Vietnam, a land of breathtaking landscapes and rich cultural heritage, promises an unforgettable journey for Indian travelers. The country boasts a young, tech-savvy, and mobile-first population highly receptive to digital advancements (with mobile connections reaching 164% of the population in early 2023!). This guide provides Indian tourists with a comprehensive overview of Vietnam payment methods, covering essential cash practices, the growing acceptance of cards, the popular local digital options like e-wallets and bank transfers, and practical tips to navigate your finances smoothly.
Vietnam Payment Methods: Your Comprehensive Guide
Cash (Vietnamese Dong – VND): Still the Undisputed King
Despite the digital surge, cash remains the most dominant and widely accepted payment method in Vietnam, particularly for everyday expenses and in specific regions. Even with a 169% rise in cashless transactions between 2020-2021, cash saw a massive comeback as pandemic restrictions eased. In 2020, a staggering 90% of Vietnamese preferred cash-on-delivery, the highest in Southeast Asia, often citing perceived security over digital methods. By 2021, cash still accounted for 58% of Point-of-Sale (POS) transactions.
- Vietnamese Dong (VND): Familiarise yourself with the banknotes: 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, 100,000, 200,000, and 500,000 VND. Coins exist but are rarely used. Pay close attention to the 20,000 VND (blue polymer) and 500,000 VND (darker blue polymer) bills, as their similar colour and size can cause confusion.
- Where Cash Reigns Supreme: Cash is essential in rural, remote, and isolated areas where populations are often underbanked. It’s also the primary method for street food vendors, local markets, small shops, cyclos, and many taxis. Even some e-commerce platforms see a preference for cash-on-delivery. Always carry sufficient cash, especially smaller denominations.
- Using Cash Wisely: Keep cash secure, avoid flashing large sums, and double-check your change. Be aware of potential scams like counterfeit notes or incorrect change. Exchanging currency at official banks or reputable exchange counters is advisable. Having a mix of small bills (10k, 20k, 50k) is crucial for small purchases.
READ MORE: A guide to currency, payments and tipping in Vietnam
Card Payments (Credit & Debit): Growing Acceptance in Urban Hubs
Card payments are gaining significant traction, especially in major cities and tourist destinations, driven partly by the pandemic push for cashless options and government efforts. The value of card payments grew sharply by 13.7% in 2021 after modest growth in 2020. The total annual value reached US$36.4 billion in 2022.
Credit and Debit Cards
Visa, Mastercard, and JCB are the most commonly accepted international cards. You’ll find acceptance increasing in mid-range to high-end hotels, larger restaurants, shopping malls, department stores, and some tourist attractions, particularly in Hanoi, Ho Chi Minh City, and Da Nang. However, Vietnam has relatively low card penetration per capita (1.29 debit cards, 0.08 credit cards), so acceptance is not universal. Always ask beforehand if cards are accepted, especially outside major tourist areas. Note: Some places might add a surcharge (around 3%) for card payments.
Where to Use Cards
Rely on cards in established businesses in cities, but do not expect widespread acceptance in smaller towns, local eateries, or markets. Always have cash as a reliable backup. Ensure your card is enabled for international transactions before you travel.
Transaction Fees and Exchange Rates
Be mindful of international transaction fees (often 1-3%) charged by your home bank and potential dynamic currency conversion (DCC) markups if you choose to pay in your home currency (INR) instead of VND at the point of sale. It’s usually better to pay in VND and let your bank handle the conversion. Check your bank’s fees and exchange rates beforehand.
Security
Use ATMs at reputable bank locations. Be cautious of skimming devices. When paying online (e.g., booking hotels), ensure the website uses a secure connection (https).
Digital Wallets & Mobile Payments: Booming Locally, Challenging for Tourists
Vietnam has witnessed a massive uptake of digital wallets, fueled by its smartphone-savvy population (73.5% adult smartphone ownership in 2022). Penetration is projected to soar from 19.7% in 2020 to 55.5% by 2025. According to a Visa survey, almost 76% of Vietnamese consumers use mobile wallets.
Popular Local E-Wallets
The market is competitive with over 40 providers. Key players include:
- MoMo: 47% market share
- Viettel Pay: 25% market share
- ZaloPay: 17% market share
- ShopeePay (formerly AirPay): 10% market share
- Moca (linked with Grab)
Usage for Tourists
While you’ll see locals paying everywhere with QR codes via these apps, using them as a short-term Indian tourist is generally difficult. Most e-wallets require a Vietnamese phone number and often linkage to a local Vietnamese bank account for setup and funding. International mobile payment systems are not widely integrated yet. So, admire the convenience, but don’t rely on using these yourself unless you plan an extended stay and set up local accounts.
Bank Transfers & QR Codes: A Pillar of Local Payments
Bank transfers are a cornerstone of the Vietnamese payment ecosystem, accounting for at least 29% of e-commerce revenue. This is largely facilitated by NAPAS (National Payment Corporation of Vietnam), which manages the national retail payment infrastructure.
Mobile Banking & NAPAS 247
Given high smartphone penetration, mobile banking is extremely popular for transfers. The NAPAS 24/7 service allows instant transfers between accounts across different banks.
VietQR: The QR Code Revolution
Launched by NAPAS in 2021, VietQR enables standardized QR code payments linked directly to bank accounts. This has seen explosive growth: in the first half of 2023, QR code payments surged by 152% in quantity and 301% in value, the highest growth among non-cash methods. Over 50 banks are part of this system. Tourists will encounter VietQR codes frequently in shops and restaurants, primarily used by locals. Vietnam is also part of regional initiatives to connect payment systems with countries like Thailand, Singapore, etc., potentially enabling cross-border QR payments in the future.
Buy Now, Pay Later (BNPL): An Emerging Trend
BNPL services like Atome, Fundiin, and Kredivo are gaining popularity, especially among younger Vietnamese (Millennials, Gen Z) who may not have credit cards. It allows interest-free installment payments, primarily for e-commerce. While part of Vietnam’s evolving digital payment landscape, it’s generally not relevant for short-term tourists.
READ MORE: Briefs about Vietnam visa for Indians
Navigating Payments in Different Settings
Knowing where to use which method is key:
- Street Food and Local Markets: Cash (VND) is essential. Bargaining is common. Use small bills.
- Restaurants and Cafes: Larger, tourist-oriented ones in cities often accept cash and cards. Smaller local eateries will likely be cash only. Always check first.
- Hotels and Accommodations: Major hotels accept credit cards and possibly bank transfers. Smaller guesthouses or homestays might prefer or only accept cash. Confirm when booking.
- Transportation: Most traditional taxis and local buses require cash. Ride-hailing apps (like Grab) may allow card payments linked in the app, but the cash option is always reliable.
Essential Tips for Indian Tourists
- Inform Your Bank: Crucial! Notify your Indian bank of your travel dates and destination (Vietnam) to prevent your cards from being blocked due to unusual activity.
- Carry a Mix of Methods: Don’t rely on just one option. Carry a combination of VND cash (various denominations), one or two credit/debit cards, and potentially access to emergency funds.
- Check Fees and Exchange Rates: Understand your bank’s international ATM withdrawal fees, foreign transaction fees, and the exchange rates they offer. Compare rates before exchanging large amounts of currency. Use reputable exchange counters or banks. Always choose to be charged in VND on card terminals.
- Be Scam Aware: Be vigilant with cash transactions (check bills, count change). Use ATMs in secure locations. Be cautious of unsolicited help during transactions.
- Confirm Payment Options: Before ordering food, taking a taxi, or making a purchase, politely ask what payment methods are accepted (“Thẻ tín dụng?” – Credit card? or simply show your card).
- Keep Small Notes Handy: For taxis, street food, and small purchases, having bills like 10,000, 20,000, and 50,000 VND is extremely useful as vendors may struggle to break large 500,000 VND notes.
Conclusion: Embracing Vietnam’s Payment Mix
Navigating Vietnam payment methods is straightforward with a little preparation. While the country is rapidly embracing a digital-first future, driven by government initiatives like the National Digital Transformation Programme and a digitally adept youth (77% of whom have tried going cashless), cash (VND) remains indispensable for Indian tourists today, especially outside major urban centers. Carry a smart mix of cash and internationally enabled cards, inform your bank, and always confirm payment options. By understanding the landscape – from the enduring power of cash to the rise of local digital solutions like MoMo and VietQR – you can manage your finances confidently and focus on immersing yourself in the incredible culture, cuisine, and beauty of Vietnam. Your financial journey should enhance, not hinder, your unforgettable Vietnamese adventure.