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International travel is always an exciting journey of discovery, but besides planning your visit, managing and exchanging currency legally is a key factor to ensure a smooth trip. In Vietnam, foreign exchange regulations are being tightened to ensure financial security and national market stability, so tourists need to pay special attention when making currency exchange transactions.
Recently, Da Nang City Police issued a stern warning after administratively sanctioning an HPH Gold Shop and an individual for illegal foreign currency trading, confiscating an estimated amount of over 2 billion VND including USD, EURO, Japanese Yen, British Pound... This incident once again reminds tourists and residents to strictly comply with regulations in foreign currency trading and exchange activities.
For tourists and people living and working in Vietnam, the golden rule in foreign currency transactions is: Only conduct at organizations licensed by the State Bank of Vietnam.
Residents are Vietnamese citizens who are allowed to buy, transfer, and carry foreign currency abroad for legitimate purposes according to regulations.
According to current regulations on foreign exchange management, organizations that are allowed to conduct foreign exchange activities include credit institutions and bank branches. This is the safest and most popular channel. All commercial banks licensed to conduct foreign exchange activities 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 clearly licensed by the State Bank as agents.
The arbitrary purchase and sale of foreign currency at gold shops, individuals or any unlicensed establishments is a serious violation of the law. Although the exchange of money on the "black market" may bring about a small difference in exchange rates in the short term, it has the potential to disrupt the currency market, directly affect national financial security and will certainly be strictly handled according to the law.
To ensure that your trip is not interrupted by legal issues, Travel Magazine recommends that you understand the following points: If you have foreign currency in cash (such as USD, EUR, JPY...) and want to exchange it into Vietnamese Dong, you have the right to sell it to commercial banks or economic organizations licensed to operate as foreign exchange agents.
At foreign exchange agencies (usually non-bank exchange counters), by regulation, they are only allowed to buy foreign currency in cash from individuals. They are not allowed to sell foreign currency (such as USD) back to tourists or residents.
The only exception is foreign exchange agents located in quarantine areas at international border gates (airports, border gates). These agents have the right to sell foreign currency cash to individuals with foreign passports when they leave the country, to serve their final needs before leaving Vietnam.
In case tourists or businesses do not comply with regulations and conduct foreign currency trading at unlicensed organizations, the administrative penalties applied are extremely clear and strict, directly based on the value of foreign currency traded.
The purchase, sale and transfer of foreign currency cash by the people must be carried out in accordance with regulations. Violations will be handled according to regulations on administrative sanctions in the field of currency and banking.
Specifically, for small transactions with a value of less than 1,000 USD (or equivalent), violators may be fined with a warning. However, the fine will increase rapidly according to the transaction value: violations from 1,000 USD to less than 10,000 USD will be subject to a fine of 10 - 20 million VND. In particular, large transactions with a value from 10,000 USD to less than 100,000 USD will be fined from 20 - 30 million VND.
The peak is illegal foreign currency trading with a value of 100,000 USD or more, violators will face the heaviest fine, up to 80 - 100 million VND. More importantly, in addition to the fine, violators will also be subject to additional penalties such as confiscation of all foreign currency and Vietnamese Dong related to illegal transactions, turning the small benefit from exchanging money on the "black market" into an unforeseeable high price.
The Economic Security Department of Da Nang Police has emphasized that compliance with the law on foreign exchange management 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 small benefits.
To have a complete trip in Vietnam, tourists should prepare in advance and only conduct transactions at bank counters in major cities or airports. Licensed foreign exchange counters (usually have clear signs about being licensed by the State Bank). This not only protects assets, ensures reasonable exchange rates, but also contributes to maintaining stability and security for the national financial market.
Any act of buying and selling at a gold shop, individual or unlicensed establishment is a violation of the law, potentially causing disruption to the currency market, affecting national financial security and will be strictly handled according to regulations.
