process. Chart 1 The fluctuations of USD/VND from 2008 so far

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(Source: the State Bank and Vietstocks review) Comments: VND lowers against most foreign currencies, ups to 3,57% compared toEUR. Since the beginning of 2010 so far, VND value has gone down by 5,5% in comparision with USD, it increased from 18.482 to 19.500 VND/USD. In terms of free market rate, the VND value has dropped by from 8.37%, 19.340 to 21.000 VND/USD. In 2010, the dollar depreciates against most the key currencies in the world. The dollar depreciated by 9,8% compared to JPY ( Japan), 8% against AUD (Australia) and 7-10% against Thailand, Singapore and Malaysia.

- Season, weather: Rice is a seasonal goods, so the price and quality is not usually sustainable. The increasing quantity, good quality and reasonable price are often in due season. But in unseasonable time, rice is more scarce with poor and uneven quality, high purchasing price leading to high price of export goods and
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decrease in the companys competitiveness against their rivals in the market. Besides, the weather condition has much effect on rice. Severe weather conditions have influence on the export process. If the weather is dry and drought, rice fields will not be supplied with enough water, the rice will wither and lose its value and weight etc... On the contrary, if the weather is rainny, rice will be susceptible to mildew and pests due to high humidity. This makes rice have poor quality and unable to export. 2.2.3.2. Internal factors: -Human resources: Humans capacity is the primarily important factor to ensure the success of enterprises. The officials qualification includes the understanding of market, goods, import-export activities, foreign language level, the knowledge of their countrys legislation and their partners as well as the charter, international legislation and customs. With a skillful and experienced staff , a long lasting sale network and stable , good relationships, Hatraco has been proven to be a realiable partner in domestic and oversea markets. -Conditions of facilities and technical infrustructure: It is a very important factor which helps to increase the export process effectiveness, is also a basic factor to improve the quality while lowering production costs, increasing productivity, which enable products to penetrate into the market and keep their position.

Thesedays,with modern facilities, Hatraco has constantly improved argricultural, forestry and fisheries products in both quality and quantity.

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The company has invested much in machinery and equipment and imported them to serve for the domestic manufacturing. - Management and organization level: Organization is to orient and control the related activities in the implementation of contract and labor distribution. Well-done organization will create good conditions for the members to do their tasks best, making contribution to the process effectiveness. It also facilitate the goods collection and thereby affecting the whole process and makeing all the stages be resolved quicly and efficiently. -Financial factor: This is an indispensable competitive weapon for a business and it determines their prestige. Large amount of capital will help enterprises to expand production, improve the quality and keep strong footstep in the market. Therefore, the enterprises should know how to use their capital reasonably, economically but effectively.

2.3. Synthesis of survey data on export goods preparation: The process follows 3 specific steps: export goods collection, packaging and coding, export goods inspection. 2.3.1. Export goods collection Export goods collection has especially important significance in the process. Goods collection is to ensure the proper supply of goods, sufficient quantity, timely delivery and low costs. * Demand determination: Determining some factors related to the export goods such as type, size, quality, quantity, packaging, coding and shipping time in future because they are the basic for identification of potential suppliers. The requirements on specification, quality and delivery time are based on
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international purchasing contract signed between the company and partner, or based on orders, accepted offers sent from foreign partners. * Identification and classification of export goods sources: The companys key agricultural products are rice, coffee, pepper, cashew nuts, cassava, peanuts, coconuts, etc.. In which, rice and coffee are two main export products. The company classify the sources according to the geographic areas. Based on this criteria, the company can easily purchase the large volume of rice for export. The main purchasing area is the North. Table 2.3 The areas whose volumes rice of purchased are the highest (2008-2010)

Regions

2008 Export turnov er 269.4 183 174.5 626,9

2009 Market Export (%) turnov er 42.97 404.9 29.19 274.2 27.84 198 100 877.1 Market (%) 46.16 31.26 22 57 100

2010 Export turnov er 610.6 257.1 132.7 1000.4 Marke t (%) 61.04 25.7 13.26 100

Thi Bnh in Bin Hng Yn Total

(Source: Summary report on the Company export situation in 2008, 2009, 2010 ) The average purchased price of jasimine rice varied from 10.000VND to 17.000- 18.000 VND/kg. * Transaction method: The company has professional staff to purchase directly or via intermediaries to collect argricultural products. In addition, the company also has some processing facilities to serve the needs of purchasing and
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processing of rice export. The company also regularly cooperates with domestic purchasers and manufacturers to facilitate the export process.

* Purchasing parboiled rice under two main forms: - Advance an amount of money through cooperatives ( a partial payment in advance) to buy fertilizers for farmers and buy the finished products at preferential rates at the end of each harvest season. Spring crop: + Late Spring : sown 5/2- 25/2 Season crop: + Early season: sown 10/6- 20/6 + Mid season : sown 15/6- 25/6 - Via the market ( at the time of purchasing): the goods can be purchased through a cooperative , an agent or a trader ( crops, types of rice, quality of rice, etc..) Most of the companys contracts are signed with the cooperative. The selection criteria include grain moisture, complex content, flat paddy rate, wilt grain rate, diseased grain rate, recalled rate ( recalled rate is 1kg of paddy recalled rice). In addition, the company entrusted many agents and with relatively recalled rate in terms of the volume of rice and humidity until the agent purchases in the time of contract. -Processing: if the humidity is above 16-17%, its time to dry rice. -Milling: Depending on the markets needs and the industrys straw, bran and broken plate are milled, packaged and then processed. -The maximum average productivity of a rice mill is 80 tons per day. * Rice can also be purchased directly ( moc tuyen and bac huong rice are mixed ones with a variety of criteria including humidity, plate rate,

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deseased rate, wilt rate) *The management of the rice preparation process is mainly related to the purchasing price, quality and output quality. Quality control is often conducted by the Quality Control department, however, most of the companys quality control is intuitively done by the manager of each stage.

2.3.2. Export packaging and barcode printing *Export packaging Packaging is used to preserve and ensure safety for exported goods during transportation and storage so that goods are sent to customers in perfect conditions, easy to use and attractive to consumers. The companys packaging is PP (50kg/ package- 2 sealed tops- customized coding.)

*Barcode printing of exports Labeling and barcode printing create good conditions for delivery, guidance on loading and unloading, transportation and storage techniques of export goods. Barcode printing of export rice is based on the signed contracts. Currently, due to lack of interest and appropriate investment in building and promoting their brand, so the label requirements are also affected by the customer. The company ofen hires to others print the label of the company or the lable of overseas customers.

2.3.3. Export goods checking Export goods checking is assessing the exported goods quantity and

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quality of the company.

Vinacontrol is a verification that is hired to test the goods quality. Besides, the quality control deparment also has the same function.

The quality and quantity control is paid special attention to by the company to maintain the companys reputation and relationships with customers. This is an important factor affecting the export goods quality and the effectiveness of the export preparation. During the research process on the companys export quality control, if the contract does not state the verification agency, the company quality control deparment will be help accountable. The examinication is carried out at the production units or the companys warehouses. The companys quality control department will check the quantity, quality, weight, packaging, quarantine requirements, etc. to meet the exports requirements. Then, the quality control department is about to check again if the goods do not meet standards and the company will suggest timely solutions. If the goods have met the requirements, the licence shall be certified by the company. There are some problems in the export goods checking process such as the shortcoming and loose supervision at the local supervising, which affects the implementation of export contract. Another difficulty is the shortage of infrustructure and standard laboratorieswith necessary equipment for quality control in the production divisions under the company and they do not meet the real demand.

CHAPTER 3
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CONCLUSIONS AND RECOMMENDATIONS

3.1. Research findings 3.1.1. Companys development orientation 3.1.1.1. Companys general orientation -Actively promote the companys image promotion actively to their partners and customers through the relentless efforts of the management and the whole staff.

-Maintain and promote the trend of current development in terms of both sales and human resources. -Enhance the training, promote the creativity among the staff to improve the effectiveness and customers service. -Strengthen and improve the system of agents to bring better services to customers. 3.1.2.1. Companys orientation on rice export

-Strive to become the biggest and rice exporter and producer in the North. -Build up the prestige and image to the foreign partners to expand the companys overseas markets. -Build the price purchasing network which uses fewer intermediaries and offers prices to have various and high quality sources.

3.1.2.2. Some existing problems and their causes

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Besides the gained achievements of the Companys management of the preparation process of rice export, which exists some problems. They influence the effectiveness of contract implementation in particular and companys business performances in general. Firstly, during the market and source survey, there still exist some limitations in the data collection and analysis process. The plans of rice purchasing are not precise. When the purchasing department can not purchase enough goods or is charged high raw material prices, the company must delay the delivery time or even cancel the export contract. Secondly, the quality of puchased rice for exporting purchasing areas really has not met the companys requirements as well as their partners yet. In general, problems of poor qualiy rice in stability exist. It leads to increasing costs of storage and preservation and decreasing expiry period and quality during storage. There are many picky markets requiring high quality which may also be barriers to protect their domestic enterprises. For example, the EU market is a picky and selective market;therefore, their consumer sdont accept wrong specifications or unknown origins of products On the other hand, the hygiene standards are also very strictl. This is a major difficulty for not only Hatraco in particular but also all enterprises wishing to enter the EU market in general. Thirdly, the companys rice supply sources have not been stable; they are inadequade and low quality making the company supplies become passive in finding. The fourth is infrustructure limitation. In recent years, the company has invested in purchasing and upgrading the technological line in the processing plants as well as means of transportation; however, the volume of means trnsportation fails to meet the needs. In addition, although the company have invested in building more agricultural processing plants, the manufactured products have not met exporting demands. Fifth, the companys packages have simple styles and colors, wich are not really suitable for various customs and consumer tastes in imported countries. In addition, the production and packaging technology is relatively backward, so its difficult to attract customers attention as well as to compete with the rival in packaging. Finally, there are some deficiencies at basic levels in quality control affecting the implementation of export contracts. Morever, the infrustructure including standard laboratories and necessary quality production controlling equipment are insufficient for the production units. This has much influence on the accuracy of quality controlling in the company.
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3.2. Proposals and recommendations 3.2.1. Some proposals Based on the companys current export preparationsituation, I would like to suggest some solutions to improve the efficiency of this process:

3.2.1.1.Increase market research activities and expand the market The company should do market research well to identify major markets and competitive exports to bring about economy of scale. Based on the finding, the company maps out the production plan, developsmaterial regions specializing in cultivating produces for export as well as associated with projects on building the export agricultural processing plants with feasible technology after the crops.

3.2.1.2. Improve research on supplies The company should study the avaiability of each item and choose stable goods supplies in terms of both quantity and quality. The fluctuation of supply and demand as well as prices have direct influence on the process. Therefore, exact analysis and precise forecast will help the company minimize losses and maximizeprofits. When there are trends of increasing purchasing prices or demand forecasts, the company can import larger volume of goods and store them. If the price is decreasing, the company should not reserve high volume and at the same time should analyze and make purchasing forecast on the appropriate time to gain the highest profits. In adition, its necessary for the company to have close eyes on stock preservation and get guidances and suggestions from experts in argricultural and industrial research institutes.
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3.2.1.3. Impove the quality of exported rice The companys success or failure in the market depends much on the quality of the product. In purchasing, the quality should be consistent, from the seed selection, buying to transportation and warehousing. To ensure standards quality, the company needs to: - Increase investment in seeds; invest in modern machines and equipment to create high quality and productive seeds to catch up with other nations in the region. These seed sources in combination with local seed sources will be bred step by step to create the best ones. -Coordinate with the manufacturer in the selection of seeds, give detailed instructions on planting, harvesting and storing techniques meet the set forth requirements such as: the same size or the goods meet all hygiene standard. -Always check the distributors to make sure that they provide standard customized goods to the company. -Its necessary to constantly check and clean the warehouse. This prevents the agricultural products from damaging or ruining due to the impact of the environment and helps the company to avoid losses. 3.2.1.4. Maintain close relationship and strong links with local suppliers: Ensure timely paymentand provide technical support in seed selection, plantation and harvesting regarding some new seeds for local suppliers.As for reputable suppliers with stable supply of goods, the company should introduce incentive to improve the efficiency of purchasing operations such as offering commision to buyers of large purchasing volumes, good quality, timely delivery. With the introduction of better remuneration, strict regulations on fraud, goodsswap affecting the companys reputation should also be used.

3.2.1.5. Improve the quality of packaging of exported rice Today, packaging is considered as an integrated part of quality which increases the attractiveness, competitiveness as well as the price of the product. Therefore, the company needs to conduct research to diversify forms, designs and sizes of the package; improve the packagings quality
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as well as the level of hygiene and food safety for processed rice. To do so, the consumers demands of aesthetics and quality will be met. In addition, the company needs to focus on changing the exports of packages and labels to further enhance their products status in the market. The company should appoint their officials to carefully study traditions, customs, cultures and the export markets characteristics to build up an appropriate label.

3.2.1.6. Improve the quality of the aricultural product processcontrol process of agricultural product The quality control process of argricultural products is relatively complicated, so the company should spend more money in building modern laboratories to ensure accuracy and facilitates the goods checking process. Along with investment in modern equipment, the company also needs to invest in traning technical staff. This improves the performance of the export process , and helps the company to avoid possible disputes or additional costs due to poor quality goods.

3.2.2. Some recommendations to the State Besides the companys efforts, the State should have specific measures to support and encourage enterprises in their business.

3.2.2.1. Infrustructure investment The State should invest in infrustructure for exploiting and developing the concentrated material regions such as the systems of roads and bridges, irrigation, electricity, etc. The transportation network should be expanded and its quality be improved especially the roads linking the process zone to the large scale material areas.

3.2.2.2. Support enterprises in promotion and market access There are many difficulties for Vietnams enterprises in finding out their
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partners. Hence the role of business in trade promotion should be strengthened. Find out trustworthy partners and banks for domestic businesses. Morever, due to inconvenient transportation and high costs, the results of studies and research on the changes in the market are limited. Therefore, the Ministry of Commerce should require consulates in EU to improve their performances. These consulates must inform the Ministry of Commerce of the development of market such as: changes on legislation, regulations on import, tariffs, exchange rates, inflation, trade trends,etc. and what happens to each particular goods of Vietnam to the EU such as: supply and demand forecasts, pricing, competition, tastes, distribution channels, market approaches, etc. This work must be partly funded by the state. The Ministry of Commerce should require the consulates to help enterprises do effective and low costs market research on the EU market. The expenses of travel and market research of enterprises which export the encouraged goods should be partly supported.

CONCLUSION

In the trend of integration, export activities play a more important role in each nations economy. Import-export performances allow the nations to take full advantage of their resources to boost the economy and fully meet peopless needs in the society on every aspects of life. During the internship at Hatraco Tourism and Trade Joint Stock Company, I have got certain knowledge of the companys activities and the fundamental features of export business. When carrying out the research, with the enthusiasm from my supervisors MA. Nguyen Thi Thuy Chung and Assoc. Prof. Doan Ke Bon, I have had a chance to examine the management of the companys rice export preparation process. In the topic, I focused on the following issues:
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-Analyse the companys current rice export preparation management process. -Evaluate the advantages and disadvantages as well as the strengths and limitations of the companys process. Find out the reasons and causes, then suggest solutions to limit the weaknesses and improve the the strengths as well as enhance the effectiveness of the companys management. However, there are some errors in my research due to limited time and inexperience. I look forward to receiving the teachers guidance and comment from teacher and everyone who is interested in this research.

REFERENCES
1. Operational management of international trade- textbook- Assoc. Prof. Doan Ke Bon editor- Commercial University

2. International business- textbook- Prof. Do Duc Binh- Education publishing.

3. Practice guidelines and technical trade- Do Huu Vinh- National Economy University. 4. Incoterms 2000 5. Hatraco Touriam and Trades financial report in 2008, 2009, 2010. 6. Websites: http://saga.com/ http://www.thuongmai.vn 7. Some related dissertations

APPENDIX
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PH LC 3: Real value index of currencies against USD

(Sources:State Bank, WEO and IFS (2010))

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