Research On The Financial Risk Control Of Overseas Factories In Southeast Asia

The Southeast Asian region is in the first level of China’s geo-economic space,and has very important geo-economic significance to China,its rich resources can provide material guarantee for China’s sustained economic growth,at the same time,China’s capital,technology and other advantages also contribute to the economic development and industrial upgrading in Southeast Asia.With China’s "One Belt,One Road" to accelerate the pace,Southeast Asian countries and China’s closer cooperation,attracting a large number of domestic investment enterprises to build factories.Since the political system,economic environment and human environment of Southeast Asian countries are different from those of China,the operation of overseas factories faces more uncertainties,especially financial risks.Effective control of financial risks of overseas factories will affect their normal operation and sustainable development,which will in turn affect the realization of the "Belt and Road" cooperation initiative,therefore,the control of financial risks of overseas factories has become a key concern in theory and practice.Based on a systematic review of existing research findings and an in-depth discussion of the environment of overseas factories in Southeast Asia,this paper develops a theoretical framework for financial risk control in overseas enterprises,and then discusses specific measures for identifying,evaluating and controlling financial risks in the Myanmar factory of Enterprise S as an example,with a view to effectively controlling the financial risks of the Myanmar factory of Enterprise S and safeguarding its assets.The innovation points of this paper are as follows: First,this paper constructs a set of financial risk control framework with universal significance based on financial risk management theory and Miller’s risk management framework.Second,through risk identification at different levels,risk assessment is conducted using hierarchical analysis,and risk control measures are proposed at different levels to help enterprises sustain their operations and,at the same time,to provide reference for other overseas factories.