Vietnam's currency: Essential things to know for your trip

As you begin your journey to Vietnam, it is crucial that you familiarize yourself with the local currency, the Vietnamese dong. The dong reflects Vietnam's economic diversity and becomes your key to exploring the busy local markets. Together with Asia King Travel, let's learn about the Vietnamese dong, the country's currency.

Currency of Vietnam

The official currency unit of Vietnam is "dong", the national symbol is "₫", and the international character is "VND”. The dong is the major means of exchange in the nation, utilized for daily transactions. It comes in a variety of denominations, each with its own unique design that frequently incorporates elements of Vietnamese culture, history, and natural beauty. While electronic payment methods are becoming more common, cash remains widely used, particularly in rural areas and traditional markets.

Denominations of Vietnam banknotes

All of the Vietnamese banknotes have a picture of revered leader Ho Chi Minh. Each denomination features vibrant designs reflecting the nation's rich cultural and historical heritage. Vietnam's currency is currently available in two different forms: polymer notes and paper notes.

Denominations of Vietnamese banknotes

The paper notes come with denominations of 1000 VND, 2000 VND, and 5000 VND, while the polymer notes get denominated from 10,000 VND to 500,000 VND. Though they are still occasionally encountered, the 200 and 500 VND paper notes are rarely in use nowadays because of their low worth. Coins are no longer in use in Vietnam. 

History of Vietnam's currency

The Vietnamese dong (VND) has a history intertwined with the complex socio-political changes in Vietnam. The dong was introduced as the official currency in North Vietnam on 3 May 1946, replacing the French Indochinese piastre. Following the reunification of North and South Vietnam in 1976, the dong became the unified currency of the entire country.

5 VND banknote in 1946

Despite economic hardships and inflation throughout the years, the Vietnamese government has kept the currency modern and stable, preserving Vietnam's competitive edge in the world market. The dong continues to be a crucial component of the country's economic landscape, reflecting Vietnam's economic history and progress.

Vietnamese currency rate to several other currencies

Here are Vietnamese currency rates compared to several other currencies as of early January 2024:

Vietnam dong conversion for several other currencies

Payment in Vietnam

In Vietnam, cash is still a common and widely accepted mode of payment. It is necessary to carry cash, especially in smaller towns, markets, and rural locations where there may not be many possibilities for electronic payments. Cash is usually preferred by street sellers, small businesses, and local marketplaces. For various transactions, it is advisable to have a combination of smaller and larger bills. Some tourist-centric establishments accept U.S. dollars for larger purchases, especially in big hotels and restaurants, but paying in VND is still more common, and change may be received in VND.

Cash is the most common payment in Vietnam

Credit cards are widely accepted in urban areas and tourist-centric locations throughout Vietnam. Hotels, upscale establishments, shopping malls, larger retailers, and department stores frequently accept major credit cards like Visa, MasterCard, and, to a lesser extent, American Express. Conversion rates and swiping fees will be set by your card provider. Even while using credit cards is safe and convenient, it is a good idea to have some cash on hand in case using a credit card is not practical.

Currency exchange locations in Vietnam

Before exchanging currency, it's crucial to be aware of the current exchange rates and any associated fees. In Vietnam, currency can be exchanged at various places, providing both convenience and accessibility.

Banks: Most banks in Vietnam offer currency exchange services. In cities and popular tourist locations, bank branches are common. For security and accurate rates, it is best to convert money at reputable banks. However, you will have to pay extra for the conversion fee.

Most banks in Vietnam offer currency exchange services

Currency Exchange Counters: These counters are located in well-known tourist locations, major train stations, and international airports. Although these facilities frequently have reasonable prices, it is one of the recommended places to compare prices before exchanging.

Vietnam's currency can be exchanged in many counters in airports, destinations and some train stations

ATMs: Using ATMs offers tourists a convenient and efficient way to withdraw Vietnamese dong from foreign bank accounts, offering competitive exchange rates. To avoid issues, it's advisable to consult your bank about international withdrawal fees and inform them of your travel plans beforehand.

Tourists can withdraw Vietnamese dong from foreign bank accounts in ATMs

Hotels/Resorts: Some hotels and resorts provide currency exchange services, though the rates may not be as competitive as at banks or specialist exchange counters.

Some hotels and resorts allow clients to exchange currencies

Gold and jewelry shops: Vietnam's gold and jewelry shops offer currency exchange services, but often charge higher rates and include hidden fees, so it's crucial to verify these charges before proceeding.

Vietnam's gold and jewelry shops provide currency exchange services

Some other tips for travelers

• Counterfeit banknotes: To avoid counterfeit money in Vietnam, check bills for security features like watermarks and holograms, exchange currency at reputable banks or authorized counters, be cautious with large sums, and check denomination notes before payments.
• Small Denominations: Keep small bills for easier transactions as many vendors and small businesses may not have change for larger denominations.
• Tipping in Vietnam: It is totally fine if you can not afford tipping in Vietnam, as it is not mandatory though it is appreciated. If you want to tip someone, the rule of thumb is to tip only when you are satisfied, and do so with a positive and genuine attitude. 
• Bargain: Bargaining is an integral part of Vietnamese culture. It is common and expected, especially in markets. Do not hesitate to bargain. You just need to do it with a friendly and respectful attitude, and consider it a way to engage with locals while ensuring a fair price for both parties.
• Local abbreviation: Menus in many local eateries and coffee shops in Vietnam use “k” to represent a thousand. For example, 50k means 50,000 VND.
• Simplify the denomination: If you are confused by too many zeros displayed in Vietnam banknotes, you can remove three zeros at the end of the denomination to make it easier to remember their worth. 
• Carry cash: The current law does not specifically regulate the limit on the amount of money that foreigners can bring into Vietnam. However, if you enter Vietnam and bring cash of 5,000 USD (or equivalent) or more or 15,000,000 VND (or equivalent), you must declare it to customs officials at the border.

Learn about Vietnamese currency to improve your experience in Vietnam

With this guide, we hope to provide you with a better understanding of Vietnam dong, the national currency, which may be helpful for your upcoming trip to Vietnam. If you wish for further information, please do not hesitate to contact us. Asia King Travel is honored to help you with any aspect of your journey.

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