I have just returned from a two week holiday in Vietnam expectedly with a wide range of observations with which to tire friends and relatives. There are a few though that relate heavily to economics and the sociology of markets and capitalism which are probably more of interest to a Troppodillian audience (and can thus mask my self indulgence). So here’s a handful of minor ones with another longer one Vietnamese capitalism and sympathy in a day or two.

There is an almost universal tendency for buildings to be very narrow and very tall (3 metres at most wide, and four stories at least tall). I am told that this is due to land tax that is levied based on footprint. The unintended effect of this regulation in many urban environments is to create an atmosphere as appealing to me as the sprawl caused by regulation here and in the US in unappealing. The extensive street level commerce (there is still an astounding lack of real commerical real estate) also contributes. 10 points to both Adam Smith and Jane Jacobs. On the other hand when there is a lonely slim tower emerging from a rice paddy like the last fang of a geriatric tiger, the effect is mainly bemusing.

What is not appealing is the unruly and disturbing masses of powerlines, many of which trail loose wires and are used by vendors to suspend goods and equipment. I was also told the majority of the wiring is dead, and when wiring died it was replaced without removing the old wire. This is a sort of accelerating public goods problem. The more people fail to contribute by removing their old wire, the more costly it becomes for others to find their own old wire and contribute by removing it. The example in the photo is far far far from the worst example we saw.

Walking in Hanoi traffic is a wonderful lesson in the efficacy of simple informal rules followed universally. The wide boulevards of Saigon, which also had traffic lights, were far less pedestrian friendly, despite having navigable footpaths.  Continue reading →