Background Info about the Vietnamese Dong

Background Info about the Vietnamese Dong

Before we begin to discuss anything about the investment opportunity that can be had in the Vietnamese dong, it will just be proper for us to look a bit at some sort of the past history of the country’s currency. The Vietnamese dong is of course the currency that is spent in the country called Vietnam. This currency of course has some series of divisions. It is divided in what is called 10 hao. A further division is made in which the hao is further divided into what is called xu; there are 10 xus in a hao. One thing about these divisions mentioned earlier is the fact that the two of them had become completely insignificant. This insignificance had led to a situation whereby the hao and the xu are no more issued in the Vietnam money market.

These days however, there is a new way in which the Vietnamese dong is recognized. It is now divided into various denominations for those who are handling it. These denominations are widely spread in such a way that you can have a Vietnamese currency with a value as high as 500,000 dong. There are also smaller values like 100,000, 50,000, 20,000, 10,000, 5,000, 2,000, 1,000 and 200 Vietnamese dongs. The 500,000 Vietnamese dongs is however newly introduced into the country’s currency system.

The value of the Vietnamese dong is not so encouraging; considering the fact that the 500,000 Vietnamese dongs has the same value as only 30 United States dollars. The name given to the Vietnamese currency ‘dong’ was derived from the name copper. This particular ‘dong’ was the currency used when Vietnam was still part of the French Indochina.

There is quite a bit of history behind the Vietnamese national currency. The name of the country’s currency was changed to ‘liberation dong’ in 1975; this was after the fall of Saigon. But the currency of the country was unified again after the war came to an end and the country was unified.

The Vietnamese government was however not satisfied with the economic situation of the country after the war and the government seeks for a revaluation of the country’s currency in order to bring about some kind of reformation into the country’s economy and generally better the overall living standard of every Vietnamese. Then in the middle of the 1980s the Vietnamese dong was revaluated by the government. This really gave the dong a strong helping hand; the new revaluated dong was now having the same value as 10 old Vietnamese dongs.

But in actual fact, the Vietnamese dong couldn’t really beat its chest as a country with a better economy; even after the revaluation of the Vietnamese dong. The exchange rate of the Vietnamese dong in comparison with most other currencies of the world was still very low. This of course was having its negative effect on the economy of the country. as at the year 2005; June to be precise, the Vietnamese dong is still pitiably one of the least valued currencies of the world.

Vietnamese Dong Note