H U I , A Finance Company in a Vietnamese Village.
The core of the Vietnamese society is based on the relationship of trust between people. Above all, " a man's word is his bond".
The popular proverb, 'N H A T . N G O N. K Y . X U A T, T U . M A. NAN. TRUY." ' (A word once spoken, even four horses cannot pull it back)
is carefully taught and explained to all Vietnamese, young or old alike.
In this atmosphere of trust, an extraordinary form of credit union was created in Vietnam and was quite successful. This tradition of "Choi H.U.I." or " Ngoi H.U I." usually starts out with 12 people. Twelve people is an ideal matching number to the 12 months of the year.
When someone needs cash in the USA, one would naturally think of making a loan application to a bank, a mortgage company, a credit or finance company. In Vietnam, one would turn to a " H.U.I.".
Let's see how this works.
So Mr H needs some cash in March this year to buy a buffalo; let us say, one thousand one hundred dollars ($1100). What should he do? No one will ever lend him that much money. He will need to organize a H.U.I . He will be the head of the H.U I., He needs to find 11 partners who would be willing to lend him money.
Note that borrowing from ELEVEN persons turns out to be easier than from ONE SINGLE person as this is an old official system of loan that is widely accepted and public, not the "your word against my word " type of situation, there is safety in numbers and also risk diversification.
It is also practical that each person needs only come up with a hundred dollars a month, which is far more manageable.
So, Mr H. succeeded in getting eleven other people to agree for a monthly contribution of one hundred dollars per month ($100) per person.
The whole system is based on the concept of team work. The head of the H.U.I. also needs to be diplomatic and to know how to build the team and get team members to cooperate.
Each H.U I. participant has to be approved by the existing members Each team player has a dual role of creditor and debtor. A true business venture built on mutual trust.
This particular H.U.I. starts in January for Mr H's purchase in March.
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