Risk Management in Linkages between Private Enterprises and Foreign Direct Investment Enterprises in Hai Phong

Abstract

In the context of growing international economic integration, the foreign direct investment (FDI) sector plays a key role in Vietnam’s development. Hai Phong, which attracts the second largest inflow of FDI in the country, has a developed industrial and logistics infrastructure that creates favorable conditions for linkages between foreign and domestic enterprises. However, despite the growing number of FDI projects, the level of local private business involvement in production chains remains low due to numerous risks (legal, financial, technical, etc.).

Since the issues of risk management in the relationships between private enterprises and FDI have not been sufficiently studied, this study aims to fill this gap and examines the problem of linkages between these entities based on the risk management.

This article analyzes risks in the linkages between private enterprises and FDI enterprises in Hai Phong city based on the Enterprise Risk Management (ERM) theoretical framework and synthesizes statistical data, previous research, and practical reports. It examines the policy implemented by the Hai Phong government to manage risks in the legal, financial, infrastructure, technological and human resource management areas.

From there, the article proposes several policy recommendations to contribute to improving linkage efficiency and promoting sustainable development between the domestic and foreign economic sectors in Hai Phong city including creating emergency communication channels, participating in local specialist associations, and collaborating on digital transformation of the supply chain.