Friday, February 25, 2011

How to Write an Investment Contract

By Jerry Garner, eHow Contributor
updated: May 5, 2010

    How to Write an Investment Contract

    >>IMPORT CONTRACT

  1. 1
    Write the opening recitals of the investment contract. The recital should state the date that the agreement is entered into, as well as the name and address of both parties involved in the contract. Use the company name and address if applicable, since the company contact will be identified later in the agreement.

IMPORT CONTRACT


IMPORT CONTRACT

                                                                                      No: GV-PB-032010
                                                                                      Date: 15th November 2010
Between the parties:
 
GEMOPIA VINA CO., LTD (Hereinafter called the Buyer )
Address: 
Lot D7/3, Hanoi - Dai Tu Industrial Zone, 386 Nguyen Van Linh Road,
                 Long Bien District, Ha Noi, Vietnam.       
Tel: 844 - 3674xxx           Fax: 844 - 36740xxx
Represented by:  Mr.
Jang Jea Ho   - General Director
And:
 P&B JEWELRY COMPANY LIMITED (Hereinafter called the Seller )
Address: 
Room 1502, Double Bldg., 22 Stanley St., Central, Hong Kong.
Tel: 86- 532 8676xxxx       Fax: 86- 532 867xxx
Represented by Mr. Kim Young Chul   President

Thursday, February 24, 2011

Incoterms 2010 - Summary

Incoterms 2010 consists of only 11 Incoterms, a reduction from the 13 Incoterms 2000.

The Incoterms 2010 are organized into two categories:

Incoterms for any Mode or Modes of Transport:

EXW - Ex Works
FCA - Free Carrier
CPT - Carriage Paid To
CIP - Carriage and Insurance Paid
DAT - Delivered At Terminal (new)
DAP - Delivered At Place (new)
DDP - Delivered Duty Paid

>>INCOTERMS 2010
>>Incoterms 2010 will take effect on January 1st, 2011
>>Incoterms 2010 Part 1- New terms and Structure
>>Incoterms 2010 Part 2:Revision Rationale
>>Incoterms 2010 Part 3:10 Tips on Using Incoterms2010



Tuesday, February 22, 2011

I Want To Know What Love Is

Mariah Carey – I Want To Know What Love Is


I gotta take a little time

Thursday, February 17, 2011

International Shipping -2

International Shipping

International Shipping-1

International Shipping

Order Bill of Lading

Order Bill of Lading

Ready to Export – Foreign Trade & International Transportation

Ready to Export – Foreign Trade & International Transportation

Logistics part 2 – study international transportation export management

Logistics part 2 – study international transportation export management

Logistics part 1 – study international transportation export management

Logistics part 1 – study international transportation export management

Incoterms 2010 Part 5:Maritime Incoterms NOT for Containers

Incoterms 2010 Part 5:Maritime Incoterms NOT for Containers

Incoterms 2010 Part 4:Has the Ship’s Rail fallen of the Ship?

Incoterms 2010 Part 4:Has the Ship’s Rail fallen of the Ship?

Incoterms 2010 Part 3:10 Tips on Using Incoterms2010

Incoterms 2010 Part 3:10 Tips on Using Incoterms2010

Incoterms 2010 Part 2:Revision Rationale

Incoterms 2010 Part 2:Revision Rationale

Incoterms 2010 Part 1- New terms and Structure

Incoterms 2010 Part 1- New terms and Structure

Incoterms 2010 will take effect on January 1st, 2011

Incoterms 2010 will take effect on January 1st, 2011. Since the last revision, Incoterms 2000, there have been a number of changes in both global and domestic trade, this revision addresses those changes. In contrast to the previous four classes, E,F,C and D, Incoterms will now be separated into 2 groups, those applicable to all modes of transport and those only applicable to sea and inland waterway transport.

There will now be a total of 11 terms instead of 13, with 2 new additions, DAP and DAT and 4 deletions, DAF, DDU, DEQ and DES. Incoterms 2010 applicable for all modes of transport:

EXW : ex works
FCA : free carrier
CPT : carriage paid to
CIP : carriage and insurance paid to
DAT : delivered at terminal – NEW!
DAP : delivered at place – NEW!
DDP : delivered duty paid

Incoterms 2010 only applicable for sea and inland waterway transport:

FAS : free alongside ship
FOB : free on board
CFR : cost and freight
CIF : cost, insurance and freight

http://www.iccwbo.org/

INCOTERMS 2010

Incoterms® – International Commercial Terms

The Incoterms® rules are an internationally recognized standard and are used worldwide in international and domestic contracts for the sale of goods. First published in 1936, Incoterms® rules provide internationally accepted definitions and rules of interpretation for most common commercial terms.

The rules have been developed and maintained by experts and practitioners brought together by ICC and have become the standard in international business rules setting. They help traders avoid costly misunderstandings by clarifying the tasks, costs and risks involved in the delivery of goods from sellers to buyers. Incoterms® rules are recognized by UNCITRAL as the global standard for the interpretation of the most common terms in foreign trade.

It is to be noted that all contracts made under INCOTERMS® 2000 remain valid even after 2011. Moreover, although we recommend using Incoterms® 2010 after 2011, parties to a contract for the sale of goods can agree to choose any version of the Incoterms rules after 2011. It is important however to clearly specify the chosen version INCOTERMS® 2010, INCOTERMS® 2000 or any earlier version.

Five Biggest Mistakes That Entrepreneurs Make


1. Having Unclear Goals and An Unclear Mission
2. Trying To Prove That You’re Smart
3. Greed: Doing It For Money
4. Hiring People That You Like, Rather Than People That You Need
5. Not Knowing When To Let GoQUOTES:”A company is not a social club”"Running a company is like raising a child”

Top 10 Mistakes New Business Owners Make



This useful video lists common mistakes made by new business owners. This is the newest entry in WatchMeFranchise.com’s Business Tips Video Series.The top 10 mistakes are:
1. Thinking too small or too big.
2. Losing your focus or drive.
3. Taking on too much by yourself.
4. Sacrificing your personality.
5. Not tracking your advertising.
6. Investing too much in one client.
7. Going against your gut instincts.
8. Not getting involved in the community.
9. Managing employees poorly.
10. Trusting that signed contracts will be honored.

Vietnam Economic Update for the Year 2011

Vietnam Economic Update for the Year 2011



On January 21, 2011, many members of the foreign business community in Vietnam gathered at an annual business luncheon event organized by the Canadian Chamber of Commerce in Ho Chi Minh City to discuss prospects for the year ahead. The participants agreed that overall, they are optimistic, but also wary of several uncertainties, reported Vietnam News Agency.
The managing director of TNS Vietnam, Ralf Matthaes, who as also spoken to several groups arranged by www.business-in-asia.com during our trips to Vietnam, and was one of the key speakers at the event recently in HCMC, said Vietnam’s market will continue to grow in 2011, but at a slower pace than pre-global recession times, reported the paper.  Matthaes said his market research firm expects both exports and foreign investment to show stronger growth in the face of improved economic conditions. He warned that inflation and the global recession could be big problems for Vietnam.
Vietnam Inflation Rate – Yr 2005-2010
Inflation Inflation has been a persistent problem for Vietnam. The government has said high inflation, which hit 11.75 last year, was a weakness of the economy and they would try to lower it.  The The Wall Street Journal on January 24, 2011 noted that “Vietnam’s inflation posted another double-digit rise ahead of the Lunar New Year (end of January 2011), adding pressure on authorities to raise interest rates to slow the nation’s growth and curb pressure on its currency”.  The paper said that the consumer-price index rose 12.17% in January from the same month a year earlier.
Vietnam Export & Import (Yr. 2009-2010)

Export to Decline? Vietnam’s export turnover was estimated to total US$70.8 billion for the entire Yr. 2010, a year-on-year increase of 24%, marking a 16.5% increase on the predicted $60.5 billion, the Ministry of Industry and Trade announced just before New Year.
Even though Vietnam has continued to export more products, there is now serious concern over the country’s ability to retain its position and continue to turn in similar levels of growth this year in the global market.
Vietnam has been doing well so far because it was able to keep prices low, but that competitive edge is threatened by its heavy dependence on imported materials and increasing labor costs, said Jocelyn Tran, country manager at MAST Industries (the company is a subsidiary of The Limited Brands, which owns several top names including Victoria’s Secret, Express and The Limited), reported Vietnam News.  For example, Vietnam is now a major apparel supplier to the US, just behind China in terms of market share, she said. However, unlike other garment producers, Vietnam is “too far downstream in the supply chain” because 80 percent of its products use imported materials, mainly from China.  Tran said such dependence has made the sector easily affected by increases in world prices.
More support industries needed
This is a point made repeatedly over the last several years by www.business-in-asia.com.  Many industries in Vietnam, especially producers of products for export, continue to rely on imported materials or spare parts. There are strong needs for stronger support industries in Vietnam.  Increase in support industries would improve domestic competitive capacity, add value to local products, and be essential for strengthening Vietnam’s competitiveness. The Vietnam News reported late last year that Vietnam’s automotive industry has a localization strategy that requires the development of local support industries. So far, the localization rate in the industry remains low. Domestic content of vehicles made by Honda Vietnam, for example, is only 10% and those of Toyota Vietnam, only 7%. Remaining automakers average 2-4% with domestic content.
The garment and footwear industries are facing the same problem – with over 80% of raw materials imported, reported the paper.  The electronic industries urged for the development of support industries to focus on three major areas: mechanical, electrical and electronic spare parts. Director of the Ministry of Industry and Trade’s Industrial Policy Research Institute, Phan Dang Tuat commented on the issue that Vietnam should learn from the experience of and seek support from neighboring countries like Japan and South Korea in developing support industries
Other Problematic Factors
The World Economic Forum index ranked 125 countries based on their performance in four main areas: market access, border administration, transport and communications infrastructure, and general business environment,.  Th is report released in 2010, showed that Vietnam still has the following factors that burden doing business in the country, which includes weak infrastructure

The most problematic factors for doing business in Vietnam:
Source: The Global Competitiveness Report 2010-2011, World Economic Forum
(Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.)
1. Access to financing: 17.7 2. Inflation:12.7
3. Policy instability: 10.9
4. Inadequately educated workforce: 10.2
5. Inadequate supply of infrastructure: 9.9
6. Foreign currency regulations: 8.2
7. Tax regulations: 7.0
8. Poor work ethic in national labor force: 5.4
9. Corruption: 4.8
10. Tax rates: 4.8
11. Inefficient government bureaucracy: 3.9
12. Government instability: 2.2
13. Restrictive labor regulations: 1.4
14. Crime and theft: 0.8
15. Poor public health: 0.1


Government Acknowledgement of the Troubles
On January 14, 2011, Mr. Vo Hong Phuc, Minister of Planning and Investment, said in his “Review of 10 years of implementing the socio-economic development strategy and lessons for the coming decades” that even though over the past 10 years, Vietnam GDP  reached 7.26% per year; growth quality, productivity, efficiency and the competitiveness of the economy is still low and macro balances are unstable. Export products are mostly raw materials and industrial goods are mainly manually made. Productivity is much lower than regional economies, for example 2.6 times and 4.3 times lower than China and Thailand respectively. Energy losses are huge. In order to turn out $1 of GDP, Vietnam uses about 4.65 times more power than Hong Kong, 2.10 times compared to South Korea and 1.69 times to Malaysia, reported Vietnam News Agency.
Minister Vo Hong Phuc also commented that the infrastructure had developed slowly, with poor quality and a lack of synchrony that has hampered development. The transport network has yet to be completed and we have no express railway, modern sea port or airport. The power supply and network have not met the demands of production or the public.
Our View:
Minister Vo Hong Phuc gave a very honest and comprehensive view of the problems in Vietnam’s economy and we share his assessment.  In 2011, we believe the big story for Vietnam and also for China will be inflation and how the government deals with it.  In Vietnam, weak infrastructure, the continued weakness of supporting industries and the need for more efforts in building qualified human resources all should hopefully prod the government to do more in these areas in 2011.  Vietnam remains a favorable location for investment and many investors are looking at Vietnam as their chief option to China where prices are also rapidly increasing and the local currency, the RMB or Yuan, is likely to increase in the years ahead, something that has not been the case for the Vietnamese Dong.

Useful Tips for Exporting in Vietnam

Knowing People
  • Try to learn a few words of the local language.  It is also to know something of the history and of recent economic developments.  This show’s to all your interest in the country and its culture and is considered another demonstration of your cultural sensitivity and good breeding.
  • Connection and introductions are an important part of doing business in Vietnam. A written introduction or a meeting arranged by a go-between will produce the best results. Because connections and who you are introduced by can be very critical, finding a reliable and credible local representative is extremely important. There are some well-established consulting firms that are intimately familiar with the Vietnamese market, but companies should be wary of foreign and Vietnamese consultants who claim to have connections and to know the market. Be sure to ask for references and verify the quality and extend of the firm’s previous work in Vietnam as there are many individuals and firms who really haven’t got the connections, knowledge or experience they claim.
  • It is imperative that you conduct research while still in your home country, learn about the country, the marketplace, and identify local representatives and target companies for contact.  Use this knowledge in discussions with contacts, etc. as often a little knowledge can lead to additional sources which will greatly strengthen your market research.
  • For any business to be consummated, you must make a long-term commitment to the country and visit it.  Vietnamese are still a conservative and relation based society and connection over time and face-to-face meetings are critical in building trust and encouraging support.
  • Vietnamese are eager for Americans to participate in their economy and balance the interest expressed by Europeans, Japanese, and other Asians.  They often have a respect for American technology and popular culture which often can be greater than even the most fervent American.
  • The application process to establish a local office can be time-consuming, taking up to 18 months. Companies that are not ready to establish a permanent base in Vietnam should consider hiring a local representative to perform support services, open new doors and to monitor any ongoing negotiation processes.  Recently it appears that the government is taking some steps to simplify the process to open a representative office.  This can be a good first step for many projects.
  • Contact embassies and chamber of commerce in your home country and in Vietnam.  Foreign Commercial Office representatives at your countries Embassy and the local chamber of commerce of your country often have excellent business information and can be great sources of networking.
  • Generally, business is most efficiently conducted in Ho Chi Minh City (Saigon). But Hanoi often has lower capital requirements and the officials are more eager to please.  As you spread out from these two cities, local officials are often enthusiastic for foreign investment but also infrastructure and communications can often be more problematic.
  • If an Asian person gives you a compliment, be polite and deny it.  Modesty is considered a blessing in Asia even more so than in other regions. Self-depreciating humor and not overly promoting you or your associates success is often better received and can lead to smoother relations with your counterparts.
  • Be respectful of local culture but don’t expect that you have to know everything.  Most Asian will make allowances for foreigners.  Also, giving a contact a chance to explain a cultural trait or a way of doing things oftentimes is helpful in building relationships.
  • Do not be surprised if your business counterpart of the same sex tries to hold your hand or touch your elbow as you are walking.  This action has no sexual connotations, but is common between same-sex individuals in Vietnam.  A Vietnamese will usually not do this unless he or she feels very comfortable with you.
  • Corruption as a standard business practice is a problem in Vietnam as it is in many developing countries.

Business Meetings
  • Business cards are always exchanged at the first meeting. The Vietnamese often use both hands to receive and give cards and also slightly bow their head to indicate respect.  Taking a minute to look at the persons card, to pronounce their name and to acknowledge their title are often good ways to show your counterpart that you value the opportunity to meet with them.
  • Bring a large supply of business cards and advertising material.  You may meet many more people than you expect.  Asians view the exchange of business cards in particularly as a very necessary opening ritual.  Not presenting your card often can be construed as your company is not genuine or you have something to hide, so please prepare the necessary materials prior to your visit.
  • The Vietnamese shake hands with both men and women at both the beginning and the end of a meeting. If a Vietnamese does not extend his or her handshake, a slight bow of head will suffice. This is particularly common in the more rural areas and in interaction with women.
  • The order for a Vietnamese name is family name, middle name, and given name. When referring to someone, use his or her given name with the appropriate title, for example, “Nguyen Van Khai” should be addressed as “Madame Nguyen”.  If the person you are meeting in a Director of an office or of a company, referring to him or her as Director and then his last name is appropriate.
  • You may hear people who know each other referring to each other by the name of the relationship, e.g. my brother, my niece. This is sometimes just to indicate respect. This may not be his/her family members, but indicates somebody very close to the speaker.  This can be confusing for non-Asians but indicates that the person thinks of the other as being a close contact “like a” brother or sister.
  • A common greeting “chao” (pronounced chow) should be accompanied with the appropriate title, respect for age and status, e.g. “chao anh” (for male, older or those you want to show  respect), “chao chi”(to older female), “chao em” (to younger male and female). Even if you believe the other person maybe younger than you, it is often best to err on the side of being overly polite and using the “chao Anh” or “chao Chi” initially when meeting a contact.  It is however safe to use just “xin chao”(pronouced seen chao) which is a very polite hello and good bye without identify title.
  • Vietnamese men often feel uncomfortable socializing with foreign women.  They also often assume that women are more comfortable in talking with other women and will often seat them accordingly at meals or sometimes in social meetings.
  • You will usually be served tea and something to eat. Generally this will be Vietnamese green tea or soft drinks.  Be sure to sample them. Failure to taste or drink a small amount of anything is considered impolite.
  • Have your written materials translated into Vietnamese.  Many Vietnamese today have or are studying English or other foreign languages.  Most, however, still feel more comfortable with their own language.
  • Most foreigners will also need to use translators. If there is any question about the comprehension of English by the people you are meeting, always use your own translator or interpreter.  Do not rely on the other organizations translator or interpreter.  They work for the other side and are more likely to protect their business interest and to focus on their interests not yours.  Also, meet with your interpreter prior to the meeting and make sure they understand you and your company.
  • Try to speak more slowly and distinctly but not so slow or distinct as to offend.  If utilizing a translator, leave breaks for your ideas to be translated.   Keep in mind that many Asians have been educated in the U.S. and that the standard of English in Hong Kong or Singapore can be very high.  Avoid buzzwords and explain concepts thoroughly.
  • Keep in mind that in most of Asia that dates are shown in day/month/year format, ex.  9/12/99 means December 9, 1999.  To avoid confusion, you may want to use the full date in correspondence.
  • When you meet with senior officials, after initial pleasantries, begin discussing business within a few minutes, for there may be few opportunities to meet with the senior person and their time is at a premium.  With middle and junior level officials, you should concentrate on relationship building.
  • Be careful about what you say when you are in Vietnam.  It is not unusual for the government to monitor telephone and fax lines.  The government continues to monitor foreign business people in hotels, taxis, and cars, and meeting rooms.  Vietnamese individuals such as maids, drivers, assistants, and even translators may be passing on information about you to the government.  This is done for reasons of both security and business competitiveness.
  • Do not touch a person’s head, for the head is considered the spiritual center of the person.
  • Use both hands to pass things from one person to the next..
  • Do not point to someone.  To beckon a person, use your whole hand.
Source: http://www.business-in-asia.com

Tips for Vietnam Exporters

Social Tips
  • Bring a large supply of business cards and advertising material.  You may meet many more people than expect.  Asians view the exchange of business cards in particularly as a very necessary opening ritual.
  • Try to speak more slowly and distinctly but not so slow or distinct as to offend.  Keep in mind that many Asians have been educated in the U.S. and that the standard of English in Hong Kong or Singapore can be very high.  Avoid buzzwords and explain concepts thoroughly.
  • If there is any question about the comprehension of English by the people you are meeting, always use your own translator or interpreter.  Do not rely on the other organizations translator or interpreter.  They work for the other side and are more likely to protect their business interest and to focus on their interests not yours.  Also, meet with your interpreter prior to the meeting and make sure they understand you and your company.
  • Keep in mind that in most of Asia that dates are shown in day/month/year format, ex.  5/12/99 means December 5, 1999.  To avoid confusion, you may want to use the full date in correspondence.
  • If an Asian person gives you a compliment, be polite and deny it.  Modesty is considered a blessing in Asia even more so than in other regions.
  • Do not try too hard to “go Asian”.  Be respectful of local culture but don’t expect that you have to know everything.  Most Asian will make allowances for foreigners.
  • Try to learn a few words of the local language.  This show’s to all your interest in the country and its culture and is considered another demonstration of your cultural sensitivity and good breeding.
  • Bring basic medications you use frequently.  Also cold and anti-diarrhea medicine as travel seems to induce these illnesses more frequently.
  • Generally throughout Asia, it is better to drink bottled water, especially bottled mineral water.  Air travel, adjusting to a different time schedule and sometimes higher temperatures and humidity make drinking lots of bottled water always a good recommendation.
Source:http://www.business-in-asia.com