Putting Money in a Vietnamese bank

[JimVaPhuong 4,863]

It's not about access to money while in VN that I'm looking for. It's more for investment purposes. The 9%-12% interest rate for VN dong or 2% interest for US Dollars is somewhat attractive right now. I'm also thinking of sending some money to my girl to put in the bank and use the interest for living expenses while she's in Vietnam. But the whole Vietnam being financially unstable kinda turns me off.

Are you looking at current numbers? The Vietnam Central Bank cut it's discount lending rate to 8% on Sunday, and their refinancing rate to 10%. How can they afford to pay 9% to 12% on deposits with loan rates that low? Those numbers might have been realistic last year when inflation was up around 23%, but inflation is down to a little under 7% now because the economy in VN is in a slump.

[confusedasheck 21]

Are you looking at current numbers? The Vietnam Central Bank cut it's discount lending rate to 8% on Sunday, and their refinancing rate to 10%. How can they afford to pay 9% to 12% on deposits with loan rates that low? Those numbers might have been realistic last year when inflation was up around 23%, but inflation is down to a little under 7% now because the economy in VN is in a slump.

This was the rate about 2-3 months ago I saw advertised at many banks while walking around HCMC. I'll have to check on what the current rates are now.

[confusedasheck 21]

Talked to my girl again. She says rates are 12-14% at the banks in her district. I think those are CD rates though. I forgot to ask the term but probably 1 year.

[JimVaPhuong 4,863]

Talked to my girl again. She says rates are 12-14% at the banks in her district. I think those are CD rates though. I forgot to ask the term but probably 1 year.

12% on a 1 year CD is good. The only worry is if the exchange rate spikes, but it seems to have leveled off at around 21000 a little over a year ago.

[lambchop4life 6]

Yeah, I've heard that. I don't know if Asian banks have the same sort of safeguards that US banks have for depositors. US banks have FDIC insurance to protect depositor accounts. I do know that a lot of Asians have a strong distrust of banks, and refuse to use them even here in the US. They keep their cash in a safe or lockbox in their house. Other Asians are well aware of this, so home invasion robberies have become pretty common. I didn't have any trouble convincing my wife to use a bank. She feels a lot more comfortable knowing that nobody can come into our house and steal all of our money.

If you want access to a limited amount of money in VN then you don't need to use a VN bank. Most US bank ATM cards will work there. There's just a limit to how much you can withdraw a day. The last time I was there the limit varied between 4 and 5 million VN dong per day.

On a related note, why do VK continue to use the word "dong" in the US when they're talking about an amount of money in dollars? For example, I hear my wife tell her sister she spent "muoi hai dong" for a $12 shirt. When we were in Vietnam she usually said "do la".

I can answer that for you Jim, In the US its use is the same as dollar, like "tomato or tomatoe"; "Dong" has the same meaning as "dollar". In Vietnam its different because you have two different currency, so you have to differentiate between "dong and dollar" or you're screwed. haha, I use the same vernacular with my wife too, I say dong all the time in the US but not in Vietnam.

Edited July 8, 2012 by lambchop4life

[AnhDoiEm 9]

far I do know...joint account is one of the important piece of the document for your (Evidence of a Bonifide Marriage) open the account with both of ur name on the account in VN BANK, but dont put alot in, around 50mil (2500USD) should be enough and maintain that balance in the bank, dont with draw. That's what I do for my wife.

Edited July 16, 2012 by AnhDoiEm