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International travel is always an exciting journey of discovery, but besides planning your trip, managing and exchanging currency legally is a key factor in ensuring a smooth trip. In Vietnam, regulations on foreign exchange management are being tightened to ensure financial security and market stability, so travelers need to pay special attention when conducting currency exchange transactions.
Recently, the Da Nang City Police issued a stern warning after imposing administrative penalties on an HPH gold shop and an individual for illegal foreign currency trading, confiscating an estimated amount of over 2 billion VND in foreign currency, including USD, EURO, Japanese Yen, and British Pounds. This incident once again reminds tourists and residents of the importance of strictly adhering to regulations regarding the buying and selling of foreign currency.
For tourists and residents living and working in Vietnam, the golden rule in foreign exchange transactions is: Only conduct transactions at institutions licensed by the State Bank of Vietnam.
Vietnamese citizens residing abroad are permitted to buy, transfer, and carry foreign currency out of the country for legitimate purposes as stipulated by regulations.
According to current regulations on foreign exchange management, organizations permitted to conduct foreign exchange transactions include credit institutions and bank branches. This is the safest and most common channel. All commercial banks licensed to conduct foreign exchange transactions have the right to buy and sell foreign currency in cash with individuals. In addition, tourists can go to licensed economic organizations (foreign exchange agents). These are usually travel companies, large hotels, or certain gold and silver shops designated and licensed by the State Bank of Vietnam as agents.
The unauthorized buying and selling of foreign currency at gold shops, by individuals, or any unlicensed establishment is a serious violation of the law. Although exchanging money on the "black market" may yield small immediate profits from exchange rate differences, it poses a risk of disrupting the currency market, directly affecting national financial security, and will certainly be severely punished according to the law.
To ensure that travelers' trips are not disrupted by legal issues, the Travel Magazine advises travelers to be aware of the following points. If travelers have foreign currency in cash (such as USD, EUR, JPY...) and wish to exchange it for Vietnamese Dong, they are fully entitled to sell it to commercial banks or economic organizations licensed to operate as foreign currency exchange agents.
At currency exchange agencies (usually non-bank money exchange counters), regulations only permit them to buy foreign currency in cash from individuals. They are not allowed to sell foreign currency (such as USD) back to tourists or locals.
The only exception is the foreign exchange bureaus located in quarantine areas at international border crossings (airports, border checkpoints). These bureaus are authorized to sell foreign currency in cash to individuals holding foreign passports when they depart, to meet their final needs before leaving Vietnam.
In cases where tourists or businesses fail to comply with regulations and engage in foreign currency transactions at unlicensed establishments, the administrative penalties applied are extremely clear and strict, directly based on the value of the foreign currency transacted.
The buying, selling, and transferring of foreign currency in cash by citizens must be carried out in accordance with regulations. Violations will be handled according to the regulations on administrative penalties in the field of currency and banking.
Specifically, for small transactions valued at less than $1,000 (or equivalent), violators may receive a warning. However, the penalty increases rapidly with the transaction value: violations from $1,000 to less than $10,000 will incur a fine of 10-20 million VND. Large transactions valued from $10,000 to less than $100,000 will be subject to a fine of 20-30 million VND.
The most serious offenses involve illegal foreign currency trading worth $100,000 or more, with violators facing the heaviest penalties, up to 80-100 million VND. More importantly, in addition to the fine, violators also face the supplementary penalty of confiscating all foreign currency and Vietnamese dong involved in the illegal transaction, turning the small profit from "black market" currency exchange into an unforeseen and costly price.
The Economic Security Department of the Da Nang Public Security Bureau emphasized that compliance with foreign exchange management laws is a shared responsibility of citizens and businesses. Tourists should raise their awareness of law compliance and absolutely not put themselves at risk of violating the law for the sake of small gains.
To have a fulfilling trip in Vietnam, tourists should prepare in advance and only conduct transactions at authorized bank counters in major cities or airports. Licensed foreign exchange counters (usually clearly marked as authorized by the State Bank of Vietnam) are recommended. This not only protects assets and ensures fair exchange rates, but also contributes to maintaining stability and security in the national financial market.
Any unauthorized buying or selling of gold at unlicensed gold shops, individuals, or establishments is a violation of the law, poses a risk of disrupting the monetary market, affects national financial security, and will be severely punished according to regulations.
