Vietnam is an exotic destination that is on the bucket list of many travelers due to its rich cultural heritage, beautiful landscapes, and bustling cities. Vietnam’s official currency is the Vietnamese đồng, which has been the country’s currency since 1978.
History of Vietnamese currency
Vietnam has a complex history when it comes to its currency. The country has used a variety of currencies over the years, including cowrie shells, silver coins, and paper notes. In the early 19th century, the French introduced their currency, the Indochinese piastre, to Vietnam, which was used until the country gained its independence in 1954.
After the independence, Vietnam was divided into two countries, North Vietnam, and South Vietnam. Both countries had their own currencies, the đồng, and the piastre. However, in 1975, when the country was reunited, the đồng became the official currency of the unified Vietnam.
The đồng has gone through several changes in denomination and design since then, due to inflation and economic issues. In 2003, a new series of banknotes was introduced, which featured images of famous Vietnamese landmarks, landscapes, and historical figures.
Characteristics of the Vietnamese đồng
The Vietnamese đồng is a non-convertible currency, which means it cannot be exchanged outside of Vietnam. The currency is available in notes of 100, 200, 500, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, 100,000, 200,000, and 500,000 đồng. The currency’s exchange rate fluctuates daily, and it is recommended to check the rate before exchanging money.
Vietnam’s đồng has faced issues with inflation and devaluation over the years, which has led to the introduction of higher denomination notes. In 1986, the government introduced a new economic policy that aimed to stabilize the currency and control inflation. Since then, the Vietnamese đồng has been relatively stable, with inflation rates ranging from 2% to 10%.
Characteristics of the Vietnamese đồng
Vietnamese đồng notes are available in denominations of VND 100, 200, 500, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, 100,000, 200,000, and 500,000. Vietnamese banknotes are made of polymer plastic, which makes them durable and difficult to counterfeit. The banknotes come in different colors and feature images of Vietnamese landmarks, landscapes, and historical figures.
The exchange rate of the Vietnamese đồng is subject to change and can vary significantly from day to day. It is recommended to check the exchange rate before exchanging money. You can find exchange rates at banks, exchange offices, and hotels.
Vietnam’s đồng has faced issues with inflation and devaluation over the years, which has led to the introduction of higher denomination notes. The currency’s inflation rate has been relatively stable in recent years, ranging from 2% to 10%. However, due to economic fluctuations and global events, the exchange rate of the đồng can be volatile.
How to obtain Vietnamese đồng
There are several ways to obtain Vietnamese đồng when traveling to Vietnam. The most common methods include currency exchange, ATMs, and credit cards.
Currency exchange is available at banks, exchange offices, and hotels. It is recommended to exchange money at banks or exchange offices, as hotels may charge higher fees. You will need to present your passport when exchanging currency, and it is recommended to keep your exchange receipt for future reference.
ATMs are widely available in Vietnam, and most accept international debit and credit cards. However, some ATMs may charge a fee for withdrawing cash, and it is recommended to notify your bank of your travel plans to avoid any issues with card usage.
Credit cards are accepted at most hotels, restaurants, and shops in major cities. However, it is recommended to carry cash for smaller transactions or when traveling to rural areas. It is also important to notify your bank of your travel plans to avoid any issues with card usage.
Using Vietnamese đồng in Vietnam
When traveling to Vietnam, it is essential to understand how to use the Vietnamese đồng properly. Here are some tips for handling cash, places that do not accept credit cards, and understanding common prices and tipping customs.
Tips for handling cash
Cash is king in Vietnam, and it is recommended to carry small denominations of đồng for everyday expenses. It is also advisable to carry a small amount of US dollars for emergencies or when exchanging money. When exchanging currency, it is best to use official exchange offices or banks to avoid counterfeit notes.
Common places that do not accept credit cards
Credit cards are widely accepted in upscale hotels, restaurants, and shops in major cities like Hanoi and Ho Chi Minh City. However, in rural areas and small towns, cash is the preferred payment method, and credit cards are not accepted.
Understanding common prices and tipping customs
Vietnam is an affordable destination, and prices for food, transportation, and accommodation are relatively low compared to Western countries. It is customary to negotiate prices for goods sold in markets or by street vendors. Tipping is not common in Vietnam, but it is appreciated in restaurants and for tour guides. A 5-10% tip is sufficient for good service.
Conclusion
In conclusion, the Vietnamese đồng is the official currency of Vietnam, and understanding its history, characteristics, and usage is essential for travelers. Cash is the preferred payment method in Vietnam, and it is recommended to carry small denominations of đồng for everyday expenses. Credit cards are not widely accepted in rural areas and small towns. Understanding common prices and tipping customs can help travelers budget and navigate Vietnam’s unique culture. As a brand that provides updated articles on various aspects of Vietnamese culture, including traditional customs, art, cuisine, tourism, people, and modern fashion, Xeno Saga hopes that this article has provided value to travelers planning to visit Vietnam.
