Vietnam currency guide: The Vietnamese dong (VND)

Vietnam offers stunning natural landscapes, bustling nightlife, world-renowned food, and more. These are just a few reasons the country attracts more than 18 million tourists annually.

When you travel to the country, you’ll need Vietnam currency to cover travel expenses, buy souvenirs, and get around. Read on to learn more about the Vietnamese dong, what to know when exchanging US dollars (USD) for dong, and how to send money to Vietnam.

Note: Before making travel plans, check the US Department of State website for the latest travel advisory information.

What is the currency in Vietnam?

Vietnam uses the Vietnamese dong as its currency. It’s symbolized by “đ” and abbreviated as VND. If you need to convert your dollars to dong, you can do so at banks, exchange kiosks, and online platforms like Western Union.

Here are some important facts to know about the Vietnam currency:

• Banknote denominations:
  • ₫100
  • ₫200
  • ₫500
  • ₫1,000
  • ₫2,000
  • ₫5,000
  • ₫10,000
  • ₫20,000
  • ₫50,000
  • ₫100,000
  • ₫200,000
  • ₫500,000

• Coin denominations:
  • ₫200
  • ₫500
  • ₫1,000
  • ₫2,000
  • ₫5,000

• Central bank: State Bank of Vietnam (SBV)

Remember that the word “dong” in Vietnamese means currency in general. When traveling in the country, you may need to say “dong Vietnamese” when speaking about the local currency and “dong US” when talking about dollars.

History of the Vietnamese dong

Vietnam has undergone several governmental and economic changes in the past centuries that have impacted Vietnamese money.

During the country’s dynastic rule, people used coins and metal bars as currency. However, after France established colonial rule in Vietnam in the mid-19th century, the Indochinese piastre became the country’s official currency (alongside Cambodia and Laos).

Vietnam declared independence in 1945 under Ho Chi Minh, leading to the First Indochina War. In 1946, the Democratic Republic of Vietnam (North Vietnam) introduced 1- and 2-dong coins. These replaced the piastre at a one-to-one exchange rate. In 1951, President Minh established the Vietnam National Bank (VNB) and issued the first Democratic Republic of Vietnam banknotes in 20- and 50-dong denominations. In 1961, the VNB was renamed the State Bank of Vietnam (SBV).

However, the country remained divided during this time, and South Vietnam used a separate currency under the Saigon regime. Following Vietnam’s reunification in 1976, the country adopted a unified dong currency. The government implemented a complex exchange rate system to merge the two currencies, exchanging 500 Saigon regime banknotes for 1 dong.

In the beginning, the State Bank of Vietnam issued low-value banknotes. But as the currency devalued, the VNB started issuing larger banknotes, eventually reaching the 500,000 VND banknote in 2003.

7 tips for exchanging US dollars for dong

Your USD to VND exchange will depend on your selected exchange service, fees, security, and other features. Here are some tips to help you convert dollars to Vietnamese money.

1. Research and compare exchange rates

Each exchange service may offer different exchange rates for Vietnamese money. It’s important to compare rates between banks, exchange kiosks, online platforms, and other currency exchange providers, including Western Union. Western Union often offers competitive exchange rates and transparent fee structures, making it a valuable option to consider in your comparison.

You can get the up-to-the-minute USD to VND exchange rate on Western Union’s website or app. This provides a good starting point for your comparison and helps you decide where to exchange your dollars for Vietnamese dong.

2. Notify your bank ahead of traveling

To prevent your bank from freezing your account or debit card, you’ll need to let it know of your travel plans to Vietnam. This applies if you plan to withdraw Vietnam money from ATMs or use your debit card directly to make purchases. Let your bank know the exact dates of your trip and any country (other than Vietnam) where you will be traveling.

3. Avoid exchanging money at airports, hotels, and tourist areas

Tourist areas can be full of unauthorized currency exchangers looking to exploit unsuspecting visitors. They may lure you in with seemingly attractive exchange rates, only to hit you with hidden fees, shortchange you, or even pass off counterfeit banknotes.

Always be vigilant when exchanging dollars for Vietnamese money and make it a habit to carefully count your banknotes after any transaction to ensure you received the correct amount and that the bills are genuine.

While airports and hotels may offer more reliable currency exchange services, they often have less favorable exchange rates. Explore other options such as authorized exchange bureaus or reputable online platforms like Western Union for the best value.

4. Consider commissions and fees

Don’t let exchange fees catch you off guard when converting your money to the Vietnam currency. Here’s a quick rundown of the fees you might encounter with different exchange methods:

• Airport: While convenient, airports are notorious for offering poor exchange rates and tacking on service fees.
• Banks: They might charge transaction fees or commissions, so it’s worth checking with your bank beforehand.
• ATMs: Be mindful of potential usage fees and foreign transaction fees that can add up.
• Online platforms: Some platforms might have transaction or bank transfer fees, so read the fine print.
• Unlicensed street vendors: Steer clear. They might entice you with seemingly good rates but often have hidden fees or, worse, try to pass off counterfeit banknotes.

The good news is that Western Union offers a refreshing alternative with low-cost, transparent fees. You’ll know exactly what you’re paying, so there are no surprises. It’s always worth comparing options to find the best deal for your currency exchange needs

5. Withdraw Vietnamese currency instead of US dollars from ATMs

When considering the best ways to exchange currency, using an ATM can be convenient. However, if you’re withdrawing money from an ATM in Vietnam, be sure to withdraw in Vietnamese currency instead of US dollars. This enables your bank to handle the currency conversion, typically resulting in lower fees and a more favorable exchange rate. By withdrawing directly in dong, you can avoid the extra charges associated with dynamic currency conversion (DCC), which often occurs when you withdraw dollars.

6. Exchange money in Vietnam instead of the US

It’s better to exchange your USD for VND in Vietnam instead of the US. Not only might your local US bank not have Vietnamese currency on hand, but you could face delays due to the need for pre-ordering or scheduling an exchange appointment.

In Vietnam, you’ll have a wider variety of options for converting your currency, including banks, authorized exchange bureaus, and reliable online platforms like Western Union. This enables you to compare rates and choose the most convenient and cost-effective method for your needs.

7. Use reputable exchanges

When exchanging dollars for Vietnamese currency in Vietnam, it’s crucial to prioritize safety and security to avoid scams or counterfeit money. Try to avoid unlicensed street money changers. Instead, opt for reputable and established exchange services such as:

• Banks
• Authorized exchange bureaus
• Gold shops (ensure they are licensed for currency exchange)
• Reliable online platforms like Western Union

Western Union stands out as a trusted currency exchange option, offering in-person transactions at agent locations and a reliable online platform. Online services include features like touch ID, transfer tracking, and encryption, ensuring your transactions are protected. Plus, we adhere to PCI DSS and other compliance standards for added peace of mind.

Using money in Vietnam

Here are some important things to know about Vietnamese currency, how it’s used, and what to expect when visiting the country.

Can you use US dollars in Vietnam?

In Ho Chi Minh City and Hanoi, you may see dollars widely accepted, and even some merchants will price their products or services in dollars. Outside of major cities, USD might not be accepted in many places. You should always be prepared to pay for your travel expenses in Vietnamese money. Be sure to exchange your USD for VND as early as you can to ensure you have the banknotes you need while traveling in the country.

Tipping etiquette in Vietnam

Unlike the US, tipping is not customary in Vietnam. Instead, it’s used mostly to show appreciation for exceptional service. Restaurant workers may even be confused if you attempt to tip. However, you can still consider a 5-10% tip for things like private tours and service at upscale restaurants. Some tourist-focused establishments may also include a service charge on your bill.

If you plan to tip, make sure to carry small denominations of Vietnamese money so you don’t have to worry about making change.

Where to get Vietnamese dongs near me?

Reputable exchange services like banks, licensed currency exchange offices, ATMs, and online platforms are great ways to get Vietnam currency. You can always find currency exchange near you with Western Union agent locations in Vietnam.