Currency

Vietnam’s currency is the dong. The currency used to be issued in banknotes denominated in 200 dong, 500 dong, 1,000 dong, 2,000 dong and 5,000 dong. These are still in circulation but today, banknotes are issued in denominations of 10,000 dong, 20,000 dong, 50,000 dong, 100,000 dong, 200,000 dong and 500,000 dong. Each dong is subdivided into 10 hao but given the low value of each dong, the hao is virtually worthless and is no longer issued.

Exchange

In mid-1995, US$1 bought approximately 11,000 dong in Vietnam. At the time, the dong was relatively strong compared to Western currencies. Since then, the dong has weakened considerably despite the strengthening of the Vietnamese economy and the collapse of the US dollar against many of the world’s currencies.Today, US$1 will buy nearly 20,000 dong. This compares starkly with the strength of the dong in 1991, when each US dollar bought just 8,000 dong. In 1989, the exchange rate stood at 3,500 dong to the US dollar. At the moment, it takes only US$52 to be a dong millionaire.

Vietnam has always had a big black market for trading in dong. The black market often runs ahead of government adjustments aimed at addressing trade deficits and domestic dollar supply. Frequently, businesses complain to the government that they are unable to buy dollars from the country’s banks.

Travelers checks can be used in Vietnam but can only be cashed at authorized foreign exchange outlets. These are found primarily in Ho Chi Minh City, Hanoi and big provincial cities. Traveller’s checks issued in US dollars are easiest to cash. Outside cities and tourist centers it is nearly impossible to cash traveler’s checks.

Cash in US dollars is much easier to exchange but the only safe way to do so is through official exchanges, which are hard to find outside of big tourist or commerce centers. Trying to exchange cash on the black market is fraught with risks like ended up with forged US banknotes. The exchange rate on the black market is almost always worse than that offered at official currency exchanges.

Visitors need not carry large amounts of US dollars for day-to-day transactions. It is best to pay using dong. When traveling to remote areas, stock up on plenty of dong as it may be difficult to find anywhere to safely exchange foreign currency or travelers checks, even in US dollars. US dollars in small denominations can be used almost anywhere in Vietnam but the exchange rate worsens in direct correspondence to the distance from major cities. Official foreign currency exchanges can be found at most land crossings.

ATMs and credit cards can be used in most major cities but both transactions and cash advances are subject to commissions of three percent. Visa, MasterCard, JCB and AmEx can be used, but AmEx usually costs more.

Banks usually open Monday through Friday from 08:00 to 11:30 and 13:00 to 16:00. Some banks open during lunch time and on Saturdays. Banks close on public holidays.

Currency regulations

Foreign visitors can bring unlimited amounts of foreign currency into Vietnam. If any amount of foreign currency has been declared on customs forms upon importation, the same amount is then allowed to leave Vietnam. It is illegal to take dong out of Vietnam but spare dong can be exchanged at the airport at a reasonable rate.