A Study On The Risks And Countermeasures Of Chinese Enterprises’ Investment In Vietnam

Since 2019,with the implementation of the Comprehensive Progressive TransPacific Partnership(CPTPP),the signing of bilateral free trade agreements with the EU,and the acceleration of Regional Comprehensive Economic Partnership(RCEP)negotiations,Vietnam has gained more advantages in international trade.Meanwhile,the docking of "The Belt and Road" and "Two Corridors and One Circle" strategy has pushed the economic and trade cooperation between China and Vietnam to a new stage of development.In recent years,the scale of Chinese enterprises’ direct investment in Vietnam has been continuously expanding,and the investment field has also been continuously developing.And Vietnam has undertaken a large number of manufacturing industries transferred from China with its abundant and low-cost labor force.As China’s largest trading partner in ASEAN,Vietnam has become the first choice for China to invest and build factories in Southeast Asia.Although Vietnam has maintained a rapid economic growth in recent years,due to many factors such as the rapid growth but late start of Chinese enterprises’ investment in Vietnam and Vietnam’s late start and low level of industrialization,Chinese enterprises still face political,economic,technical and other risks in the process of investing in Vietnam,which seriously restricts the enthusiasm and development of Chinese enterprises investing in Vietnam.Therefore,how to prevent various risks has become the main problem to be solved for Chinese enterprises to invest in Vietnam and Vietnam to attract China’s investment.On the basis of literature review of foreign investment theory and risk theory,this study theoretically expounds the main risks of Chinese enterprises’ investment in Vietnam.This paper uses AHP to make an case study of Midea Group,and puts forward corresponding risk prevention countermeasures.This paper found that the risks faced by Chinese enterprises investing in Vietnam mainly include political risks,economic risks,cultural risks,technical risks and management risks.And the impact of different risks on Chinese enterprises’ investment in Vietnam is constantly changing.In addition,the case analysis shows that the biggest risk for Chinese enterprises to invest in Vietnam is political risk,which is mainly due to that Vietnamese policy has changed frequently and Vietnam’s relations with neighboring countries are tense.This study suggests that Chinese enterprises should seize the policy opportunity to invest in Vietnam,strengthen market research and investment risk prevention.With the deepening of political and cultural exchanges between China and Vietnam,the investment of Chinese enterprises in Vietnam will continue to rise in the future.