Risk Assessment And Prevention Measures Of Chinese Textile And Apparel Enterprises' Investment In Vietnam

In recent years,due to the double impact of rising costs and trade barriers,China's textile and garment enterprises continue to expand their foreign direct investment.With the convenience of geographical proximity,free trade agreements and relatively good industrial maturity,Vietnam has become a hot destination for China's textile and garment enterprises to invest in.Any investment destination has its potential risk factors.In particular,geopolitical advantage will be influenced by political factors and changes in relations between the two countries.However,cost advantage will change with economic development and fluctuation.Market and policy advantages will also be influenced by policy changes,government level,and certain social factors.Therefore,from the three factors of politics,economy and society,this paper constructs a risk assessment system for Chinese textile and garment enterprises to invest in Vietnam.In the index evaluation system,this paper selects 17 indicators from the global business environment report,the International Monetary Fund,the World Bank Database and the national think tank.Because of the different data sources of each index,the magnitude and dimension of each index are different,so,before the risk evaluation,the first need to do dimensionless treatment of the original index data.In this paper,normalized difference normalization(Z Standardization)is used to normalize data.Based on the review of the investment characteristics of textile and garment enterprises in China,the characteristics of the textile and garment industry investment,this paper constructs the risk evaluation system from threeaspects of politics,economy and society,and points out that the main social risks facing the textile and garment enterprises in China are the stricter environmental policy and the labor market control in Vietnam.Political risk mainly lies in the quality of corruption and government regulation,and economic risk is mainly manifested in poor business environment.In view of political risk,this article puts forward the establishment of communication mechanism to deal with the relationship between the government and the government.To deal with the insurance service and seek legal protection measures,this article advocates the prevention measures to promote the settlement of RMB and the entry of industrial cluster in the light of the economic risk.In view of the social risk,this paper puts forward to respect the public of Vietnam,combing the consciousness of social responsibility,protecting the ecological environment according to law,and abiding by the new environmental protection law,aiming to provide investment decision-making reference for Chinese textile and garment enterprises to invest in Vietnam.