Sign In or Sign Up To Be A Member

Search Hanoi: for

Hanoi Answers

Charging in USD in Vietnam

Well this one has been a long time coming and I am trying to find out what the actual legal angle is on how businesses charge in USD. We have all seen the recent fluctuations in the VND to USD rate that wreaked havoc on our rent payments over the summer. Now that things have settled down a bit it has come to my attention that a few establishments are happy to list their prices in dollars (not a problem) but then charge an arbitrary black market exchange rate (my bugbear) well above the central bank rate. These "establishments" also tend to be among the more expensive eateries in town so not only are they charging "top dollar" if you'll pardon the pun, but they are also capitalising on the inflated exchange rate to make extra margin.

I have spent some time looking for information about what is "permitted" and what is not. Apparently, this practice is illegal although how in goodness name does one enforce it? When I queried it, all I got was a shrug of the shoulders and some lame line about the owner setting the rate. Of course I have tried to contact the owners for clarification but never get any replies. I wonder why? I have got several receipts with blatant incorrect exchange rates and cannot help but wonder how they can get away with it. Does anyone know how we can do something. I have no problem with businesses charging more money for their goods as inflation increases but please do not use stealth tactics to do so. We are not as dumb as the tourists who pass through this country.

posted about 2 months ago by Finnmaccool - viewed 227 times
Tags

  (add tags) Why?   Details of tags



Answers

answered about 2 months ago by Stosskraft

no photo available

I believe that that it is illegal to do transactions in Vietnam in something other than VND. So technically it is illegal to do transactions in USD in Vietnam, but as we all know the laws are not really enforced here. I will try to find the article that I read that in.

Was this answer ...
Funny (0)
Useful (0)

answered about 2 months ago by stirge

It's basically along the same priciples of being charged twice what a Vietnamese person would be charged just because you are a foreigner. Now, of course we all now that some of us make more money than the locals, that's obvious. But, how can they do that? Well.....they just can. My Vietnamese friend told me that it's fair and we shouldn't complain about it because we come to this country and make much more money than the locals. Very true, but where are the morals or the laws regarding this completely immoral practice? Well, there are probably plenty of laws, but as foreigners we will most likely never see them enforced. Been living in Asia for 6 years and it's been like that in quite a few of the countries, although the charging more because I am a foreigner bit is a first time for me here in Vietnam. At least I didn't have to deal with that in the other places I've lived. It's hard to swallow sometimes and I feel myself getting angered over it, but in some ways I can understand it, too.

Was this answer ...
Funny (0)
Useful (0)

answered about 2 months ago by travelgoddess

What about starting a list of these places and letting them know WE know this is bs by not going there?

Steph

Was this answer ...
Funny (0)
Useful (0)

answered about 1 month ago by kloonvn

no photo available

I strongly believe that paying a premium over what locals pay for services and/or products is very much acceptable.

The prices should not depend on the geographical location of the buyer, but on the buying power of the consumer.

Differential pricing is a general accepted way of doing business. Same as children might pay only half price for a ticket to zoo, while actually using the same services as an adult (animals cost the same, no matter if they are looked at by adults or by children). Or the senior citizen will get a reduced rate for his bus ride, while he takes the exact same amount of gas to move him around as it takes for a middle aged man.

This is what the capitalists see as a valid system, and it might be one of the few things that is actually really responsible for a divers globalized market as we have now.

If the original poster complains about the missing transparency, then I can fully agree with him. Knowing the exact price up front would help him to make a educated decision. A decision could be that based on the real price charged, and not that you'll only see the real price at the end.

But as mentioned about, different prices for different customers is a very established market principle used everywhere. Especially in a market where people with very divers spending power meet, it is also very reasonable.

Was this answer ...
Funny (0)
Useful (0)
Please Sign In,  or Sign Up to post an answer.