Money

The East Asian financial crisis is now a distant memory, and Vietnam is generally gaining economic clout in the world; but the rate of exchange, not to mention the price of most goods and services, means that travel in Vietnam and throughout the region is very budget-friendly. Especially in smaller towns, you'll find that you can live quite well on very little, and Vietnam's resort destinations and luxury accommodations in general come at a fraction of what you might pay in your home country.

ATM service is good in most cities, but if heading off into the countryside, bring cash. Note that the U.S. dollar is used widely in both Vietnam and Cambodia: In fact, the dollar is the de facto currency in Cambodia, and packing some U.S. greenbacks will come in very handy. Traveler's checks, an anachronism elsewhere in the world, are still not a bad idea, though expect to pay a 2% or 3% commission to exchange them into U.S. or Vietnamese currency. All hotels can do business in U.S. dollars. In some parts, everybody down to the smallest shop vendor quotes prices in U.S. dollars, and particularly the big-ticket items are best handled with greenbacks instead of large stacks of local currency.

While dealing in U.S. dollars can make things less complicated, always keep in mind local currency values so that you know if you're being charged the correct amount or are given the correct change (usually in Vietnamese currency). In this guide, we've listed hotel, restaurant, and attraction rates in whatever form the establishments quoted them -- in U.S. dollars (designated by the dollar sign: $) where those were quoted, and in local currencies (with U.S. dollar equivalents) where those were used.

Be sure to check the currency's current status. CNN's website has a convenient currency converter at www.xe.com/ucc.

Currency--The main unit of Vietnamese currency is the dong (noted as VND), which comes in notes in denominations of 200, 500, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, and 100,000, as well as the new 500,000 note. There are now also 200-dong coins. Most tourist venues accept dollars, and even in small towns you will at least be able to exchange greenbacks, if not use dollars directly. The exchange rate is approximately 15,000 VND to $1.

It's unlikely that you'll be able to get your hands on any Vietnamese currency in your own country when planning for departure to Vietnam, but it's easy to get started with a handful of U.S. dollars or traveler's checks that you can easily cash at an airport kiosk upon arrival. ATM service in the larger cities and towns is growing exponentially.

ATMs--The easiest and best way to get cash in Vietnam is from an ATM (automated teller machine) and you'll find an increasing number of machines throughout the country. Most tour centers at least have a branch of Vietcombank with an international ATM (for a fee, of course) and the number of international banks is growing year by year.

The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the globe; look on the back of your bank card to see which network you're on, then call or check online for ATM locations at your destination. Be sure you know your personal identification number (PIN) before you leave home and be sure to find out your daily withdrawal limit before you depart. Also keep in mind that many banks impose a fee every time a card is used at a different bank's ATM, and that fee can be higher for international transactions (up to $5 or more) than for domestic ones (where they're rarely more than $1.50). On top of this, the bank from which you withdraw cash may charge its own fee. To compare banks' ATM fees within the U.S., use www.bankrate.com. For international withdrawal fees, ask your bank.

You can also get cash advances on your credit card at an ATM. Keep in mind that credit card companies try to protect themselves from theft by limiting the funds someone can withdraw outside their home country, so call your credit card company before you leave home. And keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time.

Traveler's Checks--Traveler's checks are something of an anachronism from the days before the ATM made cash accessible at any time. Traveler's checks used to be the only sound alternative to traveling with dangerously large amounts of cash. They were as reliable as currency, but, unlike cash, could be replaced if lost or stolen.

These days traveler's checks are not necessary because most cities have 24-hour ATMs that allow you to withdraw small amounts of cash as needed. Rural stops in Vietnam are less likely to have ATM service, so carrying some traveler's checks as a backup isn't a bad idea.

Note: Most retailers don't accept traveler's checks in Vietnam, which means you'll have to pay a commission to exchange them. Using ATM machines is preferable, where service is available.

You can get traveler's checks at almost any bank. American Express offers denominations of $20, $50, $100, $500, and (for cardholders only) $1,000. You'll pay a service charge ranging from 1% to 4%. You can also get American Express traveler's checks over the phone by calling tel. 800/221-7282; Amex gold and platinum cardholders who use this number are exempt from the 1% fee.

Visa offers traveler's checks at Citibank locations nationwide, as well as at several other banks. The service charge ranges between 1.5% and 2%; checks come in denominations of $20, $50, $100, $500, and $1,000. Call tel. 800/732-1322 for information. AAA members can obtain Visa checks without a fee at most AAA offices or by calling tel. 866/339-3378. MasterCard also offers traveler's checks. Call tel. 800/223-9920 for a location near you.

If you choose to carry traveler's checks, be sure to keep a record of their serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.

Credit Cards--Credit cards are a safe way to carry money. They also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can also withdraw cash advances from your credit cards at banks or ATMs, provided you know your PIN. If you've forgotten yours, or didn't even know you had one, call the number on the back of your credit card and ask the bank to send it to you. It usually takes 5 to 7 business days, though some banks will provide the number over the phone if you tell them your mother's maiden name or some other personal information.

Keep in mind that when you use your credit card abroad, most banks assess a 2% fee above the 1% fee charged by Visa or MasterCard or American Express for currency conversion on credit charges. But credit cards still may be the smart way to go when you factor in things like exorbitant ATM fees and higher traveler's check exchange rates (and service fees).

Visa and MasterCard are the most commonly accepted cards throughout Vietnam; American Express is often taken as well at more high-end spots.