Research On Risk Management Of Jin Xin Company’s Vietnam Overseas Industrial Investment Project

With the deepening of economic globalization, Chinese industrial investment has come to a transition moment, more and more Chinese companies are trying to invest overseas projects in recent years. However, due to the big risks in cross-nation investments and insufficient research on the risk management in this field for domestic enterprises, the research on risk management of overseas investment projects can be beneficial for the similar overseas investment projects, which can provide the decision basis to avoid risks and promote the realization of the project objectives, and also much meaningful for improving the management on the international engineering projects.This thesis firstly identifies risks in industrial projects, altogether5categories and37kinds of risks have been identified. Secondly, it defines15main risks according to the quantitative analysis on the identified risks by AHP on risk matrix. Thirdly, it develops counter-measures based on the characteristics and factors of those key risks. Finally, it proposes to establish the risk management organization to clarify the management responsibility for each department, working out the risk inspection list and supervise the whole risks after defining the specific risk management measures.Conclusions of this Essay:First, for this kind of overseas investments, the risk factors can be identified as much as possible by "common sense, experience and judgment" and list-checking method, so to make a pertinent reaction. Second, the particular attention shall be given on the political risks in the country to be invested and timely adjust the risk level, which hardly occurs though, but the loss could be catastrophes for enterprises. It is found out that several similar investments were done through the identities such as Vietnam-friendly countries or multinational joint investments, to avoid the possible political risks by using the third country’s political power. Besides, it could be helpful to make preparation to avoid the political risks if being members of the chambers of commerce/organizations in the invested country. All those above can provide good reference for Chinese enterprises to solve the risk problems on industrial investment projects in Vietnam.