Transaction currency rules
- All real estate transactions in Vietnam are denominated exclusively in Vietnamese Dong (VND)
- Developers never issue invoices or payment requests in foreign currencies
- As a rule, developers also do not indicate approximate USD or EUR equivalents in contracts or payment notices
- All contractual obligations are settled strictly in VND
Initial booking and first payments
The initial booking payment, as well as in many cases the first payment within the transaction structure, is typically made before any formal supporting documents are issued.
At this stage
- there is usually no invoice, deposit agreement, or Sale and Purchase Agreement (SPA) in place
- as a result, SWIFT transfers may face difficulties, both:
- at the sending bank, and
- at the receiving Vietnamese bank
Banks on either side may, with high probability, request:
- a legal basis for the transfer
- contractual documentation justifying the payment purpose
Because such documentation is not yet available at the booking stage, SWIFT transfers can be delayed, rejected, or frozen.
Practical recommendation
For booking payments and other early-stage transfers made prior to signing a deposit agreement or SPA, buyers often use alternative financial instruments, such as:
- Wise
- Revolut
- similar international payment platforms
These tools are generally more flexible at the pre-contract stage.
Transfers after contract execution
Once a deposit agreement or Sale and Purchase Agreement (SPA) has been duly signed:
- payment purposes are clearly documented
- contractual grounds for transfer are established
At this stage
- international bank transfers via SWIFT should not encounter material issues
- payments can be made directly to the developer’s designated account in accordance with the contract
Clear alignment between the payment description and the contractual wording remains essential.
Currency acceptance by Vietnamese banks
Vietnamese banks typically accept major international currencies only.
In practice
- USD and EUR are widely accepted
- transfers in less commonly used currencies may encounter difficulties
Vietnamese banks often do not accept or have limited ability to process transfers in
- Chinese Yuan (CNY)
- Japanese Yen (JPY)
- and other non-core currencies
Such transfers may be
- delayed
- rejected
- or require additional compliance procedures
Practical recommendation
Where funds are held in a national or non-core currency, it is generally advisable to:
- convert the amount into USD or EUR first, and
- then execute the transfer to Vietnam
This approach significantly reduces operational and compliance risks.
Key considerations for buyers
- Early-stage payments are the most sensitive from a banking and compliance perspective
- Alternative payment platforms are often more suitable before formal contracts are signed
- After execution of a deposit agreement or SPA, standard SWIFT transfers are typically straightforward
- Using USD or EUR as an intermediary currency minimizes transfer friction
- Accurate payment descriptions are critical for:
- future resale
- capital repatriation
- tax compliance