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Hong Hai co.,LTD ( Vietnam) makes business plan of cellphone OPPO A93 , of importing...

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Finance

Hong Hai co.,LTD ( Vietnam) makes business plan of cellphone OPPO A93 , of importing from China in 01 container 20 feet (4.000 pcs), CIF Hai phong (incoterm 2020), price is at 200 $/pc. The fee in negotiating is 4% of imported contract, transportation from Haiphong to Hanoi is 6.000.000 VND, imported tax is 0%, VAT is 10%, Corp. income tax is 20%. The selling price is 6.300.000 VND/pc (including VAT) exchange rate is 1USD=23.500VND, business time is 3 months and interest rate of 1%/ month. Question: 1. Making business plan and decision making on business. 2. IF Seller just offers FOB Thanh Dao of 190USD/pc, Ocean transportation fee is 6USD/pc and Insurance premium (R) is 0,5% on CIF, with A clause on 110% CIF. What is your choice between FOB and CIF? Why?

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