Vietnam is a two-currency country – both Vietnamese dong and US dollars are legal tender in the country, and you can go around spending nothing but greenbacks if you wanted to. (Not a good idea – to find out more, read on.) The more out-of-the-way towns may not honor your dollars or travelers’ cheques, but you can use your dollars, credit cards, and ATM cards in most of Vietnam’s cities and tourist destinations.
Legal Tender – Dong versus Dollars
The dong (VND) is Vietnam’s official currency. Paper notes come in denominations of 200d, 500d, 1000d, 2000d, 5000d, 10,000d, 20,000d, 50,000d, 100,000d, and 500,000d. Only recently, in 2003, coins were reintroduced in denominations of 200d, 500d, 1000d, 2,000d and 5,000d.
Surprisingly, the US dollar is legal tender in many places, especially in the cities. Many shops, hotels, and restaurants honor dollar payments. Many establishments – particularly upmarket restaurants, five-star hotels, and all golf courses – will list the bill only in US dollars. This also applies if you pay your way with a credit card: a dollar amount will be listed on the slip. In any of these situations, you may request that you be quoted an amount in VND.
However, smaller operators like street vendors and cyclo drivers expect payment in dong.
Important note: Foreign embassies generally accept payments only in US dollars, cash.
Exchange Rates and Changing Money
In principle, you can go around Vietnam using only US dollars, but in practice, this is troublesome and expensive. Even if many shops do offer a fair rate of exchange (to encourage customers to pay in US dollars), paying in VND offers the buyer increased flexibility in bargaining.
"Imagine - if I was quoted a $4.00 shirt, its pretty hard to convince the shop to give me a whole $1.00 discount, and its a bit awkward to haggle it down to say, US$3.75," explains Ningning Guest, an expatriate based in Hanoi. "However, in VND, I can bargain for smaller amounts that are more acceptable to the shop."
Dollars can be exchanged at banks, hotels, and authorized exchange bureaus. Major hotels often offer the same rate as banks. Smaller hotels may charge an extra fee for exchange.
The government-run Vietcombank can exchange dong for the following currencies:
- US, Australian, Canadian, Hong Kong, and Singaporean Dollars
- Euros
- British Pounds Sterling
- Thai Baht
- Japanese Yen
Vietnamese banks will not accept torn or damaged notes. If you deposit a damaged note, the bank will charge you 2% of the note’s value. By extension, most stores will not honor damaged notes.
Banks are open on weekdays from 8am to 3pm, with a lunch break from 11:30am to 1pm. You’ll be able to change foreign currencies and travelers’ checks in urban bank branches, but not always in smaller towns.
Automatic Teller Machines
ATMs have proliferated throughout Vietnam’s major cities. Most of them are connected to the Visa/Plus and MasterCard/Cirrus networks, and can be used to get cash advances through your credit card.
ATMs dispense dong in 50,000d and 100,000d denominations, with a limit of 2,000,000d for each withdrawal and a daily limit of 20,000,000d. ATMs will charge a fee of 50,000d per transaction.
