In a move described as unprecedentedly heavy-handed in controlling the currency market, the Vietnamese state has issued Decree 340, which will take effect on February 9, 2026.
This new regulation imposes harsh penalties on foreign-currency buying and selling on the informal market. Under the new rules, not only illegal exchange businesses will be targeted, but ordinary citizens—and even international tourists—also face serious legal risks.
Specifically, alongside escalating monetary penalties ranging from warnings up to 100 million VND, the regulation authorizes authorities to confiscate the entire amount of evidence involved, including both the foreign currency and any related Vietnamese dong.
That means a tourist who exchanges USD 10,000 at a gold shop rather than at a bank could lose the entire amount and additionally face an administrative fine of up to 30 million VND.
This “tough” measure is believed to aim at eliminating the black market, combating dollarization, and stabilizing the value of the national currency.
However, experts note that reality shows a very large gap between exchange rates listed by commercial banks and the actual value on the informal market, with the difference often fluctuating between 700 and 800 VND per U.S. dollar.
Forcing people to sell foreign currency into the banking system at a rate lower than the real market rate effectively causes direct losses to their assets.
This is an extremely unreasonable policy at a time when Vietnam is making efforts to persuade the international community to recognize it as a fully-fledged market economy.
In a genuine market economy, currency prices should be adjusted by the law of supply and demand, not by administrative orders and threats of asset confiscation.
Criminalizing these mutually agreed civil transactions not only infringes on citizens’ freedom to dispose of their property, but also risks enabling vested interest groups.
Hồng Lĩnh – Thoibao.de
