Help--best way to deal with money matters in Vietnam

Finding a new bank before your next trip is probably a good idea, though it doesn't help for this trip. (BTW, HSBC used to have no ATM charge and no exchange fee, which is why I opened an account with them. When they changed their policy, I took my money to another bank.)

For Cambodia, you want US cash. In VN, you want dong, but you can easily exchange US dollars for dong. You might want to carry US$100 bills (new style with the big heads, with no tears, marks, etc) to exchange for dong. I haven't used travelers checks for at least a decade. There is always a charge to cash them.

If you feel comfortable carrying the cash, I'd do that. You credit card and ATM card can be back up. By the way, do call your bank and let them know you'll be using your card in foreign countries, or they will cancel it.

In Cambodia, ATM's dispense US Dollars, so if your HSBC account is a dollar account, you probably won't be hit with the exchange fees. There are lots of ATM's in Siem Reap now.

VN is a bit trickier. I usually change a $100 and have smaller bills to use in places that prefer dollars (though they're getting fewer these days). I also always use a CC for the big things like the hotel.

BTW, B of A charges a $5 transaction fee plus 1% for forex, so HSBC is not the worst. I've used my B of A ATM card in Cambodia, and had no charges.

There are HSBC ATM's in Vietnam. Here's the location of 2 in Hanoi.

Ha Noi ATM
Sofitel Metropole Hanoi Hotel
15 Ngo Quyen Street
Hoan Kiem District

Ha Noi ATM
Metro Thang Long
Pham Van Dong Street,
Co Nhue Ward, Tu Liem District

If you make it to HCMC, there are 13 ATM's to chose from. You won't be charged a fee if you use them.

I used HSBC in Vietnam thinking they would have the most atm's. Only found the one at the Metropole in Hanoi. None in any of the other towns/cities we visited during our three weeks there. Then I got a service fee from HSBC when I did not make any transaction for several months after I came home. They charged me for using my money and not paying me any interest. I closed my account. Not a good choice for Vietam.

Guess you never made it to HCMC. Plenty to chose from.

Actually the same can be said about most Western banks. ANZ seems to be the leader, with HSBC in a hurry to catch up. Citibank doesn't seem to be in a rush.

I'd go for the credit union if you have time before your trip.

I agree it's bloody annoying, but ask yourselves .. this .. how much are those bank charges going to be as a percentage of the cost of your whole trip?

$500 is a lot of money in Cambodia so you won't be drawing it out every day. Well, if you are, you live in a different world from the one I inhabit.

There's plenty of other things to occupy you in advance of a trip overseas. If you want the extra stress of setting up a new bank account to save a few dollars - your choice. I'd just accept that ATMs are a convenience we have got used to; and have to pay for.

Or maybe you would like the experience of travelling pre-internet; pre-ATM. When it was travellers cheques and poste restante.

Don't waste your time over this. Whichever bank or option you choose they'll get you.

Is it worth the angst and effort to save 0.001% of your budget? I don't think so.

Relax.

Thanks everyone for your answers. After I posted yesterday, I discovered that almost all the banks are now charging a hefty foreign exchange fee, and the ones that aren't don't seem to have any branches near where I live. Don't really want to get involved in trying to set up an online account at this point. And to afterall: you're right...in the overall scheme of things it's a drop in the bucket. We're not traveling deluxe----good hotels and hopefully, really good food--and we definitely don't want to patronize overpriced tourist traps, so $500 in cash (if we withdraw that from an atm) should go a long way. I think we'll end up carrying enough hundred dollar bills to cover the expenses we're already committed to, plus a lot of smaller bills for purchases, smaller restaurants, etc. This subject has taken up way too much of my time...now I need to organize all my notes, printouts, and everything else related to the trip so I'm not lugging along another 10 pounds of paper! If anyone has any "must know this" kind of tips I'd love to hear them. Otherwise, thanks again for your input.

Bisbee, you are right. Only one day in HCMC...too hot!~!! Almost melted, better at the coast or the North.

For your credit card dilema, get a Capital One Credit Card. They do not charge any exchange fees on foreign transactions. They only charge you what the current exchange rate is on the day of your purchase. This is the only credit card company that offers this feature.

Hi,
I went to VN last March and am returning this Mar. I use a USAA atm card,which charges no fee to withdraw funds for 10 withdrawals a month, and a very modest fee of about .45 to convert the currency. You can get it in time for you trip, and their service is excellent.If you want to contact me via e mail copit208@gmail.If you have skype I am adambeck05. Will you be in VN when I am, Mar 10 to Mar 27?

This is a common problem and for me there are two considerations: (1) How much of your vacation time do you want to spend and can tolerate seeking out ATMs, banks to convert money dollars to local currency? and (2) how comfortable are you carrying large amounts of US dollars?
My wife and I are world travelers, have traveled for over 40 years, and in the past 3 years we have changed our travel habits from formerly traveling with travelers checks, credit cards, debit cards, US dollars, and even personal checks to presently carrying US dollars, two credit cards, and one debit card when going to Asia.
No matter what credit or debit card you use, there will be some type of transaction fee, if not from the banks, then from the currency exchange. I have a credit union account, am formerly a Capital One credit and debit card holder, but do not carry either one.
Three years ago I got my first travelers check wake up call when my extended family and I stopped in Hong Kong and everyone want to cash their AMEX travelers checks. We went to HSBC where there minimal charge is $35. For myself, $35, although outrageous, was tolerable for cashing $2000 worth of travelers checks, but for my grandnieces, cashing a $50 travelers check and receiving only $15 back in Hong Kong dollars was ludicrous. The only way to solve this problem was to spend time and effort to go to the one and only American Express Office in Hong Kong where the transaction and currency conversion was

I have traveled for 40+ years to every continent and here is my answer for people going to SE Asia: Fresh US dollars, one or two credit cards, one debit (ATM) card, and NO travelers checks.
My wife and I just returned earlier this month from Cambodia, Vietnam, and Taiwan and here is the scoop:
In Cambodia the kind of purchases made by tourists (clothes, knicknacks, meals) are ALL done with dollars. The Cambodians prefer US dollars, and preferably new. There is usually no change (you negotiate price and quantity) but if there is, you get it back in local currency which you can use to leave in the hotel room as a tip to housekeeping or to your tour guide. Remember the local currency is useless outside Cambodia and coins are not exchangeable.
In Vietnam you may need local currency for some purchases (example: local laundry, American style fast food chains, shopping where locals shop).
In Taiwan, you must use Taiwan dollars.
So, this time I carried a neck pouch, on my body, underneath my clothes which I carried uncirculated US dollars (I found the most useful were ($1, $20, and $100 but I did carry some $10 and $50 bills). I would recommend $100 in singles (fairly thick) and as many $100 bills as your budget and comfort level allows. In my neck pouch I also carried a debit (ATM) card and AMEX card, only as backup in the event I lost my wallet with daily money, one VISA card, and any local currency. My passport is also in the neck pouch.
In Taiwan, we traveled independently after our organized Cambodian and Vietnam tour was over, and we had to exchange US dollars for Taiwan dollars. I paid for our Taiwan hotel and restaurant meals with my credit card but of course ultimately got charged for the conversion from Taiwan dollars to US dollars. In retrospect I wouldn't have mind paying these charges with the US dollars I had on me.
The major advantage of my using cash is that I spent no time during my vacation looking for ATMs or banks to exchange money. The major disadvantage: carrying a lot of cash on me. After three weeks, I felt this was no problem. We leave for South America in March (Chile, Argentina, Brazil) and I will use the same system. I prefer not to carry any travelers checks, and to use credit and debit cards only as backups since you always lose financially when you use these cards, despite the "no fees" with credit unions, Capital One, etc.
You do have to make arrangements with your local bank to get you uncirculated bills in the denominations you want.
As an aside, two summers ago we spent three weeks in Kunming where only the Bank of China would cash AMEX travelers checks. That took about 45 minutes of my time with the usual conversion fees.
It was then that I decided that travelers checks outside the major cities on the East Coast in China were more hassle than the so-called safety factor.

We just returned from Cambodia, Thailand, Viet Nam, Hong Kong, Singapore. You will have a great time and don't worry about the foreign currency. They take US dollars gladly. In fact in Cambodia the grocery store in Sihanoukville charges even locals in US dollars. If you get to this port village be sure to get a one hour massage at the Seeing Hands Massage. Cost is $5.00 and done by blind individuals and the money goes toward educating and helping other blind Cambodians. Place is air conditioned.
A great meal at an out of the open restaurant was $4.25 for 2 huge meals. Seafood caught that morning. Capital One doesn't charge any extra, just the day exchange rate and we had no problem using plastic anywheres.
Viet Nam the same. When you get to Hanoi --go early 8-8:30 AM and see Ho Chi Minh's tomb and body. It closes real early --by 1:00 you can't get in. Great gift shop adjacent to tomb with great handicrafted pieces at very low prices. They take plastic or US $. Very fair exchange rates in all these countries.
HoiAn --If you can go to Chu Chi tunnels --and go inside. If you bring a flashlight you will feel more comfortable.
If you haven't gotten the Visa for Viet Nam you can do it at Sihanoukville, Cambodia but you would be better to do it on line before leaving for trip. www.vietnamembassy.us
In VN you will have to keep a paper permit on you all the time you are in the country and hand it in upon leaving.
Hope this helps---enjoy

Haven't traveled in Vietnam since 1994...when I was there for two weeks. So other travelers' information is more up to date. However, I was surprised to discover that American dollars had become a second national currency in Vietnam--even in Hanoi. Restaurant prices were often posted in dollars. We Americans left so many billions of dollars in this country during the Vietnam War that it became a valid currency, accepted just about everywhere. Restaurants often gave us change in dollars.

Thanks again to all for your advice. To CASpeedo, what you wrote pretty much describes our history and also our present decisions regarding finances on the trip (thanks to everyone's input). We used to carry travelers' checks--no more--and I think we will pretty much just carry cash, one or 2 credit cards, and one atm card which we hopefully won't even need. We do carry Capital One credit card--we live in Canada part of the year, and not paying 3% on every transaction really helps. Have a great trip in S. America...we've been there 3 times in the last 5 years, no travelers'checks and only used the atms a couple of times.

To Windybreeze...what exactly is a USAA card? It sounds like it might be american Airlines? Anyway, probably won't bother getting it at this point...don't think we'll need it. We'll be in VN from march 10th to the 23rd.

dear deesh801,
take more than 1 credit card. on more than 1 occasion i had my credit card numbers fraudulently used abroad (and here). luckily big brother (the card issuers)caught on to the fraudulent use before too long - several hours - and blocked further use of that card. i always carry more than 1 card which is useful in such situations.
i don't like carrying a lot of cash. even in "safe" countries it is an invitation to the less savory element to steal from, rob, or mug you. that would ruin your trip. no liability for cc fraud and relative safety for 0 to 3% of use with an excellent interbank exchange rate seems reasonable.
also, some banks have correspondent institutions abroad where there is no charge for atm use. ex.: paribas in france and B of A.
have a great trip.