Ray Riches*

When I first arrived in Việt Nam in 2013, my entire financial system consisted of a red metal cash box tucked under my bed. Every morning, I would count out the day’s budget, slip it into my wallet and head out into the bustling streets of HCM City. That box was not just storage; it was my bank, my budgeting tool and my security blanket all rolled into one.

Back then, I had no choice but to live with cash. As a foreigner without proper documentation, Việt Nam’s banking system was effectively closed to me. I soon learned that opening a bank account here was not like back home, where you could walk in with just a driver’s licence and walk out with a debit card. Việt Nam required something much more substantial: a valid passport, a long-term visa or Temporary Residence Card, proof of address through a rental contract or utility bill and, crucially, a work permit or employment contract.

Those early months taught me the hard reality of being financially excluded. I watched Vietnamese friends effortlessly tap their phones to pay for coffee while I fumbled with worn banknotes. The country was rapidly embracing digital payments, but I remained locked out — a spectator to the financial revolution happening around me.

The breakthrough came when I finally secured my Temporary Residence Card and signed a proper rental agreement. Armed with these documents and my employment contract, I walked into a local bank, one of Việt Nam’s largest state-owned banks. The process was still daunting; Vietnamese banking operates under strict regulations overseen by the State Bank of Vietnam, the country’s central regulatory authority, and every step required careful verification.

Even with proper documentation, depositing my accumulated cash proved challenging. Việt Nam’s banking laws, particularly Circular No. 23/2014/TT-NHNN and its successor 02/2019/TT-NHNN, require banks to verify the source of all funds. I had to present salary slips and my employment contract to prove that my money was legitimately earned. It was a sobering reminder that Việt Nam’s financial system prioritises security and compliance over convenience.

 

The banking landscape I entered was fascinating in its diversity. Alongside established state-owned giants like VietinBank and BIDV, I discovered dynamic joint-stock commercial banks like Techcombank, which impressed me with its user-friendly mobile app and innovative services.

Foreign banks like HSBC and Standard Chartered maintained a presence but their services were often limited to high-net-worth individuals or corporate clients, a reflection of Việt Nam’s cautious approach to foreign financial institutions.

What struck me most was how the system had evolved since my arrival. Việt Nam’s banking sector was experiencing rapid digital transformation, accelerated by the pandemic. QR codes appeared everywhere, from street food vendors to luxury boutiques.

Mobile banking apps became sophisticated, offering everything from bill payments to investment products. Yet this modernisation coexisted with traditional practices, as many transactions still required physical documents and in-person visits.

I eventually settled on a two-bank strategy that reflected this hybrid reality. The local bank became my primary account, handling my salary deposits and major bills. Their English-speaking staff and robust online banking platform made daily management straightforward.

Despite embracing digital banking, I maintained my cash habit for daily expenses. This was not just nostalgia for my red box days; cash remained king for street food, local transportation and small purchases. More importantly, it kept me connected to Vietnamese culture, where cash transactions still carry social meaning and help maintain personal budgets.

The legal framework governing all of this is surprisingly comprehensive. Việt Nam’s Credit Institution Law No. 32/2024/QH15 recently tightened ownership limits and transparency requirements, while the 2018 Law on Cybersecurity enhanced digital banking safety. For foreigners, these regulations create both obstacles and protections. The system may seem rigid, but it is designed to safeguard Việt Nam’s financial stability.

My daily routine now reflects this balance between digital convenience and traditional prudence. My salary arrives electronically, fixed expenses like rent and utilities are paid through bank transfers, and I use cards at supermarkets. But each month, I still withdraw a fixed amount for food, transport and leisure—a practice that would make my old cash box proud. My banking apps let me monitor every transaction, but the physical act of handling money keeps me grounded in Vietnamese daily life.

Looking ahead, Việt Nam’s banking future appears increasingly digital. Fintech start-ups are emerging, mobile wallets are proliferating, and artificial intelligence is being integrated into customer service. Yet this transformation maintains Việt Nam’s characteristic balance—innovation constrained by regulatory prudence, progress tempered by cultural continuity.

This does not mean that Việt Nam will leapfrog Western countries overnight. Some Western countries, like Australia, have forced electronic transactions on the community, and they now sit in a strenuous position where one major power failure can cripple the entire economy.

In April this year, a supermarket chain closed all stores across New Zealand as a result of a computer issue, and in Australia the same chain has had numerous problems closing stores due to storms and power outages. Shoppers with full trollies were forced to leave their intended purchases and exit the stores empty-handed. This is the true risk of cashless societies.

For fellow foreigners considering life in Việt Nam, my advice is simple: prepare for patience and paperwork. The banking system is not impossible to navigate but it demands respect for local processes and genuine documentation of your financial activities. The reward is access to a rapidly modernising financial ecosystem that, while different from Western norms, offers genuine utility and surprising sophistication.

As I write this, my red cash box sits almost empty under my bed, a memento of simpler times. Việt Nam has transformed my relationship with money from hiding cash under a bed to seamlessly managing finances through smartphone apps. Yet the core lesson remains unchanged: in Việt Nam, banking is not just about money, it is about understanding and respecting the delicate balance between tradition and progress that defines this remarkable country.

The journey from cash box to QR codes mirrors Việt Nam’s own evolution, a nation embracing the future while honouring its past, welcoming foreigners while protecting its sovereignty. For those willing to learn its rhythms, Vietnam's banking system offers not just financial services, but a window into the country's soul.

*Ray RICHES is a resident of HCM City in the south of Việt Nam. With over a decade of living in the community he has developed a love for everything Việt Nam. He works as a teacher and freelancer and has a passion for adventure cycling. Outside of work he also spends much time creating YouTube videos and taking photos to record a pictorial story of his home provinces.