USD or Vietnamese Dong in Vietnam: What's Really Better for Travelers?
Are you planning a trip to Vietnam and wrestling with the big “money question”: Should you bring US dollars and exchange them on the spot, or rely on withdrawing Vietnamese Dong (VND) from local ATMs? Let's tackle this decision together, spiced up with reality checks, honest stories, actual data, a few silly mistakes I’ve made, and some insights from experts and official sources.
Summary: This Article in a Nutshell
You’ll find practical steps, regulatory background, tradeoff comparisons, and a couple of cautionary tales. I’ll walk you through handling both USD cash and Vietnam’s ATMs, sprinkle in real screenshots and experiences, and wrap up with why your decision might hinge more on personal habits (and a few international standards) than simple math.
Step by Step: Bringing USD vs Withdrawing VND
1. Let’s Talk: Can You Use USD Cash in Vietnam?
First off, Vietnam mainly runs on Vietnamese Dong (VND). USD is not an official tender. According to Lao Dong News and State Bank of Vietnam (SBV) regulations, only VND is legit for directly purchasing goods and services. Sure, some big hotels or touristy shops might quietly accept USD bills, but don’t count on it for daily expenses, taxis, street food, or museums.
Even where you can swap USD bills for VND, you must show ID and may get variable rates. Plus, avoid exchanging on the street (too sketchy, and technically illegal). Official money exchange stores display an SBV sign, banks do it straightforwardly, and some gold/Jewelry shops also change money. For accuracy, here is a SBV official notice.
Photo: Money Exchange shop, Old Quarter Hanoi, author’s own (2023)
2. The ATM Route: Smooth, But Not Without Hiccups
ATMs flood every Vietnamese city—even mid-sized towns boast half a dozen banks! (And trust me, I’ve sprinted between a few when my foreign card misfired.) Most reputable ones—think Vietcombank, BIDV, Techcombank—support Mastercard/Visa/Cirrus and deliver instructions in English.
Photo: ATM menu at VietinBank, HCMC – note the green button for English
What’s fan-favorite about ATMs? Firstly, instant VND in your hand—no awkward haggling, straightforward rates that mostly run close to the live interbank exchange (check XE.com for up-to-date rates). But here’s the kicker: most ATMs charge a per-withdrawal fee (actually posted on the machine, but easy to miss when you’re jetlagged…). Locals pay less; foreigners get hit by a flat 30,000-80,000 VND (about $1.2–$3.5 USD) per pop, plus your home bank might slap their own “international ATM” fee for good measure.
Quick personal story: On my first trip to Hanoi, I stood sweating with three cards, all rejected at BIDV. Only the fourth, an HSBC debit card, played ball—so, test your cards early, and always carry a couple of backups!
3. What About Exchange Rates? Here Comes the Math
Let’s get brutally honest—rates vary daily. In March 2024, the official rate hovered around 1 USD = 24,500–25,000 VND (see XE.com).
- Banks/ATM withdrawals: You get rates close to “mid-market” (pretty fair) but minus ATM + possible card fee.
- Cash Exchange at bank or official shop: Usually about 0.5–1.5% off the market rate—check posted rates at Vietcombank or BIDV.
- Hotels/Informal shops: Much worse rates, can be 2–4% down and, occasionally, fake bills in play.
Pro tip: Use a fee-free international debit card (like Wise, Revolut, or Charles Schwab), if you have one, to cut out some hidden middlemen. Wise publishes its actual rates here.
Bursting a Few Money Myths: “Verified Trade” and Regulatory Gaps
Let’s Get Official: Who Decides What?
Here’s a fun twist: Vietnam, the US, and much of the world take currency control and anti-money-laundering pretty seriously. According to the IMF/World Bank Financial Sector Assessment (2019, Section VII, pg. 44), cross-border currency controls in Vietnam dictate:
- Foreigners can bring in unlimited foreign currency—but must declare amounts over USD 5,000 (cash).
- All legal tender purchases inside Vietnam must be in VND.
The US embassy in Vietnam corroborates: “ATMs are widely available, but note transaction fees. Currency in excess of $5,000 USD, or equivalent, must be declared.” (US Embassy Consular Guidance).
So, there’s no real reason to lug wads of USD unless you enjoy customs paperwork. And if you get the chance to question a Vietnamese border agent about this, the answer is always a polite but firm “VND only, please.”
A Quick Standard Differentiation Table: “Verified Trade” in Action
| Country | Standard Name | Legal Reference | Enforcement Agency |
|---|---|---|---|
| Vietnam | Foreign Currency Use Decree, Circular 20/2011/TT-NHNN | Circular 20/2011/TT-NHNN | State Bank of Vietnam |
| USA | Currency and Foreign Transactions Reporting Act (Bank Secrecy Act) | BSA (31 USC 5311) | US Treasury/FinCEN |
For more on international currency controls, see OECD's exchange standards.
Case Example: American in Hanoi – Cash Crunch, Card Only
A friend of mine—let’s call her Sarah—landed at Noi Bai airport with $800 in crisp $100 bills, thinking she’d just swap as needed. She queued at a jewelry shop (“great rates, everyone said!”). No passport, no exchange. Next, the bank: closed at 4pm. By dusk, she was begging a hostel mate to swap $50 for just enough VND to reach her hotel. Lesson learned: Don’t assume cash is king—and official exchanges close early!
Another pal, Ben, brought only a credit card, assuming ATMs would work like magic. He hit a Techcombank terminal, but the daily limit was 3 million VND—barely USD $120. And each withdrawal cost $3! Since his bank added a $5 “out of network” fee, he ended up losing $8 per transaction for $120. Ouch. Wise card would have saved him most of that fee, but he didn’t have one.
Expert Soundbite: Inside Tips From a Travel Industry Pro
“Travelers should balance flexibility and local costs. Bringing $100-200 in USD as backup for emergencies is smart, but day-to-day, ATMs offer the most convenience and reasonable rates. Just beware transaction caps—and avoid street exchangers.”
— Nguyen Anh Tuan, Head of Operations, Hanoi Free Tours, interview March 2024
Real-World Comparison Table: USD Exchange vs ATM Withdrawals in Vietnam (March 2024)
| Method | Accessibility | Typical Rate | Main Downsides |
|---|---|---|---|
| USD→VND at Bank/Exchange Shop | Widespread in cities, ID required, closes early | 1-1.5% off mid-market | Less flexible, not 24/7, risk of counterfeits in informal venues |
| ATM Withdrawal (foreign card) | 24/7, nearly everywhere, English menu | Mid-market (plus fees) | $1.2–$5+ per withdrawal, daily caps, possible card issues |
| Using USD for direct purchases | Varies, only large/tourist operators | Poor—up to 5% premium | Not legal; may be refused; possible scams |
Conclusion: The Not-So-Simple Answer (With Plenty of Lived Experience)
After some trial and error, expert chats, and sober reading of Vietnam’s laws, here’s my personal nutshell: Don’t bring a suitcase of dollars thinking you’ll “save” on exchange rates. The best practice is a hybrid approach:
- Bring some USD ($100–$200) as an emergency backup—kept safe, preferably fresh bills.
- Rely on major ATMs for most withdrawals, using a fee-free card if possible. Avoid multiple small withdrawals to minimize fees. Withdraw the local daily maximum (usually 3–5 million VND) to cut down total charges.
- If you’re exchanging at a bank or authorized shop, do your homework on the rates (check online first)
- Always have a second or third card, and notify your bank that you’ll be overseas (prevent declines or “card blocked for suspicious activity”).
And more than once, I’ve fiddled with ATM menus, pressed the wrong number, got cash in multiples of 200,000 VND bills (nothing smaller!), and had to beg coffee vendors to accept large notes. So, be ready to break bills, double-check fees, and—if in doubt—ask a friendly local or the nearest tour guide!
Prepping for Vietnam? Compare your own bank’s international fees first, load up a backup Wise/Revolut card if you can, and carry a few crisp greenbacks just in case. Then relax – Vietnam is welcoming, vibrant, and definitely ready for your adventurous wallet.
For further official reference and hands-on guides, browse the State Bank of Vietnam or the US Embassy "Money Matters" page. Happy (and cash-smart) travels!