Summary: Navigating Vietnam’s currency situation as a traveler can be confusing—should you bring US dollars to exchange, or simply rely on local ATMs to withdraw Vietnamese Dong (VND)? I’ll walk you through both options with real-life examples, practical screenshots, regulatory details, and a dash of personal mishap, so you’ll know exactly what works best for your trip—no matter how much the advice online seems to conflict.
Why This Question Matters for Travelers
Whenever someone asks about money in Vietnam, there’s always a flurry of answers—some say just bring cash and swap it at the airport, others swear by ATMs. I learned the hard way that it’s not a one-size-fits-all deal. If you want to avoid extra fees, exchange rate traps, and that awkward moment when a taxi driver refuses your crumpled $20 bill, you need to know how money really works on the ground in Vietnam. I’ll break down what actually happens when you try both approaches, with screenshots, regulatory facts, and a little healthy skepticism.
How It Plays Out: USD vs. VND Withdrawal (My Step-by-Step)
Step 1: Arriving in Vietnam — Immigration and the First Cash Grab
Picture this: I landed at Tan Son Nhat International Airport in Ho Chi Minh City with only a couple hundred US dollars, thinking I’d just change it at the airport and be set. I’d read online that USD is king in Vietnam—turns out, that’s only half true.
- First, the airport currency desks do accept USD, but the exchange rate offered was about 3% worse than what I’d seen on XE.com that morning. For context, the mid-market rate was roughly 1 USD = 24,000 VND, but the desk was offering 23,300 VND per USD.
- I tried an ATM just outside customs—after a couple of failed attempts because the ATM didn’t accept my card network (a classic), I finally got cash. The slip showed a 40,000 VND fee (about $1.70 USD), and my bank later tacked on a 2.5% foreign transaction fee. So, not cheap, but at least it was quick and the rate was much closer to the real exchange rate.
Screenshot:
Above: My actual ATM slip from Vietcombank, showing the 40,000 VND fee. It’s typical—some banks charge even more, and some foreign cards (like Charles Schwab) will reimburse fees, but most won’t.
Step 2: On the Street — USD Cash Is Not Always Welcome
Contrary to what you might have heard, Vietnam is not the kind of place where you can pay for everything in USD. According to Vietnam Customs and the State Bank of Vietnam, it’s actually illegal for businesses to accept payment in foreign currency outside very specific situations (like some high-end hotels and certain duty-free shops).
I tried paying for a Grab ride and a bowl of pho with a $20 bill. Both times, the answer was no—only VND, please. Even at some currency exchanges, if your bills are worn or marked, they’ll refuse or downgrade the rate. And if you go to a gold shop (which often offers the best rates), be prepared for a bit of bureaucracy: passport, hotel address, and sometimes even a photo.
Step 3: Comparing the Costs — Numbers Don’t Lie
Let’s get nerdy for a second. Here’s what actually happened with my two approaches:
| Method | Exchange Rate (effective) | Fees | Convenience |
|---|---|---|---|
| USD Cash to VND (Airport) | ~23,300 VND/USD | No explicit fee, but poor rate (3% loss) | Fast, but only at official counters |
| ATM Withdrawal (Vietcombank) | ~23,900 VND/USD (after fees) | 40,000 VND per withdrawal + 2.5% bank fee | Widely available, some ATMs reject foreign cards |
So, if you’re withdrawing the maximum allowed (~3,000,000 VND per transaction), the ATM actually comes out ahead, as long as your home bank doesn’t pile on outrageous fees. But if you’re stuck with small withdrawals, the fees eat you alive.
Step 4: Real Regulatory and Institutional Landscape
According to the State Bank of Vietnam, only licensed institutions (banks, official exchange counters) are permitted to exchange foreign currency. All payments inside Vietnam must be in VND, following Ordinance on Foreign Exchange (No. 28/2005/PL-UBTVQH11).
Carrying USD is legal, but there’s a reporting limit of $5,000 per person when entering or leaving Vietnam. Anything above that, you must declare. The overwhelming advice from the Lonely Planet Thorn Tree forums is to avoid carrying large amounts of cash for safety.
International “Verified Trade” Certification: A Tangent You Didn’t Expect (But Probably Should Know)
Let’s pivot for a moment. If you’re traveling for business, you might care about how Vietnam handles “verified trade” or “proof of payment” in cross-border deals. Here’s a quick comparison table for Vietnam, the US, and the EU:
| Country/Region | Certification Name | Legal Basis | Enforcement Agency |
|---|---|---|---|
| Vietnam | Certificate of Origin (C/O); Customs Declaration | Ordinance on Foreign Exchange; Decree 31/2018/ND-CP | General Department of Vietnam Customs |
| United States | Importer Security Filing (ISF) + CBP Form 7501 | 19 CFR 149; USMCA | US Customs and Border Protection (CBP) |
| European Union | REX System; EUR.1 Movement Certificate | EU Customs Code (Regulation (EU) No 952/2013) | National Customs Administrations |
What’s the relevance here? Well, for large payments (say, you’re buying inventory or high-value goods), Vietnamese banks will often require these certificates to process international wire transfers—no such hoops for tourists, but a surprise if you’re used to US or EU banking norms (see OECD report).
Case Study: US vs. Vietnamese “Proof of Payment”
In 2023, a US-based import company (let’s call them “Pacific Trading Co.”) wired $50,000 for Vietnamese coffee beans. The Vietnamese bank froze the incoming funds until the importer provided a Certificate of Origin and customs declaration—requirements that US banks almost never ask for. It delayed the shipment by two weeks. A local expert, Ms. Linh Tran (customs broker, Ho Chi Minh City), explained:
“Vietnamese authorities are strict about foreign currency inflows. For anything beyond personal use, you need paperwork to prove it’s a legitimate trade. The US is more relaxed, but here, it’s a legacy of anti-money laundering rules.”
For tourists, this means: stick to personal ATM withdrawals or small cash exchanges. Don’t try to pay for hotels or tours with foreign wire transfers unless you’re using a reputable international booking platform.
Personal Reflections and Lessons Learned
Honestly, if I could do my trip again, I’d bring a mix: a little USD for emergencies (clean bills only, no rips or marks), but rely on ATMs for most of my cash. I’d also check with my home bank about their international withdrawal fees and daily limits. In smaller towns, ATMs are less common, so always have some VND on hand. And don’t trust online “best exchange rate” calculators—they rarely match what you’ll see in real life.
Conclusion: What Should You Do?
To sum up: For most travelers, using local ATMs is the safest and most efficient way to get Vietnamese Dong. You’ll generally get a better rate, despite the withdrawal and foreign transaction fees, and you don’t have to worry about the legal gray areas of using USD. Bring a small amount of USD as backup, but don’t count on it being accepted everywhere.
If you’re planning to spend extended time in rural areas, or if your card is notorious for international blocks, change some cash at a reputable bank or gold shop—but be ready for paperwork and ID checks. For large business transactions, expect much stricter rules than in the US or EU—Vietnamese banks love documentation.
My advice: Check your bank’s international ATM policy before departure, keep your cash split between cards and notes, and never assume your favorite noodle shop will take anything but VND. It’s all part of the adventure.
Author: Alex Nguyen. I lived in Vietnam for 2 years and have consulted for several international trade firms. Sources: State Bank of Vietnam, General Department of Vietnam Customs, OECD, first-hand experience.