5 Guides for Exchanging Foreign Currency to Vietnamese Dong Without Getting Scammed

Exchanging foreign currency in Vietnamese Dong may seem like a straightforward process, but there are many things that can go wrong if people are not careful. Whether one is preparing to exchange foreign currency to Vietnamese Dong (VND) for visiting the local cities or for forex trading, it's important to be aware and well-informed of all the potential scams involved. 

Let's dive into the foreign currency exchange world and learn the top tips for safely converting foreign currency into Dong.

1. Convert Dong to USD or AUD for forex trading through reliable brokers

For anyone planning to forex trade in Vietnam, it's better to convert Dong into a major foreign currency like USD or AUD instead of the other way. That’s because most forex brokers support transactions in AUD and USD which makes the whole process easier. Traders can deposit trading funds in VND and then convert through forex brokers to start trading the market. When it is time to withdraw, traders can convert the currency back to VND. 

It is essential for traders to choose reliable and regulated brokers to ensure the safety of their funds.

2. Go with reputable money exchangers

When planning to exchange currency, it's crucial to only go with authorized and reputable money exchangers to avoid any chances of getting scammed. 

There may be many street vendors or even unlicensed currency exchange bureaus offering to exchange foreign currency to Dong at a ‘too good to be true’ exchange rate. But remember if something is too good to be true, it probably is. These unauthorized money exchangers either charge very high fees over conversion rate or they engage in fraudulent activities altogether. 

Here are some reputed money exchangers that should be considered:

• Banks: Almost all major banks in Vietnam allow currency exchange to Vietnamese Dong. Due to their regulations across the country, its mostly considered safe to exchange money at banks. Some of the top banks in Vietnam include Techcombank, Beitcombank, and BIDV. International banks like Standard Chartered, ANZ, and HSBC also have their presence in Vietnam.
• Licensed money exchange bureaus: There are licensed exchange bureaus that have been authorized by the State Bank of Vietnam, and they primarily function to help people exchange currency. These places are required to meet certain regulations and standards to get authorized, which is why they are considered very safe for currency exchange.
• Gold shops: There are quite a few reputed jewelry shops in Vietnam that offer currency exchanges. Some of these shops are even licensed by the State Bank of Vietnam. But with so many jewelry shops around, it's important to do due diligence, practice caution to find  the ones which are licensed and the most reputed.

3. Learn about all the popular scams

A great way to not get scammed when exchanging money is by knowing all about the popular scams and bait and switch tactics. 

Here are some of the most popular scams that people should be aware of:

• Counterfeit currency: Scammers can pass off counterfeit currency in exchange for legitimate foreign currency. It can be difficult to detect counterfeit currency especially if people are not very familiar with Dong and how to verify its authenticity. That is why it's important to check for any signs of forgery or tampering before accepting currency notes. In case of exchanging a large amount of cash, take time to review all the notes properly as sometimes scammers can tuck in a few fake notes along with some real ones to get away with it.
• Bait and switch: Sometimes, unauthorized currency exchangers may offer incredibly alluring exchange rates to get more customers. Once the customer is committed to making the exchange, the scammers may add on extra fees or change the rate altogether at the last minute. 
• Hidden additional fees: Some currency exchangers may not even mention any additional fees upfront and directly deduct it from the final amount before handing over the converted Vietnamese Dong to customers. When exchanging currency, people should use their own currency conversion calculations and count the currency notes before they leave the exchange place. 
• Miscounting: There can also be some currency exchangers who purposely miscount currency notes that they give to customers, hoping that customers won’t notice a few notes missing. It's very important to not just count the notes but to also take a transaction receipt or some type of written confirmation from currency exchangers.
• Unlicensed forex broker: Signing up and trading with an unlicensed or unregistered forex broker can not only sink your funds, but also land you in legal trouble.

4. Find the current exchange rate

Currencies are traded across the world, 24 hours a day through the forex market. Therefore, the value of currencies always remains in fluctuation. 

As a direct result, it's possible to find different currency exchange rates at different places, even on the same day.But even then, the exchange rates shouldn’t differ a lot. Before even looking up places to exchange Vietnamese Dong, people should first research the current exchange rate to ensure the exchange rate being offered to them is not unfair or completely different from the current rate.

5. Negotiate the exchange rate

Sometimes, it's also possible to negotiate the currency exchange rate, especially when exchanging a large amount of money.  While banks and airport currency exchange counters usually have a fixed exchange rate and there is no space for negotiation, money exchange stores and gold shops in the city may allow some negotiation.

However, it's important to note that negotiation availability may vary, and individuals should exercise caution when engaging in such discussions.

6. Avoid exchanging currency at the airport

It can seem extremely convenient to hop off the plane and just exchange currency at the airport before going out to explore the beauty of Vietnam. But airport currency exchange counters take advantage of this convenience to charge high fees along with poor exchange rates. 

If possible, exchange only limited currency at the airport, just enough to get by. And then exchange the remaining amount at a bank or authorized currency exchange center in the city.

Final words

Exchanging foreign currency to Vietnamese Dong can be a simple process, as long as people proceed with caution and have the right knowledge with them. By following these tips, people can protect themselves from any potential scams while exchanging money or forex trading.