A variety of factors make sending money to Vietnam somewhat complicated. The country has experienced a great deal of progress in recent decades, but financial institutions in the nation still sometimes lag behind those of the rest of the world. This is especially due to government restrictions in place in the country.
The following are five important factors that it's a good idea to be aware of to send money to Vietnam reliably, affordably, and efficiently.
1. The Vietnamese government bureaucracy
The fact that Vietnam has a communist government means that the country is run by an enormous bureaucracy that reaches into every aspect of financial life.
The Vietnamese government controls money leaving the country and sometimes makes it difficult to send money out of the country. In general, you can expect it to be easier to send money to Vietnam from another country than it is to send money out of Vietnam.
Those who are sending funds to Vietnam need to be aware of the many scams that exist. You need to find a reputable remittance service to make sure that you're money is really going to get where you want it to go.
Make sure that you're working with a licensed operator whose trustworthiness has been verified by a financial authority in your home country before you send money to Vietnam.
Even legitimate money transfer services might charge you high fees for transferring money to Vietnam. Because there are a lot of government restrictions in place regarding how funds move in and out of Vietnam, brokers sometimes must cover significant taxes when they work with Vietnam money transfers. As such, you might have to pay more to transfer money to Vietnam than you're used to paying to transfer money to other foreign countries.
4. Bank account issues
If you're trying to transfer money to a small Vietnamese bank, you might have problems.
While larger banks operating in the country are set up to accommodate international transfers, small local banks in Vietnam might not be able to. Again, this has to do with the government controls in place in Vietnam that tend to restrict the capabilities of businesses operating in the country.
If you will need to send money to Vietnam regularly, it's best to make sure that your recipient has an account at a larger international bank to avoid complications.
If you're sending money to Vietnam, you're most likely doing it using an online transfer service. These services have sprung up in recent years to accommodate Vietnamese individuals living abroad who need to send money home to their families.
These services typically operate through making direct deposits into bank accounts. While you might be able to arrange for cash pickup or door-to-door cash delivery, many online cash remittance services sending money to Vietnam will require a receiving bank account.