Banks, contractors, and multinationals may find sending money to Vietnam difficult. Vietnam's banking, legal, and regional payment train systems often cause delays, extra costs, or failed transactions. Research suggests that 30% of foreign transfers to Vietnam fail owing to avoidable errors. These errors hinder operations and undermine trust from employees, partners, and suppliers who need payments on schedule.

This article lists the most common problems organisations make when sending money to Vietnam and offers straightforward solutions. If your organisation transfers money to Vietnam, processes payroll there, or makes payments there, understanding these challenges will help transactions go more smoothly and reliably.

Name Mismatches and Incorrect Beneficiary Details

One of the most common and unpleasant reasons why reimbursements in Vietnam don't go through is that the names of the people who are supposed to get the money don't match. Vietnamese banks say that the name you give them must match the name they have on file, including any accents or diacritical markings. For instance, if the official name is "Nguyễn Văn Hòa," a transfer to "Nguyen Van Hoa" might not go through. If the receiving bank notices even slight faults in a document, such as missing letters, misplaced diacritical markings, or a Westernised spelling, it may instantly reject it.

This rigorous rule illustrates that the Vietnamese financial system needs exact data matching to be legal and deter fraud. When companies have to deal with a lot of payouts, they typically make mistakes when they have to enter data by hand.

To lower the risks:

• Write down the names of the people who will benefit in Vietnamese, their native language.
• Use systems that allow you to check names right away.
• Instead of typing by hand, copy and paste from sources you can trust.

Businesses may drastically cut down on one of the most common reasons for payout delays that can be avoided by utilising these tactics.

Using Wrong or Outdated Bank Codes

In Vietnam, each bank branch has its own unique bank identifier. When you use an obsolete or incomplete code to make a bank transfer in Vietnam, it typically doesn't go through. In certain other markets, one code might be adequate. Not all Vietnamese banks completely support SWIFT, yet a lot of firms exclusively use SWIFT codes; therefore, certain transactions have to be done by hand. This costs extra money and could make the payment take a few days longer.

Companies should make sure that the BIC or SWIFT codes they employ are correct, current, and specific to the branch of the person they are sending money to. Payment systems should check codes at the point of entry to make sure they match the latest databases.

Using local clearing systems like NAPAS is another technique to avoid failures. These systems are meant to speed up and make domestic settlement better. Payment businesses can skip the normal correspondent banking chains that slow down cross-border payments in Vietnam by connecting directly to these networks.

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Missing or Vague Purpose Codes and Compliance Issues

When it comes to transactions across borders, Vietnam's regulations are highly rigorous. Every payment made outside of the United States needs a legitimate purpose code and typically additional paperwork. If this information isn't provided, the payment could be refused, delayed, or raise compliance flags.

The State Bank of Vietnam (SBV) seeks precise reasons for things like "invoice payment," "freelance work," or "service fees." People commonly mark vague words like "payment" because they think they are hard to understand. You might also need to present proof of payment, such as an invoice or a signed contract, before you get paid.

To make sure that compliance goes smoothly:

• Every transaction should always have a clear purpose code.
• Pick the purpose code for payments that happen automatically regularly.
• Use vendors that have built-in mechanisms to make sure they follow AML rules.

Fact: Vietnam has some of the toughest anti-money laundering (AML) rules in the region. Payments could be delayed by days or even weeks if the descriptions don't fit the rules.

Unexpected Currency Conversions and FX Risks

Not paying attention to currency requirements is another typical mistake individuals make when sending money to Vietnam. A lot of Vietnamese accounts only accept Vietnamese Dong (VND); therefore, if you want to pay in USD, CAD, or another currency, you might have to change it. These exchanges sometimes happen at terrible rates and with hidden costs that can make the amount the recipient gets much less than they expected.

This is especially terrible for organisations that have to make frequent payments, like payroll administration in Vietnam, where hidden conversion expenses mount up quickly over time.

Sending reimbursements directly in VND will help prevent these issues. In this manner, businesses can be sure that the proper amount goes to the right person and that there are no forced conversions. Another wise method to save money and keep things predictable is to work with suppliers who show real-time foreign exchange rates and enable firms to lock in attractive prices.

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Holidays, Timing, and Outdated Banking Infrastructure

When making foreign payments in Vietnam, timing is also essential. Payments made shortly before weekends or holidays may take a long time to go through because Vietnamese banks can't handle them then. For instance, banks close for more than a week during Tet (Lunar New Year). Tet will happen from January 25 to February 2 in 2025. Companies that don't consider this typically don't pay their workers or suppliers until the banks open again.

Some Vietnamese banks still utilise antiquated systems that largely rely on SWIFT and manual processing. This means that the amount of time it takes to settle could be significantly varied depending on which bank you choose.

Businesses may make these issues less severe by:

• Following the holiday schedule in Vietnam.
• Paying a couple of days early.
• Working with suppliers that are linked to local trains, like NAPAS, which speeds up processing even when things are hectic.

New Techniques to Make Payments Simple

More and more firms are embracing modern payment platforms that combine automatic compliance, straightforward FX management, and local integration to get past these issues.

Businesses can use Transfi and other comparable services to:

• You can transmit payments directly in VND using local railroads.
• Check the beneficiary's information soon to avoid committing mistakes.
• Use purpose codes that are already filled out to make it easy to follow the rules.
• Get good FX rates for regular or big payments.

Businesses may use these kinds of solutions to cut down on the amount of failed payouts, save money, and make the process more reliable for both the recipient and themselves.

Conclusion

Cross-border payments in Vietnam are governed by many laws. This makes them difficult. For instance, money distribution regulations and the local clearing system dependence. Name mismatches, incorrect bank codes, confusing purpose descriptions, forced conversions, and poorly timed transfers can create delays and high expenses.

Companies that solve these issues and use reputable suppliers succeed. They reduce job stress, build beneficial connections, and protect financial interests.

Companies sending remittances, vendor payments, or payroll to Vietnam should use the latest payout systems and plans. Companies like Transfi give you the tools you need to make sure that your overseas payouts go as smoothly, openly, and legally as possible.

FAQs:

1. Why do payments to Vietnam not go through very often?

Most of the time, they fail because the beneficiary's information is faulty, the bank codes are out of date, the purpose codes are missing, or there are delays around bank holidays.

2. Can you send US dollars or other foreign currencies to Vietnam?

Yes, but sending USD will produce incorrect conversions because most accounts only accept VND. It's better to pay in VND directly.

3. How long does it take for bank transfers to Vietnam to clear?

Depending on the bank, the currency, and whether or not local clearing procedures are employed, processing timeframes can be anywhere from one to five working days.

4. What is the best approach to pay employees in Vietnam?

To make sure that payroll is always on time, you should choose services that offer compliance automation, batch payment assistance, and direct connections to local railroads.

5. How can companies avoid compliance issues when they send money to Vietnam?

Always choose suppliers whose systems have compliance workflows, attach the correct documents, and have a legitimate purpose code.