Things Should Know About Vietnam Currency

The legal unit of money in Vietnam is the Vietnamese Dong (VND; symbol: ₫). There appear to be many different denominations available in Vietnam, however the ones that are most frequently used are the VND 1,000, VND 2,000, VND 5,000; VND 10,000, VND 20,000, VND 50,000; VND 100,000, VND 200,000, and VND 500,000. Only paper notes with a denomination of VND 1,000, VND 2,000, and VND 5,000 are still legal tender in Vietnam as a result of the introduction of polymer money in 2003.

Although Vietnamese Dong is the currency used for the majority of transactions, certain hotels, restaurants, excursions, and other businesses also accept payment in US dollars. You may notice that all of the pricing for food, beverages, and souvenirs in the airport of Ho Chi Minh City are listed in US dollars. Paying with US dollars is not advised, though, since they will be exchanged at a worse rate and you will wind up paying more.

As required by law, sums over USD 5,000 or their equivalent in other currencies must also be notified upon arrival if they are greater than VND 15,000,000.

History and origins

The Vietnamese dong arrived in the nation in phases, first in the north and subsequently in the south. The government of North Vietnam introduced this currency to the country in 1946, replacing the piastra of French Indochina. There were two revolutions that followed, one in 1951 and one in 1958.

In South Vietnam, banknotes of piastras and dongs were issued in 1953, and the region's currency was replaced by the new dong on September 22, 1975, following the fall of Saigon. The dong also united after Vietnam's reunification on May 3, 1978. The new dong was equivalent to one dong in North Vietnam and 0.80 in South Vietnam. On September 14, 1985, the dong was reevaluated to equal 10 old dong. This triggered an inflationary cycle that lasted until the mid-1990s.

The first banknotes in the denominations of 5 hao, 1, 5, 10, 20 and 50 dongs, dated 1976, were introduced by the National Bank of Vietnam in 1978. 2 and 10 dong banknotes were introduced in 1980, while 30 and 100 dong notes followed in 1981.

Five series of banknotes have been produced up to this point. All preceding series lacked a consistent design and were mixed, with the exception of those from 2003. Banknotes in the denominations of 100, 200, 500, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, 100,000, 200,000, and 500,000 Vietnamese dongs are now available.

Payment in Vietnam

The majority of enterprises in Vietnam accept payments from major credit card issuers like Visa, however minor transactions and street sellers still prefer cash. In general, foreign debit and credit cards are accepted by hotels, tour companies, shops, eateries, grocery stores, and spas. Your credit card company will determine conversion rates and swipe fees. With rare exceptions, you can usually pay for your bigger travel bills in Vietnam with a card, in-person, or online ahead of time, which eliminates the need to carry and change significant amounts of currency while traveling.

How can I exchange currency in Vietnam?

In Vietnam, you may exchange the majority of major currencies. Banks, hotels, airport money exchange booths, and jewelry stores are all convenient places to convert US dollars. Banks can exchange other currencies, such as Euros, Australian dollars, and British pounds.

- Banks: The safest location to exchange foreign money and checks is at one of the many banks located around the city, including Eximbank, Vietcombank, Vietinbank, Agribank, etc. However, it takes a while, and you'll pay a fee of 0.5% to 2%. Additionally, you will be charged an extra 2% of the note's value if it is soiled or damaged.

- Hotels: You may exchange money at a rate that is more favorable than the bank by going to a big hotel. Small hotels could also tack on a service charge.

- Airports: When arriving at the airports in Hanoi and Ho Chi Minh City, you will see several currency exchange shops. However, this exchange rate is not advantageous. It is thus recommended to exchange a modest amount to pay for your cab price and then travel to the city at a lower cost.

- Shops selling gold and jewelry: For better bargains, visit the shops selling gold and jewelry, which are often painted in red and gold and are located on every main street. The exchange rate is far better than that at hotels, banks, and airports without any costs.

To find the best bargain, check the exchange rate, utilize a currency converter, and shop around online. In recent years, the Vietnam Dong to US Dollar exchange rate has ranged between 24,500 to 25,500. At the time this article was being written, 1 USD was equivalent to 24,500 VND.

In addition, Visa and MasterCard debit and credit cards are frequently accepted in Vietnam, particularly at hotels and shopping centers. However, a roadside stall or noodle restaurant is probably not the best place to use these types of cards. If you use a plastic card to pay, you can be assessed a 3%–4% commission.

How can I withdraw cash at an ATM in Vietnam?

Before visiting distant areas of Vietnam, it's a good idea to withdraw a little extra cash, particularly if you intend to purchase crafts or textiles directly from local craftsmen.

In Vietnam's tourist hotspots and major cities, ATMs are readily available, however it might be challenging to locate a chip-and-pin ATM. Bring a card with a magnetic stripe on the back instead, since this will work best. Only VDN is given out via ATMs. All foreign currency that you withdraw from ATMs will be converted to VND automatically depending on the current bank rate.

Limits apply to ATMs. The maximum amount is often between VND 2,000,000 and 5,000,000; for a few international banks, between VND 8,000,000 and 10,000,000; or up to VND 2,000,000 in rural areas. Charge-back rates differ from bank to bank as well. Most banks charge between VND 40,000 and 100,000 (USD 2 and 5) for each transaction. The best banks to use are ANZ or Citibank since they have the lowest transaction fees.

The bank's ATM should always be used, and you should be wary of anything or anybody that seems off-putting close by. Before inserting your cards, always make sure the card slot is open.

How should I bargain in Vietnam?

Like other Southeast Asian nations, Vietnam also engages in a lot of bargaining, which may be entertaining. Because locals believe that all foreign tourists are wealthy, you will be overcharged while purchasing items in Ho Chi Minh City's Ben Thanh Market. So while you can haggle aggressively, you should still show the merchants respect and courtesy. Discounts of at least 50% are feasible. Since numerous stores sell the same items, if you are unsure of the pricing, check around to determine the going rate.

More advice about using money and changing it in Vietnam

1. Avoid exchanging money on the underground market since it is likely simply a ruse to con you.

2. Be careful not to exchange too much cash at once; else, you'll need a bag to transport your Vietnamese Dong.

3. Avoid accepting any damaged notes from others since you won't be able to use them again.

4. Verify the embossing, concealed picture element, and polymer substance to guarantee you are receiving real notes.

5. Because the new polymer notes attach to one another readily, count your money carefully and try not to spend more than you need to.

6. Generally speaking, Vietnam is a pretty safe country for tourists, however practice caution when out in public and watch your money. Store cash, credit cards, and other valuables in your hotel room safe when you're not using them. Keep your handbags and wallets near to you at all times, and exercise additional caution in busy areas. Cards with security features, like the 3D security system offered by Visa, can assist defend against theft or fraud and ease your concerns about the protection of your money.