Prices still listed in dollar despite steep fines

Goods and services are still paid and their prices still quoted in dollars in HCM City, though the penalties for such violations were last week increased seven times.
In Vietnam, all transactions, payments, advertisements and price listings are banned from being conducted or quoted in foreign currencies, except those carried out by banks, airports and customs agencies.

Last week the State Bank of Vietnam issued a new decree, increasing the penalties for quoting prices of goods and services in foreign currencies seven times to 500 million dong (US$24,300).

It also slapped a hefty fine of 50-100 million dong on those making payments in foreign currencies, something it had previously left unpunished.

However, prices listed in dollars can still easily be spotted in stores around the city.

V., a HCM City resident, told Tuoi Tre that the VH camera booth at Saigon Tax Trade centre had offered to sell her a Canon G12 camera for $450.

At the unofficial exchange rate of around 21,700 dong to the dollar, V. would have to pay 9.7 million dong for the camera. She said the store was also willing to accept payment in dollars, which was against the regulation.

The store owner said since he had to buy the greenback from the black market to import the products, he had to sell in dollars to “recoup the capital.”

V. said other stores also quoted prices in dollars while those listed in dong were “only for reference since the exchange rate changes on a daily basis.”

Despite the new regulation, many travel agencies, beauty salons and resorts still have not changed their usual practice of asking customers to pay in foreign currencies.

Many customers of the Trung Nam Investment Consultant Co Ltd have recently complained that the company charged them in dollars for its visa consultation services.

The company, however, accepts payments both in US dollars and dong.

K, a tour organiser in Tan Binh District, quoted its price for a six-day tour package to Thailand at $350 a person and $500 for a four-day trip to Singapore. Other tours to Laos, Cambodia, Malaysia and Hong Kong are also listed in dollars on its website.

Authorities step up crackdowns The HCM City branch of the State Bank of Vietnam said its joint operation with the municipal market control agency had detected many violations in quoting prices in dollars.

So far six businesses have received warnings from the central bank for making payments in foreign currency, it said.

The market control agency has issued fines to 60 violators to the total amount of 1.5 billion dong while the police also cracked down on 50 cases with the total penalties of 2.8 billion dong.

The central bank said it would soon expand its operations on a larger scale to curb violations in the financial sector.
Tuoi Tre

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial