Research On Risk Management Of Vietnam Tobacco Project

Along with the pace of economic globalization being fast, the economy competition between nations is fierce and the transnational investment shall evolve into the chief battlefield. However, there are lumping risks for overseas investment. It is worthy of noticing that there are many problems about China's overseas investment. Much more projects failed rather than succeeding. One of the important reasons is that there are no effective assessment and control on the risks of overseas investment.Along with China's accession to the WTO and "going out" development strategy, foreign investment has become an inevitable choice for enterprise development. And the key to foreign investment is risk assessment and control.Combination of China Tobacco Shandong Industrial Corporation Vietnam tobacco project, the definition of risk and the definition of project risks and characteristics has been put forward. The article explains the whole process of risk management from the aspects of risk identification, risk estimation, risk assessment, risk response and risk control and supervision. The research of project risk management has been done with the method of case analysis, combined with the Vietnam tobacco project. The research of building factories abroad project risk management has been done with the method of a combination of criterion study and demonstration study and the method of Quote analysis through literature review and sum up the results of previous studies. The result of evaluation of risk assessment of the project basing on Fuzzy hierarchy analysis is middle risk. Then some advices are given: ensure export business; establish the SPV to avoiding the risk; formulate relevant programs according to market situation; make a good relationship with PING Yang Corporation to enter into the local market. It has a great meaning and will help other similar projects to avoiding the risks.