What is the 'VND (Vietnamese Dong)'

VND (Vietnamese Dong) is the currency abbreviation and full name, Vietnamese dông, the currency for Vietnam.

BREAKING DOWN 'VND (Vietnamese Dong)'

VND, short for the Vietnamese dông, is often presented with the symbol d, is composed of 10 hào and 100 xu. It’s important to note that while the dông is made up of these two subunits, neither the hào nor the xu have been used in Vietnam for many years.

The word "dông" is used in Vietnamese as a term for any currency, modifying it appropriately with the country's name before it. So, for example, the Vietnamese-fluent person living in the United States may refer to the U.S. dollar as the "U.S. dông.” Additionally, "U.S. hào" and "U.S. xu" can be used in reference to the U.S. dime and cent. So using the word “dong” alone to refer to Veitnam’s currency will not suffice: Vietnamese dong must be referred to as "dông Vietnam" (Vietnamese dông).

A Broader Look at Vietnamese Currency

The Vietnamese dông was created in 1946, when the Viet Minh government, which later became the government of North Vietnam, introduced the currency, replacing the French Indochinese piastre. The State of Vietnam, which would later become South Vietnam, issued their own dông in 1953, and their banknotes listed the price in both dông and piastres, reflecting its recent transition. After the fall of Saigon in the mid-1970s, South Vietnam issued the liberation dông. With Vietnam being reunified in the late 1970s, they also reunified the dông.

Vietnamese coinage includes denominations of 200, 500, 1000, 2000, 5000 dôngs. These coins are no longer minted or in active use, yet they are still legal tender. Currently, most banknotes commonly found in circulation are 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, 100,000, 200,000 and 500,000 dông.

The Vietnamese dông, issued by The State Bank of Vietnam, has been marked by chronic inflation. It is one of the poorest currencies worldwide according to the global currency market; in 2018, one U.S. dollar equaled 22,770 Vietnamese dông. However, in 2017, Bloomberg reported that Vietnam’s move from agricultural economy to a hub for electronics manufacturing, particularly with Samsung Electronics’s investment, has meant that the economy has grown more than 6 percent in the prior two years, becoming among the fastest growing in the world. Furthermore, they report that while other Asian currencies such as the Thai baht and the Malaysian ringgit have surged, and the Philippine peso has fallen, the dông is little changed and therefore one of the most stable Asian currencies.

RELATED TERMS
  1. Accounting Currency

    Accounting currency is the monetary unit used when recording ...
  2. Communism

    Communism is an ideology that advocates a classless system in ...
  3. Currency Pair

    A currency pair is the quotation of one currency against the ...
  4. Currency Risk

    Currency risk is a form of risk that arises from the change in ...
  5. Currency in Circulation

    Currency in circulation refers to physical forms of money that ...
  6. Counter Currency

    The counter currency is the second currency in a quoted currency ...
Related Articles
  1. Insights

    Vietnam -- New Asian Hot Spot For Tech Investment

    Vietnam now has a rapidly expanding tech sector that's attracting investors from around the globe due to low business costs and highly skilled workers.
  2. Investing

    Top 4 ETFs for Investing in Vietnam In 2018

    Vietnam offers some enticing opportunities for investors, and ETFs provide an extra level of safety.
  3. Investing

    Samsung Unit to Invest $2.5B More In Vietnam

    Samsung Electronics got a license for its display unit to invest more in Vietnam to up production.
  4. Retirement

    How to Retire in Vietnam with $200,000

    An excellent retirement "buy" because English is spoken widely, the cost of living is compellingly low and Americans are generally welcome.
  5. Investing

    Vietnam to Facebook, YouTube: Drop Dead

    Vietnam is calling on companies in the country to stop advertising on Facebook and YouTube.
  6. Insights

    U.S. Arms Embargo on Vietnam Ends

    At a joint press conference Monday, President Obama and Vietnamese President Tran Dai Quang announced that the U.S. embargo on arms sales to the country would be lifted.
  7. Insights

    Trump May Aim at These New Trade War Targets

    Beyond China, Trump may focus his ire on big trade deficits with India, Thailand, Vietnam and Malaysia
  8. Investing

    Weakest Currencies Against the U.S. Dollar in 2016

    Learn why these currencies are considered the weakest against the U.S. dollar for 2016. Discover the difference between absolute and relative weakness.
  9. Investing

    4 Difficult Places For Foreigners To Buy Real Estate

    Buying property in the U.S. can be a difficult process. Buying internationally can be even worse, especially in these four countries.
  10. Investing

    Investing In The ASEAN Region

    Find out how to invest in Southeast Asia via ETFs.
RELATED FAQS
  1. How do you make money trading money?

    Trading money, particularly in the forex market, is a speculative risk, as you are betting that the value of a currency will ... Read Answer >>
  2. How do national interest rates affect a currency's value and exchange rate?

    Generally, higher interest rates increase the value of a country's currency and lower interest rates tend to be unattractive ... Read Answer >>
  3. How can I trade in cross currency pairs if my forex account is denominated in U.S. ...

    The forex market allows individuals to trade on nearly all of the currencies in the world. However, most of the trading is ... Read Answer >>
Trading Center