Money Matters in Vietnam: How Expats Get Paid and Manage Finances

A red cash box sits under my bed as a reminder of how I managed my money when I arrived in Vietnam in 2013. Much has changed since then, but the challenges of managing money as an expat living in Vietnam remain quite different.

The only way to summarise it is to say that Vietnam often lags behind more progressive countries when it comes to technology uptake and general financial systems. And in many ways, this isn’t a bad thing.

One point of enjoyment for me is that Vietnam is still very much a cash-based society. The only time I’ve seen this trend reversed was during a recent experience at a global coffee chain, where I was refused service because I wanted to pay in cash.

However, the uptake of electronic payment systems has seen massive growth in the past year or so. The main players had systems in place since the pandemic lockdown, but it took time for the community to adopt them as a regular option for small purchases.

Now, even though I much prefer using cash, local sellers and street food vendors often display a QR code on their carts. People stop to buy food and small items, easily scanning the barcode on their app to pay electronically.

This is where banking comes into play. As a new resident in Vietnam in 2013, the majority of my income was paid in cash. That cash went into the red box under my bed, and I paid for almost everything using only cash.

The main reason for this was that, for foreigners, using the banking system was simply too difficult. Thankfully, things have improved since those days, but there are still a number of challenges and differences with banking in Vietnam that you need to be aware of before arriving.

The banking sector operates under a strict set of rules that all banks in the country must follow. Circular No. 23/2014/TT-NHNN, amended by Circular No. 02/2019/TT-NHNN, outlines the obligations of banks regarding foreigners using bank accounts in Vietnam.

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Why Is the Law So Strict?

There have been times in Vietnam’s history when certain events posed risks to national safety. Money laundering was one such challenge that placed the country in a vulnerable position.

To prevent foreign criminals and gangs from using Vietnam for illicit activities—and to restrict their ability to enter the country—Vietnam resisted the onslaught of criminal networks. Ultimately, this made the country safer and better for everyone.

Now, the laws restrict anyone who does not have full legal rights to live and work in Vietnam. Even people living here but not working find it nearly impossible to use the banking system due to the way the laws are structured.

What You Need to Set Up and Use a Bank Account

To open or use a bank account in Vietnam, you must have a Temporary Residence Card (TRC). This is usually issued a few months after arrival, so you are not permitted to operate a bank account while on any type of visa—whether tourist or business.

This poses a challenge for new arrivals. You may start work at a new school but not have access to a bank account for two or three months. If working for an international school, you should ask how this can be managed.

Next, you need proof of address in Vietnam. A rental agreement is sufficient. For property owners, a red book or other government-issued documents will be accepted.

With these documents, you can present yourself in person at a local branch and open a bank account. However, this doesn’t mean you can deposit money.

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The Strange Part: Depositing Cash

Banks will not accept cash deposits without proof of where the money came from. You must show a work contract, receipt, or other legal documents to verify the source of the funds before they will be accepted.

For example, I ran a business for a short time, and the cash income I earned was refused by the bank because I didn’t have legal proof of its legitimate source. This same issue applies to money brought from your home country.

A Work Contract Is Essential

A work contract is usually supplied by your employer when they first submit your salary for electronic payment. Either you or your employer may receive requests for updates if anything changes with your job. I once received a salary increase, and the bank flagged it—refusing to accept the payment until it was clarified.

With a registered work contract, you gain some freedoms in banking. You can make purchases, and people can—mostly—transfer small amounts of money into your account.

Whenever you need to visit a branch, you must bring both your passport and TRC. Banks will not speak to you unless both documents are presented.

From the days of keeping cash under my bed, I now actively use two banks in Vietnam. My main bank has been with me since I moved here, and they’ve been, for the most part, quite good at navigating the rules and providing essential services.

While I have the ability to jump onto the “tap-and-go” treadmill, I’ve chosen not to. I prefer using cash in this society. It just makes sense, and I find I spend less when I know exactly how much I have in my pocket.

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My Simple Budget Plan

My salary goes into my account. I pay regular monthly fees—rent, electricity, phone—directly from the bank. I use my card at the supermarket and withdraw a set amount of cash for daily items like beer, food, and fuel.

I accept that online shopping, major purchases, and transport will be deducted from my account, but I monitor these transactions closely every day.

Vietnam is rapidly growing, but it still maintains a link to the past, with a bit of resistance to rapid change in the banking and finance sector. This is actually a good thing—it makes for a more reliable system for everyone.

As a foreigner, navigating the banking system can be challenging, but I remind myself that I’m a guest in this country. A little discomfort in order to comply with the laws is the least I can do to be a respectful member of this community.