Understand Direct Export And Indirect Export With Saigon Academy

Courses on import and export operations are being offered at Saigon Academy.

Vietnam - January 12, 2023 —

Saigon Academy is an Import – Export Operation Training Center. Established in 2012, Saigon Academy has accompanied more than 2,000 students nationwide.

Export is the activity of buying, selling and exchanging goods between domestic – foreign enterprises and between different countries – territories. Exporting goods is aimed at exploiting advantages in Logistics, building a brand, expanding the potential customer group and improving profits in international business activities. It helps businesses develop without being too dependent on the domestic market. There are two export forms, direct and indirect export.

A direct export is an activity in which enterprises directly trade goods with foreign units. In this form, the export company handles all issues from communication, business negotiations, trading and logistics, international payments and self-responsibility for marketing. Whether direct export is possible depends on many enterprise factors, including scale, orders, promotion products ability, seniority operations, business conditions in selected markets and the product's nature.

A direct export is an international business form that brings high profits and supports business branding. The direct export advantages are:

• Capturing specific the market's developments and needs to complete business processes and products.
• A higher degree of control over all the trading process stages.
• Exploiting logistics resources in the country.
• Optimizing in making appropriate plans for each specific market and proactively dealing with complex developments.
• Helps businesses save costs for intermediaries and higher profit margins.

Direct export businesses need to face many challenges. The enterprise should have at least a certain knowledge of export procedures and understand international business operations. The enterprise has expenses to invest in research market – products and carry out all exporting goods stages. The employee team is experienced in international trade relations and knowledgeable about customs, domestic-international laws, import-export operations and processes.

Indirect export, also known as consignment export, is the business activity in that an enterprise trades goods abroad through intermediaries (third parties). It is the least expensive and fastest approach to entering the international market.

To perform consignment export, entrusting enterprises need to sign export entrustment contracts with domestic units (goods owners wishing to export goods). The consignment export will handle signing the export contract, delivering the goods, paying the foreign unit, and receiving the export entrustment fee from the shipper. There are two intermediaries company types: Export Trading Companies (ETCs – buy products on behalf of customers) and Export Management Companies (EMCs – manage transactions for businesses). The indirect exporting advantages are:

• Skip shipping, export procedures and international payment procedures.
• No qualifications, knowledge or export experience are required.
• Fewer restrictions on business markets.
• No need to invest time and budget to source customers (intermediaries companies already have the source of their partnership).
• Accelerate global expansion and increase sales.

Besides the advantages, indirect export also has some disadvantages:

• Lower profit margin than direct export (profit is distributed to the intermediaries company).
• Passive, highly dependent on commitments with third parties. In the incompetent third parties' case, it may hinder the enterprise's export activities.
• Cannot control much over the product pricing and how the brand is represented worldwide.
• Does not own a customer relationship and cannot provide value-added services.
• Unable to directly research the market, not develop customer communication and understanding of the market. 

Indirect exporting is suitable for businesses new to international trade and not prepared with enough resources. A direct export is suitable for companies with enough potential to invest and research in many aspects (processes, products, markets, staff, professional knowledge, legal procedures, and international payments). Import and export bring businesses revenue and promote their brand internationally. Knowing which import-export type is suitable, the enterprise should actively research and build its potential. 

Saigon Academy has many professional courses related to the import and export field, meeting many students' requirements.

• Online import and export (from basic to advanced).
• In-depth customs declaration.
• Customs settlement report.
• Prepare for the customs certification exam.
• International payments.
• Logistics.

The Saigon Academy's courses are highly practical, helping students practice right after finishing the course. Saigon Academy applies an appropriate tuition policy. For more information about courses at Saigon Academy, please visit: https://hocxuatnhapkhau247.com/

The Saigon Academy's main instructor is Mr. Tran Quang Vu. Mr. Vu has a Master's degree and 10 years of import-export teaching experience.

About the center: Saigon Academy is an import-export professional training center. Saigon Academy provides a set of import-export books, including 4 textbooks: Foreign Trade, international payments, forwarding – transportation of import and export goods and customs procedures.

Contact Detail:

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About Us: /Saigon Academy/

Contact Info:
Name: Saigon Academy
Email: Send Email
Organization: Saigon Academy
Address: No. 138 Nguyen Thi Minh Khai Street, Ward 6, District 3, Ho Chi Minh City, Vietnam
Phone: Phone 1: (+84) 839 326 653 Phone 2: (+84) 913 106 015
Website: https://hocxuatnhapkhau247.com/

Video URL: https://www.youtube.com/watch?v=3Ytco4j9IjI

Release ID: 89088066

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