Money and payments in Vietnam for Indian travellers

Vietnam runs mostly on cash, so carry a sensible mix of Vietnamese dong and an international card. Use the card for hotels and larger shops, keep dong for street food, markets, taxis and small restaurants, and always choose to pay in the local currency when a card machine asks.

The currency: Vietnamese dong

Vietnam's currency is the Vietnamese dong, often written as VND. Notes come in several sizes, from small denominations to large ones worth hundreds of thousands of dong. Because the numbers are big, take a moment to count zeros when you pay, especially in busy markets or right after a long flight. It is easy to hand over the wrong note when you are tired, and once a vendor has given you change, sorting out a muddle in a crowded street stall is not much fun.

You will not be able to use Indian rupees anywhere in Vietnam. Change your rupees to dong in India before you fly, or withdraw dong from an ATM after you land. Having some dong in your pocket on your first day is a real help, because airport transfers, a bottle of water and your first meal will all need cash. The moment you clear immigration, you start spending, and a dong note is the only thing that works at the small counters and taxi stands.

Get comfortable with the feel of the notes before you leave. Spread them out, look at the colours and the printed numbers, and practise reading the zeros. When you are new to a currency with such large denominations, a quick glance is not enough. It is worth a few minutes of practice at home so that handing over the right amount becomes automatic.

Cash versus cards

Plan for both, because Vietnam is not a fully cashless country. In cities like Hanoi, Da Nang and Ho Chi Minh City, hotels and larger restaurants accept cards without a problem. Step into a street-food stall, a local market or a neighbourhood cafe and cash is expected. Small vendors often have no card machine at all, and even those who do may prefer a note over a swipe.

A good approach for an Indian traveller is to keep a working international credit or debit card for hotels, shopping malls and bigger spends, plus enough dong for a full day of meals, rides and small buys. Top up your cash at ATMs in city centres rather than carrying your whole trip's spending money from day one. This way you never walk around with more cash than you are comfortable losing, and you always have a fallback if a vendor will not take your card.

Think about where each part of your trip will take you. A day in the markets and backstreets of Hoi An is almost entirely cash. A night at a hotel in Da Nang or a dinner at a larger restaurant is fine on a card. Matching your payment method to the place saves you from awkward moments at the till and from carrying large amounts of cash through areas where you would rather not.

Tell your bank before you travel

Before you leave India, call your bank and let them know you will be using your card in Vietnam. If you do not, your first overseas transaction can look suspicious and the bank may block the card. That is a frustrating way to start a holiday, because the block often happens at the worst possible moment: late at night, in a new city, when you most need your card to work.

While you are on the call, check two things. First, confirm that international transactions are switched on for your card. Some Indian banks keep this disabled by default, and no amount of pre-travel notice will help if the switch is off. Second, make sure you know the right customer-care number to call from abroad in case your card is lost, swallowed by an ATM or blocked. Write that number down and keep it somewhere separate from your cards.

Do this a few days before your departure date so there is time to fix anything. A phone call today is far easier than trying to sort out a frozen card from a hotel lobby in Vietnam, possibly with a time difference and a weak phone connection. It is one of the simplest jobs on your pre-trip list and one of the most commonly forgotten.

Choose dong, not rupees, at the card machine

When you pay by card in Vietnam, the terminal may offer you a choice between paying in the local currency and paying in your home currency in rupees. Always choose the local currency, the dong. Choosing rupees lets the card machine pick its own exchange rate, which is usually worse for you. Picking dong means your own bank converts the amount, and your bank's rate is generally the better one.

This is an easy rule to follow but a hard one to remember when the machine screen is flashing in front of a queue. The moment you see the choice, tap the local currency option. It is the same choice that appears at ATMs in many places. If a machine suggests a conversion to rupees, decline it and withdraw in dong instead. It is a small choice that adds up over a week of meals, shopping and taxi rides.

If you are unsure which button to press, ask the cashier to leave the machine in local currency, or simply press the option that shows dong rather than rupees. A little attention here protects you from a rate you never agreed to, and the saving over a full trip is worth the extra second of care.

What to pack for payments

• A small amount of Vietnamese dong in cash for your first day
• One international credit or debit card, with international transactions enabled
• A backup card kept separately from your wallet
• A copy of your card's customer-care number for calls from abroad
• A small purse or pouch to keep notes and coins sorted
• Some dong in smaller notes for markets, tips and street food

Spreading your money this way means one lost card or an empty wallet does not leave you stuck. Keep most of your cash in your hotel safe, and carry only what you need for the day. When you are out, split your cash between your wallet and a pocket so you are never left with nothing at once.

A sensible money routine for your trip

Start each day by taking enough dong for that day's meals, rides and small buys, and leave the rest locked away. Pay for hotels and bigger purchases on your card, choosing dong at every terminal. Withdraw cash only at ATMs in busy, well-lit areas, and shield your PIN as you type it. Check the dong notes you receive as change before you walk away from a counter.

Handling money in Vietnam is easy once you accept that cash is king in most everyday situations. Carry dong for the small stuff, keep a working card for the big stuff, warn your bank before you go, and always pick the local currency at a machine. Do those four things and you can spend the trip enjoying the food and the sights instead of worrying about how to pay.