Exchanging foreign currency to Vietnamese Dong is a necessary step when trading the forex market or traveling to Vietnam. But when traders are new to the foreign exchange world, the process can seem rather intimidating.
In this article, we take a look at how to exchange foreign currency to Vietnamese Dong – the currency of Vietnam. Let's dive in:
Where to exchange foreign currency in Vietnam?
Forex brokers
While some forex brokers may allow traders to exchange foreign currency into VND, most trading platforms keep USD or AUD as their default currencies. since these are the major currencies that are recognized globally.
Traders can deposit funds into their accounts in VND and then the forex trading platform can convert the money into USD to AUD based on real-time conversion rates. After the conversions, traders can start placing orders. At the time of withdrawal, trades can convert the money back to VND.
Banks
In Vietnam, banks are one of the most reliable ways to exchange currency. There are several prominent banks present in the country including Vietcombank (a government-owned bank), ANZ, HSBC and Exim Bank.
Most banks operate on weekdays from 8:00 AM to 4:00 PM. However, one should check for lunch timings and public holiday schedules of the local bank branches.
Gold/jewelry shops
A wide number of gold shops in Vietnam offer currency exchange services. While most gold shops offer conversion of foreign currencies, they also have exchange rates. Though it's important to note all jewelry shops are authorized to exchange foreign currency to Dong. As a result, customers should do their own research and only choose authorized gold shops to avoid any scams or issues.
Currency exchange counters at airports and in cities
There are currency exchange counters available across major airports and cities in Vietnam. But exchange rates at airports are usually higher than the average rates. That’s why it's better to go for authorized exchange centers in the city and compare their exchange rates before finalizing one.
ATMs
One of the most convenient ways to get Vietnamese Dong is by simply withdrawing cash from ATMs using bank cards.
Though it’s important to keep in mind that banks will charge withdrawal fees over the usual currency conversion rates. To avoid paying too much in withdrawal fees, it's better to withdraw large amounts of cash instead of making small withdrawals.
Also note that it's not recommended to carry too much cash in Vietnam as it can make people a target of theft and pickpockets.
5 Guidelines to Exchanging Vietnamese Dong
- Find a place to exchange foreign currency: Go for authorized banks, licensed exchange counters, or gold shops. It's very crucial to do research and due diligence to avoid any potential scams.
- Research exchange rates: Just because a place is reputed doesn’t mean it would have the most favorable exchange rates possible. Therefore, people should research the current exchange rates and compare the rates from different places.
- Keep identification documents handy: Almost all foreign currency exchangers require identification documents before they proceed with any transactions. It's always a good idea to keep a valid government ID or passport on hand when going to exchange foreign currency to Vietnamese Dong.
- Confirm any additional fees: Before proceeding with the transaction, ask about any additional fees that might be included. Asking for a written or printed receipt of the transaction is also good practice to avoid any issues in the future.
- Count the money: Before leaving the currency exchange counter, it's good to count the notes and check them for any signs of counterfeit.
Top guides for beginners when exchanging foreign currency in Vietnam
- Don’t exchange all the money at once to avoid carrying excessive cash around
- Check the condition of the bank notes before accepting them. There should be no damage and notes should be in good condition
- Carry the passport for identification purposes, especially when exchanging large sums of foreign currency
- Keep note of the number of zeros in currency notes. Vietnamese Dong currency notes have some bills with similar colors. For instance, VND 20,000 and VND 500,000 are blue, and VND 100,000 and VND 10,000 have a greenish tone.
- When planning to trade the forex market, its better to use AUD or USD for trading than exchanging foreign currency to Vietnamese Dong
How to verify the authenticity of Vietnamese Dong currency notes
Here are the key features of genuine Vietnamese Dong currency notes that should be checked when exchanging currency:
- Genuine Vietnamese Dong notes have a unique texture with raised ink patterns. Counterfeit notes usually lack that same texture.
- When holding the currency note against a light source, a watermark embedded into the paper will be visible. The watermark will have a portrait of a notable Vietnamese historical figure like Ho Chi Minh
- There is a security thread on the note, which looks like a vertical strip. It appears as a continuous line over where the denomination number is written on the note.
- Some Vietnamese Dong currency notes also have color changing ink in them. When the note is tilted back and forth, its color changes.
- Checking and comparing serial numbers present on currency notes is also a great way to verify authenticity. Each authentic Vietnamese Dong has a unique serial number. One can also compare the font type, size, and text alignment of the serial numbers.
- Counterfeit notes are often made with cheap, regular plastic which makes them more prone to damage. On the other hand, Vietnamese Dong is made of premium plastic which makes it much less likely to get torn in any way
How to exchange Vietnamese Dong for forex trading?
Almost all major forex trading platforms have USD or VND as their default trading currency. That is why it’s better to convert VND into AUD or USD when forex trading. Traders can directly deposit funds in VND to get started and the forex trading platform should be able to directly convert the currency into USD or AUD. There will be conversion charges applied based on the real-time currency exchange rate.
When traders sign up Blueberry, they can exchange their VND to USD or AUD directly when they deposit money into their trading account. At the time of withdrawal, traders can convert the money back to VND.
Sign up for a live account or try a demo account on Blueberry today.
