Banking infrastructure in Vietnam is relatively modern and straightforward to use. ATMs are readily available in Vietnamese cities and Internet banking comes as standard with all accounts.
Expats will find that staff at banks in Vietnam are friendly and willing to help them set up an account. However, many expats prefer to maintain an account with one of the many international banks that have a presence in Vietnam.
Money in Vietnam
Currently, Vietnam is using the official currency, denoted as Vietnam Dong (VND). Coins are no longer in circulation, Vietnamese only use banknotes.
Banknotes in Vietnam have the following denominations: 500 (less appearance), 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, 100,000, 200,000 and 500,000 with colors and images in different currencies. However, you should pay special attention to 20,000 note because its color is similar to 500,000 one. The best way is for you is take the 500,000 notes separately to easily distinguish. There are a lot of number zero, so you should check carefully before payment. The calculator app on your phone will be very useful when you travel here.
Acceptable exchange rates is 1 UDD approximate to 22,000 VND. When you check on Google, the exchange rate is only the average price. Each stores, hotels will have their own rate. The par value of the common notes will be:
20,000 VND approximate to 1 USD
50,000 VND approximate to 2.25 USD
100,000 VND approximate to 4.5 USD
200,000 VND approximate to 9 USD
500,000 VND approximate to 22.5 USD
Vietnamese Backnotes from 100,000 to 500,000 dongs
Please be careful that after the payment, you receive the note which must remain intact, not torn and too dim. Additionally, with your dollars, you have to make sure one more thing that there is no stain or text on it. The bank will not accept or exchange it with lower rates from the store or the hotel so you cannot make the payment with them.
In case you do not like using cash, you should still exchange a little because we still preferred it over and only smart restaurants and hotels equipped with the new imprint. You have to pay the bank fee is 3 – 3.5% for using the credit card. Visa, Master Card is the most common type of cards in Vietnam. In addition, you can use Amex or JCB. Maestro, Cirrus and Plus will be more difficult to make the payment. It is better if you can check with the seller before buying or using service that they accept credit card or not or exchange rates they will use.
US Dollars (USD) are accepted throughout Vietnam and many prices are quoted in dollars rather than in dong.
Banking in Vietnam
The banking system in Vietnam is modern and efficient. Most banks in Vietnam have at least one English-speaking service representative.
A number of international banks have a presence in Vietnamese cities, including HSBC and ANZ. For this reason many expats opt for these banks if they already have an account with them back in their home country. Expats looking to open an account with a Vietnamese bank will find that Vietcombank is a popular choice.
All banks in Vietnam offer a range of banking packages, so it is worth researching which packages best suit an individual’s needs. Most banks have English brochures outlining the services they offer their customers.
Opening a bank account
To open a bank account in Vietnam expats will need to have a passport and a copy of their employment contract, as well as an initial deposit – the exact amount varies according to which bank the account will be with. Some banks also require a letter from a foreigner’s landlord stating that the person is legally renting a property in Vietnam. However, most banks usually just want a valid address where the expat can be contacted, and a work address.
When opening a bank account in Vietnam, customers are given the option of either banking in Vietnamese Dong or US Dollars. This means that expats can choose which currency they wish to store their savings in.
Credit cards and ATMs
ATMs are widely available in Vietnamese cities. In rural areas and smaller towns ATMs are more difficult to find, so expats are advised to carry enough cash with them when travelling to locations that are off the beaten track.
Vietnam is still very much a cash-based economy. Credit cards are only accepted at large hotels and retail outlets, so it is best to carry cash in the majority of situations.
Taxes in Vietnam
Expat taxes in Vietnam can sometimes be quite difficult to navigate, but, generally, there are four categories of taxpayers in Vietnam, two of which apply to expatriates:
- Individuals who do not have Vietnamese citizenship but reside in Vietnam indefinitely
- Foreigners working in Vietnam, including those who do not live in Vietnam but have income which is sourced in Vietnam
If a foreigner resides in Vietnam for 183 days (six months) or more during a 12-month period then they are deemed a resident and have to follow the relevant tax laws. Income tax is determined on a variable scale of up to 35 percent.
Taxes in Vietnam have been subject to a lot of changes in recent years, so it is best to check the current situation with a qualified tax specialist.
