Is it better to use cash or credit card in Vietnam?

Navigating the bustling markets of Hanoi, haggling for a silk scarf, or savoring a bowl of steaming pho from a street vendor – these are quintessential Vietnamese experiences. But as you prepare for your adventure in this vibrant country, one practical question arises: cash or card? While the allure of a cashless society is tempting, the reality in Vietnam is a little more nuanced. Understanding the local payment landscape is key to a smooth and enjoyable trip.

While credit card acceptance is growing, particularly in larger cities and tourist hubs, Vietnam remains predominantly a cash-based society. The Vietnamese Dong (VND) is king, especially when venturing off the beaten path. Small local businesses, market stalls, street food vendors, and even some smaller hotels and restaurants primarily operate on cash. Trying to pay with plastic in these situations might be met with confusion or even refusal. Imagine finding the perfect handcrafted souvenir at a hidden gem of a shop, only to be unable to purchase it because they dont accept cards. Carrying enough Vietnamese Dong will ensure you dont miss out on these unique experiences.

Credit cards, such as Visa and Mastercard, are becoming more widely accepted in larger hotels, upscale restaurants, international brand stores, and established tourist attractions. However, even in these establishments, its worth checking beforehand or looking for displayed payment logos. Its also important to be aware of potential transaction fees. While these fees might seem small individually, they can accumulate over the course of a trip. Some establishments might also add a surcharge for credit card payments, effectively negating any potential rewards points or cashback benefits you might receive.

Furthermore, relying solely on credit cards can limit your bargaining power. Haggling is a common practice in Vietnamese markets and smaller shops, and offering cash often gives you a better chance of securing a favorable price. The immediacy and tangibility of cash can also foster a better connection with local vendors, building rapport and adding to the overall cultural experience.

So, how much cash should you carry? This depends on your travel style and itinerary. A good rule of thumb is to have enough Vietnamese Dong for daily expenses like meals, transportation, and smaller purchases. You can supplement this with a credit card for larger expenses like accommodation or tours, and as a backup in case of emergencies.

Exchanging currency is relatively easy in Vietnam. You can exchange money at banks, authorized exchange bureaus, hotels, and even some gold shops. Be sure to compare exchange rates and be wary of unofficial money changers. ATMs are widely available, particularly in urban areas, and offer a convenient way to withdraw Vietnamese Dong directly. However, be aware of any fees charged by your bank and the ATM operator.

In conclusion, while credit cards offer convenience and security, cash remains the preferred and often necessary method of payment in Vietnam, especially for smaller transactions and in less touristy areas. Carrying a sufficient amount of Vietnamese Dong will ensure you can fully immerse yourself in the local culture, enjoy spontaneous purchases, and navigate the vibrant tapestry of Vietnamese life without any financial hiccups. A combination of cash and a credit card, used strategically, offers the best balance for a seamless and rewarding travel experience in this captivating country.