Vietnamese Dong is one of the most popular exotic currencies you can find. Aside from online trading, you need VND if you want to go to Vietnam. The inflation reduced the value of the VND enough, making Vietnam cheap and affordable for foreigners.
Even so, you have to know how to distinguish Vietnamese Dong banknotes. There are two families of banknotes, with their specific way of use.
Of course, if you want to buy or trade VND, you can do that with US First Exchange. Before you get this exotic currency, learn more about the VND.
Short History of the Vietnamese Dong
Vietnamese Dong became the official currency of Vietnam in 1978. Before the unification of North and South Vietnam, each country had its currency. Even then, they had their version of the Dong.
Even after the political stabilization of Vietnam, the county economy continues to suffer from a poor economy. To this day, the Vietnamese currency stands as the least valued currency in the world.
The country still has to overcome inflation and develop a solid economy to increase the value of its currency. Of course, this situation makes Vietnam a perfect location for tourist trips. Currently, you can exchange 50 USD for a million VND.
That makes it a perfect place for foreigners to visit and spend holiday trips over in Vietnam.
Vietnamese Dong Banknotes Denominations
If you want to visit Vietnam, you need to know that you can’t use other currencies in Vietnam. You have to use the Dong and exchange it as soon as you enter the county. Keep in mind that banks don’t work on the weekend in Vietnam, so get the money beforehand.
When you exchange money, you have to know about two denomination families of Vietnamese currency. These families are the cotton family and the polymer family. Both are valid, and you can use them legally for all purchases.
You can find Vietnamese Dong banknotes issued in banknotes of 200, 500, 1.000, 2.000, 5.000, 10.000, 20.000, 50.000, 100.000, 200.000, and 500.000 VND. Due to the low value of the currency, you can rarely buy anything worth less than 5.000 VND.
Another peculiar thing about VND is the lack of coins. There are coins you can’t use anywhere. That is another benefit of the VND since using only banknotes makes financial transactions smoother.
Now, you want to have more polymer family banknotes and reduce the use of cotton family banknotes. That way, you make all transactions easier and make your finances easier to track.
Vietnamese Dong Cotton Family
The Cotton Family banknotes are of lower value. Locals tend to use them for festivals, smaller purchases, and other conveniences. There are five banknotes in the Cotton Family, and these are 200, 500, 1.000, 2.000, and 5000VND.
The problem with Cotton Family banknotes is their low value compared to other currencies. For example, the 5.000 VND is worth 0.22$. Another problem of the Cotton Family banknotes is their physical quality.
The cotton base makes the banknotes weak against water and easy to tear. Also, using Cotton Family banknotes can be confusing to use for newcomers to Vietnamese currency. They are fine for street shopping, whether you are buying trinkets or street food.
For other purchases such as paying for housing or shopping in markets, use the Polymer Family.
Vietnamese Dong Polymer Family
The Polymer Family banknotes are of higher value. Locals and tourists alike prefer to use them in all financial transactions. There are six banknotes in the Polymer Family, and these are 10.000, 20.000, 50.000, 100.000, 200.000, and 500.000 VND.
The advantage of the Polymer Family banknotes is that you can use them in all transactions. Unlike the Cotton Family banknotes, you can go through a whole week with a few Polymer Family banknotes.
Also, Polymer Family banknotes have higher physical quality. They have water resistance and are hard to tear. While they are water-resistant, they tend to stick up together when exposed to water. Aside from that, you use the Polymer Family banknotes for 90% of all transactions in Vietnam.
However, you have to know the worth of the VND compared to other currencies.
Value of Vietnamese Dong Compared to US Dollar
The US Dollar is a global currency, and you can use it to get the initial VND for your portfolio. And, the US Dollar makes the comparison and exchange simpler due to the stable American economy.
On the day of writing, 1 USD is worth 23.000 VND. So, with only 50 USD, you can be a millionaire in Vietnam. That is even more important when you look at the low prices in Vietnam.
For example, you can rent a double bedroom for a night for only 8.76 USD or 200.000 VND. So, you can purchase various luxuries for a few hundred dollars.
Where You Can Use Vietnamese Dong
The primary uses of the VND are for online trading and shopping and local purchases in Vietnam. While it may be an interesting currency for online trading, it is less interesting as a currency for online shopping.
However, the full potential of the VND is in the local purchases. You can use it during tourist trips and for purchases directly from the state of Vietnam.
Use Vietnamese Dong
That is how you can use and distinguish VND banknotes. While it may not be the most popular currency, it has its use and potential.
The best time to use the Vietnamese Dong is when you visit Vietnam. Take a chance to become a millionaire for the price of 50 USD.
