Funny, in Hanoi I noticed a similar tactic -- make it absolutely clear that you can't see the oncoming car. Look at the ground. Walk steadily. This is "precommitment" to not flinching in the game of "chicken" (in a game-theoretic sense.)

I like to joke that it's why people wear those big conical hats in Vietnam -- you can't see the cars, so it's their job to avoid you :-).