Is It Better to Carry Cash, Especially for Boat Trips, Markets, and Smaller Eateries?

Navigating the financial landscape of a new country can be tricky. SIXT.VN understands your needs when traveling in Vietnam. Generally, it’s best to use the local currency, Vietnamese Dong (VND). Let’s delve into when and why carrying cash might be your best bet, especially for boat trips, markets, and local eateries, offering tips for smooth transactions and budget-friendly experiences.

1. Why Vietnamese Dong (VND) is King: Embracing Local Currency

Using the local currency, Vietnamese Dong (VND), is generally the most advantageous approach in Vietnam, offering better rates and seamless transactions. Paying in VND ensures you receive fair prices and avoid potential exchange rate markups that vendors might apply when accepting foreign currencies.

• Widespread Acceptance: Vietnamese Dong is the standard currency across Vietnam, ensuring smooth transactions in most establishments, from bustling markets to quaint cafes.
• Favorable Exchange Rates: When you exchange your home currency for VND at reputable banks or exchange counters, you usually get better exchange rates compared to paying directly in foreign currencies.
• Avoiding Markups: Many vendors, especially in tourist areas, might accept foreign currencies like USD but often at inflated exchange rates, costing you more in the long run.
• Cultural Sensitivity: Using the local currency shows respect for the local economy and culture, fostering positive interactions with vendors and locals.
• Convenience: Carrying VND allows you to easily pay for goods and services without the hassle of negotiating exchange rates or dealing with currency conversion.

2. Cash is King: Scenarios Where VND Reigns Supreme

While credit cards are becoming increasingly accepted in Vietnam, cash remains essential, particularly in specific situations where card payments might not be possible or practical.

2.1. Boat Trips: Riding the Waves of Local Commerce

For many boat trips, especially those offered by smaller, local operators, cash is often the only accepted form of payment. This is due to the logistical challenges of processing card payments on boats and the preference for immediate transactions.

• Small Operators: Smaller boat tour companies may lack the infrastructure for card payments.
• Remote Locations: In more remote areas, card payment facilities may not be available.
• Tipping: It is customary to tip boat staff for good service, and cash is the most convenient way to do this.
• Onboard Purchases: Drinks, snacks, or souvenirs sold on board are usually paid for in cash.
• Negotiating Prices: Having cash allows you to negotiate prices more effectively.

2.2. Markets: Immersing Yourself in Local Trade

Traditional Vietnamese markets are vibrant hubs of commerce where cash is the dominant mode of transaction. From fresh produce to handicrafts, vendors typically prefer cash due to its immediacy and simplicity.

• Ubiquitous Acceptance: Almost all vendors in local markets only accept cash.
• Bargaining Power: Cash gives you leverage to bargain for better prices.
• Small Transactions: Many items in markets are inexpensive, making cash more practical.
• Informal Setting: The informal nature of markets means vendors are less likely to have card facilities.
• Avoiding Fees: Paying with cash avoids potential card transaction fees.

2.3. Smaller Eateries: Savoring Authentic Flavors

Many smaller, family-run eateries, street food stalls, and local cafes in Vietnam operate primarily on a cash basis. This is due to the lower transaction costs and the simplicity of managing cash payments.

• Low Transaction Costs: Small eateries avoid card processing fees by accepting cash.
• Simplicity: Cash transactions are straightforward and quick.
• Tradition: Many local eateries have a long-standing tradition of cash-only payments.
• Accessibility: Card payment infrastructure may not be available in smaller establishments.
• Tipping: Tipping is appreciated in eateries, and cash is the easiest way to show your gratitude.

3. Balancing Act: How Much Cash to Carry Daily

Determining the appropriate amount of cash to carry daily involves considering your planned activities, budget, and the availability of ATMs or card payment options.

3.1. Estimating Daily Expenses

Before heading out, estimate your daily expenses based on your itinerary. This includes meals, transportation, entrance fees, shopping, and any planned activities.

3.2. Factoring in Contingencies

Always carry some extra cash for unexpected expenses or emergencies. This could include transportation delays, unplanned purchases, or medical needs.

3.3. Considering Payment Options

Assess where you’re likely to use cash versus card. If you plan to visit markets, street food vendors, or smaller establishments, carry more cash. If you’ll be dining at upscale restaurants or shopping in larger stores, you might rely more on cards.

3.4. Utilizing ATMs Strategically

Withdraw cash from ATMs as needed, but be mindful of withdrawal limits and fees. Opt for reputable banks to ensure secure transactions.

3.5. Monitoring Your Spending

Keep track of your spending throughout the day to avoid running out of cash or carrying excessive amounts. Adjust your cash-carrying habits based on your actual expenses.

According to a report by the State Bank of Vietnam in 2023, cash transactions still account for over 70% of all transactions in the country, highlighting the continued importance of cash in daily life.

4. Cards on the Table: When to Rely on Plastic

While cash is essential in many situations, credit and debit cards can be convenient for larger purchases or in establishments that accept card payments.

4.1. Major Establishments: Hotels, Restaurants, and Shops

Larger hotels, upscale restaurants, department stores, and tourist-oriented businesses in Vietnam typically accept credit and debit cards. Check for card acceptance signs at the entrance or inquire with staff.

4.2. Online Transactions: Booking and E-commerce

For online bookings, such as hotels, flights, or tours, credit cards are usually the preferred method of payment. E-commerce platforms and online retailers also widely accept card payments.

4.3. Avoiding Foreign Transaction Fees

When using credit cards, opt for cards with no foreign transaction fees to avoid extra charges on your purchases.

4.4. Informing Your Bank

Before traveling to Vietnam, inform your bank about your travel plans to prevent your card from being blocked due to unusual activity.

4.5. Backup Payment Option

Carry a credit or debit card as a backup payment option in case you run out of cash or encounter unexpected expenses.

5. Securing Your Funds: Safety Tips for Carrying Cash

Carrying cash requires taking precautions to protect against theft or loss. Here are some safety tips to keep your funds secure while traveling in Vietnam.

5.1. Discreet Storage

Store your cash in a secure and discreet location, such as a money belt worn under your clothing, a hidden pocket, or a zippered compartment in your bag.

5.2. Avoiding Displaying Large Sums

Avoid displaying large sums of cash in public places, as this can attract unwanted attention. Keep your money concealed and only take out what you need for immediate transactions.

5.3. Separating Your Funds

Divide your cash into smaller amounts and store them in different locations. This way, if you lose some money, you won’t lose all of it.

5.4. Being Aware of Your Surroundings

Pay attention to your surroundings and be wary of crowded areas or situations where pickpockets might operate. Keep your bag close to you and avoid leaving your belongings unattended.

5.5. Using ATMs Safely

When using ATMs, choose well-lit and secure locations, preferably inside banks or shopping centers. Shield the keypad when entering your PIN and be cautious of anyone standing too close.

According to a 2022 report by the Vietnam National Administration of Tourism, most tourists prioritize safety and security when traveling in Vietnam, making it essential to take precautions to protect against theft or loss.

6. Exchange Rate Insights: Getting the Best Value for Your Money

Understanding exchange rates and knowing where to exchange currency can help you get the best value for your money when converting your home currency to Vietnamese Dong.

6.1. Checking Current Rates

Before exchanging currency, check the current exchange rates online or through reputable sources like banks or currency converters. This will give you an idea of the fair market rate.

6.2. Choosing Reputable Exchange Locations

Exchange currency at reputable banks, licensed exchange counters, or authorized money changers. Avoid exchanging money at unofficial establishments or on the street, as you may get unfavorable rates or encounter counterfeit currency.

6.3. Comparing Rates

Compare exchange rates at different locations to find the best deal. Banks often offer competitive rates, but exchange counters may offer slightly better rates with lower fees.

6.4. Avoiding Airport Exchange Counters

Airport exchange counters often have less favorable exchange rates and higher fees compared to other locations. If possible, exchange some currency before arriving in Vietnam or use ATMs upon arrival.

6.5. Being Aware of Fees

Inquire about any fees or commissions charged for exchanging currency. Some establishments may advertise attractive exchange rates but then add hidden fees, so be sure to ask for a clear breakdown of the total cost.

7. Navigating Tipping Culture: Showing Appreciation in VND

Tipping is not as widespread in Vietnam as in some Western countries, but it is appreciated for good service, especially in tourist areas. Here’s a guide to navigating tipping culture in Vietnam.

7.1. Restaurants and Cafes

Tipping is not mandatory in restaurants and cafes, but it is customary to leave a small tip (5-10% of the bill) for good service. You can leave the tip in cash or add it to the credit card payment if that option is available.

7.2. Tour Guides and Drivers

It is customary to tip tour guides and drivers for their services. The amount depends on the length and quality of the tour, but a general guideline is 100,000-200,000 VND per day for tour guides and 50,000-100,000 VND per day for drivers.

7.3. Hotel Staff

Tipping hotel staff, such as bellhops or housekeeping, is not mandatory but is appreciated for exceptional service. A small tip of 20,000-50,000 VND is appropriate for carrying luggage or providing extra assistance.

7.4. Spa and Massage Therapists

Tipping spa and massage therapists is customary in Vietnam. A tip of 10-15% of the service fee is generally appreciated for good service.

7.5. Taxi and Ride-Hailing Services

Tipping taxi and ride-hailing drivers is not mandatory, but it is common to round up the fare or leave a small tip for good service, especially if the driver helps with luggage or provides a pleasant experience.

8. Budgeting for Vietnam: Estimating Daily Costs

Creating a budget for your trip to Vietnam involves estimating your daily costs based on your travel style, accommodation preferences, activities, and dining choices.

8.1. Accommodation

Accommodation costs vary widely depending on the type of lodging you choose. Hostels can cost as little as $5-10 per night, while budget hotels range from $20-50 per night. Mid-range hotels typically cost $50-100 per night, and luxury hotels can range from $100 and up.

8.2. Food and Drinks

Food and drinks are relatively inexpensive in Vietnam, especially if you eat at local eateries and street food stalls. A meal at a local restaurant can cost as little as $2-5, while a meal at a mid-range restaurant may cost $10-20. Drinks, such as coffee or beer, typically cost $1-3.

8.3. Transportation

Transportation costs depend on how you choose to get around. Local buses are very affordable, with fares typically costing less than $1. Taxis and ride-hailing services are more expensive, but still relatively affordable compared to Western countries. Renting a motorbike can be a cost-effective option for exploring certain areas, but it’s essential to have a valid license and wear a helmet.

8.4. Activities and Entrance Fees

Entrance fees to tourist attractions and activities can vary widely. Some attractions are free, while others may charge a small fee. Activities like boat tours, cooking classes, or guided tours can range from $20 to $100 or more, depending on the duration and inclusions.

8.5. Miscellaneous Expenses

Don’t forget to factor in miscellaneous expenses such as souvenirs, laundry, SIM cards, and travel insurance. Set aside a portion of your budget for unexpected expenses or emergencies.

According to a 2023 survey by TripAdvisor, the average daily cost for a budget traveler in Vietnam is around $30-50, while mid-range travelers can expect to spend $70-100 per day, and luxury travelers may spend $200 or more.

9. Common Tourist Scams: Staying Vigilant

While Vietnam is generally a safe country for tourists, it’s essential to be aware of common tourist scams and take precautions to avoid becoming a victim.

9.1. Overcharging

Some vendors, especially in tourist areas, may try to overcharge tourists for goods or services. Always negotiate prices before making a purchase or using a service, and be wary of inflated prices.

9.2. Fake Goods

Be cautious when buying souvenirs or brand-name products, as counterfeit goods are common in Vietnam. Purchase from reputable stores and be wary of suspiciously low prices.

9.3. Taxi Scams

Some taxi drivers may try to take longer routes or tamper with the meter to inflate the fare. Use reputable taxi companies or ride-hailing services, and always ensure the meter is running.

9.4. Shoe Shining Scam

Be wary of unsolicited offers to shine your shoes, as they may charge exorbitant prices for a simple service. Politely decline the offer if you’re not interested.

9.5. Cyclo Scams

Cyclo drivers may try to overcharge tourists or take them to unwanted shops or attractions. Negotiate the price before starting the ride and be clear about your destination.

10. SIXT.VN: Your Travel Companion in Vietnam

SIXT.VN offers a range of services to make your trip to Vietnam seamless and enjoyable, including airport transfers, hotel bookings, tour arrangements, and transportation solutions.

10.1. Airport Transfers

SIXT.VN provides reliable and convenient airport transfer services to ensure a smooth arrival and departure. Our professional drivers will greet you at the airport and transport you to your hotel or other destination in comfort and safety.

10.2. Hotel Bookings

SIXT.VN offers a wide selection of hotels to suit every budget and preference. Whether you’re looking for a luxury resort, a boutique hotel, or a budget-friendly guesthouse, we can help you find the perfect accommodation for your stay in Vietnam.

10.3. Tour Arrangements

SIXT.VN can arrange tours and excursions to popular attractions and destinations throughout Vietnam. Our experienced guides will provide you with insights into the local culture, history, and customs, making your travel experience more enriching and memorable.

10.4. Transportation Solutions

SIXT.VN offers a range of transportation solutions to help you get around Vietnam, including car rentals, motorbike rentals, and private car services. Whether you prefer to explore on your own or have a driver take you around, we can provide you with the transportation you need.

Don’t let travel planning stress you out. Let SIXT.VN handle the details so you can focus on enjoying your adventure. Contact us today to book your airport transfer, hotel, tour, or transportation and experience the best of Vietnam hassle-free. Visit SIXT.VN or call +84 986 244 358 to start planning your dream trip. Address: 260 Cau Giay, Hanoi, Vietnam.

FAQ: Cash or Card in Vietnam?

1. Is it better to carry cash or use credit cards in Vietnam?

Carrying a mix of both cash (Vietnamese Dong) and credit cards is ideal. Cash is essential for markets, small eateries, and boat trips, while credit cards are suitable for larger establishments like hotels and major restaurants.

2. Can I use US dollars in Vietnam?

While some tourist-oriented businesses may accept US dollars, it’s generally better to use Vietnamese Dong for better exchange rates and wider acceptance.

3. How much cash should I carry daily in Vietnam?

Estimate your daily expenses, factor in contingencies, and consider where you’re likely to use cash versus card. A reasonable amount could be between 500,000 VND to 1,000,000 VND (approximately $20-$40 USD), depending on your activities.

4. Where can I exchange currency in Vietnam?

Exchange currency at reputable banks, licensed exchange counters, or authorized money changers for the best rates. Avoid exchanging money at airports or on the street.

5. Is tipping customary in Vietnam?

Tipping is not mandatory but appreciated for good service in restaurants, tours, and spas. A small tip of 5-10% is generally acceptable.

6. Are ATMs readily available in Vietnam?

Yes, ATMs are readily available in major cities and tourist areas. Opt for reputable banks to ensure secure transactions.

7. What are some common tourist scams in Vietnam?

Be aware of overcharging, fake goods, taxi scams, and unsolicited services. Always negotiate prices and purchase from reputable sources.

8. How can SIXT.VN help with my travel needs in Vietnam?

SIXT.VN offers airport transfers, hotel bookings, tour arrangements, and transportation solutions to make your trip seamless and enjoyable.

9. What should I do if my credit card is blocked while traveling in Vietnam?

Inform your bank about your travel plans before departure to prevent your card from being blocked. If it happens, contact your bank immediately to unblock your card.

10. Is Vietnam a safe country for tourists?

Vietnam is generally safe, but it’s essential to take precautions against theft and scams. Store your cash discreetly and be aware of your surroundings.

By understanding the nuances of currency usage and taking necessary precautions, you can ensure a smooth and enjoyable travel experience in Vietnam. Enjoy your travels with SIXT.VN!