Should I use Dong or USD in Vietnam?

Navigating Currency Options in Vietnam: Dong vs. USD

When traveling to Vietnam, it’s important to consider the currency you’ll be using to ensure the best financial experience. While US Dollars (USD) are accepted in some places, it’s generally more economical to use the local currency, the Vietnamese Dong (VND).

Why Use VND?

• Favorable Exchange Rates: Merchants typically apply unfavorable exchange rates when converting to USD, resulting in higher costs for the customer. By using VND, you can avoid these inflated prices and save money.

• Widespread Acceptance: VND is the official currency of Vietnam and is widely accepted at most businesses, including shops, restaurants, and hotels. This eliminates the need to search for merchants that accept USD or carry around large amounts of cash.

• Convenience: Using VND allows for easier budgeting and eliminates the need for constant currency conversions. You can simply use the prices quoted in VND without having to do any additional calculations.

When to Use USD

While VND is the preferred currency, there are some situations where using USD may be beneficial.

• Large Transactions: For large purchases such as hotel stays or tours, it may be easier to pay in USD, as the amount may exceed the maximum daily withdrawal limit for VND from ATMs.

• Emergency Situations: If you need to make an emergency purchase and don’t have VND, USD may be your only option. However, be prepared for potential unfavorable exchange rates.

Tips for Using VND

• Carry Small Bills: VND comes in denominations of 500, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, 100,000, 200,000, and 500,000. It’s convenient to carry a mix of small bills for everyday purchases.

• Count Carefully: VND notes can be similar in size and color, so it’s important to count carefully before exchanging or making purchases.

• Use ATMs: ATMs are widely available in Vietnam and dispense VND. Be sure to check the exchange rates and fees charged by your bank before using them.

Conclusion

When in Vietnam, using Vietnamese Dong (VND) is the more economical and convenient option for most travelers. By avoiding unfavorable exchange rates and ensuring widespread acceptance, you can save money and enjoy a stress-free financial experience during your trip. However, for large transactions or emergencies, it may be necessary to carry some USD as well.