Vietnamese Đồng (VND) in 2025: Current Value, History, and Economic Insights

Gordon Scott has been a dedicated investor and technical analyst for over 20 years and holds the Chartered Market Technician (CMT) designation.

What Is the Vietnamese Đồng (VND)?

The Vietnamese Đồng, abbreviated as VND, is the official currency of Vietnam. It replaced the separate currencies of North and South Vietnam in 1978, unifying the nation's monetary system. Known as an exotic currency, the VND has limited activity on global forex markets. Until 2016, it was managed via a crawling peg system linked to the U.S. dollar.

Key Highlights

• VND is the currency code for the Vietnamese đồng, the national currency of Vietnam.
• The State Bank of Vietnam oversees the currency, maintaining a managed peg to the U.S. dollar.
• In Vietnamese, "đồng" generically means money, so the full term "Vietnamese đồng" specifies the national currency.

Understanding the Vietnamese Đồng

Represented by the symbol ₫, the Vietnamese đồng is issued by the State Bank of Vietnam in denominations ranging from 100 to 500,000 đồng. While historically subdivided into hào and xu, these smaller units are no longer in circulation. Coins were introduced in several denominations to modernize the currency system, though paper banknotes remain the primary form of currency.

The đồng was first introduced in 1946 by the Viet Minh government, replacing the French Indochinese piastre. South Vietnam issued its own đồng until reunification in the late 1970s, when the current unified currency was established.

Despite chronic inflation, the đồng remains a key currency in Vietnam's rapidly growing economy. As of June 29, 2023, the exchange rate was approximately 23,631 VND to 1 USD.

Vietnam has transformed from an agricultural economy to a major electronics manufacturing hub, attracting significant foreign investment, notably from Samsung Electronics. This economic expansion has positioned Vietnam as one of the fastest-growing economies globally. According to Bloomberg, while some Asian currencies have fluctuated, the Vietnamese đồng has remained relatively stable.

Investment Considerations

Investors interested in Vietnam might explore mutual funds or exchange-traded funds (ETFs) that provide exposure to the country's market.

Special Linguistic Note

In Vietnamese, "đồng" broadly means currency, so it must be qualified with the country's name to specify Vietnamese currency. For example, the U.S. dollar could be called "U.S. đồng" in Vietnamese. Therefore, always use "Vietnamese đồng" when referring to Vietnam’s currency.

Current Exchange Rate: USD to VND

As of June 26, 2023, 1 USD equals approximately 23,538 VND.

Vietnamese Đồng Price Forecast for 2023

PricePrediction.net forecasts a slight increase to $0.000052 per đồng, WalletInvestor predicts $0.000046, and TradingBeast estimates $0.000048, indicating modest growth.

Vietnam’s Economic Growth in 2024

Vietnam’s GDP growth is projected at 5.8% for 2024, making it one of the fastest-growing economies worldwide, just behind India and the Philippines.

Conclusion

The Vietnamese đồng (VND) is Vietnam’s official currency, established in 1946 and unified in 1978. Managed by the State Bank of Vietnam with a peg to the U.S. dollar, the đồng plays a vital role in the country’s dynamic economy. As of mid-2023, 1 USD exchanges for roughly 23,538 VND, reflecting the currency’s ongoing stability amid rapid economic growth.

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