Honestly, the first time you land in Hanoi or Ho Chi Minh City and hit an ATM, you’re going to feel like you just won the lottery. You’ll withdraw a couple of million and think, This is it. I’ve made it. Then you realize that 500,000 of this currency—the Vietnamese dong—might only cover a decent dinner for two with a couple of drinks.
It’s a trip.
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The Vietnamese dong (VND) is the official currency of Vietnam, and it is famously one of the lowest-valued currency units in the world. As of early 2026, the exchange rate is hovering around 26,300 VND to 1 USD. This means a single U.S. dollar buys you tens of thousands of dong. It’s a lot of zeros to keep track of, and if you’re not careful, it’s incredibly easy to confuse a 20,000 note with a 500,000 note because they’re both sorta blue-ish.
What Exactly Is the Dong?
The word "dong" actually comes from the Vietnamese term đồng tiền, which basically just means "money." Historically, it refers to the bronze coins that were used long ago. Today, you won't see any coins. They technically exist in some vault somewhere, but they were pulled from circulation years ago because inflation made them worth less than the metal they were stamped on.
If you’re traveling there or doing business, you’re dealing almost exclusively with banknotes.
These notes come in two "families." You’ve got the small-value paper (cotton) notes:
- 1,000 VND
- 2,000 VND
- 5,000 VND
And then you have the big hitters, the polymer notes:
- 10,000 VND
- 20,000 VND
- 50,000 VND
- 100,000 VND
- 200,000 VND
- 500,000 VND
The polymer ones are basically plastic. They’re great because they don’t rip easily and they don’t get ruined when you’re sweating through a humid afternoon in the Mekong Delta. Plus, they have these little clear windows that are a nightmare for counterfeiters to copy.
The "Instant Millionaire" Trap
It’s a running joke among expats and travelers. You walk around with a wallet fat with 500,000-dong bills, feeling like a high roller. But the reality of the Vietnamese economy is that the State Bank of Vietnam (SBV) manages the currency very tightly. It’s what economists call a "managed float."
Basically, the government lets the dong's value move a little bit, but they step in with their foreign exchange reserves if it starts sliding too fast against the dollar.
Why is it so "weak"? It’s not because the economy is failing. Far from it—Vietnam’s GDP growth is often some of the highest in Southeast Asia, hitting over 8% in late 2025. The low value is a legacy of past hyperinflation and a deliberate strategy to keep exports cheap. If you’re a manufacturer in Binh Duong making sneakers for the global market, a weaker dong makes your product very attractive to buyers using dollars or euros.
Real-World Value: What Does It Actually Buy?
To give you an idea of how this currency works in the wild, let’s look at some boots-on-the-ground prices.
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A bowl of pho at a street stall in a local neighborhood might run you 35,000 to 50,000 VND. That’s about $1.50 to $2.00. A coffee—the strong, condensed-milk kind that will keep you awake for three days—is usually around 20,000 to 30,000 VND.
If you’re taking a "Grab" (the local version of Uber) across town, you might pay 60,000 VND.
The biggest note is the 500,000 VND bill. In USD, that's roughly $19 to $20. Most people use this for hotel bills or big dinners. If you try to pay for a 15,000 VND bottle of water with a 500,000 note, the vendor will probably give you a look that says, "Are you serious?" Always keep some 10k and 20k notes handy for the little things.
Keeping Your Money Safe (and Avoiding Scams)
Counterfeiting isn't a massive problem with the polymer notes, but the color similarity is. The 20,000 note and the 500,000 note are both blue. In the dark, or if you’ve had a few Bia Hanois, it is very easy to hand over a 500k note when you meant to give 20k.
You’ve just tipped $19 on a $0.80 beer.
Pro tip: Organize your wallet by denomination. Put the big 500k and 200k notes in one section and the smaller ones in another.
Also, don't bother with the "black market" money changers on the street. It’s illegal and you’ll probably get shortchanged. Stick to the gold shops in the Old Quarter or official bank branches like Vietcombank. Surprisingly, gold shops often give better rates than the banks, and it's perfectly normal to see people exchanging stacks of cash there.
The Shift Toward Digital
While cash is still king at the wet markets and small cafes, Vietnam is sprinting toward a cashless society. Apps like MoMo and ZaloPay are everywhere. You’ll see QR codes taped to the side of fruit carts and tucked under the glass of jewelry stores.
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If you’re a tourist, you can often link your credit card to the Grab app, which handles your rides and food deliveries without you ever needing to touch a dirty banknote. Just keep in mind that many small places still don't have card readers, and if they do, they might tack on a 3% "convenience fee."
Is the Dong Stable Right Now?
Lately, there’s been some pressure. In late 2025, the dong faced some depreciation because of high interest rates in the U.S. and a weird situation where local gold prices were way higher than global prices. This caused people to scramble for dollars to buy gold, which pushed the dong's value down.
The State Bank of Vietnam has been burning through some of its cash reserves—about $81 billion left at last count—to keep things from getting out of hand. For a business owner or an investor, this means you have to watch the "spread" between the official rate and the market rate.
Actionable Steps for Handling VND
- Ditch the Coins: If someone tries to give you coins, they’re probably souvenirs. No one uses them.
- The "Three Zero" Rule: To do quick math, just drop the last three zeros. A 100,000 note? Just think of it as "100." It makes it much easier to compare prices.
- Check the Polymer: Always feel the note. Real polymer is slightly embossed (raised) and very hard to tear. If it feels like cheap paper, it's fake.
- ATM Strategy: Use ATMs attached to actual banks. They have higher withdrawal limits (often up to 5 or 10 million VND) compared to the standalone ones that cap you at 2 million and charge you a fee every time.
- Exchange Before You Leave: The dong is a non-convertible currency. Once you leave Vietnam, it’s basically colorful wallpaper. Most banks outside the country won't touch it, so exchange your leftovers back to USD or EUR at the airport before you head to the gate.
The Vietnamese dong is a fascinating example of how a country manages a high-growth economy with a low-value currency. It takes a day or two to get used to the millions, but once you do, you’ll find it’s a remarkably efficient system for a country that’s moving faster than almost anywhere else in the region.
Keep your 500ks separate from your 20ks, learn to love the QR codes, and always carry a bit of cash for that late-night banh mi. You'll be fine.