Job Discussion Forums

[London Bridge]

Here in Hanoi there has been a feeding frenzy. The sharks are obsessed with....Greenbacks. AKA, US Dollars.

The black market pays about 10% more for US dollars when buying Dong at the moment.

This has resulted in many landlords insisting on payment in US dollars, even though this is illegal.

Landlords (and many Vietnamese families) are hoarding dollars and locking them away in the safes at home, in their believe the Dong will further be devalued intentionally or unintentionally.

Or, they just want the extra 10% and will go to many lengths to get it.

Depending on how much rent you pay and/or how many month you pay in advance or at once, this can add a lot to your rent bill.

Warning: make sure you only sign a rental lease that states you pay VND Dong at the bank rate (e.g. Viet Com) bank.

This problem may last for another 3 months, or longer or less.

[haller_79]

[toiyeuthitmeo]

Unless your landlord is a particular hardass or jerk, just hand them the proper exchange amount and then pretend not to understand anything they say. Most would prefer to keep you paying rent then have you move out and leave them with no rent income. If you do move out in a huff over this issue (IMO not worth getting into a big fight over) your landlord probably won't take up your broken lease with the authorities, seeing as how they were breaking the contract by insisting on black market rate in the first place.

[Oh My God]

[DNK]

It's like that here in HCMC as well. I think it's standard for any significant sum priced in USD to be market rate in VND.

I think black market rate is over 20,500:1 right now. I think most will be content to split the difference if you complain enough. Basically, for negotiating prices, it's just another way to bargain down for you and for them to bargain up. "Official exchange rate" or "5% reduction in price", same same.

It makes sense for landlords, etc, to expect this, especially when they state in the contract that the rent is to be paid in USD or converted via the "market rate". If you sign such a contract, complaining over it after the fact is a bit silly. I'm not sure if such a stipulation is actually illegal, though, but you'll see them.

Get contracts in VND if you expect to pay in VND. Negotiate as such. This way you also avoid having to pay different amounts each month due to shifting markets.

[1st Sgt Welsh]

Like haller_79 said there is nothing remotely new in any of this. It's not at all uncommon for landlords to demand black market rates and I have also heard that quite a few of them even go so far as to demand actual greenbacks To demand greenbacks is illegal and, as the entire black market itself is illegal, I wouldn't have thought that quoting figures based on the authority of said black market would have much standing in a court of law.

Personally I have no problem in agreeing (and I actually prefer) to pay a rate in dollars. Given how erratic the dong is I would rather deal with a more stable currency so I can budget. Besides, as is the rule of thumb here [at least for EFL teachers], my rate of pay is calculated in dollars anyway, so for larger expenditures (such as rent) I usually think in terms of US dollars. Just have it stated in the lease agreement that on the day that the rent is paid that the dollar amount will be converted into dong as per the current rate set by a nominated website. Very easy and I think it is the fairest way for all parties. I just used the below website:

http://www.xe.com/ucc/

[H5N1]

The Landlords are asking/demanding black market rates for one reason, and one reason only:

To make about an extra 10% on the rent. Period.

Do not give in to this.

If the black market (ILLEGAL) rate went down, do you think they would accept this rate?

Heck, no?!!

[DNK]

They don't get an extra 10% (fairly sure it's 5% only) if you pay in USD...
Why are you negotiating in USD if you aren't planning to pay in it (excluding 1SG's approach)?

[isabel]

My rent is in dollars.

I have been being quoted prices for goods in stores at the inflated black market rate recently (some stores in touristed areas have prices in dollars, when they convert the prices to dong it is at about 21%). I do my own calculations and pay what the bank rate it.

[Mushroom Druid]

[s10czar]

I was recently in a hotel for a month down in HCMC and they wanted me to pay in US dollars. I played stupid like the other posting avises and "got away" with paying in Dong, but the owner was less than pleased.

IMO this won't last long. The dollar is being debased back home quicker than you can imagine. It's basically toilet paper. Soon they'll be wanting payment in Gold or Silver.

Wait and see

[Dish Washer]