| In order to promote the deepening of multilateral economic cooperation and promote the deployment of my country’s global economic strategy,my country has successively put forward the "going out" strategy and the "One Belt,One Road" major development policy to encourage Chinese enterprises to go abroad and enter the international market to seek development opportunities.At present,the domestic market of my country’s engineering construction industry tends to be saturated,the competition is increasingly fierce,and the production capacity is seriously excessive.It is urgent to enter new markets to seek development opportunities.International engineering projects usually have long construction periods,high construction standards,and large demand for funds.The economic environment and fiscal and taxation systems of different countries are significantly different,which makes the financial risk of the project particularly prominent.Effective management and control of its financial risk is to ensure the smooth operation of international engineering projects.Necessary conditions for carrying out and obtaining expected profits.This paper selects the Vietnam Luning Photovoltaic Project of Zhongnan Company as the research object,collects and sorts out the external factors that may induce financial risks in the country where it is located,and investigates the current situation of its internal risk management.,The financial risk management system is not perfect,and the professional quality of international project financial personnel is uneven.In response to the above problems,the author conducted a comprehensive identification and classification of the financial risks of this international project through field research and expert interviews,and concluded that the project mainly has 4 types of financial risks,including exchange rate,taxation,capital,and cost control,which consist of 12 specific financial risks..Then,the identified financial risks are analyzed and evaluated by using the Analytic Hierarchy Process(AHP)and the fuzzy comprehensive evaluation method.The evaluation results show that the financial risk has the greatest impact on the overall financial risk of the project.First,the exchange rate risk is relatively small;the capital risk,exchange rate risk,and cost control risk in the risk probability level are "high",and the tax risk is "medium".According to the evaluation results,this paper concludes that the priority order of risk management and control of the project is capital risk,cost control risk,tax risk,and exchange rate risk,and proposes corresponding control measures:(1)Expand diversified financing channels and focus on capital recovery risks.Control the whole process and strengthen the management of letter of guarantee;(2)Firmly promote the localization of project personnel,strictly control the procurement process,and implement grid-based regional construction management;(3)Fully investigate the tax policies of the host country,ensure the effectiveness of tax planning,and strengthen international Project accounting management,attach importance to the construction of expatriate financial teams;(4)optimize contract quotation and settlement methods,cooperate with local enterprises to carry out project cooperation,and flexibly use financial derivatives.By combining theory and cases,this paper uses qualitative and quantitative methods to effectively identify,analyze and evaluate the financial risks of Zhongnan Company’s Vietnam Lu Ning photovoltaic project,and propose corresponding financial risk countermeasures,in order to provide Zhongnan Company with a positive response to the financial risks.The steady development of international engineering projects provides assistance,and at the same time provides reference value for other Chinese enterprises to carry out international engineering projects. |
