Risk Management Research On Xiamen R Group's Investment In Vietnam

With the factors of the strengthening of the world economic integration trend,the degree of opening to the outside continued to deepen,the national industrial strategy adjustment and upgrading,the internationalization and the strategy of "going out" has become as inevitable trend and demands by many private traditional manufacture enterprise.Vietnam country,because of its convenient geographical position,familiar with the human environment-long trade history between Chinese and overseas Chinese,as well as its relatively low labor cost,especially in recent years,“one belt and one road” proposed by present Xi,Vietnam market was put forward as first choice of which many private Chinese traditional manufacturing companies going abroad.However,in the process of "going global" strategy implementation,private traditional manufacturing enterprises due to its own features,there will be more various risk from inside and outside,including the lack of management,weak anti-risk ability and skills,etc.Combined with more complicated social and economic environment on the overseas market,companies have to face more risks on their investment activities.In order to avoid suffering more loss from the risks,it's necessary doing a good job in risk assessment and risk system management in the process of implementation of the “going global” strategy to ensure the success of the strategy implementation.This paper takes Xiamen R group Subsidiary in Vietnam as a case,by studying the purpose of the two products' investment in Vietnam,as well as the use of different operating activities for investment purposes.Applying Risk Matrix measure to analysis the risks factors of steel wheel project's failure,and found out the main risk for this failure.Focusing on the analysis of investment activities to risks and the corresponding risk management techniques,contrast and analyze the risk management system of the investment activities,based on the relevant theory of the multinational corporation management and overall risk management,careful analysis of the risk management in this case the gain and loss,and find the targeted solutions for the risks.Hope to be able to apply for R group or similar private traditional manufacturing enterprises,to draw lessons from the paper,reducing foreign investment risk,and achieving the aim of foreign investment.