The Social Risks And Cultural Adaptation Of Transnational Investment

In contemporary society where the process of global economic integration is,constantly advancing,transnational investment is becoming an important method of international capital flow and has a profound impact on the world’s political,economic and cultural patterns.At the same time,due to differences in social culture,transnational investment,despite of creating huge profits for enterprises,nonetheless faces certain unpredictable social risks,which require investment enterprises to actively face them.China and Vietnam are friendly neighbors linked by geographical,historical and cultural backgrounds.Since the 1990 s,with the normalized development of Sino-Vietnamese relations,China’s transnational investment in Vietnam has also shown a steady development and spiral upward trend.As one of the key points of the "21st Century Maritime Silk Road",Vietnam has a superior geographical context that can help the country achieve the objectives proposes within the document.The surroundings are relatively stable,and the economy is developing rapidly.This economic development has quickly become an important target country for Chinese companies’ foreign investment.Although Vietnam’s investment environment is relatively good,after entering the 21 st century,due to changes in the world’s political and economic stage,the development of Vietnamese Chinese-funded enterprises has also begun to face policy uncertainties,economic development fluctuations,low technical and management levels,and social impacts.Uncertainties of order have appeared from time to time,cultural collisions have increased day by day,and some Chinese-funded enterprises have faltered in their operations.In order to effectively reduce investment risks,some companies take advantage of the long-standing and close relationship between Chinese and Vietnamese traditional cultures,appropriately integrate the characteristics of Vietnamese traditional culture in corporate management,and continuously improve the ability and level of cross-cultural management,with the help of increasingly frequent cultural exchanges.Promote the knowledge and understanding between business managers and local people,and create a good social and cultural atmosphere for business development.Based on the historical origins and economic exchanges between China and Vietnam,combined with Vietnam’s "renovation and opening up" and economic development,this paper analyzes the social risks that Vietnamese Chinese companies may face in the investment process,and discusses the cross-cultural management and management of Chinese companies.The specific practice path of its cultural integration puts forward corresponding flexible evasion suggestions for the risks of the times that multinational companies may face,to reflect on the social development of post-developed countries from the perspective of international investment in the globalization era.First,this research will explore the historical origins of China and Vietnam,the cultural exchanges between the two governments and the people,the economic and trade development process of China and Vietnam and the development characteristics of Sino-Vietnamese economic exchanges.It will as well analyse objective laws of Vietnam’s reform and opening up and China’s investment in Vietnam.Using methods such as theoretical review and data analysis,it aims to explore the opportunities and challenges that China faces in the political,economic,cultural,and technological fields of investment in Vietnam,as well as the adaptation of Chinese companies to the local culture of Vietnam.Secondly,this research analyses the history and current situation of Chinese-funded enterprises’ cross-border investment behavior,and gives a special focus on the social risks and cultural adaptation phenomena.By exploring the operating condition of Chinese-funded enterprises in Vietnam,the paper analyses the deep causation of the risks in company operation and offers some targeted suggestions to avoid them.Finally,this research analyzes the internal connection between the social risks of China and Vietnam: the cultural adaptation of Chinese-funded enterprises plays an important role in international investment activities,but because the social risks of Chinese-funded enterprises investing in Vietnam are greater,Chinese capital Investing in the Vietnamese market is still cautiously waiting and watching.On the other hand,this research demonstrates the importance of cultural adaptation in transnational investment: the era of globalization is a double-edged sword for international investment,and China and Vietnam should take a relatively cautious and comprehensive attitude in the face of investment and investment.The cultural factors hidden under the phenomenon of international investment activities are the fundamental driving force for the development of enterprises.Therefore,cultural factors should be valued by both investors.