VND

VND is the ISO currency code for the Vietnamese đồng, the official currency of Vietnam. It is issued by the State Bank of Vietnam, the country’s central bank, and functions as the primary medium of exchange, unit of account, and store of value within Vietnam.

The đồng was introduced in 1978 following the reunification of Vietnam, replacing several earlier currencies used in different regions. It has undergone a series of reforms to control inflation and modernize the monetary system, with significant changes accompanying Vietnam’s economic liberalization and integration into global markets during the late 20th and early 21st centuries.

The đồng is officially subdivided into 10 hào, and each hào into 10 xu; however, these subunits are no longer used in everyday transactions due to inflation, and prices are typically quoted in dong only. In practice, small denominations are seldom encountered in daily commerce.

The exchange rate of the đồng is determined through a managed float system operated by the State Bank of Vietnam, providing a daily reference rate and allowing limited fluctuations. The VND is not considered a freely convertible currency on international markets and remains primarily traded through domestic banks and authorized financial institutions. External transactions involving the dong are common in trade and tourism, but capital controls and market restrictions are in place.

Banknotes and coins are issued in a range of denominations to suit various transaction sizes; higher-value notes are commonly used for larger purchases, while coins exist but are not widely used in routine transactions. Cash remains prevalent in Vietnam, though electronic payments have grown significantly.