The "Land of the Blue Dragon" has so many amazing things going for it. However, a strong ATM infrastructure is not one of them. Ask any tourist who's visited Vietnam in the last couple of decades, and they'll likely tell you that ATMs in the country are notoriously unreliable.

Not only are out-of-service machines a common sight, but many travelers also encounter compatibility issues, resulting in card rejections. Many ATMs also experience cash shortages, which prevent tourists from accessing the funds they need, and charge sky-high fees that make every transaction more expensive than necessary. These challenges make managing money as a tourist, expat or digital nomad a nightmare.

Fortunately, there are better solutions than using an ATM in Vietnam. Digital solutions address all these issues, all while keeping your funds secure and helping you save money. Read on to learn more about how to make digital payments in Vietnam and the benefits of doing so.

Common ATM Problems Every Traveler Encounters

As of 2023, there are nearly 21,000 ATMs in Vietnam. The country remains cash-dominant, so ATMs are widespread, allowing citizens and visitors alike to withdraw Vietnamese Dong to pay merchants that don't accept cards. But despite the widespread availability of these machines, they face countless problems. Here's just a taste of the most common Vietnam ATM problems travelers encounter.

•Frequent Breakdowns: Out-of-order machines are among the most frustrating issues. When you need cash now, and the only ATMs around are down, you're out of luck! It's an all-too-common experience for visitors. The problem is so severe that the State Bank of Vietnam has started imposing fines on banks, yet the issue persists.

•Empty Cash Reserves: Because so many machines are down, those that do work often empty quickly. With no cash reserves left, these ATMs are essentially useless, and your only option is to find another machine.

•Low Withdrawal Limits: Unfortunately, many ATMs have frustratingly low withdrawal limits. The worst ones only let you pull 2 million Vietnamese Dong. That sounds like a lot, but it's the equivalent of less than $100 in U.S. dollars. 

•High Fees: ATM fees in Vietnam can be as high as 100,000 VND per transaction. That's not including foreign transaction fees from your bank at home and unfavorable exchange rates.

•Card Incompatibility: Many cards not issued in Vietnam will have compatibility issues. Bigger bank ATMs will accept international cards, but those from less common networks won't work. As a traveler, that severely limits your ability to get cash.

Why Vietnam’s ATM Infrastructure Falls Short of Modern Needs

Vietnam ATM problems are nothing new. The first ATMs appeared in the country in the 1990s. However, decades later, the infrastructure isn't strong enough to support modern demand. Outdated banking systems create many limitations. Furthermore, regulatory constraints in recent years made many ATMs in the country unavailable for use.

Pair that with connectivity issues in more rural parts of Vietnam, and it's easy to see why ATMs present so many headaches for citizens and visitors alike. The infrastructure is not yet in place, and the country faces numerous hurdles to modernization.

For that reason, it's wise to explore alternative payment methods. Because ATMs in Vietnam are so unreliable, you need other options to ensure you can pay for goods or services without issue.

Smart Withdrawal Strategies That Actually Work

Vietnam's ATM reliability issue won't fix itself overnight. So, what should you do when you need to make an ATM withdrawal in Vietnam?

First, be strategic about timing. Aim to make withdrawals early in the morning during weekdays. This approach will help you avoid encountering a machine that has already depleted its cash reserves.

The best types of machines are those found inside bank branches, such as those of Vietcombank, VPBank and TPBank. ATMs in major hotels, shopping malls and airports are also reliable. They're serviced more often and suffer fewer issues than those found on random street corners and remote areas.

When withdrawing cash, be aware of the limits. Avoid using low-limit machines. Bank ATMs from TPBank and VPBank often have limits of up to 10 million VDN. Use those to minimize fees. If necessary, consider making multiple withdrawals at different banks to circumvent the limits.

Of course, you still may have issues finding working machines. If that's the case, carry backup payment methods. You can even hold cash in your home currency and turn to exchange booths when ATMs fail.

Avoiding High Fees That Banks Charge Foreigners

When making an ATM withdrawal in Vietnam, expect to pay fees. In addition to the fees your card-issuer or bank at home will charge, Vietnamese banks will charge foreigners usage fees per transaction. The standard is between 30,000 and 55,000 VDN, but they can be as high as 100,000 VDN.

Additionally, you may encounter ATMs in Vietnam that offer Dynamic Currency Conversion (DCC). Always refuse that option, as ATM exchange rates are almost always worse due to built-in mark-ups. It's often just a way to charge foreigners more.

Fortunately, there are ways to save on fees when using ATMs in Vietnam. Try to use ATMs from VPBank, as the bank offers fee-free withdrawals for foreign cards.

Digital Payments: The Modern Solution to Cash Problems

The best way to avoid fees and Vietnam ATM problems is to prioritize digital payments. While cash is still king, digital payments in Vietnam are surging in popularity. More people are using QR codes, digital wallets and other more modern payment options. As a result, adoption among merchants is on the rise. There's even government support, with the Vietnamese government allocating funds to enhance the country's digital payment infrastructure.

Those investments are working. In 2024 alone, Vietnam saw a 106 percent increase in the volume of QR code payments.

There's still a long way to go, but tourists like you can already tap into digital payment networks. As a visitor, it's worth considering. Digital payment methods are infinitely easier and safer. Additionally, they're more affordable.

Fees are lower for digital payments, as you can avoid foreign transaction fees and per-transaction ATM fees. You also don't have to worry about withdrawal limits or the security risks of carrying around wads of cash. All you need is your smartphone. It's wise to still carry some cash and cards as a backup payment option. However, when it's available, digital payments should be your go-to option.

How Moreta Solves Your Money Transfer Challenges

With Moreta, you can finally kiss those ATM frustrations goodbye. Moreta is a platform that lets tourists visiting countries throughout Southeast Asia tap into local digital payment networks. Make QR code payments, fund your account instantly and get more transparency into what transactions will cost you. Moreta offers competitive exchange rates, charges zero hidden fees and even rewards you with cash back. Why deal with the headache of unreliable ATMs when you can pay like a local using more modern digital payments?

Download the Moreta app today to check it out, create your account and prepare for your visit to Vietnam!