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Consuming Doi Moi Development and Middle
Consuming Doi Moi Development and Middle
Arve Hansen*
Abstract: Since doi moi, Vietnam has undergone a variety of social and economic
transformations. Among the most obvious are found in the realm of consumption. The new
openness to international trade and foreign investments has radically increased the
availability of goods. And new opportunities for income have led to increased purchasing
power in most social strata, although to very different extents. High-consuming urban
middle classes are emerging rapidly-Vietnam’s middle class is indeed considered the
fastest growing in Southeast Asia-symbolising economic progress and modernisation on
the one hand and growing inequalities and environmental unsustainability on the other.
These changes are reflected in surging consumption of a wide variety of goods, from
household appliances and food items to vehicles and luxury products. This paper
approaches the new ‘socialist consumer classes’ partly through the particular political-
economic contexts that have fostered them, but mainly through the consumption patterns
and consumer culture that define them. Combining secondary statistical data with insights
from ethnographic fieldwork, the paper discusses the drivers of changing consumption
patterns and investigates the new roles of goods in everyday middle-class practices in
Hanoi, in turn using consumption as a lens to analyse post-doi moi society.
Keywords: Middle class; consumption; practice theory; doi moi; Vietnam; development.
Received 2nd April 2017; Revised 25th April 2017; Accepted 29th April 2017
intersection between development strategies and 16 motorbike owners. For the latter
and everyday practices. group of informants, I mainly used snowball
Vietnam’s development success story sampling. My informants came from a wide
following the introduction of the doi moi range of occupations and social positions,
market reforms are well-known by now and included military officials, state-
(Van Arkadie et al. 2003). Some attention employed academics, businessmen and
has also been given to the challenges that businesswomen, and public sector
Vietnam is facing in both crafting its own employees and government officials of
development model (Beresford 2008), in different ranks, including family members
sustaining growth and achieving industrial of high ranking officials. As is discussed
upgrading (Masina 2006, 2012), and dealing below, all my car-and motorbike-owning
with the negative effects of development, informants can be lumped together as
such as inequality and environmental belonging to the Vietnamese middle classes.
degradation (Hansen 2015a). This paper will Their incomes ranged from average to very
take inequality as a starting point, but high, and while none could be considered
mainly focus on the relatively well-off side poor, a few were clearly bordering the upper
of the coin. That is, the paper will not focus class.
on the elite, but the rapidly expanding
middle class. The presence of these new
consumers is being felt in Vietnam’s cities, 2. Development and middle class consumption:
where new shops, supermarkets, cafes and theoretical starting points
gated communities are popping up at an
How can changing consumption patterns
impressive speed, as well as in the heavily be approached in contexts of rapid economic
motorised streets. After a discussion of the growth? First of all, this paper is in line with
theoretical starting points for the paper’s the now substantial body of social scientific
discussion of development and research that dismisses mainstream
consumption, I will analyse some of the new economic theories of the rational self-
consumption patterns that arise with the new maximizing human individual as a useful
middle classes, giving special attention to starting point for understanding
the private automobile. I will then discuss consumption. Instead, I will discuss the
these new consumers in the context of symbolic meaning of goods as well as
Vietnam’s vision of a socialist market approaching consumption through practices,
economy. before briefly discussing the combination of
consumption and development research.
Methodologically, the paper draws on
The classic social scientific approach to
fieldwork in Hanoi between 2012 and 2017,
consumption looks at the symbolic
mainly through what I have termed a
meanings of goods. From Veblen’s (2005
‘motorbike ethnography’ (Hansen 2016ab). [1899]) conspicuous consumption and
This also included semi-structured and in- emulation effects through Douglas and
depth interviews with policy makers, car and Isherwood’s (1979) The World of Goods and
motorbike retailers, car and motorbike Bourdieu’s (1984) Distinction, this has
manufacturers, and a total of 30 car owners represented a central part of enquiry into
174 Arve Hansen / Journal of Social Sciences and Humanities, Vol 3, No 2 (2017) 171-186
how consumption patterns change and how consumption researchers (Gregson et al.
humans use material objects in social 2009; Gram-Hanssen 2011; Shove et al.
situations. The ‘cultural turn’ of the social 2012; Warde 2005, 2014; Sahakian et al.
sciences took the focus on symbolic 2014).
communication to another level, to the Consumption is not itself a practice, but
extent where consumption was close to almost all practices involve some sort of
totally divested from the material world consumption, and consumption always
(Warde 2005). happens as part of, as moments in, a practice
Obviously, status-seeking behaviour is (Warde 2005). In line with the overall goal
central to many forms of consumption, and I of practice theory to transcend the structure-
will return to this point below. An agency dichotomy, the practice approach
exaggerated focus on symbolism does bridges a fundamental dualism in
however lead to a neglect of more mundane approaches to consumption; that between
forms of consumption. Thus, in the 2000s a ‘consumers’ as dupes or sovereign agents.
body of research started emerging that Whereas economic orthodoxy (and to some
instead focused on everyday life and extent culturalist and post-modern
inconspicuous consumption (Gronow et al. approaches) conceptualises the consumer as
2001; Shove 2003). These strands of a sovereign agent which actively makes
research eventually converged in the highly calculated and rational decisions, Marxist
influential revival of social practice theories. and other radical approaches have tended to
Consumption research, along with many view the individual consumer as powerless
other parts of social sciences, has indeed in the encounter with structural forces
seen a practice turn. (whether this is capitalism or other social
Although the practice approach has deep structures). Indeed, from the perspective of
theoretical roots, its application to practice approaches the very concept of ‘the
consumption research is a rather recent consumer’ disappears (Warde 2005). As put
phenomenon. As Warde (2005) argues, even by Warde (2005: 146):
the two most prominent figures in modern ‘The [practice] approach offers a
application of practice theory, Giddens and distinctive perspective, attending less to
Bourdieu, seemed to ignore their own individual choices and more to the collective
practice approach when discussing development of modes of appropriate
consumption. This was particularly so for conduct in everyday life. The analytical
Giddens (1991), who attributed most agency focus shifts from the insatiable wants of the
to individuals and intended action in his human animal to the instituted conventions
discussion of lifestyle, but also Bourdieu of collective culture, from personal
(1984) focused more on habitus and capital expression to social competence, from
than practice in his most famous work on mildly constrained choice to disciplined
consumption, Distinction (Warde 2005). In participation. […] the key focal points
consumption research, sociologists such as become the organization of the practice and
Alan Warde and Elizabeth Shove have the moments of consumption enjoined.
played prominent roles in advocating the Persons confront moments of consumption
practice shift, but the approach is currently neither as sovereign choosers nor as dupes.’
being applied and developed across Practice theory is thus a competing
disciplines by a range of contemporary approach to both the methodological
Arve Hansen / Journal of Social Sciences and Humanities, Vol 3, No 2 (2017) 171-186 175
create sufficient domestic demand, a or spending more than 2 USD per day as
significant middle class of consumers is middle class (Birdsall 2014). Yet, numbers
necessary. like these remain disputed. Our ability to
measure consumption expenditure
accurately is limited, and it is also
3. Doi moi and the socialist middle classes questionable to what extent middle classes
can be captured by quantifications of
‘Middle class’ is an elusive and slippery income or consumption.
category, and one that is frequently highly Entering a detailed discussion about
imprecisely used in contexts of development numbers and measurements is beyond the
(Birdsall 2014). A transition context makes scope of this paper. What we know for
matters even worse. Contemporary Vietnam certain is that the middle class in Vietnam is
clearly is home to large and often intersected rapidly expanding; it is indeed considered
classes of peasants and workers. While neat the fastest growing in Southeast Asia
classifications of these are hard due to the (Huong Le Thu 2015), of course also due to
frequency of temporary migration and a low starting point. I furthermore argue that
seasonal jobs, the elites and middle classes we should be using the plural form and talk
are often even harder to pin down. As about middle classes. Clearly, there is no
Gainsborough (2010) has highlighted, it is uniform group of people hiding behind this
often difficult to distinguish the private from expanding social segment. At least we can
the public sector in Vietnam. As he puts it, divide them into two groups, the upper
both the bourgeoisie and the salaried classes middle classes and the lower middle classes.
in Vietnam are still ‘very much of the Of course, we could further divide them
system’ (Gainsborough 2010: 17). depending on cultural and economic capital,
Furthermore, measurements of the middle as Bourdieu (1984) would have, but I will
class tend to use income as a starting point, leave that out for now. Instead, I will
but in Vietnam the large amounts of consider some of the consumption patterns
informal income sources complicate such that define this new consumer segment of
measurements. Vietnam’s society, as well as what political
The World Bank and the Ministry of economic and ideological shifts that have
Planning and Investment have recently been necessary to create them.
categorised 10% of Vietnam’s population as
‘global middle class’ and about 55% as
‘emerging consumers’. These numbers are, 4. Consuming doi moi
as often is the case, based on consumption
statistics. The people found within the first Through opening for foreign investments
category spends more than 15 USD PPP per and liberalising trade, doi moi has obviously
day, while the second spends between 5.51 led to dramatic changes in the availability of
and 15 USD PPP per day (World Bank and goods in Vietnam, and consumption of a
Ministry of Planning and Investment, wide range of commodities has increased
2016). Interestingly, in these statistics there rapidly (Belanger et al. 2012). This has been
is no room for an upper class. This is well documented by Vietnam’s General
nevertheless a clear improvement from Statistics Office (GSO) through their
earlier publications were international biannual publication of the Household
organisations have labelled anyone earning Living Standard Survey. Table 1 captures
Arve Hansen / Journal of Social Sciences and Humanities, Vol 3, No 2 (2017) 171-186 177
The table neatly captures one of the most As Huong Le Thu (2015: 7) explains, in
discernible manifestations of ‘development’ vernacular Vietnamese belonging to the
to most people: the improved access (due to middle class is often expressed as ‘having
availability and income) to goods. It shows enough to eat, enough to save’. If we were
the rapid expansion of especially motorbike, to be more accurate in using material
telephone and TV ownership, but also possessions as a starting point for defining
the Vietnamese class system, which
significantly increased ownership of
commodities should we use? In one of the
refrigerators and video players, as well as to many attempts to capture the global middle
some extent of washing machines and water class, Dadush and Ali (2012) have suggested
heaters. The table furthermore reveals the ‘the car index’ as an appropriate tool,
uneven development between rural and measuring the middle class in a given
urban areas. country through the number of cars in
These numbers are averages, and are of circulation. For the case of India, Krishna
course tilted by the fact that some and Bajpai (2015) also use a car approach
households own a lot of goods. Some and argue that in a context of fluctuating
wealthy households in the cities own several income and expenditures, assets represent a
cars and 5-6 motorbikes, while other more reliable base for classification than
income. They furthermore find that
household own none. Transport indeed
transportation assets hold a special position
represents a particularly interesting
as markers of status groups due to their
consumption domain, and one that has even capacity to limit or enhance individual’s
been suggested as an appropriate way to ‘ambit of operations’ (Krishna et al. 2015:
capture middle classes globally. 71). They argue that in India those able to
178 Arve Hansen / Journal of Social Sciences and Humanities, Vol 3, No 2 (2017) 171-186
possess a motorbike broadly fit into the Piaggio and Vespa models for the Southeast
category of lower middle class, while those Asian market (Interview with Piaggio
able to afford a car fit into the upper middle Vietnam representative, November, 2013).
class. This is an original (yet crude) starting Despite costing several times the price of
point for thinking about class, and one that I their competitors, Piaggio has been a
believe holds some potential also in remarkable success in Vietnam (Wunker
contemporary Vietnam. As Truitt (2008: 4) 2013; Hansen 2015c). I would argue that the
has argued in her analysis of motorbikes in Piaggio is another obvious material proof of
Ho Chi Minh City: in Vietnam ‘it is in membership in the well-off strata of post-doi
traffic that one sees the emergence of the moi Hanoi. Nevertheless, car ownership can
middle class’. I believe this to a large extent certainly help identify the upper and upper
still holds true, but while Truitt saw the middle classes in contemporary Vietnam,
middle class as those owning motorbikes, and who is able to purchase a car in Hanoi
the car is perhaps a more accurate marker and how they manage to muster the financial
today. ability to do so, can provide important
While estimates for China and India find insights into contemporary Vietnamese
good matches between cars and the size of society.
the middle class (Dadush et al. 2012;
Krishna et al 2015), however, Vietnam’s 4.1. Who are the Hanoian car owners?
comparatively low number of cars
A car is undoubtedly still a luxury
(approximately two million in 2013
commodity in Vietnam. With a wide range
according to OICA (2014) estimates) would
of taxes and fees, purchasing a car is far out
make the middle class quite small. Using
of range for the vast majority of Vietnamese
Dadush and Ali’s method of car per
people. Although it may be possible to
household, the Vietnamese middle class
acquire a used car for 200-300 million
would include between seven and eight
VND, a new car usually starts at more than
million people while other estimates count it
500 million. A new Toyota, one of the most
to 12 million (Huong Le Thu 2015).2
popular brands in Hanoi, will often cost
Furthermore, in Vietnam’s ‘motorbike
closer to 1 billion. By comparison, a new
society’ we cannot let go of the motorbike
Honda motorbike is available for less than
so easily. Among my car-owning
20 million VND (although the most
informants, very few had got rid of their
expensive Piaggio models cost several
motorbikes. There are however clear
hundred million). Moreover, using a car is
differences in the type of motorbikes that are
very expensive. Expenses such as fuel,
driven. Vietnamese consumers’ appetite for
parking, insurance, and road fees added up
‘premium’ motorbike models is considered
to between 3 and 10 million a month for my
extraordinary, something that led Italian
car-owning informants. The expenses for
manufacturer Piaggio to use Vietnam as a
just using a car one month thus often exceed
base for manufacturing their different
the monthly income of the average worker.
2
Beyond the upper class of ‘super rich’, I
The car index includes multiplies the number of cars on
the road with average household size (Dadush and Ali, have found that those who are able to own a
2012). Vietnam is home to around two million cars and car in Hanoi can broadly be considered to
the average size of a Vietnamese household was 3.8 (and belong in the two groups Gainsborough
rapidly declining) in 2009 (Guilmoto and de Loenzien,
2015).
(2010) has located as the middle class in
Arve Hansen / Journal of Social Sciences and Humanities, Vol 3, No 2 (2017) 171-186 179
Vietnam: high-ranking professional state 4.2. Poor people with lots of money: The
employees and professional Vietnamese public-private middle class
employed by foreign companies or aid
institutions. Although displaying wealth has become
Businessmen obviously belong to the accepted in contemporary Vietnam, sources
of income can still be a sensitive topic. For
middle class, and constituted a significant
example, the sources of the wealth of so-
part of my car-owning informants. By called dai gia, or new rich, is subject to
businessmen I refer to those employed in controversy. As put by a young female
foreign firms, or run their own small firms. anthropologist in Hanoi: ‘The transition of
They work in the new market economy, as Vietnam has made many people suddenly
part of usually regional or global firms, and become rich with money falling from the
many of them are, as this social segment sky but not from their effort and capability’
often is across the world, very conscious of (Interview, May 2013). Relatedly, a
appearance. Many of the businessmen I marketer for a large, foreign auto company
in Hanoi commented: ‘demand is very high
interviewed were open about how they used
on cars now. We usually make [a] joke:
their cars as strategies of distinction, for Vietnam is a very poor country but we have
displaying their success in the market the best and the most beautiful cars in the
economy in order to achieve further success. world. People are very poor but they have a
They explained in detail that they needed lot of money’ (Interview, October 2013).
relatively expensive cars to show potential The comment on poor people with lots of
and existing business partners that they were money takes us back to my two groups of
successful members of the market economy car owners. It is no big surprise that
(Hansen 2016b). The large group of businessmen and other private professionals
(relatively) high-ranking state employees are can own a car. Incomes in the foreign sector
interesting, as is discussed below. Clearly, are often significantly higher than in the rest
there is a strong overlap between the two of the economy. In the public sector,
however, even high-ranking officials earn
groups. And the higher up you get in the
about five million VND a month. A young
public sector hierarchy, the stronger the link female public employee raised my question
is also to the capital owning classes. Many herself:
use public positions mainly as a springboard Do you wonder why people have so
to better private business opportunities. This much money even though they don’t have
overlap between the private and public money? […] Do you question how a poor
sectors is common in transition economies, country can have lots of people with cars?
particularly where economic transition has (Interview, May, 2013, translated from
not been accompanied by political Vietnamese)
transition, such as in Vietnam and China (Li As she was driving a car, she was
2010). The higher the public ranking the concerned I would think they were
higher is also the access to informal sources ‘breaking the law’, but explained that this
of income. was not the case. In her case, her husband
who was ‘doing business’ had bought the
180 Arve Hansen / Journal of Social Sciences and Humanities, Vol 3, No 2 (2017) 171-186
car.3 Other informants were more cryptic. In among my younger informants. Getting
an interview with two senior, male state closer to what is probably an important part
employees, I was told that they earned a few of the truth, a young and obviously wealthy
hundred dollars a month but still bought businessman laughed out loud when asked
expensive cars. Their expenses for just using how government officials and other state
the car were equivalent to their income, they employees can afford a car. He said that ‘In
explained. The highest ranking of the two Vietnam, being a government official is like
was quite serious and said that it was just being a businessman. Your money is like
about ‘extra jobs’. The other laughed, put on someone in business. So you can have
a funny smile and said that even doctors did different kinds of income’. He explained
not have the salary to afford a car. He that they have the right to decide who will
showed his new smart phone and explained be promoted, as well as the fact that they
that it cost him two months’ salary. He receive money from a range of different
laughed again and said he had not eaten for sources. ‘If other people earn money, they
those two months. They ended up explaining can share it with government officials.’
that as high ranking state employees they ‘Commission’, he added (Interview, May,
have other sources for income, and the 2013). This statement reflects the rather
highest ranking of them returned to saying well-known fact that personal connections
that they take on many different jobs, like and money can get you more or less
being involved in consultancy with anything in today’s Vietnam. In the Leninist
international organisations. They explained political structure and state-influenced
that the government paid their salary even economy, who you know certainly matters
though they were doing other jobs, and that much more than what you know. This fact is
they were probably allowed to work ‘two also clearly visible in the market for ‘lucky
thousand percent’ outside their formal numbers’ (so dep, literally beautiful
positions (Interview, April, 2013). The last numbers). Getting a nice license plate brings
point is relevant for all of the car-owning luck and represents a significant status
informants employed in the public sector. symbol in Hanoi (Hansen 2016b). However,
They all reported to have extra income, and for cars, buying and selling lucky numbers
some of them ran private businesses that is illegal. Instead they are randomly drawn
occupied large portions of their time. at the registration office by pushing a
In another interview, when asking a button. Still, there are ways of getting
young female professional who she thought around this system, and the response by
could own a car in Vietnam today, she young, female car owner (who was lucky
giggled and answered that ‘it’s difficult to and got a license plate adding up to the
say, because, you know, here, income number nine) is a telling example:
doesn’t come from your job’ (Interview, Author: Did you choose to get a lucky
October, 2013). Her father had bought the number?
car for her, which was a common statement Informant: You cannot choose it! You
get it randomly.
3
Quite typical for the Confucian patriarchal gender
Author: But I think some people still
relations of modern Vietnam (see Drummond and manage to?
Rydstrom, 2004), most car owners in Hanoi are men. Informant: Ah, yeah, yeah, if you have a
Even though women are to an increasing extent driving
cars, men usually own the vehicles. lot of money. And relationship.
Arve Hansen / Journal of Social Sciences and Humanities, Vol 3, No 2 (2017) 171-186 181
and the country is now considered among (2012) argues, in a country ruled by a
the fastest growing car markets in the world communist party and with little freedom of
(Saigoneer 2017). speech or media, consumption has
represented the strongest sense of liberty
brought along by doi moi. The reforms have
5. Consumption, development and doi led to a new acceptance of consumption and
moi display of wealth, and those who can afford
it are now able purchase and display
The case of cars is perhaps the most consumer objects that would surely be
visible one, but a wide range of consumer judged as bourgeois excess not long ago.
goods are relevant for understanding the Let us return to motorised transport.
Vietnamese middle classes today. Private Spreading so rapidly and becoming so
consumption arguably represents one of the integral to everyday life in Vietnam,
clearest shifts away from the planned motorbike ownership quickly became fairly
economy in Vietnam. While able to produce uncontroversial. A private car, however, is
large number of goods, history has shown in many ways a more conspicuous object.
that socialist economies have tended to As Broz and Habeck (2015) note on the dual
include ideological limitations on what an role of cars in the Soviet Union, cars have
individual should consume. With doi moi from a socialist perspective historically
the official position towards private represented suspicious items with
consumption has changed from limitations connotations of individualism and
to encouragement (Vann 2012; Huong Le consumerism rather than socialist progress
Thu 2015). From a macro-economic (Siegelbaum 2008). Similarly, a hotly
perspective, this of course makes perfect debated topic in China after market reforms
sense. While a planned economy usually was whether the Chinese auto industry
focuses on producing and delivering enough should support what was considered
goods to people, a market economy bourgeois consumption patterns by
fundamentally depends on growth, and thus producing cars for private use (Notar 2017).
on increasing levels of consumption Some of my informants recalled that even as
(Wilhite et al. 2015). With reforms, late as the 2000s high-ranking public
widespread ownership of goods beyond servants would avoid purchasing a car due
strict necessities thus had to be accepted, to the signals a private car sent about its
and in time even the consumption of luxury owner (probably of both corruption and
goods appears to be considered as beneficial extravagance). They stressed that this was a
for the road to socialism in Vietnam. thing of the past and that people now were
The market reforms have surely involved rather afraid of buying a car for more
more than strictly economic measures. practical reasons such as high costs and lack
Although there has been no political of parking space (Hansen 2016c). The
transition in Vietnam, the socio-political signals a car sends can however still
changes in terms of relative economic influence the type of car purchased. One
freedoms and the official position towards relatively high-ranking public servant I
commodities have been radical. The social interviewed stressed how people in the
and indeed political meanings of consumer private sector want to show that they are
goods have changed drastically. As Vann rich, even if they in reality are not, and if
Arve Hansen / Journal of Social Sciences and Humanities, Vol 3, No 2 (2017) 171-186 183
they do not own a car they will borrow one becoming increasingly environmentally
and display it as their own. Conversely, he conscious. Buying green products, riding
argued, government officials are rich but do (often very expensive) bicycles and even
not want to show it, and will thus adopt a turning vegetarian are new trends that may
more careful approach to car consumption hold some promise of greener lifestyles.
(Interview, April 2013). Nevertheless, both Lessons from other countries do however
the economic and political elites (with their show us that we can expect these to be
considerable overlaps) in Hanoi are ‘compensated’ by other carbon intensive
increasingly found within the confines of a practices, such as car ownership, in general
private automobile. more shopping of for example clothing, and
Similarly, it is now generally accepted to more frequent holidays involving longer
spend large amounts of money on clothing, flights.
food, alcohol, housing and a wide range of For Vietnam, the expanding middle
consumer products. Meanwhile, the classes lead to a growing domestic market
symbolic meaning of goods are continuously and a more dynamic domestic economy. At
negotiated and changing. And apart from the same time, however, they come with
certain categories, such as cars, housing and higher expectations of material wellbeing
restaurants, it is hard to generalize what and potentially of political rights, although
exactly are middle class consumption for the latter seemingly to a lesser extent
patterns in Vietnam today. Within the than what conventional theory tells us (see
middle classes there are many different Gainsborough, 2010; or Chen 2013 for a
categories. In line with Bourdieu’s (1984) similar discussion on China). The
argument in Distinction, what is considered consumption patterns of the higher end of
appropriate within the subgroups high on the middle classes, together with those of
economic capital may not be considered the elites, are simultaneously very visible
appropriate within the subgroups high on manifestations of the social inequalities
cultural capital. In the latter too conspicuous embedded in the post-doi moi economy and
consumption is often frowned upon, while at society. How the government deals with this
the same time more subtle ways of situation within the context of the socialist
conspicuousness are integral to cultural market economy will represent a fascinating
middle-classness. venture for further social scientific research.
What is nevertheless certain is that goods
play a decisive role in defining class in
Vietnam today. Furthermore, everyday 6. Conclusions
practices get more consumption intensive.
This is similar in processes of economic Investigating the middle classes in the
development and increasing affluence context of Vietnam’s attempt to find an
around the world. The exact ways that this alternative development model remains a
plays out, however, are usually highly rather understudied aspect of Vietnam’s
context specific. Nevertheless, the more transformations. This paper has discussed
consumption and thus resource intensive how not only the economic changes but also
practices carry with them higher ecological ideological softening has been necessary for
footprints. At the same time, however, parts the middle-class consumption patterns we
of the Vietnamese middle classes are see today. The paper mainly used the private
car as a starting point for the discussion,
184 Arve Hansen / Journal of Social Sciences and Humanities, Vol 3, No 2 (2017) 171-186
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