Job Discussion Forums

Sudz · Joined: 09 Aug 2004 Posts: 438

I haven't been one to have my finger on the whole currency situation. This was until I realized exactly what I'd lost on the government devaluation, which was a fair amount considering all of the Dong I had piled away.

I'm wondering - for those who know more than I - can we expect another government devaluation? Is it impossible to know?

I'm thinking of opening an account in my home country (Canada) during my next visit home - transfering any significant amounts into that when I can. The current currency seems to be hovering around the 20800VND/USD area at the moment. Provided there isn't another huge drop, I might just stick with my Vietcom bank account.

What have some of you done in order to nullify the blow?

Of course the real victims in this situation are the Vietnamese teachers (or Vietnamese in general), who are paid in VND. While I'm in a better situation, it's still significant for me as I travel out of the country quite often, and moreover am saving for an MA.

toiyeuthitmeo · Joined: 21 May 2010 Posts: 213

There isn't a reliable way to predict when the currency will be devalued, but if you're feeling a bit uneasy about things, you're probably right. Sending money back to your home country is the best option, especially if your savings in Dong are large. Most of us are teachers and perhaps not savvy investors, but there are some options here. I've heard rumors that the gold shops are no longer selling dollars, but if they are, then you could go buy a load of greenbacks and rest-assured with a pile of cash in a tin under your socks. Vietnamese banks also offer Dong deposit CDs, which pay out a yield that should hedge any devaluation, and in fact might make you some good money if your deposit it large enough and the term long enough. Get a Viet local friend to help you with this option. Another idea is to use the gold shops for gold. In the wake of the Japan disaster, gold has kind of fluctuated in concerning manners, but I'd reckon it's still a good hedge. Plus, it takes up a lot less space than a wad of $100 bills. And it just looks cool. In country, gold Taels as a good as, uh, gold. You can buy them, keep them, trade them, etc as any other viable currency, and usually they appreciate. A final option, one which is a bit taboo but a real way to make more dong off of your dong, is to get into the personal loan business. In my town, it is extremely easy to turn 100,000,000VND into 120,000,000VND in 30 days. The locals do these grass-roots loans and they typically charge a flat 20%, and you'd be surprised how well-run these operations are. But, as I said, taboo. Good luck!

bobpen · Joined: 04 Mar 2011 Posts: 89

toiyeuthitmeo · Joined: 21 May 2010 Posts: 213

It is a slippery slope indeed, but only the naive need be punished, and only the unlucky need be, um, unlucky.

[email protected] · Joined: 27 Oct 2010 Posts: 30

I invest my money in gold and silver. That's the way I fight the devaluation. It's real money that is accepted everywhere in the world. All currencies eventually get devalued and unless there is some kind of worldly miracle in the economy, I don't see the VND going up significantly anytime soon. If you do have time I would research currencies, gold, and silver relationships. Good luck.

Sudz · Joined: 09 Aug 2004 Posts: 438

Thanks for the replies guys.

choung_ma - I've thought of buying gold. Might you be able to recommend a reliable place to buy it from?

just noel · Joined: 17 Jul 2006 Posts: 168

Vietnamarama · Joined: 04 Jan 2011 Posts: 35 Location: Vietnam

It is now practically impossible to buy USD from gold shops. Even when you have a valid reason to buy foreign currency from banks, from what has been said on this forum only small amounts of currency are available. In addition it now seems some banks want to start charging a fee for any foreign currency sold:

http://www.thanhniennews.com/2010/Pages/20110325132200.aspx

Buying gold may be possible at the moment but it won't be for much longer. Gold seems to be the next target

http://www.thanhniennews.com/2010/Pages/20110324153916.aspx

Even if you did have gold, others have mentioned that the price of gold here is higher than it is overseas, and is difficult (impossible?) to sell overseas.

Perhaps in the near future there will be hordes of expats at the airport waiting for new arrivals to help them convert their foreign currency into VND. "You buy Dong, you buy dong" might become as common and annoying as "where you go?, where you go?" and "you go taxi, I take you" is now.

Very Happy

Sudz · Joined: 09 Aug 2004 Posts: 438

Well I just asked an employee at Vietcom bank whether or not I could get any Canadian dollars for my trip back to Ontario. With an air ticket, he said that it wouldn't be a problem. No limit either.

I think cashing out into CAN dollars might be a relatively safe bet.

bobpen · Joined: 04 Mar 2011 Posts: 89

Sudz · Joined: 09 Aug 2004 Posts: 438

There is a markup, but I wouldn't call it large.

xe.com 21,402 VND/1 CAD

Vietcom 21,642 VND/1 CAD

Granted there's constant fluctuation, but those are the rates I got from today.

snollygoster · Joined: 04 Jun 2009 Posts: 478

What - if anything - are you doing about VND devaluation?
Do as I did. LEAVE- GO to a country that has a REAL economic system, and REAL banks (as real as they get anyway).

Sudz · Joined: 09 Aug 2004 Posts: 438

Well I do leave Vietnam at least a few times a year (usually to countries with a superior economic situation), which is one of the reasons I've been able to stick it out for so long while being able to stay fairly content.

Oh wait you meant permanently? Cool

No can do....at least not until December at the earliest. Saving for school, and would like to have enough financial padding for a potential move to Malaysia - where I wont be making NEARLY the amount of coin as I do here.

Despite currency woes, Vietnam is still a pretty good deal for a lot of us.

(That said, I do have some desire to get out of here within the next year!)

Vietnamarama · Joined: 04 Jan 2011 Posts: 35 Location: Vietnam

snollygoster · Joined: 04 Jun 2009 Posts: 478

I would like to know the best (cheapest) way of getting my money out of the country in the form of another currency.
Put the money in a bank account that has a visa debit card attached. Leave Vietnam- Go to any ATM and take the money out in local currency.
Works for me.
If you want to stay in Vietnam AND still send money out- get a second visa card for your "friend"- send it to your "friend" -(mum etc) overseas, and get him/her to take it out of an ATM and put into your overseas (home) bank etc.

Works for me.