Two years later, Vietnam was opened to foreign investors, largely in joint ventures. Less than one-third of that has actually been disbursed, however, because joint ventures progress so slowly. In recent months, enthusiasm for investing in Vietnam has worn off, according to Asian and Western diplomats and business executives here. Vietnam's political leaders are split, some saying they are eager for foreign investment but others fearing a loss of control. Anh says ''we should look beyond the short-term economic benefit to the risk of losing our independence.'' After a lifetime of Marxism, these leaders are queasy about a market economy.
Leaders disagree on the extent and pace of reform.
General Secretary Do Muoi leads an old guard opposing extensive change. President Anh, a former general, also counsels going slow. Vo Van Kiet, once mayor of Saigon, advocates full speed ahead. That dispute has caused potential investors to stand on the sidelines. Within the bureaucracy, most officials don't know how a market economy is supposed to work and are more interested in protecting their jobs and authority than in issuing permits.