VND is the abbreviation for the Vietnamese đồng, the official currency of Vietnam. The Vietnamese đồng is subdivided into smaller units called hào, but these subdivisions are no longer used due to their minimal value. VND is widely recognized as the currency code for the Vietnamese đồng in global currency trading systems.
The đồng was introduced in 1978 to replace the previous currency, the South Vietnamese piastre, at a rate of 1 đồng to 500 piastres. It is issued and regulated by the State Bank of Vietnam, which determines the exchange rates and manages the currency's stability.
The VND is denominated in banknotes, which are available in various denominations including 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, 100,000, 200,000, and 500,000 đồng. Vietnamese coins are relatively rare and mostly used in small transactions.
Vietnam's economy heavily relies on the VND as the medium of exchange for trade, domestic transactions, and financial activities. As an emerging market, the value of the Vietnamese đồng is subject to fluctuations influenced by factors such as inflation, interest rates, foreign direct investment, and socio-economic policies.
Due to currency exchange regulations, the VND is not widely traded outside of Vietnam, and conversion into other currencies may be subject to limitations. However, some currency exchanges and banks in select countries may provide limited services for exchanging VND to facilitate travel or business purposes.
