~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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Winners and losers

HANOI - The air fills with resigned grunts and a few triumphant fists. Pushing past the mob attending the nightly lottery draw in Hanoi, 13-year-old Pham Quang Huy dashes outside. His customers will pay for quick information. "Here are the results! Here are the results!" Huy shouts, clutching the notepad where he's scribbled the winning number for the top prize. Spotting a regular customer, he swerves into a rowdy cafe where men swill watery beer. Then he bolts toward a corner gas station, collects again, and heads left, dodging traffic. Motorcycle headlights catch his thin figure in pitiful silhouette.

With a nightly take of 6,000 dong (40 cents), Huy occupies the lowest rung of Vietnam's vast lottery business--a billion-dollar world of public spectacle and secret wealth. While the country's communist rulers rant against gambling as a "social evil," they have promoted the state-run lottery system to the hilt ever since Ho Chi Minh gave it his stamp of approval in 1962. "Benefit Both the State and Your Family," urges one billboard. Nearly every Vietnamese province now boasts its own lottery company, run by tight-lipped party cadres. Directly or indirectly, such companies employ hundreds of thousands of people nationwide. Ticket revenues are supposed to be channelled toward social-welfare projects like hospitals and schools. But with auditing patchy at best (see story on page 62), no one really knows where all the money goes: Arguably, it's Vietnam's safest slush fund. Corrupt officials have been known to chase down holders of winning tickets, offering slightly more than the jackpot in exchange for the tickets. That way, they can provide a plausible explanation to neighbours and investigators who wonder where they got the cash for that flashy new motorbike. "It's the easiest way to make money," says one Vietnamese sociologist. "Nobody asks questions."

Parallel to the provincial lotteries, Vietnamese spend another fortune on an illegal but not-so-underground racket that's based on the official lottery numbers. With prizes worth up to 70 times the size of the bet, So De, or Pick-a-Number, is certainly tempting. Better yet, anyone can get into the business of collecting cash and paying winners, without fear of territorial control by any mafia. And thanks to kids like Huy, they don't have to wait for the results to be published in the next day's newspapers. In a sense, Vietnam's lotteries mirror the nation's entire economy. People play along with the official rules of the game, but they have plenty of time to pursue unsanctioned channels for profit: Workers at state-owned companies quietly moonlight for private firms; teachers slog away at state schools but make their real money by giving private classes; investors escape the tightly controlled, official market of just seven stocks by trading freely in more than 90 companies on the unofficial exchange.

In a country with few legitimate avenues for a significant return on capital, and few targets for entertainment spending, the lotteries--legal and illegal--fill the gap with panache. But there's a price to be paid: Precious income frittered away, spreading corruption, and children wandering the streets selling tickets. Still, this is a lottery: If there are winners, there must be losers, too.

Every gambler dreams of success, and the 63-year-old Hanoi woman is no exception. "For the amount of money I've spent, I could have bought a villa," she sighs. The woman (who prefers not to be identified) started playing in 1995, drawing on a nest egg from the late 1970s, when she peddled rare medicines smuggled into Vietnam from Europe. Occasionally she'll buy an official lottery ticket, but since lottery success is usually elusive, she prefers So De. It's no casual pastime. Every night she stays up from 10 p.m. to 2 a.m., scrawling a strange calculus of previous winning numbers in pyramids and diagonal lines. After a brief sleep she'll wake up and grab a pen to write down her dreams. One night she dreamed that her home was flooded up to the fourth floor, which corresponded to either "06" or "66" in her tattered book of dream-interpretation. It turned out that 66 was on the money, but since she only bet 1,000 dong, she didn't win much. "It made me ill," she groans, spitting out a juicy red wad of betel nut into a ceramic bowl.

Every day she'll play 35 combinations of two-digit numbers. She also dispenses numbers to local officials who believe she has good instincts. And she's skilled at combing the elaborate poems penned by the pseudonymous Cu Quang, a retired official and intellectual who hides "lucky" numbers in each stanza. On good days she'll win 100,000 dong. On bad days she'll lose 150,000 dong. Her worst days come when she can't play at all--like when her family dragged her off on a 10-day tour of Thailand. "My hands were itchy," she confesses. Vietnam's lottery obsession can be traced back to French colonial rulers, who introduced a regular draw called the Indochina Lottery in 1936. They should have known that their impoverished subjects wouldn't have much cash to spare--the lottery folded after just two years. War initially spoiled plans to reopen an official lottery, but in the 1960s, monthly draws began to be held in Hanoi for selected development projects. Meanwhile, a form of So De had begun flourishing among the southern ethnic-Chinese community in the 1950s, and it quickly spread to the north. Today, the northern province of Bac Can remains the only one out of 61 provinces that doesn't have its own lottery company. (The locals are just too poor, officials explain.)

State officials are keen to stress the benign side of the lottery: "I don't see the lottery as gambling. It's a form of entertainment," says Nguyen Tien Cuong, deputy manager of the lottery management division at the Finance Ministry. They are also working to attract more players: As well as the traditional paper tickets, the state has introduced scratch-to-win tickets in each province, as well as an on-line version in Hanoi. Lottery revenues vary sharply, as northerners tend to be a bit more thrifty and risk-averse than their southern brethren. A total of 80% of lottery revenues nationwide come from the 20 provinces and cities in the south. The biggest lottery--generating 14% of national revenues--takes place twice a week in Ho Chi Minh City.

As Vietnam's lottery hub, the southern city attracts swarms of ticket-sellers from outlying provinces. Some are recruited from their villages and squeezed into fetid boarding houses. Others come spontaneously, turning to ticket sales in the absence of other jobs. A complex network of sales agents services this sprawling city of 5.2 million. At the top, the Ho Chi Minh City Lottery Co. prints the tickets and hands them to a wholesale distributor, which coordinates one layer of retailers, which in turn relay the tickets to other sellers--each getting a slice of the total 13% commission allotted by the state. Most striking, hundreds of children ply the streets and play on pity to sell tickets. Unlike shoe-shining, a trade monopolized by boys, tickets are sold by girls too.

Indeed, some local social workers have encouraged the children to enter the trade rather than stealing or begging. "If you prevent them from selling tickets, maybe they would sell other things, even their own bodies," explains Nguyen Thi Kim Anh, who runs a local drop-in centre for such children. Still, she says, they remain vulnerable, especially as the children are responsible for handing out smaller prizes of 100,000 dong or less. "There are very many cases where children are robbed of lottery tickets," she says, or where children are duped into accepting fake winning tickets. State officials insist that most of the children use the extra money for school fees. They cast them as beneficiaries of the system, along with the disabled people recruited as sales agents. But interviews suggest that many of the children are not attending school, pressured instead to earn up to 400,000 dong monthly for their families by selling tickets.

Eleven-year-old To Thi Thuong says she sells 150 tickets a day, only returning home at 10 p.m. Her mother sells newspapers. Together they send money back to Thanh Hoa province to support seven younger children. Her father repairs motorcycles at home, but that's not enough to feed the family. While Thuong dropped out in fifth grade, her 16-year-old cousin Le Thi Lien never attended school. "All I know is the numbers," Lien says shyly. Asked about her future, she responds with an empty stare. The kids perk up as the 4:30 p.m. draw approaches, leaping around in search of last-minute ticket-buyers. Then the show begins. As entertainment, the draw in Ho Chi Minh City is a highly stylized production, with a hint of kabuki theatre.

Five young women dressed in red and gold ao dai--the national costume of a long silky tunic over loose flowing trousers--stride lock-step onto a brightly-lit stage. Their white-gloved hands daintily pluck small tiles from a row of five round globes. In unison, the women swivel to face the audience, holding the small tile in one hand and a larger, more visible tile in the other, arching their wrists precisely at waist level. Amid the audience's gasps, their powdered faces remain impassive. They repeat the pantomime 18 times before the globes are gently returned to their red velvet-lined cases. Meanwhile, the crowd outside surges forward to glimpse the winning numbers posted on a board. One winner with a fistful of tickets is Minh, a 30-year-old worker at a state petroleum company. The day's pay-off: 240,000 dong, not much compared to the 1.2 million dong he bagged yesterday. He says he's been playing the lottery for 20 years, and will keep going as long as he can afford it. On a monthly salary of 1 million dong, he spends nearly a third on lottery tickets. Does his wife complain? "I'm still single. I'm free," he gloats.

The draws in Hanoi tend to be more drab affairs. Women in dull grey pants suits spin rickety green cages, displaying the winning numbers in a lopsided line. In the audience, barefoot young men chain-smoke and glance at the numbers they've written on their palms. Among them, 13-year-old Huy waits for a final burst of applause--then hurtles out of the door as fast as his scuffed plastic sandals will take him.

By Margot Cohen - The Far Eastern Economic Review - November 1st, 2001.