FOREIGN TRADE UNIVERSITY
HO CHI MINH CITY CAMPUS

MID-COURSE INTERNSHIP REPORT
Major: External Economics

FORWARDING SERVICE FOR
SEA EXPORTS AT MBS LOGISTICS VIETNAM.

Internee: DƯƠNG UYÊN PHƯƠNG
Student ID: 1201017269
Class: K51CLC2
Supervisor: Ms. Nguyễn Thị Quỳnh Nga

Ho Chi Minh City, May 2015.
SUPERVISOR’S REMARKS

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Supervisor

TABLE OF CONTENTS PREFACE: 1 CHAPTER ONE: INTRODUCTION OF MBS LOGISTICS. 3 1.1. The formation and development process: 3 Brief history: 3 General information: 4 1.2. Functions, organizational structure and human resource management 5 Functions: 5 Organizational structure and human resource management: 5 1.3. Business outcomes in recent 4 quarters: 9 1.4.Roles of the forwarding service for air export in MBS Logistics: 9 1.5. Internship assignments in MBS Logistics: 10 CHAPTER TWO: THE PROCESS OF FORWARDING SERVICE FOR AIR EXPORT AT MBS LOGISTICS 11 2.1. Practical process: 11 2.1.1. Receive packing list from customers and send booking request: 12 2.1.2. Receive the consignments at warehouse: 12 2.1.2.1. Receive FCL at CY: 12 2.1.2.2. Receive LCL at CFS and consolidate into FCL 13 2.1.3. Inspects the consignments at warehouse: 13 2.1.4. Custom clearance and issue House AWB: 14 2.1.5. Send consignment to airline and receive Master AWB: 15 2.1.6. Payment method: 16 2.1.7. Dispute settlement: 16 2.2. Summary of strengths and weaknesses 17 2.3. Comparing between theory and reality: 18 2.3.1. Similarities: 18 2.3.2. Differences: 18 CHAPTER THREE: THE OUTLOOK, ORIENTED DEVELOPMENT AND RECOMMENDATIONS FOR PROMOTION/IMPROVEMENT OF FORWARING SERVICE FOR AIR EXPORT. 19 3.1. The outlook of forwarding service for air export: 19 3.1.2. The outlook: 19 3.1.2. The challenges: 20 3.2. The organization’s oriented development of forwarding service for air export: 21 3.3. Recommendations for promoting/improving forwarding service for air export 21 CONCLUSION 23

LIST OF ABBREVIATIONS

Abbreviations | Full words | WCA | World Cargo Alliance | | | | | | | | | | | | |

PREFACE:
The Logistics industry is neither rigid nor famous for daily routine working processes. Rather, it is a dynamic industry with frequent changes which need responding to. These are challenges that are to be faced daily. They make working in Logistics interesting and appealing. Logistics is a new industry for Vietnam but it is the industry which brings a great benefit to developing countries. Due to its strategic geographical location, Vietnam is considered as a logistics distribution centre for the Indochina region: Vietnam – Laos – Cambodia. Vietnam is a very important location in South East Asian market with a large population of more than 90 million people and due to cheap labour prices. A growing number of companies is shifting their sourcing from China to Vietnam, thus making it a prime location for future development.
Although MBS Logistics services companies only a medium-scale company comparing to other logistics companies onthe world market, but in theVietnam market, MBS Logisticsis considered as large-sized company, capable of competing with others. Although Vietnamese branch has just established for a year, it has covered the various transportation businesses such as airexport, air import sea export and sea import. In particular, air export is one of the interesting aspects of the company. AsVietnam's economy is gradually developing and integrating with the world market, the domestic goods will be exported to foreign countries more and more. That is the reason why I choose the topic “FORWARDING SERVICE FOR AIR EXPORTS AT MBS LOGISTICS VIETNAM” for my internship report.
Aside from the preface and conclusion, the report includes three chapters: * Chapter 1: Introduction of MBS Logistics. * Chapter 2: The process of forwarding service for air export at MBS Logistics. * Chapter 3: The outlook, oriented development and recommendations for promotion/improvement of forwarding service for air export at MBS Logistics.
I truly appreciate Ms.Hien (Managing Director), all the staffs from sea freight and air freight department at MBS Logistics Vietnam. I would like to send my thank to Ms.Nguyen Thi Quynh Nga and all the lecturers in Foreign Trade University for instructing me to complete this report.
Despite many efforts, time and knowledge are limited so that mistakes and weaknesses are inevitable. Therefore, I respectfully hope that the lecturer would leave the commentsto improve my report.

CHAPTER ONE: INTRODUCTION OF MBS LOGISTICS.
1.1. The formation and development process:
Brief history:
MBS Logistics Group is an owner-managed medium sized company which has been expanding since 1987 with5 employees handle Land and Ocean freight as well as first projects.The headquarter of MBS Logistics locates in German.
During the period from 1987 to 2001, MBS Logistics only expanded their scale within German. In 2003, they set up their first international branch in Portugal, which started to find favourable locations around the world. The establishment of MBS Logistics Ltd Hong Kong was the first step of MBS Logistics to enter the Asian market in 2007. Afterwards, they conquered one of the biggest market in Asia – China. * 2008: Start of the MBS Logistics branch office in Shanghai China. * 2009: Start of MBS Logistics Rep. Office in Xiamen China. * 2010: Start of MBS Logistics Ltd. in Shenzhen China. Start of MBS Logistics Ltd. in Ningbo China. Opening of MBS Logistics Ltd. in Kunshan China. * 2011: Opening of MBS Logistics Ltd. in Qingdao China
Vietnam is the next market that MBS Logistics is willing to cooperate after China. Consequently in 2014, the new branch was set up in Ho Chi Minh City which locates at 6th Floor, Phuong Nam Building, 157 Vo Thi Sau Street, Ward 6, District 3. Although Vietnamese Branch has established for a year, they have achieved: * Membership certificate of Vietnam Chamber of commerce and industry. * Certificate that has successfully complied with the conditions of membership for WCA. * Membership certificate that MBS Logistics is an official member in good standing and entitled to all rights and privileges of German Business Association in Vietnam.

General information:
MBS Logistics has continued their growth course by having founded the new country organization in Vietnam on July 1st 2014: in Asia, they are now represented with altogether 10 strategically interlinked sites as well as highly qualified staff – 90 people in total right now.
Some information about MBS Logistics Vietnam: * Company’s name: MBS Logistics Vietnam. * Address: 6th Floor, Phuong Nam Building, 157 VoThiSau Street, Ward 6, District 3, Ho Chi Minh City, Vietnam. * Phone number: +(848) 3820 2188. * Fax: +(848) 3820 2138. * TAX code: 0312815618. * Mail: marketing@mbssgn.com * Website: http://www.go2mbs.com * Company logo:

“Your World’s Local Forwarder”MBS has become a strategically valuable partner for suppliers, customers, sales- ad production associates in Vietnam. They provide their tried and tested optimized communication, information and control the flow of goods.
Thus,MBS Logistics Group can rely upon a well-educated and respectively experienced team. They are at disposal with their know-how and extraordinary drive to perform not only in the area of Sea and Air Freight, Sea/Air Services, transnational transport and distribution, but also in all questions regarding storage, i.e. warehouse management. On top of that, they offer IT-supported Supply Chain Management Programme “Perfect Supply”for the procurement as well as booking consignments.
They have chosen Ho Chi Minh City as their headquarters which is one of the most important hubs of the country; in connection with their offices in Hai Phong, Da Nang and Qui Nhon they are represented in the whole of Vietnam geographically.
Besides, the MBS network has been supplemented crucially on the South-Chinese Sea. The country has been continuously and constantly worldwide in the top 50 regarding their GDP of 322 billion. Due to approximately 90 million inhabitants it ranks 15 of the most populous countries. Especially the demand for industrial goods, machines, components, highly specialized goods and niche products of all sorts make Vietnam, as an incredibly fast developing country, one of the most interesting markets for all industrial nations.

1.2. Functions, organizational structure and human resource management
Functions:
When founding MBS Logistics Group 27 years ago, they set themselves the goal to become a successful service provider. Nowadays MBS Logistics comprises a global network with a modular range of offers, respectively services.
MBS Logistics Vietnam has been operating as the intermediary between shipper and consignee. The company shall select the reliable and qualified airlines or shipping lines, issue House Bill of Lading or House Airway Bill, continuously inform shipper and consignee about the cargo. Organizational structure and human resource management:
Organizational structure:
Chart 1.1: Organizational structure of MBS Logistics Vietnam.

(Source:Accounting MBS Logistics Vietnam)
MBS Logistics Vietnam uses functionalorganizational structureforHR managementin thecompany. Managementoffunctionaldepartments: Air freight, sea freight andaccounting. This type of structure helps the company achieve efficiency in management. The departments perform their functions, tasks and provide advices for the Board of Directors, while the Board of Directors directly supervises the activities of departments and related units and executes administration in accordance to the laws and business’s goals.
- Managing Director:As the highest position in the company, the Managing Director has to direct and control the Company’s operations and to give strategic guidance and direction to the Board to ensure that the Company achieves its mission and objectives. The Logistics Management Director generally has the following responsibilities: * production planning and expediting * materials management * transportation to and from the plant * shipping, receiving and traffic management. * developing strategic initiatives for the supply and demand requirements and opportunities. * determining best logistics plans to will improve production, distribution, and inventory management.
Moreover, MBS Vietnam is the new branch of MBS German, accordingly, staffingshortageremains aproblem thatneeds more attention. Managing Director plays a role as the connection between the Germany headquarter and Vietnamese branch. Besides, the business relationship within Asian countries is also one of the most important responsibilities of the Managing Director.
- Sea freight:MBS Logistics makes shipping around the Globe as shipping across the country. MBS Logistics is handling LCL (Less ContainerLoad) and FCL (Full container load). They also receive services that range from special term benefits of handling documents to direct policy issuance of marine insurance, guaranteeing a well-rounded service package that provides secure and reliable shipping of respective goods.
In MBS Logistics Vietnam Company, sea freight department has many functions as follow: * Group shipment (LCL) to and from worldwide destinations * Full container service (FCL) import and export. * Picking, packing and distribution. * Project cargo and special equipment. * Break bulk. * Organization of pick ups and on forwarding transport worldwide. * Custom clearance. * Consulting and procurement of seaworthy packing. * Registration and consultation of dangerous goods.
- Air freight:Air freight is one of the most important departments in MBS Logistics. They provide the high quality services for customers from carefully selecting airlines, continuously informing about the status and location of shipment at any point in time. * Consolidation services worldwide import and export * Full and partial charters. * Door-to-door services with global partners. * Individual container transport. * Custom clearance. * Regulated agent acc. Federal Aviation Office.
- Accounting:Accounting is the indispensable department of every company. In MBS Logistics, accounting department has some functions as follow: * Measure the resource contribution. * Measure the incentive payments to participants. * Determine the contact fulfilment. * Public disclosure to reduce conflict during renegotiation of contracts.
With such structure, employees have the chance to accumulate experiences, develop their professional careers due to the repeated daily job; and the company’s resources are used more efficiently. The direct reciprocation between Managing Director and employees always exists so that all the information is constantly updated. However, the activeness and creativeness are greatly affected because of the fact that they always perform familiar tasks every day.

Human Resource:
Table 1.1. Human resource of MBS Logistics Vietnam in 2014-2015

| 2014 | 2015 | | Quantity | % | Quantity | % | Gender | Male | 1 | 20% | 1 | 14.29% | | Female | 4 | 80% | 6 | 85.71% | Age | 25-35 | 3 | 60% | 5 | 71.43% | | More than 35 | 2 | 40% | 2 | 28.57% | Qualification | Intermediate | 0 | 0% | 0 | 0% | | University | 4 | 80% | 6 | 85.71% | | Master’s Degree | 1 | 20% | 1 | 14.29% | Total | 5 | | 7 | |
(Source:Accounting MBS Logistics Vietnam)
Vietnamese Branch has been established for a year, so that the number of employees is small, only five people in 2014 and increased two more in 2015. Because MBS Logistics operates as the forwarder and most of the work is paperwork, the company tends to hire female employees rather than male employees, for example, four female employees while there is only one male employees in 2014. And the number of female employees even increased 2 more in 2015.
The qualification of MBS Logistics is very high, all of the employees have university degree and they are able to speak English fluently. Besides, the Managing Director hold an MBA degree in International Business and have been working within the logistics sector in many positions such as HR Management, Customer Service Management, etc. However, the amount of work are sometimes overloaded for only seven employees, and some positions are vacant such as Sales Management, Marketing Management,... Although the number of employees has raised in 2015, the company still needs to hire more staffs to handle the work together.

1.3. Business outcomes in recent 4 quarters:
1.4.Roles of the forwarding service for air export in MBS Logistics:
Logistics is very important for economy in general and for export and import sector in particular. Air export is one of the most important departments in MBS Logistics so that it creates high profits for company. MBS Logistics Vietnam exports general cargoes not onlyto MBS Logistics branches but also to other agents, which explains why air export has the greatest profits.
Besides, MBS Logistics is the global forwarder, which means they have to face a fierce competitiveness in international market. Air export shall be the decisive factor for MBS Logistics to get a firm position.
Table 1.2. Profit of forwarding servicefor air export departmentin recent 3 months.
Unit: USD | March | April | May | March/April | April/May | | | | | Value | % | Value | % | Air export | 3.745,43 | 4.403,50 | 8.878,94 | 658,07 | 17,57 | 4.475,44 | 101,63 | Profit | 736,56 | 1.161,18 | 3.842,72 | 424,62 | 57,65 | 2.681,54 | 230,93 |
(Source:Accounting MBS Logistics Vietnam)
The table above indicates the profit of air export department in recent 3 months at MBS Logistics Vietnam. As we can see from the table, the revenue in March was 3.745,43USD and then it increased to 4.403,50 USD in the next month.The company'sturnoverincreased to 658,07 USD which is equivalent to 17,57% compared to March, leading toincreased profits of 57,65% compared to March.The reason fortheincrease in air exports service revenueof MBS Logistics isthat the operation has become more stable, reputation has increased which attracted more customers for the company to establish a long business relationship.
In May, air exports revenue increased by 4.475,44USD which isequivalent to101,63%compared to April, profitabilityhas increased 2.681,54 USD. The growth rateofprofit was 129,3% higher than the growth rateof air exports revenue which shows that MBS Logistics is operating well as the service company tominimizethecostto enhancetheirprofitvalue.

1.5. Internship assignments in MBS Logistics: During an internship at the company, I have learned a lot of useful things like the difference between practice and theory. I was instructed to write monthly reports, create the commercial invoice and packing list. I also learned how to reply mails to customers, called the airlines to confirm the arrival date of cargoes and then informed the consignee when the shipment is late. The practical work helped me to have a broader vision about the process of forwarding service for air export of the company and it would be a great help for my future career.

CHAPTER TWO: THE PROCESS OF FORWARDING SERVICE FOR AIR EXPORT AT MBS LOGISTICS
2.1. Practical process: Chart 2.1: The process of forwarding service for air export

(Source: Air freight department MBS Logistics Vietnam)

2.1.1. Receive packing list from customers and send booking request: There are two types of cargo: nomination cargo and free-hand cargo. * Nomination cargo: The foreign agent has already assigned shippersfor the forwarder (MBS Logistics). * Free-hand cargo: The forwarder has to find the shippers itself or have its own regular ones. After the forwarder has contacted shippers, he will receive the packing list from them. The forwarder depends on two factors in packing list to charge freight on shippers: gross weight and chargeable weight. * Gross weight is the total weight of a product and its packaging. * Chargeable weight is the dimentional weight of product packaging which is computed as (length x widthx height)/6000. The freight will be charged according to the greater weight by forwarder. The shipper will send the letter of instruction to forwarder to make House AWB. The next step is that the forwarder sends a booking request to airline which can be made through phone or email. Shippers can request the airline they desire or the forwarder can personally contact the airlinewith which it has a good business relationship. In case shippers do not have any special requirements, airline can arrange the flight, ETD, ETA, airway bill number. In contrast, if the shippers require the accurate ETD, airline has to follow as requested. In this process, the forwarder works as the intermediary so that it keeps noticing and updating the information between shippers and airline. Beside the booking request, the forwarder also has to send the letter of instruction to airline to issue Master AWB.

2.1.2. Receive the consignments at warehouse: 2.1.2.1. Receive FCL at CY: FCL means that the large quantity of the consignment needs to be containerized fully in one container or many containers. In this case, the forwarder issues House AWB for the shipper and receives the cargoes to inspect at CY. Consignee A
Foreign agent
Airline
Forwarder
Shipper A
Chart 2.2. Process of receiving FCL:

2.1.2.2. Receive LCL at CFS and consolidate into FCL LCL means that the quantity of the consignment is not enough to fit in 2/3 of container. The forwarder receives the cargoes from many shippers who have the same destination, books a full container, accepts goods from different shippers and consolidates all such goods in to one container as a FCL.In this case, the forwarder issues many House AWB for all shippers. And the foreign agent which is called break bulk agent of the forwarder will distribute the cargoes to the consignees. Consignee A
Chart 2.3. Process of receiving LCL: Shipper A

Foreign agent
Airline
Forwarder

Consignee B
Shipper B

2.1.3. Inspects the consignments at warehouse: Forwarders will issue warehouse receipts for export (FWR - Forwarder`s Warehouse Receipt) if goods are stored at the warehouse of forwarder before sending it to the airline.The warehouse belongs to cargo service companies such as TCS or SCSC. The forwarder associates with cargo service company to inspect the consignments. During the inspection, the forwarder has to ensure that the gross weight, chargeable weight, number of package, cargo category,… match with the information listed in packing list. Besides, inspection is carried out to check the damage, contaminants. An inspection report is completed to confirm the consignment is compliant with all exporting requirements. If all the information is correct, the forwarder will stick a House AWB sticker on each package. These stickers must have the logo of forwarder company on them. The service company will charge a fee of handling equipment and maintenancedepending on category of the cargo which is called Terminal Handling Charge (THC). For example, MBS Logistics usually receive general cargoes so that the charged fee will be 760VND x 1kg. The forwarder can pay THC on behalf of the shipper and then the shipper can repay the forwarder later. In case the cargoes are below the standard, for example, the goods are musty or soaked, the package is torn,… then forwarder will return the goods back to the shipper. If the weight or quantity of the goods do not match with the information in packing list, the shipper is obliged to carefully check the information again. There was a case in 11/2014, 10 packages of Nike shoes were torn and soaked because the driver did not cover the canvas carefully. The MBS Logistics had to contact with Nike company to ask them send their employee to check again and repack all the soaked packages. 2.1.4. Custom clearance and issue House AWB: Custom clearance work involves preparation and submission of documentations required to facilitate export, representing client during customs examination, assessment, payment of duty. The forwarder’s responsibility is only handing out the required documents. Some export documentations are required: * Commercial invoice is a document used in foreign trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across national borders. The document must include a few specific pieces of information such as parties involved in shipping transaction, the goods being exported. This document is used to calculate tariffs, international commercial terms. * Packing list (also known as a bill of parcel, unpacking note, packaging slip, (delivery) docket, delivery list, manifest or customer receipt, shipping list) is a document which details the contents, and often dimensions and weight, of each package or container. It serves to inform all parties involved with shipping, including transport agencies, government authorities, and customers, about the contents of the package. It helps them deal with the package accordingly. * Certificate of origin (often abbreviated to C/O, COO or CoO) is a document used in international trade. In a printed form or as an electronic document, it is completed by the exporter and certified by recognized issuing body, attesting that the goods in a particular export shipment have been produced, manufactured or processed in a particular country. During this period, the forwarder issues House AWB according to letter of instruction which was sent by shipper. It shows the shipper’s name and consignee’s name. Besides, the forwarder will receive scaling report after custom clearance.If the quality and information of the cargoes are similar as declared, they are allowed for exporting. 2.1.5. Send consignment to airline and receive Master AWB: Send consignment to airline: After the custom clearance, cargoes are delivered to airport and checked again through the security scanner. In this stage, the shipper will have to pay charges to the airport which is called airfreight.Air freight is the amount paid for the carriage of a shipment and other services related to the transportation by means of aircraft. Charge levels or ratesare the amount that the carrier collected on a unit volume of goods transported. The charge rates is valid on the date of issuing Master AWB. The forwarder can pay this freight on behalf of the shipper. For FCL, the forwarder has to pay freight exactly as the weight of cargoes. * If the cargoes are less than 45kg, normal general cargo rate is applied (GCR-N). * If the cargoes are more than 45kg, quantity general cargo rate is applied *GCR-Q). For LCL, the forwarder enjoys the lower freight from airline by consolidation, it is the difference between total charges from LCL shippers and the freight paid for airline as FCL cargoes. And the shippers are also received part of the difference which is lower than the amount that the shippers are supposed to pay directly to airline. For example: * Total weight of LCL cargoes is 45kg which includes 30kg from shipper A and 15kg from shipper B. * The airline charges forwarder the amount equivalent to only 40kg. * The forwarder charges shipper A the amount equivalent to 29kg and shipper Bthe amount equivalent to 14kg, then the total amount equals 43kg. * As the result, the forwarder enjoys 3kg of difference. Receive Master AWB from airline: After the cargoes are packed in pallet, igloo or container, the forwarder receives Master AWB from airline. The airline issues Master AWB according to the letter of instruction sent by forwarder initially. The important thing about Master AWB and House AWB is that the information in these bills must be similar. However, in case of LCL cargoes, the total packages listed in House AWB must equal the number of packages in Master AWB. 2.1.6. Payment method: Two methods are used not only in air freight but also in other types of transportation: Freight collect and Freight prepaid. * Freight collect means the consignee pays the freight for foreign agent which in turn pays back to MBS Logistics. * Freight prepaid means the shipper pays the freight directly to MBS Logistics. 2.1.7. Dispute settlement: Forwarders must also ensure the quality of goods and packaging. If any damage occurs, the forwarder must also bear some responsibility for the consignee. In addition, the forwarder must also ensure thatthe shipper fully pays the service charges whether the consignee has received the goods or not.

There was an incident occurring in 8/2014, the consignee refused to receive the shipment of ceramics because the exhibition had ended before the goods arrived. In result, value of the goods was reduced, even lower than the value of freight paid for airlines, forwarder,... The airline had no responsibility in this situation, however, the foreign agent of MBS Logistics might not receive the freight from consignee which led to the ability that MBS Logistics earned nothing from that service. The solution for the situation when the goods value is lower than freight value is to require the shipper to pay all the freight before the goods are exported. 2.2. Summary of strengths and weaknesses Strengths: * Establish a firm relationship with customer: MBS always understands what the customer needs and quickly resolves the arising problems so that they gain a great number of customers. Besides, foreign agents continuously provide many orders of customers from abroad for MBS Logistics Vietnam. As a result, the number of customers increases associate with the gross profit. * MBS also createsthe good business relationship with airlines and shipping lines because they always pay all kinds of freight on schedule. For this reason, the freights are lower than other forwarding service companies. This is the main advantage to attract customers because they would choose the company which offers the lowest freight. * If there are any incidents arise, MBS Logistics is willing to extend cut off time, modify bills or invoices, detention and demurrage exemption, reduce import duties, offer commissions and gifts, consult export companies… * The customers are not satisfied with the fact that they have to pay for the whole container when they consign LCL. MBS Logistics is the optimal choice for them to cut down some unexpected cost. * The network of foreign agents is professional and they always make sure that foreign customers pay all the freight for MBS Logistics Vietnam. They also receive the goods from warehouse and deliver to customers in foreign market. * Even though MBS Logistics only offers forwarding service, they also associate with TCS or SCSC to inspect the goods before delivering them to airline. Weaknesses: * MBS Logistics has been established for only one year so that there are not many employees in company. One employee is responsible for one area, for example, one employee is for air freight department, another one is for sea freight export department… Because of staff shortage condition, employees are loaded by the amount of works. * Sale and marketing positions are still vacant so that MBS Logistics does not have any particular marketing strategies. As a result, MBS Logistics is not widely known in domestic market. * Most of the customers are small and medium-sized companies so that the exported amount of goods is not much. * MBS Logistics mostly provides service for general cargoes because they still cannot compete with those who provide service for pharmaceutical, agricultural products, frozen vegetables… * Most of the employees are female who are only suitable for paperwork. Meanwhile, the company needs more people to go to many places such as seaports, airports or collect documents from shippers or airlines… 2.3. Comparing between theory and reality:
2.3.1. Similarities: * The process of preparing documentations is based on customer’s requirement. * Goods delivery to airport, customs declaration, documents preparatory and documents submission are complied with the specifications of the customs department.
2.3.2. Differences: * Normally, the shipper must carry out custom clearance procedures and submit the relevant documents, but this step can be performed by forwarder. * The forwarder will also help shipper pay the freights such as airline charges, THC, custom charges, ... then the shipper will pay back to the forwarder later. * Forwarder can also inspect goods at the warehouse with service company. CHAPTER THREE: THE OUTLOOK, ORIENTED DEVELOPMENT AND RECOMMENDATIONS FOR PROMOTION/IMPROVEMENT OF FORWARING SERVICE FOR AIR EXPORT. 3.1. The outlook of forwarding service for air export: 3.1.2. The outlook: MBS Logistics are very careful in investing in IT to help them achieve business objectives - reducing costs, finding new markets and exploit existing markets, expanding relationships and increasing profitability. One of the solutions is the electronic data interchange (EDI-Electronic Data Interchange). Most of the companies use EDI to save time, mitigate risk due to effectiveness in trade relations increased several times compared with the traditional method. Today, by integrating EDI data directly with business systems, company can optimize operation, provide efficiently and accurately information. The employees in MBS Logistics used to traditionally issue documents by excel, however, by using EDI, they only need to add necessary datas. Currently, the market is becoming a fierce competition, Vietnam has joined the WTO which requires the creation of a highly professional and dynamic business environment. Corporations and companies in Vietnam have always had weaknesses in after sale service, dispute settlement and trust achivement. Because MBS Logistics provides service so that the company operates under the trend of building trust, they always prepare documents required by the authorities and relating parties, pay freight fully and on time. This working style confirms the value of MBS Logistics on Vietnamese market in the future.
Another advantage that MBS Logistics possesses is the strategic location. Due to the process of globalization, there has been a dramatic development in logistics in Vietnam, and there is more and more business all over the world seeking Vietnam as their partners. Furthermore, Ho Chi Minh City is one of the most modern and active locations for economic development, especially in international business economy, generating many advantages for MBS Logistics to develop its air export service situation over the years.

3.1.2. The challenges:
Rapid growth of global economy and ability of adaption to international commerce brings along expansion and development opportunities to MBS Logistics; however, there are still a lot of challenges that the organization still has yet to face on its way to flourish and expansion. Challenges range from being on the market, over anticipating what will be next and retaining customers to staying flexible by all means. They are the ones which make doing business exciting and drive any employee, every day anew, to give their very best. Every MBS Logistics employee wants to be in a position to say at the end of the day that he has mastered this very challenge. This fosters self-confidence and provides the drive to be proactive and motivated for new demanding responsibilities. Between 2000 and 2013, the transportation of containers and consolidated cargo by plane has gone from representing 3.1 per cent to only 1.7 per cent of the total, according to a report from the Seabury Group and the IATA. In 2015 this trend will be maintained due to the competition in sea and ground transportation. MBS Logistics will have to compete against domestic enterprises, the domestic market competition is increasingly fierce and intense in recent years. At first, Vietnamese market did not pay attention to logistics, however, logistics is considered as the key industry for other industries nowadays because it relates to export and import service. More and more logistics companies are established to meet the demand for export and import activities. MBS Logistics Vietnam is only a newcomer to the market with the vacancy of marketing position, it is a real challenge for them to compete with others to attract customers. Therefore, although 32 Joint Stock Company has achieved many goals along with possesses many advantages for development, there are still drawbacks and challenges to confront with in order for the organization to thrive and prosper. 3.2. The organization’s oriented development of forwarding service for air export: Most of the orders in MBS are nomination cargo, which means the company provides services to designated partners, hence they have not gained initiative in finding customers on the market. Therefore, companies are focusing more on free-hand cargo, thereby expanding business relationship and promote the inherent potentials. Customers of MBS Logistics are mainly small and medium-sized businesses so that the company is trying to find large-sized enterprises in both domestic market and foreign markets. Thus, the amount of imported and exported goods will be many times greater than the current amount. In the near future, the company will employ more staffs for vacant positions such as sales or marketing, especially sales position because MBS Logistics is the service provider, customer’s satisfaction is one of the most important determinants. In regard to human resources, MBS Logistics plans to invest more in professional staffs development and training. The objective is 100% of the employee can speak and use English fluently for communication and conducting business with foreign partners as well as experienced through a wide range of projects. In general, being successful as a salesperson does not only mean to acquire customers ans retain them, but also to develop them and make them more profitable. Achieving more profitability creates a win-win situation for both, the customers and MBS Logistics as the service provider. The company’s goal is to find new approaches to get to know customers, to look for them and to convince them of MBS Logistics. 3.3. Recommendations for promoting/improving forwarding service for air export
Below here are several proposals of the internee after internship to improve and enhance forwarding service for air export at MBS Logistics. The company needs to promote and invest more resources in marketing division. Instead of waiting for customers, MBS Logistics should be more active and look for clients. Furthermore, the company should participate more in business promotion activities such as domestic fairs, exhibitions. By doing this, MBS Logistics will have more opportunities in conducting as well as carrying out business contracts in the most effective and efficient manners. As a result, the company not only boosts its turnovers but also gains trust from old clients as well as attracting new partners. MBS Logistics should establish a long-term and firm partnership with customers. It is important that the company look for and have a list of all customers from both domestic and international. Another feature that helps improving the export situation of 32 MBS Logistics is work policies for employees. The company should have an encouraging policy, recognition, to individuals with outstanding and distinguish performance every year including quarter rewards, annual reward, fringe benefits, bonuses, allowances, etc. This will not only encourage and boost the morality of employees but also help retains them and reduce turnovers problem. Last but not least, MBS Logistics also needs to ensure the relationships with shipping lines, airlines and warehouses. The goodwill of MBS Logistics will be useful in solving troubles such as extending the time when the shipment is late, enjoying lower rates compared with rival companies...

CONCLUSION Nowadays, with globalization continuing to accelerate, air export has an enormous impact on the development of the economy of Vietnam. Besides, open economy presents both opportunity and challenge to MBS Logistics in the coming years. Even though the company has been established for only a year, the process of forwarding service for air export is a consistent and professional procedure. Thus, MBS Logistics will grow stronger and be able to maintain its dominant position in the forwarding service industry both domestic and international. In order to achieve this, the company should pay more attention on the staffs, altogether with business strategies. Besides, the company has to quickly hire more employees to share the workload with the current employees, especially vacancies positions. Especially the air freight department, there is only one employee handles both export and import sectors. Moreover, as the newcomer of the market, MBS Logistics should focus more on promoting the image and brand. Except three Asian countries such as China, Hong Kong, Singapore, which are also the markets of MBS Logistics, Vietnam is a country with the suitable geographic location for the development of logistics industry in Southeast Asia. Therefore, the company should focus on developing air export because it is an extremely important strategy for this development. After the internship period, the internee would like to provide a brief overview about the forwarding service of air export at MBS Logistics, along with evaluations and recommendations. Finally, due to the limit of professional knowledge and internship period, most of the suggestions by the internee are not deeply analyzed. However, the internee still hopes the above-mentioned ideas will somehow contribute to the development of forwarding service for air export at MBS Logistics in the future.