Quoting in dollars, despite law

Though it is illegal, many goods and services here are now quoted in US dollars rather than the local currency to satisfy affluent customers’ demand.

For many businesses and customers, quoting in dollars is a sign of class.

A one-year membership at golf club in Kim No Commune, Dong Anh District, Hanoi for instance is offered at US$2,000 and a single ticket costs $131.1.

Those who want to pay in Vietnam Dong (VND) can certainly do so, at the rate of VND20.8 for one dollar.

The golf club’s staffs said that no member had ever complained about paying in dollars.

“They just don’t care,” said an employee. “They even tip the caddies in dollars.”

A luxury restaurant on Quan Su Street in Hanoi also finds quoting dishes in dollars much more classy and convenient.

Dishes here cost from $10 to 200, equal to VND100,000 to 4 million.

The staffs said that quoting in dollars gives a sense of luxury and quality to the dishes.

“Quoting in dong may devalue the luxurious dishes,” a waitress said. She also explained that as the prices are high, quoting in dong would require numbers with too

many digits to please customers.

Services with names that include the word “international” such as retail websites and language centers also prefer to quote in dollars.

An agent of an English center for instance said the registration fee for a course at her center costs $299.

This pleases the parents every much, she said.

“Women feel proud when they pay for their children’s education in dollars.”

For Dau, manager of a retail and leasing services website, quoting in dollars is simply a question of practicality, not of elitism.

“When I buy things, I have to pay in dollars. So I simply can’t sell them in dong,” he said.

Thinh, who sells imported hand-carried goods, said she had to quote her goods in dollars after many customers suspected her goods when they were quoted in dong.

Against the law

Nguyen Van Hung, deputy manager of the Hanoi branch of the State Bank of Vietnam said it was against the law to quote goods and services in foreign currencies here, except for a few services targeting international customers.

But Hung said that current VND30 million fine might not be high enough to stop violations.

He said the State Bank had thus called for a heavier fine of up to hundreds of millions of dong. – Tuoitre

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial