Vietnamese đồng

The đồng (/dɒŋ/; Vietnamese: [ˀɗɜwŋ͡m˨˩]; sign: or informally đ; code: VND) has been the currency of Vietnam since 3 May 1978. It is issued by the State Bank of Vietnam. The đồng was also the currency of the predecessor states of North Vietnam and South Vietnam, having replaced the previously used French Indochinese piastre.

Vietnamese đồng
Đồng Việt Nam (in Vietnamese)
50dong1985.jpg 500 dong.jpg
50 đồng500 đồng
ISO 4217
CodeVND
Denominations
Subunit
 1/10hào
 1/100xu
both subunits have been unused in Vietnam for several years
Symbol₫/đ
U+20AB DONG SIGN (HTML ₫)
Banknotes
 Freq. used500₫, 1,000₫, 2,000₫, 5,000₫, 10,000₫, 20,000₫, 50,000₫, 100,000₫, 200,000₫, 500,000₫
 Rarely used50₫, 70₫, 100₫, 200₫
Coins
 Rarely used200₫, 500₫, 1000₫, 2000₫, 5000₫ (no longer minted or in active use; still legal tender)
Demographics
User(s)Vietnam Vietnam
Issuance
Central bankState Bank of Vietnam
 Websitewww.sbv.gov.vn
Valuation
InflationPositive decrease 2.7% (2019)[1]

Formerly, it was subdivided into 10 hào, which were further subdivided into 10 xu, neither of which are now used. The Vietnamese đồng has increasingly moved towards exclusively using banknotes; as of 2012 the use of coins has decreased greatly, and since 2014 coins are generally not accepted in retail, but will still be accepted in some, but not all, banks.[citation needed]

The Vietnamese đồng is currently the third weakest circulating currency as of May 2021 (behind Venezuelan bolivar and Iranian rial), with one United States dollar equalling 23112.04 đồng.

EtymologyEdit

The word đồng is from the material which the pennies were made (bronze), The term refers to Chinese bronze coins used as currency during the dynastic periods of China and Vietnam. The term hào is a loanword from the Chinese háo (Chinese: 毫), meaning a tenth of a currency unit. The term xu comes from French sou meaning "penny". The sign is encoded U+20AB DONG SIGN (HTML ₫).

HistoryEdit

French IndochinaEdit

The piastre was the currency of French Indochina between 1885 and 1952.

North VietnamEdit

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 1959; the first was at a rate of 100:1, the second at a rate of 1,000:1.

South VietnamEdit

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

United VietnamEdit

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

On 14 September 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]

CoinsEdit

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

First đồngEdit

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 đồngEdit

Commemorative IssuesEdit

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 IssueEdit

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. Prior to its reintroduction, Vietnamese consumers 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 denomination banknotes, which tended to wear easily. 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]

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 numbers 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. Also, the coins did not gain popularity from the Vietnamese people.[5] Eventually, State Bank of Vietnam withdrew its distribution in April 2011.[6]

2003 Series[3]
Image Value Technical parameters Description Date of
Diameter Thickness Mass Composition Edge Obverse Reverse first minting issue
[7][8] 200₫ 20 mm 1.45 mm 3.2 g Nickel-plated steel Plain Coat of arms Denomination 2003 December 17, 2003
  500₫ 22 mm 1.75 mm 4.5 g Nickel-plated steel Segmented (3 groups) April 1, 2004
[9][10] 1,000₫ 19 mm 1.95 mm 3.8 g Brass-plated steel Reeded Coat of arms Water Temple, Đô Temple 2003 December 17, 2003
[11][12] 2,000₫ 23.5 mm 1.8 mm 5.1 g Brass-plated steel Segmented (6 groups) Highland Stilt house in Tay Nguyen April 1, 2004
5,000₫ 25.5 mm 2.2 mm 7.7 g Brass (Cu92Al6Ni2) Micro-scalloped Một Cột Pagoda (One Pillar Pagoda) December 17, 2003
These images are to scale at 2.5 pixels per millimetre. For table standards, see the coin specification table.

BanknotesEdit

First đồngEdit

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 đồngEdit

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, but as of 2015 are still in wide circulation.[13]

Five banknote series have appeared. Except for the current series, dated 2003, all were confusing to the user, lacking 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 7 June 2007, the government ordered cessation of the issuance of the cotton 50,000 and 100,000₫ notes.[citation needed] They were taken out of circulation by 1 September 2007. State Bank of Vietnam 10,000 and 20,000₫ cotton notes are no longer in circulation as of 1 January 2013.[14]

Second đồng[3]
Image Value Dimensions Main Color Description Date of
Obverse Reverse printing issue
100₫ 120 × 60 mm Green Coat of Arms Phổ Minh Temple 1991 2 May 1991
200₫ 130 × 65 mm Orange Ho Chi Minh Agricultural production 1987 30 September 1987
500₫ 130 × 65 mm Pink Port Haiphong 1988 15 August 1989
1,000₫ 134 × 65 mm Multicolor on lime background Lumber productions 20 October 1989
2,000₫ 134 × 65 mm Multicolour Textile factory
5,000₫ 134 × 65 mm Blue Trị An hydropower plant 1991 15 January 1993
10,000₫ 140 × 68 mm Red Hạ Long Bay 1993 15 October 1994
20,000₫ 140 × 68 mm Blue Canned food factory 1991 2 March 1993
50,000₫ 140 × 68 mm Green Nhà Rồng Port 1994 15 October 1994
100,000₫ 145 × 71 mm Brown Ho Chi Minh's ethnic house 1 September 2000

In 2003 Vietnam began replacing its cotton banknotes with plastic polymer banknotes, claiming that this would reduce the cost of printing.[15] 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.[15] The government clamped down on these criticisms by banning two newspapers from publishing for a month and considering other sanctions against other newspapers.[15] Even though the 2003 series banknotes listed in the table below have now completely replaced the old notes of the same denominations, as of 2019 the cotton fiber banknotes of 200, 500, 1000, 2000 and 5,000 đồng still remain in wide circulation and are universally accepted.[citation needed]

2003 Polymer Series[3][16]
Image Value Dimensions Main Color Description Date of
Obverse Reverse Obverse Reverse printing issue
10,000₫ 132 × 60 mm 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. 30 August 2006
20,000₫ 136 × 65 mm Blue Covered bridge in Hội An 17 May 2006
50,000₫ 140 × 65 mm Pink Huế 17 December 2003
100,000₫ 144 × 65 mm Yellowish green Temple of Literature 1 September 2004
200,000₫ 148 × 65 mm Brownish-red Hạ Long Bay 30 August 2006
500,000₫ 152 × 65 mm Cyan-Purple Ho Chi Minh's birthplace in Kim Liên 17 December 2003
These images are to scale at 0.7 pixel per millimetre. For table standards, see the banknote specification table.

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 is available in three forms, by itself, in a presentation folder or in a presentation folder in an envelope. In 2016, a 100-đồng banknote was issued on cotton-based paper to commemorate the 65th anniversary of central banking.

Bearer's checks 1992–2002Edit

To support the 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.[17] 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 đồngEdit

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 present-day Vietnam, when mentioning an amount of money, the currency can be (and usually is) omitted.

Exchange rateEdit

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: 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,[18] 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. After the use of the Zimbabwean dollar ceased on 12 April 2009,[19] the đồng was the second least valued currency unit after the Iranian rial as of 28 November 2014. Since 19 June 2014, the Vietnamese dong has been devalued a total of five times in an effort to help spur exports and to ensure the stability of the currency.[20]

Year USD Exchange rate
1960 97
1970 410
1980 2,050
1990 6,500
2000 14,428
2010 19,495
2020 23,173

(Sources: tradingeconomics.com, imf.org)

See alsoEdit

ReferencesEdit

  1. ^ "Vietnam and the IMF".
  2. ^ "LOC Country Study Vietnam". Lcweb2.loc.gov. Retrieved 7 January 2014.
  3. ^ a b c d State Bank of Vietnam. "Technical characteristics of Vietnamese currency" (in Vietnamese). Archived from the original on 22 July 2006. Retrieved 9 August 2006.
  4. ^ "Curious Vietnamese sneak a peek at no-tear notes, coins". 19 December 2003. Archived from the original on 1 June 2004.
  5. ^ "Tại sao tiền xu không được ưa chuộng?". Vietstock. Retrieved 12 May 2013.
  6. ^ "Nên thu hồi tiền xu khi giá trị thanh toán không còn". Người Đưa Tin. 27 December 2012. Retrieved 27 December 2012.
  7. ^ "collection/vncoins/vn-20003-o". art-hanoi.com. Retrieved 3 April 2014.
  8. ^ "collection/vncoins/vn-20003-r". art-hanoi.com. Retrieved 25 January 2014.
  9. ^ "collection/vncoins/vn-1k03-o". art-hanoi.com. Retrieved 3 April 2014.
  10. ^ "collection/vncoins/vn-1k03-r". art-hanoi.com. Retrieved 25 January 2014.
  11. ^ "collection/vncoins/vn-2k03-o". art-hanoi.com. Retrieved 3 April 2014.
  12. ^ "collection/vncoins/vn-2k03-r". art-hanoi.com. Retrieved 25 January 2014.
  13. ^ "500,000 Vietnamese Dong: The Story of a Historic Banknote". www.banknoteworld.com. Retrieved 24 March 2017.
  14. ^ http://english.vovnews.vn/Home/Cotton-banknotes-to-go-out-of-circulation/20129/142580.vov. Missing or empty |title= (help)
  15. ^ a b c BBC (21 October 2006). "Vietnam censorship concern grows". BBC News.
  16. ^ NGÂN HÀNG NHÀ NƯỚC VIỆT NAM THÔNG BÁO PHÁT HÀNH TIỀN MỚI VÀO LƯU THÔNG Archived 27 September 2006 at the Wayback Machine
  17. ^ Ngan Phieu (Bearer's Checks) 1992-2002 Coins and banknotes of Vietnam and French Indochina
  18. ^ "Zimbabwe money loses three zeros". BBC News. 31 July 2006.
  19. ^ "Zimbabwe Suspends Use of Own Currency | News | English". Voanews.com. 12 April 2009. Archived from the original on 29 June 2011. Retrieved 7 January 2010.CS1 maint: unfit URL (link)
  20. ^ "Vietnamese Dong Devaluations 2014-2016". globalcurrencyreset.net. 23 May 2016. Retrieved 23 May 2016.

External linksEdit

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