Vietnamese Dong (VND)

Basic Concept of Vietnamese Dong

The Vietnamese dong is the official currency of Vietnam, with the currency code VND and the symbol ₫. Issued and managed by the State Bank of Vietnam, it is a non-convertible currency that circulates mainly domestically for daily transactions and business activities.

Countries and regions of use

The Vietnamese dong is only used in the Socialist Republic of Vietnam, covering the entire country, including both urban and rural areas. As the country's sole legal tender, it is used in all areas of the economy, such as retail, services and import/export trade.

Units and denominations

The basic unit of the Vietnamese dong is the dong, and the secondary units of the dong are the milliard and the pivot, which are rarely used in practice. The denominations of banknotes are 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, 100,000, 200,000 and 500,000 dong, while coins are available in denominations of 200, 500, 1,000, 2,000 and 5,000 dong. The high denominations of banknotes reflect Vietnam's history of inflation.

Historical background

Formerly known as the Indochinese dollar during the French colonial period, the Vietnamese dong was first issued by the North Vietnamese government in 1946 to replace the old currency.After the reunification of Vietnam in 1975, the South Vietnamese currency was abolished and the dong was used uniformly throughout the country. Historically, the Vietnamese dong has undergone many devaluations and reforms, such as the revaluation of the currency in 1985, to cope with high inflation and economic challenges, and to gradually form a modern monetary system.