If you're planning a trip to Vietnam or exploring business opportunities there, you might be wondering whether you can skip the currency exchange hassle and just use US dollars directly for day-to-day payments. In this article, I'll break down the practicalities, legal issues, and real-world experience of paying with USD in Vietnam. I'll also share relevant regulatory details, some eye-opening personal stories, and a comparative table of “verified trade” standards between countries to frame the broader context of cross-border payments.
When I landed in Ho Chi Minh City for the first time, I figured—naively—that my stash of crisp $20 bills would be my golden ticket anywhere. After all, USD is the world’s reserve currency, right? I quickly discovered that the answer is a lot more nuanced. So, let's cut right to the financial chase: Can you actually settle your hotel bill, buy a bowl of pho, or snag a souvenir with USD?
According to the official regulation Decree No. 70/2014/ND-CP guiding the implementation of the Ordinance on Foreign Exchange, all transactions, payments, quotations, and advertisements within Vietnam's territory must be conducted in Vietnamese Dong (VND), unless specifically permitted by the State Bank of Vietnam (SBV).
In plain English: The law says you can’t use USD to pay for regular goods and services. This is enforced surprisingly strictly, especially in major cities and for any transaction that could be monitored by authorities.
Here’s the truth: If you stroll into a street-side restaurant and try to hand over a $10 bill for your meal, you’ll almost certainly get a polite (or confused) refusal. In tourist hotspots, some vendors may accept USD “under the table,” but they’ll use their own, often terrible, exchange rate. I once tried to buy a SIM card at Tan Son Nhat Airport with USD and ended up paying about 15% more than the official rate. Painful lesson.
In high-end hotels and international chains, especially those catering to foreign business travelers, you may see prices quoted in USD. But—and this is a big BUT—the final payment is always settled in VND, either by converting your quoted USD rate at that day’s bank exchange rate or charging your credit card in VND. If you insist on paying in cash USD, expect bureaucratic headaches and sometimes outright refusal. Even duty-free shops at the airport are trending toward VND-only payment for non-flight-related retail.
Last year, I tried to settle my bill at a mid-tier hotel in Da Nang with $100 cash. The receptionist looked worried, disappeared for ten minutes, and returned with the manager. They explained—apologetically—that their system only accepted VND. They offered to walk me to a nearby bank branch to change my dollars, but the bank required a passport and a lot of paperwork. I ended up paying with my travel debit card, which charged me in VND at a reasonable rate.
I asked Nguyen Minh, a compliance manager at a major Vietnamese bank, about the prevalence of USD payments. She explained:
“While Vietnam is open to foreign capital and investment, the law is clear about currency use. Allowing USD payments would undermine monetary policy and create headaches for tax authorities. We advise all our retail and corporate clients to stick to VND for every transaction.”
That pretty much sums it up.
To put things in perspective, let’s look at how Vietnam’s stance stacks up against other countries in terms of verified trade and cross-border payment rules.
| Country | Currency Law/Regulation | Legal Basis | Enforcement Body | Notes on USD Usage |
|---|---|---|---|---|
| Vietnam | VND only for domestic transactions | Decree 70/2014/ND-CP | State Bank of Vietnam (SBV) | Strictly enforced, rare exceptions |
| Cambodia | Dual currency: Riel and USD | NBC Regulation No. 7-017-2016 | National Bank of Cambodia | USD widely accepted |
| Thailand | THB only for domestic transactions | Foreign Exchange Act B.E. 2485 | Bank of Thailand | USD rarely accepted in retail |
| United States | USD only for official transactions | Legal Tender Laws | U.S. Treasury | Foreign currency not accepted |
| Laos | Kip primary, USD/EUR allowed for some payments | Bank of Lao PDR Guidelines | Bank of Lao PDR | USD accepted in tourist areas |
In 2019, a US electronics company tried to invoice a Vietnamese partner in USD for a bulk import of semiconductors. The Vietnamese customs authorities flagged the invoice, citing USTR and WTO rules for cross-border payments, but ultimately demanded that all customs documentation and settlements be in VND. After months of negotiation, the two parties agreed to convert all USD amounts into VND at the official exchange rate published by the State Bank of Vietnam on the day of payment. This created headaches with accounting, tax declarations, and even delayed logistics, reinforcing the importance of understanding local currency laws.
My own best advice: Don’t bother trying to pay with USD in Vietnam unless you’re absolutely stuck. Keep a small amount for emergencies, but plan to convert most of your cash at a bank, or better yet, use a debit or credit card that doesn’t charge foreign transaction fees.
I’ve also messed up by relying on black-market money changers—don’t do this. Rates are unpredictable, and you risk counterfeit notes or even legal trouble. Stick to official channels, like Vietcombank or BIDV, which are reputable and used by locals and expats alike.
In summary, while the US dollar is king in global finance, it’s just not a practical (or legal) payment method for everyday transactions in Vietnam. The rules are clear, and enforcement is robust, especially in cities and formal businesses. If you want to avoid headaches, always use Vietnamese Dong, and exchange your USD at official banks or ATMs.
For more on Vietnam’s currency rules, check out the official SBV legal portal. If you’re dealing with international trade, consult a financial compliance expert before you invoice or settle cross-border deals.
If you’ve had a different experience (or managed to pay with USD somewhere in Vietnam), let’s hear your story—just don’t expect it to be the norm!