Vietnamese Dong: Pre-Travel Purchase Worthwhile?

If you're travelling to Vietnam, you'll need to get your hands on the local currency, the Vietnamese Dong (VND). But should you buy it before you go?

The short answer is no. It's hard to find outside of Vietnam, and you'll get a much better exchange rate in-country.

If you want to have some cash on you when you arrive, it's best to take US dollars, which are widely accepted, and exchange a small amount at the airport. You can then exchange the bulk of your cash at a bank, exchange office, hotel, or gold shop.

If you don't want to carry cash, you can use credit cards and ATMs in Vietnam, although you should let your bank know you're travelling to avoid having your card blocked. Most ATMs accept international cards, and there are plenty of them around, especially in big cities.

Dong availability outside Vietnam

The Vietnamese Dong (VND) is a fully convertible currency, but it is not easily available in many countries outside of Asia. In the UK, Australia, and Canada, some banks and foreign exchange outlets do offer VND, but often at a poor exchange rate. In the US, VND can be purchased from some banks, but this is generally expensive due to high commission fees and poor exchange rates.

If you are travelling from the US, it is recommended to open a free multi-currency account with a company like Revolut or Wise, which will allow you to hold VND and spend it with a card. If you are travelling from the UK, Australia, or Canada, it is possible to purchase VND before you depart, but you may face a poor exchange rate. In this case, it is recommended to only purchase a small amount of VND to cover you for immediate needs upon arrival, and then find a good jewellery store or currency exchange shop in the city to exchange the bulk of your cash.

If you are travelling from a country where VND is not available, you will need to use an ATM in Vietnam to withdraw cash. ATMs are available in major cities and tourist areas, and it is recommended to bring a card with a magnetic stripe on the back.

Dong exchange rates

The exchange rate for the Vietnamese Dong is highly volatile and prone to fluctuations. As of 25 November 2024, 1 USD is equivalent to 25,422.65528 VND.

Where to Exchange Currency

In Vietnam

It is recommended to exchange your money once you arrive in Vietnam. You can do this at the airport, banks, foreign exchange outlets, gold shops, or jewellery stores.

Outside Vietnam

It is not recommended to exchange money at banks or money changer kiosks outside of Vietnam, as they tend to have poor exchange rates and high fees.

If you are in the UK or Australia, you can exchange money at the Post Office, banks, or foreign exchange outlets. However, the exchange rates may not be favourable.

Tips for Exchanging Currency

• Check the latest exchange rates before exchanging your money so you know what to expect.
• Exchange a small amount of money at the airport for convenience, but be aware that the rates may not be the best.
• Shop around for the best rates at jewellery stores or gold shops in the city.
• Ensure your bills are crisp and high denomination, as these tend to get the best rates.
• Use a travel-friendly debit card to withdraw money from ATMs, but be mindful of foreign transaction fees.
• Consider using a travel money card or a multi-currency account like Revolut or Wise, which offer superior exchange rates and low fees.
• Always opt to pay in the local currency (VND) when given the option.

Dong exchange locations in Vietnam

Banks

Banks usually offer the best exchange rates and are considered the safest place to exchange money. The largest banks in Vietnam include Vietcombank, BIDV, Vietinbank, and Agribank. They are open Monday to Friday from 8 a.m. to 4 p.m., with some even open on Saturday mornings. To exchange money, you will need a valid passport and to fill out a form. Banks usually charge no exchange fee, but they may take a small commission. They exchange not only US dollars but also euros, British pounds, and other currencies.

Exchange Offices

Exchange offices are mostly located in tourist areas and offer competitive exchange rates. However, try to avoid those that look unofficial or are in suspicious places. Always check your exchange rate slip and count your money before you leave. Some may charge an exchange fee or use tricks such as rounding or swapping notes. They usually only accept US dollars.

Hotels

Many hotels in Vietnam offer money exchange services to their guests, which can be convenient. However, the exchange rates may be lower than at banks or exchange offices, and some may require a copy of your passport or charge a fee. They usually only exchange US dollars.

Gold Shops

Goldsmiths can be found in many places, especially in big cities, and often offer better rates than banks or exchange offices. You won't find an exchange rate slip in a goldsmith's shop, so just ask. They are usually reliable and fast, but you should be careful and count your money before leaving. They usually only exchange US dollars.

ATMs

If you don't want to carry cash, there are a lot of ATMs in Vietnam, especially in big cities. ATMs accept most international cards such as Visa, Mastercard, Maestro, or Cirrus. They usually only dispense Vietnamese dong and have a withdrawal limit that ranges from VND 2 million to VND 8 million, depending on the bank and location. Most ATMs charge a withdrawal fee that ranges from VND 10,000 to VND 60,000. Military Bank ATMs (blue-red MB logo) are the best in this regard, as there is no withdrawal fee, and the withdrawal limit is 8 million VND.

Other Options

If you are unable to access any of the above options, you could exchange money on the street with unofficial money changers. However, this option is very risky, and fraud is common. Alternatively, you could order Vietnamese dong online and have it delivered to your home before you travel.

Payment methods in Vietnam

Cash

Although Vietnam is seeing a surge in digital payment methods, it is traditionally a cash-heavy country. Cash is still a significant payment method in Vietnam, with 58% of point-of-sale transactions made in cash in 2021.

Cards

Most establishments in Vietnam accept payments from major credit card providers such as Visa. Hotels, tour operators, boutiques, restaurants, grocery stores, and spas all generally accept international debit and credit cards. Conversion rates and swiping fees will be set by your card provider.

Mobile Wallets

The mobile wallet penetration rate in Vietnam is projected to grow from 19.7% in 2020 to 55.5% in 2025. The most popular mobile wallets in Vietnam include AirPay (now ShopeePay) and Grab (with Moca Wallet).

Bank Transfers

Bank transfers are a key payment method in Vietnam, accounting for at least 29% of the country's e-commerce revenue by August 2023. This is mainly done through NAPAS (National Payment Corporation of Vietnam).

Buy Now, Pay Later (BNPL)

The popularity of BNPL has reached Vietnam, especially among the younger millennial and Gen Z populations. Key BNPL players in Vietnam include Atome, AfterPay, Fundiin, Grab, Litnow, and Kredivo.

ATM usage in Vietnam

Step-by-Step Guide to Withdrawing Cash from ATMs in Vietnam

Preparing for your ATM transaction:

Before you travel, be sure to notify your bank or credit card company about your travel plans to avoid any potential fraud alerts or blocks on your account. It's also a good idea to check that your card is compatible with the major ATM networks in Vietnam, such as Visa, Mastercard, and UnionPay. Understanding the current exchange rate between your home currency and the Vietnamese Dong (VND) will help you make informed decisions about withdrawals.

The ATM withdrawal process:

When locating an ATM, look for those located in safe, well-lit areas, preferably inside banks or shopping centres. Most ATMs in Vietnam offer an English language option, but it's always good to double-check before proceeding.

Once you've found a suitable ATM, follow these steps:

• Insert your debit or credit card into the designated slot, following the on-screen prompts.
• Carefully enter your PIN while shielding the keypad from potential onlookers.
• Select the account type (e.g., checking, savings) and choose "Withdrawal" or "Cash Withdrawal."
• Input the desired amount in Vietnamese Dong or your home currency.
• Review the details and confirm the transaction.
• Retrieve your cash and card from the designated slots once the transaction is complete.
• Prioritize smaller denomination bills, as they may be more widely accepted by vendors.
• Always take a printed receipt as proof of your transaction for record-keeping purposes.

Fees and Exchange Rates

When using ATMs in Vietnam, it's important to be aware of potential fees and unfavourable exchange rates. Many banks charge a foreign transaction fee, typically a percentage of the withdrawal amount, for using an ATM outside their network. Additionally, some independent ATM operators may charge additional fees, so always check the fee schedule before proceeding.

When using foreign cards in Vietnam, some ATMs may offer dynamic currency conversion (DCC), which allows you to view the transaction amount in your home currency. However, the exchange rate used may not be favourable, so it's generally better to reject DCC and let your bank perform the currency conversion.

To minimize fees, consider the following strategies:

• Use your bank's partner ATMs: Many banks have partnerships or alliances with Vietnamese banks, which can minimize or eliminate ATM fees.
• Explore travel-friendly debit or credit cards: Some cards are designed specifically for international travel and offer lower or no foreign transaction fees.
• Withdraw larger amounts: While considering your cash needs, withdrawing larger sums can help reduce the overall impact of ATM fees.

ATM Safety Tips for Travellers in Vietnam

To ensure a safe and secure ATM experience in Vietnam, follow these guidelines:

• Be vigilant and always be aware of your surroundings when using an ATM, especially in crowded areas or at night.
• Stick to ATMs located in well-lit, high-traffic areas, such as banks, shopping malls, or hotels, and avoid isolated machines.
• If you notice anyone loitering or acting suspiciously near the ATM, find an alternative location.
• Use your hand or body to cover the keypad when entering your PIN to prevent others from capturing it.
• Inspect the ATM for any suspicious devices attached to the card reader or keypad, which could be used for card skimming.
• Politely decline any unsolicited offers of assistance from strangers while using an ATM.
• Once you've completed your transaction, discreetly pocket your cash and card, and move away from the ATM promptly.
• Consider using wallets or sleeves that block RFID signals to prevent electronic pickpocketing.

Troubleshooting Common ATM Problems in Vietnam

If you encounter issues with your card not being accepted, try the following:

• Check compatibility: Ensure your card works with the major ATM networks in Vietnam (Visa, Mastercard, UnionPay).
• Contact your bank: If your card is still not accepted, reach out to your bank or card issuer for assistance.
• Check your balance: Verify that you have sufficient funds in your account to cover the desired withdrawal amount and any applicable fees.
• Adjust the withdrawal amount: Try withdrawing a smaller amount or splitting the transaction into multiple withdrawals.
• Try another ATM: If the ATM is out of cash or has limited funds, locate an alternative machine and try again.
• Check operating hours: Some ATMs may have limited cash availability during off-peak hours or at night.

If you encounter other issues, such as a stuck card or error messages, seek assistance from bank staff or contact your card issuer's customer service for guidance.

Frequently asked questions