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Kicking the habit of using foreign currencies
Many Vietnamese people have preferred to use foreign currencies to the domestic currency for a long time without knowing that the practice is illegal, and this habit must change as soon as possible.
According to Vietnamese law, all business transactions in Vietnam cannot be conducted in foreign currencies, except for transactions between credit organisations and a number of other organisations authorised by the State.
However, the US dollar (US$) is commonly used in many business transactions and services in the country. Many products of different value such as cars, motorcycles, computers and accessories, food & drinks are priced in US dollars. Media agencies also use the word ‘the US dollar’ rather than the domestic currency (VND) when reporting on the government’s economic stimulus packages. Many market bulletins even report the exchange rate between the Vietnamese Dong and the US dollar on the ‘black’ market.
For a long time Vietnamese people have been so desperate for imported goods that they believe only those products can be quality, stylish and worthy buying. Such a mania only demonstrates the like and influences the habits and concepts of everyone in society. But this habit has recently changed alongside the rapid development of the economy and domestic businesses whose products are of the same or even better quality than the same types of imported ones.
However, the excessive use of foreign currencies in Vietnam should be changed immediately, as this practice breaks the law.
Automobile manufacturers explain that they find it very inconvenient to advertise their products in VND rather than US$. This is an unreasonable explanation, because any business that invests and operates in a certain country must abide by the laws of that country. In Vietnam, the VND is the national currency and is used in all transactions by businesses and the public. Therefore, there is no point in saying that using VND is inconvenient.
The fact is that the management of foreign currencies in Vietnam has not yet received due attention. The State has issued several memos governing the management of foreign currencies and the listing of the prices of commodities and services, including a programme to prevent the economy becoming dollarised. But not much progress has been made in this field. As a result, the listing of the prices of commodities and transactions in US$ remains common and several foreign businesses have made use of this loophole to profit illegally.
At a workshop in Hanoi late last month, the governor of the State Bank of Vietnam, Nguyen Van Giau, said that the central bank will keep a close watch on banking services, especially on the management of foreign currencies.
Very recently, the central bank asked media agencies not to report the exchange rate between the Vietnamese Dong and the US dollar on the ‘black’ market. This regulation needs to be carried out, as public media agencies are not allowed to use illegal reporting methods.
It’s worth mentioning that the Vietnamese Ordinance on Foreign Currencies does not allow any organisations or individuals to list the prices of their commodities in foreign currencies in the country. Those who want their products priced in foreign currencies must submit their proposals to the Prime Minister for consideration. If not, they will break the law and be dealt with accordingly.
VietNamNet, VOV
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