What Is Vietnamese Currency Called? A Detailed Overview

Vietnam’s currency plays a central role in the country’s economy, shaping daily transactions and trade. Whether you’re visiting or exploring its financial system, understanding its currency is essential.

This article covers its official name and symbol, denominations, exchange rate factors, and how it functions in daily life.

Official Name and Symbol

Vietnam’s currency is the Vietnamese đồng, abbreviated as VND. The word “đồng” means “copper,” referencing early metal coins. The State Bank of Vietnam, the country’s central bank, issues and regulates it.

The symbol for the đồng is ₫, commonly seen on price tags, receipts, and financial documents. While VND is used in banking and foreign exchange, the ₫ symbol is more common in daily transactions.

Unlike currencies with decimal subdivisions, the đồng has no smaller units in circulation. The hào and xu were once used but became obsolete due to inflation, so all transactions are conducted in whole đồng amounts.

Major Denominations

Vietnamese banknotes range from 1,000 VND to 500,000 VND. These polymer notes are designed to withstand the country’s humid climate and feature historical figures, cultural landmarks, and national symbols. The 500,000 VND note, the highest denomination, displays a portrait of Ho Chi Minh and his childhood home in Nghệ An province.

Lower-value banknotes, such as 1,000 VND, 2,000 VND, and 5,000 VND, remain in circulation but are less common in cities due to their low purchasing power. They are more frequently used in rural areas for small transactions. The 10,000 VND, 20,000 VND, 50,000 VND, 100,000 VND, and 200,000 VND notes facilitate everyday purchases.

Each denomination has a distinct color to aid identification. The 20,000 VND note is blue, the 50,000 VND note is pink, and the 100,000 VND note is green. The 200,000 VND and 500,000 VND notes are red and blue-green, respectively. Security features such as transparent windows, watermarks, and raised printing help prevent counterfeiting.

Exchange Rate Basics

The đồng’s value fluctuates based on economic conditions, monetary policy, and global markets. The State Bank of Vietnam sets a daily reference rate against the U.S. dollar, with banks and foreign exchange services operating within a regulated trading band to stabilize the currency.

Exchange rates vary by location. Banks generally offer better rates than exchange kiosks or hotels, which may include hidden fees. Travelers and businesses should compare rates from banks, online converters, and financial institutions to secure the best value.

Inflation affects the đồng’s purchasing power. High inflation weakens the currency, making imports more expensive but benefiting exporters by making Vietnamese goods more competitive. These fluctuations influence foreign investment and trade balances.

Role in Everyday Transactions

Vietnam remains a largely cash-based economy. While digital payments are growing in cities like Ho Chi Minh City and Hanoi, cash is still dominant, especially in local markets and small businesses. Many vendors and service providers accept only cash, making it essential for both residents and visitors to carry banknotes.

ATMs are widely available in urban areas, though withdrawal limits and fees vary by bank. International credit and debit cards are accepted at major hotels, upscale restaurants, and shopping malls, but smaller establishments often operate on a cash-only basis. Mobile payment platforms like MoMo and ZaloPay are gaining popularity, yet their adoption remains limited outside major cities.