How to Send Money to Someone in Vietnam

Sending money across international borders is a common necessity. For individuals in the United States needing to transfer funds to Vietnam, various methods are available. Understanding these options, along with associated requirements and costs, helps ensure a smooth transfer.

Understanding Transfer Methods

Several methods exist for sending money to Vietnam, each with distinct characteristics regarding speed, convenience, and reach.

Online money transfer services are popular due to their digital nature. Platforms like Wise, Remitly, WorldRemit, and Xoom operate via websites or mobile apps. They provide transparent exchange rates and fees upfront.

Traditional bank wire transfers offer another pathway for international remittances, moving funds directly from a sender’s account to a recipient’s account in Vietnam. While secure, they can involve higher fees and longer processing times than digital alternatives.

Cash pickup services, such as Western Union and MoneyGram, allow recipients to collect cash from designated agent locations in Vietnam. These services are useful when the recipient lacks a bank account or needs immediate physical currency.

Essential Information and Documentation

Before initiating any money transfer to Vietnam, gather specific information and documentation. Details are required for both the sender and recipient.

For the sender, essential information includes full legal name, current address, and contact number. A government-issued identification, such as a passport or driver’s license, is required for identity verification.

For the recipient in Vietnam, their full legal name must match their identification document. Their physical address and contact number are also required. For bank transfers, the recipient’s bank name, account number, and SWIFT/BIC (Society for Worldwide Interbank Financial Telecommunication/Bank Identifier Code) are necessary. For cash pickup, specific details like the recipient’s ID type are needed.

Navigating Costs and Exchange Rates

Understanding the financial implications of sending money internationally involves examining transfer fees and exchange rates. These two components determine the total cost of the transaction.

Transfer fees vary based on the chosen service and amount sent. Some services impose flat fees, while others use a percentage-based structure. Bank transfers, for instance, may incur fees ranging from $10 to $50, while online services often charge lower fees, usually between $2 and $10.

The exchange rate plays a role in the amount of Vietnamese Dong (VND) the recipient receives. Service providers use an exchange rate that differs from the interbank or mid-market rate, the midpoint between buying and selling prices. This difference, known as the “spread” or “markup,” represents a hidden cost and can be a source of profit.

Beyond explicit fees and exchange rate markups, other hidden costs can arise. Correspondent bank fees may be deducted by intermediary banks involved in a wire transfer. Some Vietnamese banks may also charge a fee for receiving international remittances, deducted from the amount before it reaches the recipient. Compare the total cost, including both fees and the effective exchange rate, across different providers to identify the most economical option.

Initiating Your Money Transfer

Once all necessary information is gathered and a transfer method selected, the money transfer process can begin. Procedural steps vary depending on whether an online platform, a bank, or a cash pickup agent location is used.

For online money transfer platforms, the process involves logging into an account and navigating to the send money section. The sender inputs recipient details, including name, address, and bank account information or cash pickup location. The sender selects a payment method, such as linking a bank account, or using a debit or credit card, and confirms the transaction.

When initiating a bank wire transfer, the sender can visit a physical bank branch or use their bank’s online banking portal. At a branch, the sender provides government-issued ID and fills out a wire transfer form with all recipient and bank details. For online banking, the process involves logging in, locating the international transfer or wire transfer section, and inputting the recipient’s name, address, bank name, SWIFT/BIC code, and account number.

For cash pickup services, the sender visits an agent location. They provide identification and the recipient’s details, including full name, address, and phone number. A transaction reference number is issued, which the sender must share with the recipient for pickup.

Receiving Funds in Vietnam

The final stage of the money transfer process involves the recipient accessing funds in Vietnam. The method of reception depends on the initial transfer choice made by the sender.

If funds are sent for direct bank deposit, they are credited to the recipient’s Vietnamese bank account. Processing time ranges from minutes to a few business days, depending on the sending and receiving banks.

For cash pickup transfers, the recipient must visit a designated agent location, such as a partner bank branch. They must present a valid government-issued identification, like a national ID card or passport, and provide the transaction reference number from the sender.

Local regulations in Vietnam, overseen by the State Bank of Vietnam, govern foreign currency transactions. Authorized banks verify information for international money transfers. For larger sums, recipients may undergo additional identity verification or declare the purpose of funds, aligning with anti-money laundering and counter-terrorist financing efforts. In some instances, for specific purposes like financial sponsorship, limits may apply to the amount transferred.