Vietnam was once touted as the last great investment frontier. Now some foreign business people are starting to wonder if the potential that Vietnam holds is worth the effort required to convert potential into reality. Recent government decisions have dissuaded many foreigners from investing in large projects in Vietnam.

There have been several government acts in the past year which have caused this hesitation from investors. First, the government has attacked foreign brand names and has attempted to established Communist Party cells in foreign-invested work places. Investors from noncommunist countries are wary of this act, and fear that the government is trying to sabotage their investment. Second, the Ministry of Finance recently ruled to increase office and residential rents through the roof to the point where they are pricing themselves out of the market for foreign investors. Third, some foreigners must now apply for work permits to accompany the already-required resident permits and business visas. And finally, there have been calls for companies to pay an extra "infrastructure tax."

This foreigner-unfriendly policy has led many high-profile companies to abandon or revise large projects. One such instance involves a major American automobile manufacturer which planned a $200 million car assembly project. But because of delays in day-to-day business due to government interference, the project is in serious jeopardy. To compound problems, the government licensed more manufacturers into the market than originally agreed upon, further reducing the potential gains that the automobile company originally expected.

Each of the following is a government act which has caused investor wariness EXCEPT

a) an attack on foreign brand names
b) an increase of office and residential rent
c) an increase in government paperwork required by foreign business people in order to work in Vietnam
d) intentional release of incorrect business forecasts to foreign investors
e) calls for companies to pay an "infrastructure tax"




The author would most likely claim that the government

a) is the biggest single factor in investors' hesitation in Vietnam
b) has received unjust criticism by the international business community
c) is acting in the best interest of the people of Vietnam
d) is acting as a puppet of China
e) lacks the leadership necessary to turn Vietnam into a leading economic power




The purpose of this passage is to

a) give examples of companies that have stopped investing in Vietnam
b) demonstrate how the government is limiting foreign investment within Vietnam.
c) advocate that other countries adopt the Vietnamese government's policies toward foreign investors
d) argue that the Communist Party in Vietnam is sabotaging foreign investors
e) celebrate Vietnam's emergence as a world economic power



According to the passage, an American car manufacturer

a) is facing competition from fewer competitors than originally expected
b) has not been allowed to break ground on its assembly project
c) had such success with its assembly plant project that it is planning to increase its investment in Vietnamese projects
d) has seen delays jeopardize a multimillion dollar project
e) is so thrilled with its workers that it plans on funding a housing project in Hanoi