Helping Hanoi's street sellers to turn a profit
25 February 2008
An
innovative DFID programme is working in Vietnam to help poor people earn a
decent living. "Making Markets Work Better for the Poor" (M4P) identifies the
barriers stopping them from taking part in economic activities. It then creates
new opportunities for them to turn a profit. Fruit and
vegetable sellers in Hanoi are already feeling the benefits.
Street selling: Legacy of the past – or the way of the future?
It is a sight that will be familiar to anyone who has visited Hanoi. Women pick their way
through the busy traffic of the city's streets, balancing heavily laden baskets on a bamboo pole
that hangs from across their shoulders.
In the early hours of the morning, an estimated 10,000 of these mobile street
vendors make their way into the Vietnamese capital by bus, bicycle and
motorbike. Arriving from nearby rural provinces, they scratch a precarious
living selling fruit and vegetables.
A risky business
But it's a risky business. Street vendors are discouraged by the authorities
who give preference to more modern forms of retailing, such as supermarkets. The women are also
blamed for blocking traffic, and are often harassed by police.
In the worst cases, they have their baskets confiscated for falling foul of
Hanoi traffic regulations. For a poor rural woman looking to earn $3 (£1.50) in
a working day, this is a huge setback.
Demand and supply
Supported by M4P, a group of French and Vietnamese researchers conducted an
investigation. Looking at supply and demand chains for fresh fruit and
vegetables in cities, they hoped to find better ways for the poor to participate.
Early research found that street vendors play a vital role in the supply of
fresh fruit and vegetables to Hanoi, especially to poor consumers. This led to
an experiment carried out in partnership with the authorities of Hanoi's Thanh Xuan
district. The object was to see if street trading could be adapted to the needs
of a modern Asian city.
A major part of the strategy was the establishment of a street vendors' association.
Members receive training in food hygiene and traffic laws, and are given access to
microfinance services. In addition, registration enables vendors to work in
special zones where they will not be harassed by police.
Wider opportunities and future gains
So far, the experiment in Thanh Xuan has produced positive results. The
"legalisation" of street trading is making a difference to the lives of
the women, and officials from other Hanoi districts have shown interest in an
innovative solution to what is regarded as a persistent problem.
Away from the city, M4P is also working to open up economic opportunities in the coastal town of Pho Trach. For centuries, Pho Trach's women have woven bang (rush grass), primarily for boats' sails. However, this market disappeared with technological changes, and recent attempts to find different markets have not met with success.
With Vietnam's recent entry into the World Trade Organisation creating new opportunities for trade, Pho Trach's women are now seeking to move into the manufacture of higher-quality bang items. As the second phase of M4P gets underway, it is hoped that these women, like the street traders in Hanoi, will have the chance to earn their way out of poverty.
Key facts
- M4P is a DFID programme that links the poor directly to economic opportunity and market development.
- The first phase of M4P lasted from 2003 to 2007. DFID provided £1.3 million through the Asian Development Bank.
- M4P's second phase is from 2008 to 2012, to which DFID will contribute £7 million.
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