Devil does finance?

Scrolling down the list of working groups in the NGO Resource Centre Vietnam’s website, the Microfinance Working Group (MFWG) drew my attention at first sight. With the goal of enhancing the impact of microfinance on poverty alleviation by promoting the quality and sustainability of microfinance in Vietnam, MFWG is obviously the NGO I’m looking for. My friend who follows humanism views business and finance as a devil to social equity and I totally object to that. Positive changes made by institutions such as MFWG are undeniable evidences.

Microfinance has so far been a strongly effective tool to attain sustainable poverty reduction in developing countries like Vietnam thus narrows the gap between the rich and the poor and reduces the negative impact of economic integration. Beginning at the early 80’s, microfinancing in Vietnam actually contributes a lot to Vietnam’s economic development, especially in the rural areas. Through loans for income-generation or microenterprises, microfinance enables the poor to increase, or at least stabilise, household income. Furthermore, mmicrofinance practioners can approach people living in remote regions, where banks have not made their appearance, provide funding and technical instruction to individuals and households, ensure that the marketing channels work well for agrarian products, improve gender equity through capital lending to women workers, assist related associations in implementing microfinance projects.

Despite the fact that many improvements have been made, microfinance funding does not meet the demand yet. In the future, more microfinance practices should be implemented simultaneously with propagandization of efficient economic models of utilizing capital. In the past decade, the government has allocated significant funds for the rural banking system. Nonetheless, it cannot make microfinance services available to all citizens. Therefore, the role of NGOs like MFWG is increasingly essential in funding for the poor. Additionally, the donor community in general has relatively neglected microfinance but thanks to NGOs’ participation, the multi-lateral and some bilateral donors are showing renewed interest in recent years; and farmers are now more actively seeking for working capital support. We hope that more and more microfinance groups will be established and pro-active microfinance solutions will be made for the sake of social development.

The Manor

Even the name of this place gives me an uncomfortable feeling - the Manor. Located in Tu Liem District, Hanoi, it is said to be among new sets of luxurious and scandalous apartment buildings in Vietnam, outcomes of the swift, unstoppable process of the urban development. Had finished my volunteer shift at the National Convention Center, I rushed to the place under the scorching sun. Fortunately, it took me only 3’ riding motorbike from the NCC. Arrived at the site, I was a little bit disappointed as it wasn’t as glorious as I thought it would be. Not a magnificent contemporary castle but a closed and deserted residency for high-end community with several skyscrapers for offices and residential use, basement carparks, ground-floor retail shops, a swimming pool, and surprisingly, no tennis court (according to the one and the only friendly security guard I met, the owner could not acquire more land to build one).

Now let me share with you some of my views on the Manor:

1. About the extremely guarding: It’s pretty normal in Vietnam, you know. Vietnam is now one of the most safety places in the world, does anyone object? No doubt there are privacy and security regulations. Frankly, no one will let you in if you resemble a snooping reporter with pen, note and camera. Especially when there used to be a heated dispute between residents and service providers at the Manor, raising a lot of criticism. Basically, the residents didn’t agree with the fee for car parking (approximately $60/month), which is about 10 times more expensive than other places. In response, Bitexco didn’t allow residents to park their cars inside the complex until they agreed to pay the fee. At present, the car parking fee is included in the total service fee of 4-5 mil VND per month. Wealthy people living here must have been forced to pay more and received little. Services within the Manor are monopoly in nature. Bitexco already sold apartments with fewer features than they had advertised, and then exploited its prosperous customers once more by putting monopolist services provision. Is this the real cost of desire to live in a utopian separated society?

2. Some of you questioned about its medium scale. Nahhh, of course, the Manor is nothing compared to other projects in Hanoi, and all over Vietnam in general. I came to Ciputra once and it was much bigger than the Manor, with more villas, tennis courts, green areas, outdoor decors, statues, and so on.
3. The Garden, a shopping mall next to the Manor was like a supermarket which sells unmarketable goods. I agree. Not many customers, just us wandering kids who want to avoid the summer heat.

4. Other surrounding shops, restaurants, clinics… must be very expensive. We stopped for a while to have a “tea break” at Le Café De Paris – a newly opened coffee shop in the area. The owner hadn’t decided on the menu yet so the waitresses ebulliently discussed the prices for our drinks and came up with VND 30,000 for my orange juice. Twice the normal price, not to mention that was on sale! Bravo :))
Saying goodbye to the Manor, I headed home. My house is located in a small alley in South Hanoi, with green and countrified outlook: 2 ponds back and front, bamboo clumps, lots of banana plants… I have been living in this neighborhood for nearly 15 years, and it’s not fully urbanized yet. However, it’s no longer the same as before: ponds are being filled up with bricks, gravel, rubbish… as people long for some new pieces of land, several misfitted structures have been built, and many bank branches have opened within some blocks… I’m not sure what my neighborhood will be like in the near future. Is this, again, an example of urban development?

In conclusion, Vietnam is at the early stages of a historic transition and urban development is by all means essential, regardless of its direction good or bad. Seems like we need more effective urban-planning policies and take consideration to all related aspects such as investment, executing and operation management synchronously.