So, you’re asking the big question: “Does PayPal work in Vietnam?” It’s a question that thousands of freelancers, business owners, expats, and online shoppers ask every single month.
The short answer is: Yes, it does.
The long answer, the real answer is: Yes, but not in the way you probably think.
Understanding how to use PayPal in the context of Vietnam is like understanding the local transport network. PayPal is like a reliable, well-known international bridge. It’s excellent for getting you from one country to another. However, once you are inside Vietnam, you’ll find a bustling, hyper-efficient network of local superhighways, the country’s e-wallets and QR code systems that everyone uses for their daily commute. The international bridge is essential for global travel, but you wouldn’t use it to go to the local grocery store.
This is your definitive 2025 guide to navigating this landscape. We will provide a deep dive into exactly how PayPal works in Vietnam, who it’s for, what its limitations are, and what the powerful local alternatives are that you need to know about. This is your complete driver’s manual for digital payments in Vietnam.
The Short Answer Expanded: Yes, PayPal Works for International Transactions
Let’s get the most important facts on the table first. In Vietnam, PayPal operates exclusively as a gateway for cross-border payments.
The Core Function: Sending and Receiving Money Globally
This is what PayPal is primarily used for in Vietnam, and it does it well.
- Receiving International Payments: A Vietnamese freelancer, e-commerce store, or exporting business can create a Vietnamese PayPal account and use it to receive money from clients and customers all over the world (e.g., from the USA, Europe, Australia, etc.).
- Sending International Payments: An individual or company in Vietnam can use their PayPal account to send money to someone in another country or to pay for goods and services on international websites that accept PayPal.
This cross-border functionality makes PayPal a vital tool for connecting Vietnam’s burgeoning digital economy with the rest of the globe.
The Big “But”: The Absence of Domestic Transfers
This is the single most important limitation to understand. Since 2016, PayPal does not support domestic transactions within Vietnam. This means a person with a Vietnamese PayPal account cannot send money to another person with a Vietnamese PayPal account. This decision was made to comply with local regulations, which place strict controls on domestic payment systems. It is the primary reason why PayPal is not used for everyday commerce inside the country.
Who is PayPal For? The Key Use Cases in 2025
Given its international-only function, PayPal in Vietnam serves a very specific set of users:
- Vietnamese Freelancers & Service Providers: Web developers, designers, writers, and consultants who work for international clients use PayPal as a primary way to get paid.
- Vietnamese E-commerce Exporters: Small businesses and artisans who sell their products to customers outside of Vietnam on platforms like Etsy or their own websites.
- International Companies: Foreign businesses that need to pay their Vietnamese suppliers, contractors, or remote employees.
The Driver’s Manual: A Deep Dive into Using PayPal in Vietnam
If you fall into one of the user groups above, you need to know how to navigate the system.
Setting Up and Withdrawing to a Vietnamese Bank Account
The most critical function for any Vietnamese user is getting their money out of PayPal and into their local bank account. The process is straightforward:
- Create a PayPal Account: Sign up on the PayPal Vietnam website.
- Link a Bank Account: You must link a Vietnamese bank account to your PayPal account. As of 2025, PayPal officially supports withdrawals to Visa debit cards from most major Vietnamese banks (like Vietcombank, ACB, Techcombank, etc.). You can also link a US bank account if you have one.
- Initiate Withdrawal: Once you have funds in your PayPal balance, you can initiate a withdrawal to your linked Visa card. The process typically takes 2-4 business days, though it can sometimes be faster.
The Toll Booths: A Complete Breakdown of PayPal’s Fees
Using the international bridge comes with tolls. PayPal’s fees in Vietnam are a significant factor to consider.
- International Transaction Fee: When a Vietnamese account receives an international payment, PayPal charges a standard fee of $4.99 USD plus a percentage of the transaction amount, which can be around 2.9% to 3.9%.
- Currency Conversion Fee: This is the “hidden” fee. When you withdraw your USD balance to your Vietnamese Dong (VND) bank account, PayPal performs the currency conversion. Their exchange rate is typically 3.0% to 4.0% worse than the standard market rate. This can be a very significant cost on large transactions.
- Withdrawal Fee: There is a fixed fee for withdrawing funds. Withdrawing to a Vietnamese bank account typically costs a flat fee of 60,000 VND.
When you combine all these fees, the total cost of receiving money via PayPal can be anywhere from 5% to 8% of the transaction value.
Navigating the Potholes: Common Challenges and Limitations
- Account Holds and Freezes: PayPal is known for its aggressive security algorithms. Sudden large payments or unusual activity can trigger an automatic hold on your funds, which can be frustrating and time-consuming to resolve.
- Lack of Local Acceptance: You cannot use your PayPal account to pay for your Grab ride, your coffee at The Coffee House, or your groceries at the supermarket. It has virtually zero acceptance at local, in-person points of sale.
The Local Superhighways: Powerful Alternatives to PayPal
So, if no one is using PayPal for daily life, what are they using? They are using a hyper-efficient network of homegrown e-wallets and QR code systems. This is the “local superhighway.”
The Rise of the E-Wallet
Vietnam has enthusiastically embraced mobile payments. E-wallets are smartphone apps that allow for instant, low-cost digital payments and are used for everything.
The “Big Four” You Need to Know
- Momo: The undisputed market leader. Momo is a true “super-app” that you can use to pay for everything from street food to utility bills. It’s the most widely accepted e-wallet.
- ZaloPay: The second-biggest player, with the huge advantage of being integrated directly into Zalo, the messaging app that is installed on nearly every smartphone in Vietnam.
- VNPay: While it has a wallet, VNPay is the absolute king of QR code payments. You will see the blue VNPay QR code at every single point of sale, from high-end restaurants to tiny corner stores. Users can scan this code with their bank’s mobile app to pay directly.
- ShopeePay: Formerly AirPay, this wallet is integrated into the Shopee e-commerce platform, making it a popular choice for online shoppers.
A Guide for Every User
Let’s bring it all together. What does this mean for you?
- For the Vietnamese Freelancer or Business: PayPal is an essential but expensive tool for getting paid by international clients. It is your bridge to the global economy. For all your domestic business expenses, you will be using bank transfers or a local e-wallet.
- For the International Company: PayPal is a convenient way to pay your Vietnamese suppliers for smaller transactions, samples, or service fees. For larger production orders, the high fees make it less practical. Most large B2B transactions are still done via traditional Telegraphic Transfer (T/T) or a Letter of Credit (L/C).
- For the Tourist or Expat: Your foreign PayPal account is largely useless for day-to-day spending in Vietnam. You will be using cash or your international credit/debit card (which is widely accepted in mid-to-high-end establishments). If you live here, you will quickly open a local bank account and start using the e-wallet and QR code systems like every local.
We Help You Navigate the Payment Landscape: The VALO Vietnam Advantage
Choosing the right payment method is a critical part of a successful business relationship with Vietnam. The high fees of certain platforms can eat into your profit margins, while navigating the options for larger B2B payments can seem complex.
While we at VALO Vietnam are not a payment processor, we are experts in the commercial realities of doing business here. Our role is to help you build a supply chain that is not only efficient in its production but also smart and cost-effective in its financial transactions.
- We can advise on the most common, secure, and cost-effective payment methods for working with Vietnamese suppliers.
- We can help you understand the pros and cons of different options for different situations, from using PayPal for initial samples to using a traditional wire transfer (T/T) or a Letter of Credit (L/C) for large production orders.
- Our goal is to ensure your financial relationship with your Vietnamese partners is as smooth, transparent, and efficient as the production of your goods.
Conclusion: The Right Tool for the Right Journey
So, does PayPal work in Vietnam? Yes, absolutely. It serves as a vital and reliable international bridge, connecting the country’s talented freelancers and businesses to the global economy.
But it is not the local superhighway. For life inside Vietnam, the nation has built its own incredibly efficient network of mobile payment solutions.
The key is to understand the difference. By using the international bridge for global journeys and the local superhighways for your daily commute, you can navigate the Vietnamese payment landscape with confidence and choose the right financial tool for the right job, every time.
Have questions about the most effective ways to do business with Vietnamese partners? Let us help you navigate the entire process.
Contact VALO Vietnam for a strategic consultation today!