Overview of Foreign Trade operations | Đại học Ngoại Ngữ - Tin Học Thành Phố Hồ Chí Minh

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5/31/2023
1
FOREIGN
TRADE
OPERATIONS
PHAN VŨ NG
PHAN VŨ NG
PHAN VŨ NG
PHAN VŨ NGPHAN VŨ NG
C
C
C
C C
LAN –
LAN –
LAN –
LAN –LAN –
MDE
MDE
MDE
MDEMDE
In
In
In
InIn
ternational
ternational
ternational
ternationalternational
Business
Business
Business
Business Business
Administration
Administration
Administration
Administration Administration
Department
Department
Department
DepartmentDepartment
lanp
lanp
lanp
lanplanp
vn@hu
vn@hu
vn@hu
vn@huvn@hu
flit.edu.vn
flit.edu.vn
flit.edu.vn
flit.edu.vnflit.edu.vn
CHAPTER 1
OV
OV
OV
OVOV
ERVIEW
ERVIEW
ERVIEW
ERVIEW ERVIEW
OF
OF
OF
OF OF
FOR
FOR
FOR
FORFOR
EIGN
EIGN
EIGN
EIGN EIGN
TR
TR
TR
TRTR
ADE
ADE
ADE
ADE ADE
OP
OP
OP
OPOP
ERATIONS
ERATIONS
ERATIONS
ERATIONSERATIONS
5/31/2023
2
IN THIS CHAPTER
Definitions and features
Subjects in Foreign Trade operations
Steps in Foreign Trade transaction
Forms of foreign market joining
Legal framework for international sales contract
1. DEFINITIONS AND
FEATURES
Foreign trade operation: Process of meeting,
negotiating for product trading, signing and
executing sales contract. international
This process can be carried out directly or
indirectly specialized, under regular or
conditions.
5/31/2023
3
1. DEFINITIONS AND FEATURES
Commercial activities
Purchase and sale of goods
International purchase and sale of goods
Export
Import
Other definitions
(Commercial Law of Vietnam, 2005)
COMMERCIAL
ACTIVITIES
Co
Co
Co
CoCo
mmer
mmer
mmer
mmermmer
cial
cial
cial
cial cial
acti
acti
acti
actiacti
vi
vi
vi
vivi
ties
ties
ties
ties ties
mean activities for the
purpose of generating , including: profits sale
and purchase of goods provision of services, ,
investment, and other commercial promotion
activities for the profit purpose.
(Article 3.1)
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4
PURCHASE AND SALE
OF GOODS
Pur
Pur
Pur
PurPur
chase
chase
chase
chasechase
and sale
and sale
and sale
and saleand sale
of good
of good
of good
of good of good
s
s
s
ss
mean commercial
activities whereby is obliged to the seller
deliver goods transfer ownership of goods, to
the purchaser and receive payment; the
purchaser is obliged to to the seller and pay
receive goods and the ownership thereof as
agreed.
(Article 3.8)
INTERNATIONAL PURCHASE
AND SALE OF GOODS
International purchase and sale of goods
shall be conducted in form of , , export import
temporary import for re-export, temporary export
for re-import and transfer through border-gates.
(Article 27.1)
5/31/2023
5
EXPORT OF GOODS
Exp
Exp
Exp
ExpExp
ort
ort
ort
ortort
o
o
o
oo
f
f
f
ff
go
go
go
gogo
ods
ods
ods
odsods
means the bringing of goods
out of the territory of the Socialist Republic of
Vietnam special zones or into in the
Vietnamese territory, which are regarded as
exclusive customs zones
according to the
provisions of law.
(Article 28.1)
EXCLUSIVE CUSTOMS ZONES?
Export processing zone
Bonded warehouse
Tax-suspension warehouse / zo
Exclusive trade and economic zone
5/31/2023
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EXPORT: PROS AND CONS
Pro
Pro
Pro
ProPro
s
s
s
ss
Co
Co
Co
CoCo
ns
ns
ns
nsns
- Create more jobs
- Spur economic growth
- Bring in tax revenues
- Improve the balance of
payment
- Improve people’s living
standard
- Improve country’s image
- Earn more foreign exchange
- Make countries’
resources scarce
- More dependent on
overseas markets
- Confront with more
trade disputes
Fo
Fo
Fo
FoFo
r the Governmen
r the Governmen
r the Governmen
r the Governmenr the Governmen
ts:
ts:
ts:
ts:ts:
EXPORT: PROS AND CO
Pro
Pro
Pro
ProPro
s
s
s
ss
Co
Co
Co
CoCo
ns
ns
ns
nsns
- Increase sales income
- Diversify markets
- Reduce vulnerability to lags in
domestic demand
- Extend product life cycle
- Use idle capacity
- Reduce unit costs through
economies of scale
- Sharpen competitiveness
- Broaden contacts
- Understand global markets and
cultures
- Better choice of buyers
- Complicated
business environment
- Fluctuation in
exchange rates, prices,
- Trade barriers …
Fo
Fo
Fo
FoFo
r the Companies:
r the Companies:
r the Companies:
r the Companies:r the Companies:
5/31/2023
7
IMPORT OF GOODS
Imp
Imp
Imp
ImpImp
ort of goo
ort of goo
ort of goo
ort of gooort of goo
ds
ds
ds
ds ds
means the bringing of goods
into the territory of the Socialist Republic of
Vietnam foreign countries special from or
zones in the Vietnamese territory, which are
regarded as
exclusive customs zones
according to the provisions of law.
(Article 28.2)
IMPORT: PROS AND CONS
Pro
Pro
Pro
ProPro
s
s
s
ss
Co
Co
Co
CoCo
ns
ns
ns
nsns
- Full use of country’s
comparative advantage
- More modern technology,
managerial experience
- Better competitiveness of
products
- Reduce country’s
foreign exchange
- Local market may be
dominated by foreign
companies
Fo
Fo
Fo
FoFo
r the Governmen
r the Governmen
r the Governmen
r the Governmenr the Governmen
ts:
ts:
ts:
ts:ts:
5/31/2023
8
IMPORT: PROS AND CONS
Pro
Pro
Pro
ProPro
s
s
s
ss
Co
Co
Co
CoCo
ns
ns
ns
nsns
- Better choice of suppliers
- More modern technology and
managerial experience
- Supply of good prices
- Better approach to new
products
- Complicated business
environment
- More fluctuations in
exchange rates, prices,
Fo
Fo
Fo
FoFo
r the Companies:
r the Companies:
r the Companies:
r the Companies:r the Companies:
OTHERS DEFINITIONS
Temporary import for re-export
Temporary export for re-import
Transfer through border-gates
5/31/2023
9
TEMPORARY IMPORT OF GOODS
FOR RE-EXPORT
Te
Te
Te
TeTe
mpora
mpora
mpora
mporampora
ry
ry
ry
ry ry
impo
impo
impo
impoimpo
rt of goo
rt of goo
rt of goo
rt of goort of goo
ds
ds
ds
ds ds
for
for
for
forfor
re-exp
re-exp
re-exp
re-exp re-exp
ort
ort
ort
ort ort
means the bringing of goods into Vietnam
from foreign countries or special zones
locating in the Vietnamese territory, which
are regarded as
exclusive customs zones
according to the provisions of law, with the
completion of the procedures for importing
such goods into Vietnam, then procedures for
exporting the SAME goods out of Vietnam.
(Article 29.1)
TEMPORARY EXPORT OF GOODS
FOR RE-IMPORT
Te
Te
Te
TeTe
mpora
mpora
mpora
mporampora
ry
ry
ry
ry ry
exp
exp
exp
expexp
ort of goo
ort of goo
ort of goo
ort of gooort of goo
ds
ds
ds
ds ds
for
for
for
forfor
re
re
re
rere
-impor
-impor
-impor
-impor-impor
t
t
t
t t
means the bringing of goods overseas or into
special zones in the Vietnamese territory,
which are regarded
as exclusive customs
zones
according to the provisions of law, with
the completion of procedures for exporting
such goods out of Vietnam, then procedures
for importing the SAME goods back into
Vietnam. (Article 29.2)
5/31/2023
10
TRANSFER THROUGH BORDER-
GATES
Tr
Tr
Tr
TrTr
ansf
ansf
ansf
ansfansf
er
er
er
er er
of goo
of goo
of goo
of gooof goo
ds
ds
ds
ds ds
th
th
th
thth
rough
rough
rough
rough rough
bor
bor
bor
borbor
de
de
de
dede
r-gates
r-gates
r-gates
r-gates r-gates
means the purchase of goods from a country
or territory to another country or for sale
territory outside the Vietnamese territory
without carrying out the procedures for
importing such goods into Vietnam and the
procedures for exporting such goods out of
Vietnam.
(Article 30)
1. DEFINITIONS AND
FEATURES
Fe
Fe
Fe
FeFe
ature
ature
ature
atureature
s
s
s
ss
Subjects are from different countries.
Modern technology is applied to enhance
speed and reduce distance.
Target: to achieve business goals ($).
| 1/30

Preview text:

5/31/2023 FOREIGN TRADE OPERATIONS PH P A H N A N V Ũ V Ũ N G N ỌC C LA L N A N – – MDE M In I te t r e n r a n t a i t o i n o a n l a Bus Bu i s n i e n s e s s s Ad A m d i m n i i n s i t s r t a r t a i t o i n o n Dep De a p r a t r m t e m n e t n la l n a p n vn v @ n h @ u h fl f i l t i . t e . d e u d . u v . n v OVERVIEW OF FOREIGN TRADE OPERATIONS CHAPTER 1 1 5/31/2023 IN THIS CHAPTER Definitions and features
Subjects in Foreign Trade operations
Steps in Foreign Trade transaction
Forms of foreign market joining
Legal framework for international sales contract 1. DEFINITIONS AND FEATURES
Foreign trade operation: Process of meeting,
negotiating for product trading, signing and
executing international sales contract.
This process can be carried out directly or
indirectly, under regular or specialized conditions. 2 5/31/2023 1. DEFINITIONS AND FEATURES Commercial activities Purchase and sale of goods
International purchase and sale of goods Export Import Other definitions
(Commercial Law of Vietnam, 2005) COMMERCIAL ACTIVITIES
Commercial activities mean activities for the
purpose of generating profits, including: sale
and purchase of goods, provision of services,
investment, commercial promotion and other
activities for the profit purpose. (Article 3.1) 3 5/31/2023 PURCHASE AND SALE OF GOODS
Purchase and sale of goods mean commercial
activities whereby the seller is obliged to
deliver goods, transfer ownership of goods to
the purchaser and receive payment; the
purchaser is obliged to pay to the seller and
receive goods and the ownership thereof as agreed. (Article 3.8) INTERNATIONAL PURCHASE AND SALE OF GOODS
International purchase and sale of goods
shall be conducted in form of export, import,
temporary import for re-export, temporary export
for re-import and transfer through border-gates. (Article 27.1) 4 5/31/2023 EXPORT OF GOODS Export ort of
f goods means the bringing of goods
out of the territory of the Socialist Republic of
Vietnam or into special zones in the
Vietnamese territory, which are regarded as
exclusive customs zones according to the provisions of law. (Article 28.1) EXCLUSIVE CUSTOMS ZONES? Export processing zone Bonded warehouse Tax-suspension warehouse / zo
Exclusive trade and economic zone … 5 5/31/2023 EXPORT: PROS AND CONS For the Governments: Pr P o r s s Co C ns n - Create more jobs - Make countries’ - Spur economic growth resources scarce - Bring in tax revenues - More dependent on - Improve the balance of overseas markets payment - Confront with more - Improve people’s living trade disputes standard - Improve country’s image - Earn more foreign exchange EXPORT: PROS AND CO For the Companies: Pr P o r s s Co C ns n - Increase sales income - Complicated - Diversify markets business environment
- Reduce vulnerability to lags in - Fluctuation in domestic demand exchange rates, prices, - Extend product life cycle … - Use idle capacity - Trade barriers … - Reduce unit costs through economies of scale - Sharpen competitiveness - Broaden contacts
- Understand global markets and cultures - Better choice of buyers 6 5/31/2023 IMPORT OF GOODS
Import of goods means the bringing of goods
into the territory of the Socialist Republic of
Vietnam from foreign countries or special
zones in the Vietnamese territory, which are
regarded as exclusive customs zones
according to the provisions of law. (Article 28.2) IMPORT: PROS AND CONS For the Governments: Pr P o r s s Co C ns n - Full use of country’s - Reduce country’s comparative advantage foreign exchange - More modern technology, - Local market may be managerial experience dominated by foreign - Better competitiveness of companies products 7 5/31/2023 IMPORT: PROS AND CONS For the Companies: Pr P o r s s Co C ns n - Better choice of suppliers - Complicated business - More modern technology and environment managerial experience - More fluctuations in - Supply of good prices exchange rates, prices, - Better approach to new … products OTHERS DEFINITIONS Temporary import for re-export
Temporary export for re-import Transfer through border-gates 8 5/31/2023 TEMPORARY IMPORT OF GOODS FOR RE-EXPORT
Temporary import of goods for re-export
means the bringing of goods into Vietnam
from foreign countries or special zones
locating in the Vietnamese territory, which
are regarded as exclusive customs zones
according to the provisions of law, with the
completion of the procedures for importing
such goods into Vietnam, then procedures for
exporting the SAME goods out of Vietnam. (Article 29.1) TEMPORARY EXPORT OF GOODS FOR RE-IMPORT
Temporary export of goods for re-import
means the bringing of goods overseas or into
special zones in the Vietnamese territory,
which are regarded as exclusive customs
zones according to the provisions of law, with
the completion of procedures for exporting
such goods out of Vietnam, then procedures
for importing the SAME goods back into Vietnam. (Article 29.2) 9 5/31/2023 TRANSFER THROUGH BORDER- GATES
Transfer of goods through border-gates
means the purchase of goods from a country
or territory for sale to another country or
territory outside the Vietnamese territory
without carrying out the procedures for
importing such goods into Vietnam and the
procedures for exporting such goods out of Vietnam. (Article 30) 1. DEFINITIONS AND FEATURES Featu a r tu e r s
Subjects are from different countries.
Modern technology is applied to enhance speed and reduce distance.
Target: to achieve business goals ($). 10