But behind the apparent free-market pell mell is a tiny group of state-owned distributors, technically operating under the Ministry of Industry. These companies are at the front line of consumer demand, and seem to meet it with entrepreneurship that is required even when demand runs counter to officialdom.

Among the most powerful is Viettronics, a television distributing company founded in 1972 that also serves as the domestic JV assembly partner for Sanyo, Samsung, and Sony.

Viettronics Dong Da, a subsidiary, serves about 45 retailers and smaller distributors and wholesalers in Hanoi and nearby provinces of Hoa Binh, Thai Binh, Haiphong, and Hai Dong.Luong Tung Phuc and his mother have run the company out of a warehouse on the grounds of Hanoi's Giang Vo exhibition center since 1988, and his father works on the production side of the company. Their customers are both state-owned and private companies. A recent talk with Tung gave glimpses of a consumer market that is surprisingly competitive.

"Our main selling points are low prices and credit plans," said Tung, referring to principles that are still thought of as unusual, even controversial. His best customers buy televisions on 25% credit, due each year before Tet holiday, as is the practice for debt-paying in Vietnam. They also receive discounts on large orders-extremely relevant since profit margins are extremely low in Vietnam. "On a television that sells in the market for VND 2.65 million (about $200) the retailer will make a profit of VND 20 or 30 thousand," he said.

This explains the curious lack of bargaining on white goods by retailers, in contrast to most sellers here. Distributors' profits are comparable, he indicated. While his own business has improved over the past several years, he said, consumers have become more demanding, causing Viettronics Dong Da to accommodate them or face bankruptcy, as many retailers and even distributors have. "We used to specialize in JVC and Daewoo. Now we freely exchange our brands with other distributors in the open-air markets."

Officially the company distributes only the brands and models manufactured by their JV; in reality, if a retailer orders a model not made in Vietnam, and therefore not officially available, companies like Tung's hustle to meet the demand. It is common for companies like Tung's to trade in the "open-air markets" in which all products are available, identifying themselves by their boss' name rather than that of the company.

According to Tung, a few years ago a TV made in China but labeled "Made in USA" would sell at a premium. Today it is 27-inch Panasonics that people want, and receive, although nearly all are smuggled.

As the large pool of Hanoians who can afford a TV buy them, Tung and his competitors have begun scouring the countryside for new markets, measuring market demand of outlying provinces and building relationships.

"People in Vietnam are richer and richer," said the young entrepreneur after spending yet another day "doing market research" in small towns surrounded by rice paddies. From a smuggler, words of gold.