How to Send or Receive Money from Vietnam

Minh, a Vietnamese student living in Los Angeles, balances his university studies with a part-time job at a local café, working hard during weekends and evenings.

Despite the challenges of his academic and professional life, Minh often thinks about his family back in Vietnam. His parents, siblings, and elderly family members rely on his financial support to meet their needs.

For Minh, money transfers are not just financial transactions; they are vital links that connect him to his loved ones, providing essential support that transcends oceans. Every dollar he earns is carefully allocated to meet his family’s needs, whether it’s covering medical expenses, buying groceries, or contributing to rent.

Money transfers are crucial for the survival of Minh’s family, and he is not alone in this situation. Today, it is estimated that over 1.3 million Vietnamese living in the United States face similar daily challenges.

This article is designed to provide a comprehensive guide, not only to understand the legal and tax aspects related to these transactions but also to choose the transfer method best suited to your specific needs, whether they concern education or healthcare. We will examine the fastest, least expensive, and most appropriate options for sending or receiving money in Vietnam.

What Are the Different Ways to Send and Receive Money in Vietnam?

1 – Traditional Banks

Traditional banking services are reliable and secure options for sending and receiving money in Vietnam.

Advantages:

• Security and Trust: Banks are regulated by financial oversight agencies, offering a high level of security and protection for your funds.

• Additional Services: In addition to money transfers, banks offer a range of financial services, including investment advice, loans, and credit facilities.

• Direct International Transfers: You can send money directly from your bank account to an account in Vietnam, simplifying the process without the need for intermediaries.

Disadvantages:

• High Costs: Transfer fees and exchange rates can be particularly high. Additional costs may accumulate, especially for frequent or large transfers.

• Slower Process: The processing of international transfers can take several business days, which is not ideal for emergency shipments such as healthcare needs.

• Complexity and Documentary Requirements: Sending funds abroad through banks may require comprehensive documentation and administrative formalities, making the process sometimes cumbersome.

• Requirement of a Bank Account: This requirement can be a major obstacle, especially in Vietnam where a significant portion of the population does not have access to traditional banking services. This financial barrier limits access to money transfers for those who may need it most.

2 – Online Services and Applications

Online services such as Wise (formerly TransferWise), WorldRemit, PayPal, Venmo, and Cash App have revolutionized the way we send and receive money around the world.

They offer a convenient and often more economical alternative to traditional money transfer methods, suited to our digital era.

Further on in this article, you will discover our ranking of the fastest and least expensive ways to send or receive money in Vietnam.

Advantages:

• Speed and Ease of Use: These platforms allow for fast, often instantaneous, money transfers with a simple online operation or via a mobile app. Their intuitive user interface makes the process accessible to everyone.

• Cost-Effective: The fees applied by these services are generally lower than those of traditional banks, particularly for international transactions. They also offer competitive exchange rates, which can result in significant savings.

Disadvantages:

• Necessity of an Account on the Same Platform: To receive money via these services, the recipient often needs to have an account. This can be a barrier for people who are not accustomed to using such services or who do not have access to technological means in Vietnam. Sometimes, withdrawals are limited to banks or services that your loved ones can access.

• Lack of Customization for Specific Needs: These services are not specifically designed for needs such as healthcare access. They do not provide the same assurance that every transferred penny will be used for medical purposes or to improve the well-being of loved ones.

• Lack of Transparency and Tracking: While these platforms provide some transparency regarding fees and the transfer process, they do not offer a detailed mechanism to track how funds are specifically used once received. This is crucial for donors who want to ensure that their financial support is directly allocated to specific needs, such as healthcare for their loved ones.

• Geographical Limitation: Often, these apps are designed to primarily operate in a single country or specific region, which poses a problem for immigrants wanting to financially support their loved ones in Vietnam.

• Data Security: Although these apps take measures to protect users’ financial information, concerns about the security of personal data remain.

3 – Purchasing Online Health Credits

If you want to support your loved ones in Vietnam, especially in the healthcare field, health credits offer a solution that combines speed, security, and positive impact.

KimboCare was born from the lived experience of two African immigrants facing the challenges of supporting the health of their loved ones back in Africa while navigating their own lives in the United States and Europe, a story similar to Minh’s that we mentioned in the introduction.

This story is not unique, but our response to this challenge is entirely unique.

We created KimboCare to transform the way we care for our families from afar, whether in Vietnam or in other developing countries.

Now, you can purchase digital health credits so that your loved ones can access preventive and curative healthcare services without needing a bank account or a digital currency platform.

This process is simple, direct, and can be done from anywhere, at any time. These credits will be immediately usable by patients who will be welcomed in medical facilities that are always verified and controlled by KimboCare.

Rather than just sending money, often without a guarantee that it will be used for necessary healthcare or without being able to ensure the quality of care received, health credits offer a transparent and secure solution.

You also get real-time tracking of the medical services purchased with the health credits, ensuring that every penny truly contributes to the health and well-being of the recipient.

The commitment lies in empowering vulnerable populations, especially women and children, to access quality healthcare, thereby contributing to a longer and healthier life.

The utility of health credits lies in protecting your data with advanced encryption protocols, giving you additional peace of mind as you contribute to the health of your loved ones.

The fastest ways to send or receive money in Vietnam

To send or receive money in Vietnam quickly, several options are available, each with its own specifics, advantages, and limitations. It is crucial to choose the method that best meets your needs, considering speed, costs, and specific requirements.

Health Credits

By purchasing health credits, you can ensure that your financial support is directly used for quality health services.

For urgent health needs, prioritize services offering instant or same-day transfers. Platforms like KimboCare inform the patient directly via SMS or a call.

Not only does this allow for an efficient and rapid transfer of funds, but it also ensures that your money contributes to a vital cause: the health of your loved ones.

Purchasing health credits frees you from the uncertainties and delays often associated with traditional money transfers.

When you buy health credits for a loved one in Vietnam, the recipient can access the necessary care without waiting, thanks to a network of reliable and verified medical partners.

Moreover, you benefit from complete transparency and real-time traceability of the medical services delivered, which is not always the case with other money transfer methods.

Online Services and Mobile Apps

Online services and mobile apps are often the fastest for money transfers.

Platforms like PayPal, Western Union, WorldRemit, and TransferWise (now Wise) enable almost instantaneous transfers.

However, it is important to note that these speeds can vary depending on the amount sent and the necessary security checks.

Some platforms limit the amount you can send over a given period without additional verification, while others may require detailed information about the recipient for compliance reasons.

International Banks

International bank transfers can also be fast, especially if both parties use the same bank or banks with cooperation agreements.

However, interbank transfers can be subject to delays due to stricter verification processes and the need to go through clearing systems.

Amount limits and specific requirements vary greatly from one bank to another. This is particularly important in Vietnam, where most households are limited in their withdrawals.

The least expensive ways to send or receive money in Vietnam

Sending or receiving money from a loved one involves adopting a strategic approach to minimize costs while ensuring the safety and efficiency of transactions.

Online services and mobile apps often offer more favorable rates than traditional banks, thanks to their reduced cost structures.

Although PayPal is better known for online payments, Xoom, a PayPal service, is optimized for international transfers, offering reasonable fees and competitive exchange rates.

Indeed, the exchange rate plays a crucial role in the total cost of an international money transfer to Vietnam.

The Vietnamese Dong (VND), the national currency, fluctuates according to global and local economic trends, directly influencing the cost of sending funds. Senders must be vigilant and track these variations to maximize the value of their transfer.

For instance, comparing the exchange rates offered by different services can reveal significant differences that affect the final amount received.

Platforms like Wise stand out by offering the real exchange rate at the time of transfer, without additional markups, which can represent substantial savings on regular transactions.

It is also essential to consider transaction fees, which can vary significantly between providers.

Some services charge a percentage of the amount sent, while others may offer a flat rate that becomes more advantageous for larger transfers.

Financial regulations in Vietnam do not present the same complexities observed in some other emerging markets.

However, senders must stay informed of the latest guidelines from the State Bank of Vietnam, which can influence the available transfer options, especially for significant or regular transfers.

Before choosing a service, compare transaction fees, applied exchange rates, and look for reviews to ensure reliability and security.

Opting for platforms that offer a transparent exchange rate and as close as possible to the market rate without hidden fees can greatly reduce the costs of money transfers to Vietnam.

Is It Possible to Transfer Money with Zero Fees?

Platforms like TransferWise (now Wise) and Remitly are known for their competitive costs and transparency.

While the offer of fee-free money transfers may seem appealing, it can often be misleading.

Money transfer companies need to generate revenue to operate, and if they don’t impose explicit transfer fees, they may recover these costs in other ways.

This can include applying less favorable exchange rates, meaning your money loses value en route, or introducing ancillary fees once you engage in the transfer process.

It is therefore important to be vigilant about hidden fees, which can appear as additional service charges or indirect costs.

Carefully reading the service terms can save you from unpleasant surprises.

When the purpose of your money transfer is specifically related to supporting the healthcare needs of your loved ones in Vietnam, purchasing health credits emerges as an innovative solution offering affordable costs.

This guarantees that your loved ones receive the necessary best healthcare, avoiding unnecessary fees or fluctuations in exchange rates.

You know precisely what care has been provided, when, and at what cost, ensuring that your contribution has the desired impact.

Furthermore, no money transfer is necessary, so you minimize the risks of hidden fees.

Transferring Funds to Vietnam Based on Different Needs

Sending money to Vietnam goes well beyond a mere transaction; it’s a manifestation of support, love, and investment in the future of your loved ones.

Whether it’s promoting access to education or ensuring family health, every Dong sent carries the potential for change and empowerment, enabling your loved ones to pursue their dreams and build a better future for themselves and their communities.

Education and Work

Investing in education is a priority for many Vietnamese families.

Money transfers intended to cover tuition fees, books, equipment, and supplies are essential, especially when students aspire to more expensive higher education opportunities.

These transfers can be made via banks or online transfer services that offer direct delivery options to educational institutions or specific bank accounts.

Such a direct approach minimizes intermediaries and ensures that the funds reach their specific purpose.

For example, consider the story of Minh, a young man from Hanoi. Like many young Vietnamese, Minh faced challenges in the local job market, exacerbated by increased competitiveness and limited access to quality jobs without a university degree.

Without stable employment, he depends on money transfers sent by his older sister, Linh, who works as a financial analyst in Singapore.

Aware of the difficulties faced by Minh and their family back in Vietnam, Linh strives to regularly send money.

Each month, she transfers about $500 to her family.

While modest in Singapore, this sum represents significant assistance for Minh, allowing him not only to meet his daily needs but also to continue his studies at a local university.

Thanks to these transfers, Minh has been able to fund his studies in computer engineering, a field in high demand, and actively seek employment in a rapidly expanding sector in Vietnam.

Healthcare

When it comes to taking care of our loved ones, especially those who are far away, a major concern for many is to ensure that the help sent is actually used appropriately, particularly in the field of healthcare.

This concern is even more relevant in Vietnam, a country where finding a competent healthcare professional for loved ones can quickly become a headache, especially in emergency situations.

Navigating the Vietnamese healthcare system, which is complex and sometimes opaque, can be stressful. The extensive research needed to find a competent doctor, hidden costs, and the lack of clarity in the treatments offered are all barriers to equitable access to quality care.

Take the example of Minh, a family man living in Ho Chi Minh City. Despite a better-developed healthcare network than in other regions, accessing reliable and quality care remains a major challenge.

Minh, who is dealing with a chronic illness, has often found himself lost in the maze of available treatment options. Information about his condition was incomplete, and doctors seemed reluctant to openly discuss treatment options. This generated a sense of vulnerability and uncertainty not only for him but also for his daughter Linh, who emigrated to the United States.

Linh, though far away, has always felt responsible for her father’s well-being. Her feeling of helplessness turned into hope when she discovered KimboCare through a friend’s recommendation. The KimboCare platform offered Linh the ability to pay directly for quality medical care for her father in Vietnam, while ensuring transparency and follow-up.

Registered on the platform, Linh was able to fund the necessary medical examinations to accurately assess her father’s health condition.

The results were clearly communicated, and a tailored treatment plan was developed, significantly improving Minh’s care experience. He benefited from regular and reassuring follow-up, something he could not have afforded otherwise.

With KimboCare, Vietnamese expatriates like Linh can purchase health credits that are used exclusively for medical care, thus eliminating the uncertainties related to sending money. These credits are spent with reliable and verified local medical partners, ensuring that the funds are used according to their intended purpose.

Moreover, KimboCare actively participates in coordinating care by facilitating communication between patients and healthcare professionals, thus ensuring the best possible care experience for recipients.

This approach allows not only for identifying reliable medical facilities but also for tracking treatments and obtaining direct feedback from the beneficiaries themselves.

Nutrition 

Ensuring that our loved ones in Vietnam have access to adequate and nutritious food is a crucial concern, especially in areas where access to quality food products can be restricted by economic constraints.

Sending money to cover the food needs of the family is an act that supports not only the physical well-being but also the happiness and daily security of our loved ones.

Vietnamese cuisine, known for its freshness, delicate flavors, and balance, reflects the cultural diversity of the country. Basic ingredients such as fish sauce (nuoc mam), fresh herbs, and vegetables are essential to create dishes that nourish not only the body but also the souls of local communities.

Take, for example, Phở, an iconic dish of Vietnam. This clear yet flavorful broth, made with rice noodles, thin slices of beef or chicken, and topped with aromatic herbs, symbolizes the essence of Vietnamese cuisine. It illustrates the fusion of flavors and culinary techniques that characterize the country.

Every Vietnamese, whether in the country or abroad, knows the recipe for this symbolic dish that evokes family ties and cultural roots. Spring rolls and Bánh mì are other examples of dishes that play a vital role in daily nutrition and remind expatriates of the flavors of their childhood.

These dishes are much more than just meals; they represent a connection to home for expatriates and a way to keep traditions alive, even thousands of miles away. 

For Vietnamese living abroad, sending money home often goes beyond simple financial assistance; it is a way to ensure that their families can purchase these traditional ingredients and dishes.

Each fund transfer is thus an act of preserving traditions, supporting local communities, and maintaining a vital link with cultural heritage.

These remittances not only support immediate needs but also strengthen the social and cultural bonds that are essential to the cohesion and well-being of families back home.

Our Safety Tips for Making Money Transfers to Vietnam

In an ideal world, sending and receiving money across borders would be as simple and secure as making a phone call.

However, the reality of international money transfers can sometimes be complex, with risks of fraud and scams preying on the most vulnerable.

1. Verify and Validate Your Funding Destination

Ensure that the money you send reaches the person you intend to help.

This may seem obvious, but in urgent situations, mistakes can occur.

Double-check the contact details and information of the recipient before proceeding with any transfer.

We advise you to opt for recognized and well-established money transfer services that offer you complete transparency about the journey of your funds throughout the process.

2. Do Not Trust Offers That Seem Too Good to Be True

Scammers often use the promise of extremely favorable exchange rates or zero transaction fees to lure their victims.

If an offer seems too good to be true, it probably is.

Similarly, a common scam tactic is to create a sense of urgency, like a fake health problem of a relative, to push you to send money quickly without verification.

3. Never Share Your Personal Information

Be vigilant with your personal and financial data. Fraudsters may try to obtain it via phone, email, or social networks.

A legitimate company will never ask you to provide sensitive information through these channels.

It is better to turn to a solution where data is protected by advanced encryption protocols and you have access control.

4. Make Sure to Track Your Funds

It is very important to have a record of each money transfer as it can prove invaluable in case of any issues.

This information allows you to trace and dispute any suspicious transaction.

After sending money, check with your recipient to confirm the receipt of funds.

This simple step can help you quickly detect any potential fraud.

The best help you can get for sending or receiving money from Vietnam is from an agency that ensures every penny is invested in specific needs (like healthcare expenses), with zero risk of diversion by unreliable intermediaries.

An Overview of Money Transfer Laws in Vietnam

Vietnam, with a population of nearly 100 million people, is a nation experiencing rapid economic growth and global integration.

Its transition from a centrally planned economy to an outward-oriented market economy has attracted massive foreign investments and fostered rapid industrial development.

In monetary terms, Vietnam uses the Vietnamese dong (VND) and maintains flexible exchange policies, influenced by central bank interventions to stabilize the value of its currency.

Within the global economy, money transfers to Vietnam have played a pivotal role in the stabilization and economic expansion of the country.

This support mainly comes from the United States, but also from Canada, Australia, and the United Kingdom.

Between 1993 and 2022, the total accumulated remittances reached about 190 billion dollars, an amount that nearly rivals the foreign direct investments (FDI) made over the same period.

In 2022 alone, Vietnam received a record amount of 13 billion dollars in remittances, positioning the country among the top ten global destinations for international funds.

Three main factors catalyze this growth:

Firstly, global economic turbulence tends to increase remittance flows from Asia by expatriate workers.

Secondly, the proactive policies of the Vietnamese government encourage Vietnamese residing abroad to invest in the country and send money there.

Finally, technological advancements in the field of cross-border money transfers simplify and optimize these operations, making processes faster and more efficient, though not necessarily more accessible for families who do not have access to these platforms.

To foster these exchanges, the Vietnamese government has implemented favorable policies to attract and use these funds effectively for economic development, including simplifying transfer procedures and offering tax incentives for investments funded by remittances.

Taxation Applicable to Sending or Receiving Money in Vietnam

International money transfers to and from Vietnam are subject to strict regulations to prevent money laundering and the financing of terrorism.

All transfers exceeding 5,000 USD must be declared to the Vietnamese tax authorities.

Money transfers that go through legal channels (banks and licensed services) may be subject to transaction taxes if these funds are considered taxable income for the recipient, depending on the amount and nature of the transfer.

However, Vietnam has gradually reduced the bureaucracy and administrative formalities necessary for sending and receiving money.

This includes easing controls on foreign currencies and modernizing banking systems to integrate digital payment technologies.

For example, Vietnamese banks now collaborate with international money transfer platforms to enable faster and less expensive transfers.

On the other hand, every transfer requires careful attention to avoid potential hidden fees.

At KimboCare, we emphasize the importance of being well-informed about these aspects, as it not only helps ensure hassle-free money transfers but also supports our mission to ensure equitable and affordable access to services, such as healthcare, for those in need in Vietnam.

FAQ

How do I send health credits to relatives in Vietnam ?

You can start managing access to reliable healthcare for your loved ones back home in a few easy steps.  

1. Visit app.kimbocare.com or download KimboCare’s free app from the App Store or Play Store.
2. Select the country, medical facility, and health bundle(s).
3. Add a beneficiary.
4. Review your order and make your payment.

That’s it! Your relative can now visit your selected medical facility and receive care services while you monitor the usage and effectiveness of your gift from your tablet or smartphone.

How can I send money to Vietnam in the safest way possible?

To ensure the safety of your money transfer to Vietnam, choose recognized services with robust security protocols. Always check user reviews and make sure the service is regulated by competent financial authorities.

If you want to send money to cover healthcare expenses, opt for recognized services with robust security protocols. Our platform ensures that each financial partner adheres to high security standards, thus guaranteeing that your funds reach your loved ones safely.

Are money transfers to Vietnam taxed?

International money transfers to and from Vietnam are subject to strict regulations to prevent money laundering and terrorism financing.

All transfers over 5,000 USD must be declared to the Vietnamese tax authorities.

Money transfers that go through legal channels (banks and licensed services) may be subject to transaction taxes if these funds are considered taxable income for the recipient, depending on the amount and nature of the transfer.

How long does a money transfer to Vietnam take?

The transfer time can vary depending on the service used. Electronic transfers can be instantaneous or take a few hours, while traditional methods like bank transfers can take several business days.

For urgent health needs, prefer services offering instant or same-day transfers. Some platforms, like KimboCare, directly inform the patient via SMS or a call so they can receive their care as quickly as possible.

What are the typical fees associated with sending money to Vietnam?

Fees vary widely depending on the service chosen, the amount sent, and the payment method. Some services charge a percentage of the transferred amount, while others apply fixed fees. Look for options offering complete transparency on fees to avoid surprises.

Are there any limits on the amount of money that can be sent to Vietnam?

Yes, most money transfer services impose limits, which can vary depending on the transfer method chosen and the regulations of the service. It is also important to note that your relatives may face bank withdrawal limits on-site.

It is essential to check these limits before making a transfer, especially if you plan to send large sums for needs such as covering medical expenses.

How can I ensure I get the best exchange rate when sending money to Vietnam?

Compare the exchange rates offered by different services before making your transfer. Some services allow you to lock in a favorable exchange rate in advance or offer more competitive exchange rates for higher amounts. Be aware of hidden fees that may affect the final amount received!

How can my loved ones in Vietnam receive money?

Recipients in Vietnam can receive money via direct deposits into their bank accounts, cash withdrawals at local service points, or even, for some services, by home delivery. Ensure you choose a reception method that best suits your recipient in terms of convenience and security.

Regarding health credits, each credit purchased can then be given to your loved ones for access to quality care in accredited medical facilities.