Money & Shopping in Vietnam
Currency In Vietnam
The dong (ng, VND) is the local currency, which is difficult to find and exchange outside of Vietnam. When you arrive, exchange money and try to get rid of any leftovers before leaving the country. Inflation persists, and a succession of devaluations has lowered the value of the dong, with one US dollar often reaching over 22,000 dongs and one euro frequently reaching over 23,000 dongs (December 2015). The denominations of banknotes include 500, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, 100,000, 200,000, and 500,000 dongs. 200-, 500-, 1,000-, 2,000-, and 5,000-dong coins were also launched in 2003, albeit they are rarely seen.
Prices are routinely advertised in US dollars, owing to the volatility of the dong’s monetary value, although unlike in neighboring Cambodia, payment is frequently demanded in dong exclusively, particularly outside major tourist areas. It is also easier to bargain with the dong, especially since dollar values are already rounded. Dollar bills in less than excellent condition may be rejected. In Vietnam, 2 USD banknotes (particularly those minted in the 1970s) are considered lucky and are worth more than 2 USD. They make an excellent tip or present, and many Vietnamese carry them in their wallets for good luck. The exchange rate for 50 and 100 USD bills is higher than for lower denomination bills.
The majority of travelers choose to maintain the majority of their cash in US dollars and exchange or withdraw dongs as needed. There is frequently a significant price difference between buying and selling dongs, and the same hotel may charge various costs for different services. In addition to banks and official exchange counters, most hard currencies (pounds sterling, yen, Swiss francs, euros, etc.) can be exchanged at gold shops, generally at slightly higher rates than the official rates. This is illegal, but the controls are light. Hotels and travel bureaus can also exchange money at various exchange rates, so shop around for the best deal.
| Dong exchange |
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| Foreign currencies can be easily swapped for dong in Vietnam, but not vice versa. Exchanging dong is a time-consuming and patience-testing activity. To convert dong for another currency, you must provide your exit ticket from Vietnam as well as your identity card. The bank employees photocopy these documents. The amount, purpose of the exchange, and destination country will then be entered into a particular form. Vietcombank is one of the few Vietnamese banks that exchange dongs. |
Banking In Vietnam
Credit card payments often have a 3% surcharge, thus cash can be advantageous for larger transactions.
Traveler’s checks issued by respectable companies are commonly accepted, although normally come with a small commission. In addition, the fee may be the sole thing prohibiting you from obtaining cash advances with your Visa or MasterCard at most institutions. You can also receive US money in both circumstances, but the fees will be much greater. According to certain popular travel books, Vietcombank does not charge a fee for cashing AMEX travelers cheques. This, however, is no longer the case.
ATMs are becoming more popular and may be found in almost every major city and tourist attraction. They accept a variety of credit and debit cards, including Visa, MasterCard, Maestro, and Cirrus, as well as several alternative payment systems. Withdrawals are normally limited to 2,000,000 dongs each transaction, with a 20,000 dong service charge. Unlike most Southeast Asian banks, Citibank does not impose fees on withdrawals.
- Agribank allows up to 3,000,000 dongs per transaction (25,000,000 dongs per day) with a fee of 22,000 dongs. (June 2016)
- ANZ Bank approves up to 4,000,000-10,000,000 per transaction (15,000,000 dong per day) with a fee of 40,000 dong.
- BIDV Bank allows up to 5,000,000 per transaction with a fee of 50,000 dongs and VAT of 5,000 dongs (March 2015).
- DongA Bank allows up to (at least) 5,000,000 per transaction without fees. (March 2015)
- EXIMBANK allows up to 2,000,000 per transaction without fees. (June 2016)
- HSBC authorises up to 5,000,000 per transaction with a fee of 100,000 dongs. (June 2016)
- Techcombank authorises up to 15,000,000 per transaction with no fees. (June 2016)
- The VIB allows up to 2,000,000 per transaction with a fee of 50,000 dongs.
- Vietcombank allows up to 2,000,000 per transaction with a fee of 20,000 dongs.
- Vietinbank allows up to 2,000,000 per transaction with a fee of 55,000 dongs. (June 2016)
- Sacombank allows up to 2,000,000 dongs per transaction with a fee of 30,000 dongs. (July 2016)
Although there are subsidiaries of money transfer firms such as Western Union, it is still one of the most expensive ways to send money. However, for huge numbers, it is preferred. A transfer of 800 USD from America costs 5 USD, and the exchange rate is fairly favorable. You can also send money to Vietnam in USD.
There are independent money changers at most land borders between Cambodia, China, and Laos to take care of your financial leftovers, but be warned: if you don’t know the current rate, they will rip you off. Travelers travelling from Hanoi Airport should be aware that there is no method to exchange money once you have completed immigration. So, unless you want to make purchases, exchange your dong before entering the departure hall.
If you look around, you will notice groups of shops selling similar products, such as 20 sewing machine shops, 30 hardware stores, and 200 motorcycle repair shops in the same neighborhood. Prices are reasonable. Be wary of watch stores who sell authentic fake originals. Other imitation watches are available, although they are not as cheap as in neighboring nations. Pirated software is surprisingly difficult to find and is not freely available. However, DVDs with low-quality films are available for as little as USD 1, however not all offer an English option. The local post office does not allow for international shipping.
Tipping In Vietnam
Tipping is not expected in Vietnam, even in premium hotels, and most Vietnamese do not practice it, however it is not ignored if offered. Some restaurants that cater to Western tourists want tips, however it is totally fine not to tip. In any case, the price you are offered is frequently many times greater than what the locals spend, thus tipping is usually unnecessary. Always carry little notes with you to prevent an unwanted gratuity if a taxi driver claims to be out of change.
Bargaining In Vietnam
Over-invoicing has long been a problem in Vietnamese tourism, affecting both international visitors and Vietnamese who can be recognised by their accent as coming from another location. It can happen anywhere, including a hotel room, a cab trip, a café, a meal, an item of apparel, or a plain grocery store. Coffee becomes 100% more expensive, and a restaurant may give you with an English menu with exaggerated rates. A kind resident who has been conversing with you for 30 minutes may also wish to overcharge you.
The Vietnamese have diverse perspectives on this problem, and the practice varies somewhat from region to region, although it is more prevalent in Vietnam than in other neighboring nations that overcharging visitors is deemed socially acceptable. They may claim that the higher costs are still inexpensive, and they may blame the low cost of living that draws many backpackers on a limited budget. According to this school of thought, tourists grumble because they are cheap. Overcharging wealthy tourists should be no problem. In general, vendors in the South will usually enable you to negotiate lower pricing than the local price if you know what it is and insist on it if they have no qualms about overcharging an uninformed foreigner. Sellers in the North, on the other hand, are more likely to believe that foreigners should be overcharged, and they will generally refuse to sell you products unless you agree to pay the highly inflated foreign price.
The good news is that standard prices are far more prevalent today than they were in the early 1990s. If you presume that everyone is deceiving you, your trip will be ruined. Just strive to be wise. Learn a few typical Vietnamese food names and insist on reading the Vietnamese menu and comparing them. If the owners claim that the portion of the meals on the English menu is different, it is most likely a scam, and you should avoid the restaurant. Learn some Vietnamese numbers and try to figure out how much a native pays a merchant. Try the following fundamental negotiation strategies: Consider how much it costs at home, then ask for a large reduction and walk away as though the price is not fair. Many products are standardised and easier to compare.
Make every effort to be as explicit as possible regarding the agreed-upon pricing. You can agree to pay 20,000 dongs to a “xe om” driver for a ride, but he can charge you 40,000 dongs in the end. Because you have an excellent memory, you pay 20,000 dongs, smile, and say farewell.
Supermarkets In Vietnam
Supermarket shopping is far less common in Vietnam than it is in most European and North American countries, or even in China or Thailand. In 2016, the majority of grocery shopping was still done in traditional street markets. There are a few supermarkets in Hanoi and other major cities, although they primarily sell foreign groceries (European, American, Japanese, or Korean goods) as well as local “luxury” brands. Consumer basics, such as fresh produce, may be significantly more expensive at a supermarket than in a conventional street market.
This is changed as of July 2018. The Thai grocery chain Big C and the Korean Lotte Mart have developed stores in a number of large cities, selling a similar selection of groceries, apparel, and household products as in Thailand or Malaysia. Traditional street and covered markets continue to thrive alongside big superstore chains, just like they do in Thailand. These supermarkets frequently contain game rooms, massage chairs, and food courts, making them a great way to spend a couple of hours on a hot or rainy afternoon.
