Tot Model Risk Management To Invest In Infrastructure In Vietnam

Along with the implementation of China's "Walking Out" Development Strategy and the advancing of the construction of China—ASEAN Free Trade Area, the cooperation of economy and trade between China and Vietnam is also continuously expanding. China's direct investment in Vietnam has great significance in many aspects. Meanwhile, it is a kind of brand-new attempt for China's enterprises to invest in Vietnamese infrastructure projects by TOT mode, in which opportunities and risks coexist. As a kind of new-type project financing mode, TOT mode is mainly applied in the construction fields of the infrastructure and etc. Because TOT project financing mode can effectively vitalize the existing assets of infrastructure and solve the problem that governments lack funds in building and maintaining infrastructure projects, it has extensive application prospects, especially in developing countries. On the other hand, however, investors of TOT project face complicated risk situation. When Chinese enterprises invest in TOT projects of Vietnamese infrastructure, they must take overall consideration on the risk question in the project and scientifically manage the risks, through which they could guarantee the success of project implementation.This thesis at first analyses the background and opportunities that Chinese enterprises invest in Vietnam, timely proposes TOT mode of investing and financing. Then, the thesis fully demonstrates the necessity, feasibility of the implementation of TOT projects in Vietnam and the importance for Chinese enterprises when investing in TOT projects of Vietnamese infrastructure. After that, based on the theory and method in such subjects as Project Financing, Project Risk Management and Technological Economics, and etc, the thesis researches and plans the risk management framework system for Chinese enterprises investing Vietnamese infrastructure projects by TOT mode. Finally, combined the investment environment and risk situation of Vietnam projects, the thesis offers overall risk management tactics as well as concerned advises for those Chinese investors who will invest in Vietnam by TOT mode.The focal points of this thesis lie in studying and proving feasibility that Chinese enterprises invest in Vietnamese infrastructure projects by TOT mode, analyzing the investment environment and risk situation of Vietnamese, offering a whole set of risk management methods and countermeasures for Chinese investors.