Currency for Vietnam and Cambodia Tour

Traveling around the world can often mean changing your own money for local currency in order to pay for items you want to buy, for your hotel bills, and for other expenses. Even on entry to the country you are visiting, you are often required to have local currency to pay for the Visa On Arrival, which means having local currency in your wallet before you leave home. However, there are several countries around the world, especially in Asia, where the local currency is not the only currency accepted.

If you are traveling around Asia, especially to the Indochinese countries, having US dollars on your is of huge benefit. Many Asian countries accept payment for visas on your arrival in US dollars, although some will also accept Euros and Pounds Sterling. However, since the dollar is the most globally recognized currency, the preference is often on the dollar for payments other than in local currency. It is a good idea to be aware of the rules on using dollars in the various countries, as the rules are often very different, and what may be accepted by the government in one country can be a black market transaction in another.

Vietnam

Changing your currency to Vietnamese dong can be done almost anywhere in the country, with thousands of banks, money changers, and shops willing to change your currency for you. Exchange rates vary greatly, and bank rates are normally the best you can find. Money changers and hotels will gladly change your currency, especially US dollars, but the exchange rate is not favorable, and they often tack on an additional fee. If you are out and about, there are a huge number of small shops and local stores that will change your money into dong, and offer a very competitive rate, almost that of the banks, with no fees. Or you can try the gold and jewelry shops in Hanoi’s old quarter, where you can sometimes get a better rate than the banks.

Official Currency

Vietnam has its own official currency, the Vietnamese Dong (VND), which has been the official currency of the country since it was introduced in 1978. It was originally made up of ten hao, which was further divided into sub-units of ten xu. Neither of these sub-divisions of the dong is used now, and since 2012, the use of coins has reduced significantly in line with the currency exchange value of the dong. Many local businesses no longer accept the coinage, and only allow payments in bills. The official currency symbol for the Vietnamese dong is the ₫ symbol.

Vietnam Currency

The dong comes in a range of coins and bills, with the bills being in denominations of 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, 100,000, 200,000, 500,000 VND. Coins came in denominations of 200, 500, 1000, 2,000, and 5,000 VND, but are no longer being made, and once all have been recovered by the State Bank, will be phased out completely.

The term, dong, comes from the Vietnamese word for money, which is “dong tien”, which also originated from the Chinese “tong qian”. Originally, the dong was used differently in North and South Vietnam, with the bills being very different in design and color. After the liberation from French rule, the piastre was denounced in North Vietnam, and the dong replaced it immediately, while in the south, the piastre and dong were dually issued until the piastre was finally phased out.

Modern banknotes in Vietnam are of a plastic polymer type, which was introduced to reduce the cost of making the banknotes. However, there are still a huge number of the old-style cotton fiber banknotes in circulation, which remain widely accepted around the country. These are being phased out slowly, due to the lack of use of banks by many small Vietnamese businesses. Small shops and cafes, as well as other small traders, are keeping these old banknotes in circulation as many of the older people of Vietnam are said to not trust the validity of the newer banknotes, especially in the more rural areas.

Unofficial Currency

Vietnam, like several Asian countries, has an “unofficial” currency that is widely used, and often preferred, especially by small businesses and street traders. The “unofficial” currency of Vietnam is the US dollar, but the Vietnamese government is now cracking down on the use of the dollar. Asking for the payment in dollars is now illegal, where it used to be commonplace, and it is better to get your currency changed for dong at the best rate you can find. Paying in dong also gets you better value than in dollars, as the dollar price is often inflated. Spending in dollars in Vietnam is not as easy as it used to be.

Cambodia

Money changing in Cambodia is not always necessary, though there are plenty of places that will do it for you. At around 4,000+ riel to the dollar, the exchange rates are very favorable, and your dollars will get you farther by changing them to riel than by spending in US dollars for many things. However, it is advisable to have dollars on you when you arrive, as your Visa On Arrival must be paid in dollars, and the Cambodian riel is not available for exchange outside the country. You will also get a better exchange rate at the moneychangers in the local markets than at the major banks, and their glass booths filled with piles of local banknotes can easily identify them.

Official Currency

The official currency of Cambodia is the riel (KHR) and there have been two official types of riel issued over the years since the country regained its independence from France. The first was issued on its independence in 1953, and lasted until 1975, when the Khmer Rouge removed all currency from the country. The first notes were issued as dual currency, piastre and riel, and the riel was divided into 100 centime pieces. The coins were changed to be “sen” in 1959, after the piastre was phased out, and were minted in denominations of 10, 20, and 50 sen coins.

Cambodia Currency

In 1975, the Khmer Rouge did not issue banknotes to the general public, despite printing them, and money was abolished across the country in those dark times. After the country was invaded by Vietnam in 1978, the riel was reintroduced, and in 1980, the second riel circulation was minted. At the time, the riel was valued at just 4 riel to the dollar, and is divided into 10 kak and 100 sen, and because of the failing economy and the lack of currency across the country, the central government gave the money away free to the population to enable its circulation.

During the second Khmer control, between 1993 and 1999, the original Khmer banknotes were used in the territories controlled by them until they were finally removed from the country in 1999. The second riel issuance is the currency that is still used in Cambodia today. Banknotes are currently issued in 50, 100, 500, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, and 100,000 KHR.

The official symbol of the riel is ៛.

Unofficial Currency

Cambodia has a very weak economy, despite being a very popular tourist destination, and is still recovering from the damage done by the Khmer Rouge. throughout the country, the “unofficial” currency is the US dollar, which is widely accepted and allowed by the Cambodian government, unlike the new rules in Vietnam.

Small stores in Cambodia will quote the price in riel, but will also accept payment in dollars, and the exchange rate you will get is very fair, almost that of the banks. However, since Cambodia does not use US coinage, any change you get that is less than one dollar will be in riel. Bank rates can vary greatly from day to day, but the recognized street rate across the country is 4,000 riel to the dollar.

Outside the major towns and cities, the local economy is almost completely in riel, but even there you can use small denomination dollar bills for payment. However, they may not be able to change 20 and 50 dollar bills, so take plenty of ones and fives with you, or change them for local currency before you leave the cities.

Many of the border crossing points will accept your Visa On Arrival fee in the local currency of the country you are entering from. Visa prices are charged in US dollars, however, and the exchange rate if you are using local currency is often very unfavorable. For example, if you are paying for the visa in Thai baht at the Koh Kong crossing point, the cost is 1,500 baht, or around 45 dollars, instead of the actual 30 dollar fee.

It is also useful to know that no one will accept your US dollars if they are of the older styles, or if they are ripped, torn, or overly worn. Much as the dollar is welcomed in Cambodia, they only want good, new dollar bills in the best condition. Even banks will not change ripped or torn bills, so make sure your cash comes from a US or international bank before traveling. Those old bills you often get from the local convenience store in the US will not be any good in Cambodia.