Vietnamese dong

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"VND" redirects here. For other uses, see VND (disambiguation).
Vietnamese dong
đồng Việt Nam
500000 dong polymer.jpg 500 dong.jpg
500,000 đồng 500 đồng
ISO 4217 code VND
Central bank State Bank of Vietnam
 Website www.sbv.gov.vn
User(s) Socialist Republic of Vietnam
Inflation 18.7%
 Source 2011[1]
Subunit
 1/10 hào
 1/100 xu
both subunits have been unused in Vietnam for several years
Symbol
U+20AB dong sign (HTML: ₫)
Coins 200₫, 500₫, 1000₫, 2000₫, 5000₫ (no longer in used)
Banknotes 100₫, 200₫, 500₫, 1,000₫, 2,000₫, 5,000₫ (these first six are old issue, but still in circulation), 10,000₫, 20,000₫, 50,000₫, 100,000₫, 200,000₫, 500,000₫

The đồng (/ˈdɒŋ/; Vietnamese: [ɗôŋm]) (sign: ; code: VND) has been the currency of Vietnam since May 3, 1978. Issued by the State Bank of Vietnam, it is represented by the symbol "₫". Formerly, it was subdivided into 10 hào, which was further subdivided into 10 xu, neither of which is now used.

Etymology[edit]

The word đồng is from the term đồng tiền ("money"), a cognate of the Chinese tóng qián (Traditional Chinese: 銅錢; Simplified Chinese: 铜钱). The term refers to Chinese bronze coins used as currency during the dynastic periods of China and Vietnam. The term hào is a cognate of the Chinese háo (Chinese: 毫), meaning a tenth of a currency unit.

The sign is encoded U+20AB dong sign (HTML: ₫).

History[edit]

North Vietnam[edit]

In 1946, the Viet Minh government (later to become the government of North Vietnam) introduced its own currency, the đồng, to replace the French Indochinese piastre at par. Two revaluations followed, in 1951 and 1958; the first was at a rate of 100:1, the second at a rate of 1000:1.

South Vietnam[edit]

Notes dually denominated in piastres and đồng were issued in 1953 for the State of Vietnam, which evolved into South Vietnam in 1954. On September 22, 1975, after the fall of Saigon, the currency in South Vietnam was changed to a "liberation đong" worth 500 old Southern đồng.

United Vietnam[edit]

After Vietnam was reunified, the đồng was also unified, on May 3, 1978. One new đồng equalled one Northern đồng or 0.8 Southern "liberation" đồng.

On September 14, 1985, the đồng was revalued, with the new đồng worth 10 old đồng. This started a cycle of chronic inflation that continued through much of the early 1990s.[2]

Coins[edit]

For earlier modern Vietnamese coins, please see North Vietnamese đồng or South Vietnamese đồng.

First đồng[edit]

In 1978, aluminium coins (dated 1976), were introduced in denominations of 1, 2, and 5 hào and 1 đồng. The coins were minted by the Berlin mint in the German Democratic Republic and bear the state crest on the obverse and denomination on the reverse. Due to chronic inflation, these coins lost all their relevant value and no coins circulated for many years after this series.

Second đồng[edit]

Commemorative Issues[edit]

Commemorative coins in copper, brass, copper-nickel, silver, and gold have been issued since 1986, but none of these have ever been used in circulation.

2003 Issue[edit]

The State Bank of Vietnam resumed issuing coins on December 17, 2003.[3] The new coins, minted by the Mint of Finland, were in denominations of 200, 500, 1,000, 2,000, and 5,000 đồng in either nickel clad steel or brass clad steel. Earlier, Vietnamese had to exchange banknotes for tokens with a clerk before purchasing goods from vending machines. This was also to help the state ease the cost of producing large quantities of small notes which tended to wear hard. Many residents expressed excitement at seeing coins reappear after many years, as well as concern for the limited usefulness of the 200 đồng coins due to ongoing inflationary pressures.[4] There had been rumors of coins being mistaken for candies by children and as fakes by some vendors since coins had long been absent from use in Vietnam, these reports have been difficult to verify.

Since the launch of the 2003 coin series the State Bank has had some difficulties with making the acceptance of coins universal despite the partial discontinuation of smaller notes, to the point of some banks refusing coin cash deposits or the cashing in of large amounts of coins. This has prompted laws requiring private and municipal banks to transact and offer services for coins and the full discontinuation of small denomination and cotton based notes.

2003 Series[3]
Image Value Technical parameters Description Date of
Diameter Thickness Mass Composition Obverse Reverse first minting issue
[5][6] 200₫ 20 mm 1.45 mm 3.2 g Steel plated with nickel Coat of arms Denomination 2003 December 17, 2003
500 dong.jpg 500₫ 22 mm 1.75 mm 4.5 g Steel plated with nickel April 1, 2004
[7][8] 1,000₫ 19 mm 1.95 mm 3.8 g Steel plated with a copper-zinc alloy Coat of arms Water Temple, Đô Temple 2003 December 17, 2003
[9][10] 2,000₫ 23.5 mm 1.8 mm 5.1 g Steel plated with a copper-zinc alloy Ethnic house April 1, 2004
5,000₫ 25.5 mm 2.2 mm 7.7 g Copper alloy (Cu92Al6Ni2) Một Cột Pagoda (One Pillar Pagoda) December 17, 2003
These images are to scale at 2.5 pixels per millimeter. For table standards, see the coin specification table.

Banknotes[edit]

First đồng[edit]

In 1978, the State Bank of Vietnam (Ngân hàng Nhà nước Việt Nam) introduced notes in denominations of 5 hào, 1, 5, 10, 20, and 50 đồng dated 1976. In 1980, 2 and 10 đồng notes were added, followed by 30 and 100 đồng notes in 1981. These notes were discontinued in 1985 as they gradually lost value due to inflation and economic instability.

Second đồng[edit]

In 1985, notes were introduced in denominations of 5 hào, 1, 2, 5, 10, 20, 30, 50, 100, and 500 đồng. As inflation became endemic, these first banknotes were followed by 200, 1,000, 2,000, and 5,000 đồng notes in 1987, by 10,000 and 50,000 đồng notes in 1990, by a 20,000 đồng note in 1991, a 100,000 đồng note in 1994, a 500,000 đồng note in 2003, and a 200,000 đồng note in 2006. Banknotes with denominations of 5,000 đồng and under have been discontinued from production and have been progressively withdrawn from circulation.

Five banknote series have appeared. Except for the current series, dated 2003, all were confusing to the user and lacked unified themes and coordination in their designs. The first table below shows the latest banknotes, of 100 đồng or higher, prior to the current series. On June 7, 2007, the government ordered cessation of the issuance of the cotton 50,000 and 100,000₫ notes. They were taken out of circulation by September 1, 2007.State Bank of Vietnam 10,000 and 20,000₫ cotton notes are no longer in circulation as of January 1, 2013.

Pre-2003 Banknotes in Circulation[3]
Image Value Dimensions Main Color Description Date of
Obverse Reverse Obverse Reverse printing issue
200₫ 130 × 65 mm Orange Ho Chi Minh Agricultural production 1987 September 30, 1987
500₫ 130 × 65 mm Pink Port Haiphong 1988 August 15, 1989
1,000₫ 134 × 65 mm Multicolor on lime background Lumber productions October 20, 1989
2,000₫ 134 × 65 mm Multicolor Textile factory
5,000₫ 134 × 65 mm Blue Trị An hydropower plant 1991 January 15, 1993
10,000₫ 140 × 68 mm Red Halong Bay 1993 October 15, 1994
20,000₫ 140 × 68 mm Blue Canned food factory 1991 March 2, 1993
50,000₫ 140 × 68 mm Green Nhà Rồng Port 1994 October 15, 1994
100,000₫ 145 × 71 mm Brown Ho Chi Minh's ethnic house September 1, 2000
These images are to scale at 0.7 pixels per millimeter.

Since 2003, Vietnam has replaced its cotton banknotes with plastic polymer banknotes, which it claims will reduce costs.[11] Many newspapers in the country criticized these changes, citing mistakes in printing and alleging that the son of the governor of the State Bank of Vietnam benefited from printing contracts.[11] The government clamped down on these criticisms by banning two newspapers from publishing for a month and considering other sanctions against other newspapers.

2003 Polymer Series[3][12]
Image Value Dimensions Main Color Description Date of
Obverse Reverse Obverse Reverse printing issue
[13] [13] 10,000₫ 132 × 60mm Dark brown on greenish yellow Ho Chi Minh Offshore platform The first two digits of the serial number give the last two digits of the year of issue. August 30, 2006
[14] [14] 20,000₫ 136 × 65 mm Blue Covered bridge in Hoi An May 17, 2006
[15] [15] 50,000₫ 140 × 65 mm Pink Huế December 17, 2003
[16] [16] 100,000₫ 144 × 65 mm Yellowish green Temple of Literature September 1, 2004
[17] [17] 200,000₫ 148 × 65mm Brownish-red Halong Bay August 30, 2006
[18] [18] 500,000₫ 152 × 65 mm Cyan-Green Ho Chi Minh's birthplace in Kim Lien December 17, 2003
These images are to scale at 0.7 pixels per millimeter.

A commemorative polymer 50-đồng banknote dedicated to the fiftieth anniversary of the State Bank of Vietnam was issued in 2001, but its face value is so tiny that it clearly was meant only for collectors. The note usually comes in a presentation folder.

Bearer's checks 1992–2002[edit]

To support growing industrial need for large money transactions, the State Bank issued "Bearer's Checks" or "State Bank Settlement Checks" (Ngân Phiếu Thanh Toán) in denominations from 100,000 to 5,000,000 đồng.[19] To prevent counterfeiting, these notes had many degrees of protection, their designs were changed every five to six months, and they had expiration dates five or six months after the date of issue. The checks worked until the banking system was upgraded to handle electronic transfers of large amounts of đồng, making most large cash transactions unnecessary.

Other uses of đồng[edit]

In the Vietnamese language, "đồng" can be used as a generic term for any currency by adding the name of a country as a qualifier. This practice is more common for more esoteric units of currency. In some overseas Vietnamese-speaking communities, notably among Vietnamese Americans, it is used to denote the local currency (United States dollars), and one must refer to Vietnamese đồng as đồng Việt Nam ("Vietnamese đồng"). Similarly, hào and xu are occasionally used to translate the American "dime" and "cent", respectively, into Vietnamese.

In present-day Vietnam, because the value of the currency is so small, one đồng could also be understood as one thousand đồng.

Exchange rate[edit]

Current VND exchange rates
From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD INR CNY
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD INR CNY
From XE.com: AUD CAD CHF EUR GBP HKD JPY USD INR CNY
From OANDA.com: AUD CAD CHF EUR GBP HKD JPY USD INR CNY
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD INR CNY

After the revaluation of the Zimbabwean dollar on 1 August 2006,[20] the đồng became the least valued currency unit for months. Around 21 March 2007, the revalued Zimbabwean dollar regained least valued currency status (in terms of black market exchange rate), and on 7 September 2007 in terms of official exchange rate.

See also[edit]

References[edit]

  1. ^ "Report for Selected Countries and Subjects". Imf.org. 2006-09-14. Retrieved 2013-12-27. 
  2. ^ "LOC Country Study Vietnam.". Lcweb2.loc.gov. Retrieved 2014-01-07. 
  3. ^ a b c d State Bank of Vietnam. "Technical characteristics of Vietnamese currency" (in Vietnamese). Archived from the original on 2006-07-22. Retrieved 2006-08-09. 
  4. ^ "Curious Vietnamese sneak a peek at no-tear notes, coins". 2003-12-19. Archived from the original on 2004-06-01. 
  5. ^ "collection/vncoins/vn-20003-o". art-hanoi.com. Retrieved 2014-04-03. 
  6. ^ "collection/vncoins/vn-20003-r". art-hanoi.com. Retrieved 2014-01-25. 
  7. ^ "collection/vncoins/vn-1k03-o". art-hanoi.com. Retrieved 2014-04-03. 
  8. ^ "collection/vncoins/vn-1k03-r". art-hanoi.com. Retrieved 2014-01-25. 
  9. ^ "collection/vncoins/vn-2k03-o". art-hanoi.com. Retrieved 2014-04-03. 
  10. ^ "collection/vncoins/vn-2k03-r". art-hanoi.com. Retrieved 2014-01-25. 
  11. ^ a b BBC (2006-10-21). "Vietnam censorship concern grows". BBC News. 
  12. ^ NGÂN HÀNG NHÀ NƯỚC VIỆT NAM THÔNG BÁO PHÁT HÀNH TIỀN MỚI VÀO LƯU THÔNG[dead link]
  13. ^ a b "P-119". banknote.ws. Retrieved 2014-04-03. 
  14. ^ a b "P-120". banknote.ws. Retrieved 2014-04-03. 
  15. ^ a b "P-121". banknote.ws. Retrieved 2014-04-03. 
  16. ^ a b "P-122". banknote.ws. Retrieved 2014-04-03. 
  17. ^ a b "P-123". banknote.ws. Retrieved 2014-04-03. 
  18. ^ a b "P-124". banknote.ws. Retrieved 2014-04-03. 
  19. ^ Ngan Phieu (Bearer's Checks) 1992-2002 Coins and banknotes of Vietnam and French Indochina
  20. ^ "Zimbabwe money loses three zeros". BBC News. July 31, 2006. 

External links[edit]

First đồng
Preceded by:
North Vietnamese đồng
Location: North Vietnam
Reason: currency unification
Ratio: at par
Currency of Vietnam
1978 – 1985
Note: banknotes are dated 1976
Succeeded by:
Second đồng
Reason: inflation
Ratio: 1 second đồng = 10 first đồng
Preceded by:
South Vietnamese liberation đồng
Location: South Vietnam
Reason: currency unification
Ratio: 1 new đồng = 0.8 liberation đồng
Preceded by:
Moneyless economy
Reason: Vietnamese invasion of Cambodia
Note: It is unclear whether the North, the South đồng, or nothing at all was used after the invasion in January 1980 and before the issuance of a united đồng in May
Currency of Cambodia
1978 – 1980
Concurrent with: Thai baht and some other foreign currencies, to some extent
Succeeded by:
Cambodian riel
Reason: reintroduction of a national currency
Ratio: 1 riel = 3 đồng = 0.25 U.S. dollar = 1kg rice
Second đồng
Preceded by:
First đồng
Reason: inflation
Ratio: 1 second đồng = 10 first đồng
Currency of Vietnam
1985 –
Succeeded by:
Current