The wandering fate of 200 and 500 dong notes

Although the law requires service providers and small traders to accept small denominations of 200 VND and 500 VND, in reality there are very few places that accept these denominations.

The 500 VND note, once an indispensable part of people's wallets, has now become "useless" in small transactions. With a value too small compared to the current price level, this note seems to have lost its real value, causing many consumers to face awkward situations.

Grocery store clerks often refuse to accept 500 dong bills and return the change with a piece of candy.

Mr. Quy (living in Nam Tu Liem district, Hanoi ) said that he used a 500 VND bill to pay for a pack of cakes, but the seller refused to accept it, saying, "Who still uses 500 VND these days?"

In fact, with prices ranging from several thousand dong or more for common items, the 500 dong note is almost worthless in the eyes of consumers.

Ms. Minh Phuong (living in Bac Tu Liem district, Hanoi) shared: "Normally in supermarkets and grocery stores, if you buy something with an extra 500 VND, the seller or cashier will give you back a candy because they don't have 500 VND to return."

Nowadays, the 500 VND note has almost no value in daily consumption.

Keeping the 500 VND note has also become “useless” for consumers, because this bill is no longer useful in daily spending activities. Many people have even chosen to “put aside” this bill, considering it as a souvenir rather than a practical transaction tool.

In the context of inflation and rising prices, the gradual loss of value of the 500 VND note is inevitable. Small value transactions such as ferry trips and small purchases are now rare cases where this note still exists, even if it only plays a very obscure role.

Mr. Le Dinh Minh (residing in Binh Thanh district, Ho Chi Minh City) takes his family to visit his mother's hometown in Nhon Trach district, Dong Nai province every weekend. The nearest road that Mr. Minh often takes is via Cat Lai ferry, the price for a motorbike is 4,500 VND/bike, motorbike plus a passenger is 6,500 VND/bike for one ferry crossing.

“I am surprised that Cat Lai ferry is still using 500 VND notes. When the staff gave me 500 VND change, I didn’t take it and they told me to keep it for my return trip,” said Mr. Minh.

Cat Lai ferry still accepts small denominations.

At Emart supermarket in Go Vap district, the cashiers still accept small bills such as 200 VND, 500 VND... However, traditional markets in Ho Chi Minh City are reluctant to accept bills with large denominations. small denomination

Talk to PV Tien Phong , expert bank Nguyen Tri Hieu affirmed that the 200 and 500 dong notes are still in circulation because they are issued by the State Bank of Vietnam . “This is legal tender, service providers are required to accept this money,” said Mr. Hieu.

The expert affirmed that Clause 3, Article 23 of the Law on the State Bank of Vietnam 2010 prohibits the act of refusing to receive and circulate currency that meets the circulation standards issued by the State Bank.

The act of refusing to accept and circulate coins that are qualified for circulation and the State Bank has no policy to withdraw them is a violation of the law and a violation of the prohibition in the Law on the State Bank of Vietnam. However, Mr. Hieu said that the law does not have any sanctions for this act.

However, Mr. Nguyen Tri Hieu also said that, in reality, very few people and service providers still use small bills. Therefore, the State Bank needs to consider whether to continue issuing money with this denomination or not. Because the cost of printing money, transportation, etc. is quite large but the efficiency of use is not high.

Source