The Country Risk And Its Prevention For Chinese Enterprises To Invest In Vietnam

Country risk is one of main non-commercial risks for Chinese companies to invest abroad. With carrying out of "go global strategy" in China, more and more Chinese enterprises start to invest abroad and the country risks they faced are growing simultaneously. So how to prevent and reduce country risks for Chinese companies who invests abroad is an urgent issue for implementing "go global strategy".This paper deals with the country risks that Chinese companies faced in Vietnam and how to prevent them. In terms of country risks in Vietnam, breach of contract for Vietnam government, administration efficiency and official corruption are three main ones; strikes, emergent events of public safety and natural disasters also bring risks for Chinese firms; uncertain factors, like estrangement of Sino-Vietnam in history and the dispute of South China Sea may also influence the future and safety of Chinese investment.The prevention measures for country risks are also studies in the paper. The paper introduces some laws and policies on preventing country risks for foreign investment and finds out that a comparatively complete system to protect the Chinese investment in Vietnam has been established in general. It includes international treaties, international organization, bilateral investment treaties and legal system both in Vietnam and China. But significant shortcomings exist in these measures in reality, and the scope, strength and operation of these prevention measures are still need to be improved largely. They have to be adjusted in the coming investment operation.