Can I Use U.S. Dollars In Vietnam And Cambodia? | Currency Travel Tips

Understanding Currency Usage in Vietnam and Cambodia

Travelers often face confusion about currency acceptance when visiting Southeast Asia, especially in countries like Vietnam and Cambodia. Both nations have distinct monetary systems shaped by their histories and economies, which influence how foreign currencies—particularly U.S. dollars—are accepted.

Cambodia’s economy is heavily dollarized, meaning the U.S. dollar circulates alongside the local currency, the Cambodian riel (KHR). In contrast, Vietnam maintains a more controlled monetary environment centered around its official currency, the Vietnamese dong (VND). This fundamental difference affects where and how you can use U.S. dollars during your trip.

Why Is the U.S. Dollar Accepted Differently?

Cambodia’s dollarization stems from its turbulent past during the late 20th century when hyperinflation and political instability eroded trust in local money. The influx of foreign aid and investment brought U.S. dollars into everyday commerce. Today, most Cambodians prefer using dollars for larger transactions, while riels handle small change.

Vietnam’s monetary policy is more protective of its dong to maintain economic sovereignty and control inflation. Although dollars are accepted in tourist hotspots or for certain services like hotels and tours, everyday purchases—from street food to public transport—almost always require dong.

Using U.S. Dollars in Cambodia: What You Need to Know

In Cambodia, you can confidently carry and spend U.S. dollars almost anywhere. Hotels, restaurants, markets, and even tuk-tuk drivers typically quote prices in USD or a mix of USD and riel.

Practical Tips for Spending USD in Cambodia

• Bills Accepted: Cambodian businesses usually accept $1 bills and above; however, $5, $10, $20 denominations are most common for transactions.
• Change Given: Change is often returned partly in riel because smaller denominations of USD are scarce.
• ATMs: Many ATMs dispense both USD and riel; check your ATM options before withdrawing.
• Exchange Rates: Be aware that some places may offer less favorable exchange rates when converting riel to dollars or vice versa.

Where Dollars Are Preferred

• Hotels and guesthouses
• Tour agencies
• Mid-range to upscale restaurants
• Large markets and shopping centers

Smaller vendors or street stalls might insist on payment in riel or smaller denominations for ease of giving change.

The Reality of Using U.S. Dollars in Vietnam

Vietnamese dong rules the roost here. While dollars aren’t illegal or completely rejected, their use is limited compared to Cambodia.

Where You Can Use Dollars in Vietnam

• International hotels often accept USD.
• Certain tourist-oriented businesses may quote prices in USD but expect payment mostly in dong.
• Some tour operators catering to foreigners price trips in USD but convert payments into dong internally.

Limitations on Using Dollars

Vietnamese law restricts foreign currency circulation within the country to protect the dong’s value. Paying with dollars at regular shops or local markets is rare and sometimes refused outright.

Most vendors won’t accept anything but dong because they can’t deposit foreign currency into their bank accounts without converting it first—adding hassle and risk.

How to Handle Currency Exchange Smoothly

Since you’ll mostly need dong for daily expenses:

• Exchange some cash at official banks or licensed money changers upon arrival.
• Use ATMs widely available across cities; they dispense dong directly.
• Avoid exchanging money on the street due to scams or poor rates.

The Currency Table: Comparing Vietnam & Cambodia Dollar Usage

Aspect	Cambodia	Vietnam
Main Local Currency	Cambodian Riel (KHR)	Vietnamese Dong (VND)
U.S. Dollar Acceptance Level	Widely accepted nationwide for most transactions	Limited acceptance; mainly hotels & tourist services
Common Transaction Currency	Dollars for large amounts; Riel for small change	Dong almost exclusively used by locals & vendors
ATMs Dispense	Dollars & Riel options available widely	Dong only at nearly all ATMs nationwide
Exchange Rate Control	Liberal exchange market; fluctuates with demand	Tightly controlled by government authorities

Practical Advice on Carrying Money Across Borders Between Vietnam & Cambodia

If your itinerary includes both countries, planning your cash management is crucial since their currency systems differ significantly.

Start with enough Vietnamese dong if landing first in Vietnam because you’ll need it immediately for taxis, meals, or SIM cards. Once crossing into Cambodia:

• Keep some small-denomination U.S. dollars handy.
• Exchange leftover dong into either USD or riel at border points if possible.
• Avoid carrying excessive cash; use credit cards where accepted but don’t rely solely on them.

Remember that exchanging money at airports tends to have less favorable rates than city banks or authorized changers.

The Role of Credit Cards and Digital Payments

Credit cards are becoming more common but still aren’t universally accepted outside major cities or tourist hubs in both countries.

Mobile payment apps like MoMo (Vietnam) or Wing (Cambodia) have gained traction locally but require a Vietnamese/Cambodian phone number and bank account—usually not practical for short-term visitors.

Plan to carry a mix of cash (dong and/or dollars) plus one reliable credit card with low foreign transaction fees for emergencies or larger purchases like hotel bills.

The Impact of Using U.S. Dollars on Your Travel Budget

Using U.S. dollars smartly can save you money—but mismanaging currency exchange can cost you dearly through poor rates or hidden fees.

In Cambodia:

• Paying directly with USD avoids double conversion fees.
• However, insist on receiving change partly in riel to avoid accumulating small dollar bills that might be hard to spend later.

In Vietnam:

• Always convert your dollars into dong before spending widely.
• Be wary of vendors quoting prices only in USD as they may charge a premium compared to paying with dong.

Currency fluctuations also affect how much bang you get for your buck during your trip—check current exchange rates before traveling so you can budget accurately.

Avoiding Common Pitfalls When Using U.S. Dollars Abroad Here

Travelers often make mistakes that lead to confusion or loss:

• Tendering large bills only: Smaller denominations are easier everywhere.
• Assuming universal acceptance: Not all places take USD even within tourist zones.
• Ignoring local customs: Offering exact change shows respect and smooths transactions.
• Cashing out too late: Exchanging leftover currency back home usually yields worse rates.
• Trusting unofficial exchangers: Risk counterfeit notes or scams.
• Lack of preparation: Failing to know current exchange rates can lead to overspending.

Being informed about how each country handles foreign currencies will help you avoid these traps effortlessly.

Navigating Border Crossings: Currency Tips Between Vietnam & Cambodia

Cross-border travel between these neighbors involves some subtle financial logistics:

At official border checkpoints:

• You’ll find money changers offering competitive rates but verify authenticity before exchanging big sums.
• Cambodian side favors accepting U.S. dollars immediately upon entry.
• The Vietnamese side expects payment primarily in dong once inside their borders.
• If crossing multiple times during your trip, keep track of leftover currencies carefully.
• Avoid carrying large amounts of cash through customs; declare if required by law.

Planning ahead ensures smooth transitions without unexpected financial hassles at borders.

The Role of Local Banks Versus Money Changers for Currency Exchange

Choosing where to exchange money impacts convenience, safety, and value received:

Banks:

• Tend to offer official exchange rates with minimal markup.
• Avoid counterfeit risks due to strict regulation.Might have limited operating hours compared to changers.Licensed Money Changers:

Frequently Asked Questions

Can I use U.S. dollars in Vietnam for everyday purchases?

In Vietnam, the Vietnamese dong (VND) is the primary currency for most transactions. While U.S. dollars may be accepted in tourist areas, hotels, and some tours, everyday purchases like street food or public transport generally require dong. It’s best to carry local currency for convenience.

Are U.S. dollars widely accepted in Cambodia?

Yes, U.S. dollars are widely accepted throughout Cambodia. Most businesses, including hotels, restaurants, and markets, quote prices in USD or a combination of USD and Cambodian riel. Larger bills such as $5, $10, and $20 are preferred for transactions.

Why is the acceptance of U.S. dollars different between Vietnam and Cambodia?

Cambodia’s economy is heavily dollarized due to historical instability and foreign aid inflows, making the U.S. dollar common in daily commerce. Vietnam maintains strict control over its currency to protect economic sovereignty, limiting widespread use of U.S. dollars outside tourist zones.

What denominations of U.S. dollars are best to use in Cambodia?

In Cambodia, $5, $10, and $20 bills are most commonly accepted by businesses. Smaller denominations like $1 bills may be less favored or harder to use for larger purchases. Change is often given partly in Cambodian riel due to limited small USD bills.

Can I withdraw U.S. dollars from ATMs in Vietnam and Cambodia?

Many ATMs in Cambodia dispense both U.S. dollars and Cambodian riel, offering flexibility when withdrawing cash. In Vietnam, ATMs typically dispense only Vietnamese dong, so plan accordingly if you want to use local currency during your visit.