How To Pay A Vietnamese Supplier: Fees, Scams, and the Best Payment Methods Compared
Updated on Feb 15, 2026, figures are accurate as of the publishing date.
The best way to pay a Vietnamese supplier is via Wise (formerly TransferWise) for most buyers. On a $10,000 transfer to Vietnam, Wise charges roughly $62 in total fees using the real mid-market exchange rate. A direct bank wire through a major US bank can cost $300-$800+ in fees and exchange-rate markups, and PayPal will charge $450-$850, depending on the transaction type. Below, we break down every available payment option, along with current fees, so you can choose the right one for your situation.
Disclaimer: We may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try to keep things fair and balanced so you can make the best choice.
Vietnamese Currency: The Dong (VND)
Vietnam's currency is the Dong (VND). The exchange rate fluctuates but generally ranges from 25,500 to 26,500 VND per USD. To check the live rate, visit XE.com.
Many Vietnamese factories and suppliers quote prices in VND. If you don't specify, they may use an exchange rate that works in their favor. At Cosmo Sourcing, we almost always request quotes in VND and establish an agreed-upon exchange rate based on the most recent mid-market rate. All payments are made directly to the factory, and we can assist clients with the payment process or handle payments when requested.
How Much Does It Cost to Send $10,000 to Vietnam?
Here is what you can expect to pay in total fees (including exchange rate markups) when sending $10,000 USD to a Vietnamese supplier.
Costs based on $10,000 USD to VND via bank account. Fees vary by payment method, exchange rate, and service tier. Verify with each provider before sending.
Note: Exact costs vary based on the payment method (ACH, debit, credit card), the exchange rate at the time of transfer, and the specific bank or service tier used. Always check the total cost (fees + exchange rate) before confirming. The fees above are based on USD-to-VND conversions via bank account funding. Service fees change periodically, so verify directly with each provider before sending.
The Vietnamese Financial System at a Glance
Vietnam's financial system remained closed until the early 1990s, when it began to open to international trade. Today, it has a modern banking system with hundreds of competing banks. While it lags slightly behind China's financial system, it is well equipped for international wire transfers.
Many international banks have opened branches in Vietnam to compete for the influx of foreign capital. Vietnam remains a largely cash-based country, with a large share of the population not using traditional banking services. However, this is not a problem for buyers because most factory owners and suppliers are well-versed in international payments and accept the full range of payment options listed below.
What Banking Services Are Available in Vietnam?
Vietnam has approved all international payment methods, including SWIFT transfers, bank e-payments, interbank transfers, clearing systems, commercial bank e-transfers, and bilateral payment systems. Vietnamese banks have access to the full range of modern international payment systems.
With the introduction of PSBM2 (The Vietnamese Banking Modernization Project), Vietnamese banks offer e-banking services to all customers. Vietnamese residents can access their balances and make payments online with all banks in the country.
In the wake of the US-China trade war, foreign investors brought billions of dollars into the country, and Vietnamese banking saw significant structural changes. The country has built a new payment infrastructure by partnering with international card companies. Thousands of new ATMs across the country accept international cards, making it easy for foreign buyers to pay suppliers in cash when visiting.
SBV: State Bank of Vietnam
The State Bank of Vietnam (SBV) is Vietnam's largest and most important bank. The Vietnamese government regulates it, and it is the country's leading financial arm. The SBV is under the jurisdiction of the Vietnamese Prime Minister. As the largest bank in Vietnam, SBV owns five large state commercial banks, four smaller joint banks, five foreign banks, 50 foreign offices, 50 branches of foreign banks, and manages two Vietnamese policy banks.
Vietnam's Banking Environment Today
Vietnam's banking environment is highly developed and stable. Reforms implemented through legislation with the SBV have opened the economy to international capital, and payment services such as PayPal, Wise, and Veem are now available in the country. The government continues to restructure domestic financial institutions, remove barriers to buyers, and implement additional measures.
The SBV has continued to remove barriers to foreign capital entering the country and eliminate red tape while unfreezing capital flows. Vietnam remains one of the best-ranked countries in Southeast Asia for obtaining global credit.
Does Alibaba Trade Assurance Work in Vietnam?
No. Alibaba does not offer Trade Assurance for suppliers outside of China. You cannot rely on Alibaba's buyer protection when working with Vietnamese suppliers. We suggest using these Alibaba alternatives if you are seeking suppliers in Vietnam.
Services to Avoid When Paying in Vietnam
Direct Bank Wire Transfer
The default payment method for most purchases, but often the worst due to excessive fees. Example: We sent a $38,000 payment via Wells Fargo and were charged $3,100 in fees. That is over 8%.
Major US banks (Citibank, Bank of America, Chase) all charge similarly, using a combination of flat wire transfer fees ($25-$50), exchange rate markups (often 2-5%), and intermediary bank fees. Additionally, direct bank transfers offer no built-in buyer protection. Once the money leaves your account, it is very difficult to recover should something go wrong. Transfers are only available to certain banks (for example, Wells Fargo can transfer only to specific Vietnamese partner banks, such as the Agricultural Bank).
Western Union
Western Union is not recommended for paying suppliers. While they have improved their online rates in recent years, the combination of transfer fees and exchange rate markups still makes them expensive for large B2B payments. Western Union makes money from both its stated transfer fee and an unfavorable exchange-rate markup, so the true cost is higher than it appears.
Verified users can send up to $50,000 (unverified users are limited to $3,000 daily). Funds can arrive in minutes for cash pickup or 1-3 business days for bank deposit. However, there is no buyer protection for supplier payments. Transactions are essentially irreversible.
Warning: Western Union remains a favorite method among scammers and fraudsters. Never use it for initial sample transactions with an unverified supplier.
MoneyGram
MoneyGram is nearly identical to Western Union in terms of risk and cost structure. The total cost (fees plus exchange rate markup) typically amounts to 7-10% of the transaction. Like Western Union, MoneyGram offers no buyer protection, and it has daily and monthly sending limits that make it impractical for large orders. Avoid using MoneyGram unless you have a personal relationship with the supplier and have successfully received goods from them before.
OK (But Not Ideal) Methods for Paying Suppliers in Vietnam
PayPal
PayPal is suitable for small purchases, such as samples, because it offers strong fraud protection. PayPal verifies both parties and has a dispute resolution process, making it useful as insurance for your first transaction with a new supplier. If a supplier refuses to accept PayPal, consider it a red flag, as PayPal has strict verification and issues lifetime bans for fraud.
Current fee structure for international commercial transactions (US sender):
2.99% base commercial fee + 1.50% cross-border fee = 4.49% total + $0.49 fixed fee per transaction
An additional 3-4% currency conversion markup if PayPal converts USD to VND (4% for commercial transactions)
Total effective cost on a $10,000 payment: approximately $450 (without currency conversion) to $850 (with conversion)
For these reasons, PayPal is not recommended for large production orders. Use it for samples and small initial payments where the buyer protection justifies the cost. PayPal's mobile service, Xoom, also offers international transfers to Vietnam at slightly better rates, including bank deposit and cash pickup options.
Letters of Credit (L/C)
Letters of Credit are the preferred method for large corporations making transactions in the millions. They provide strong protection for both parties because the buyer's bank guarantees payment upon presentation of specified documents.
L/C payments are common among Vietnamese suppliers who deal with large quantities of goods. If you place a large order, a supplier will likely suggest L/C as the payment method. However, L/Cs are complicated, require both parties' banks to cooperate, and accrue high fees, particularly for smaller buyers.
Note: Some Vietnamese suppliers may reject Letters of Credit because this payment method has additional requirements and costs, including extension periods of up to 360 days or more, which makes it difficult for suppliers to collect their money.
T/T Wire Transfer (Telegraphic Transfer)
T/T is the most commonly requested payment method by Vietnamese suppliers because it is a direct bank-to-bank transfer. However, there is no buyer protection. We only recommend this method when paying suppliers you have an established relationship with and have successfully received goods from before. Funds typically take 3-5 business days to clear in the supplier's bank account.
Recommended: The Best Methods to Pay Vietnamese Suppliers
We have tested these services extensively at Cosmo Sourcing and use them for the majority of our transactions with Vietnamese factories.
Wise (Formerly TransferWise)
Our top recommendation. Wise is the service we currently use for most purchases in both China and Vietnam, and we recommend it to all our clients.
Why Wise stands out:
Uses the real mid-market exchange rate (the same rate you see on Google) with zero markup
Transparent fee: $7.92 flat + 0.54% for USD to VND transfers funded via ACH bank transfer
On a $10,000 payment via ACH, total fees are approximately $62
Most transfers arrive within one to two business days after conversion
Funds are sent directly to Vietnamese bank accounts. The supplier does not need a Wise account
Send up to 499,999,999 VND per transfer (approximately $19,000 USD). Wise Business accounts support higher limits
Over 16 million customers worldwide
Example: A $20,000 payment to a Vietnamese supplier costs roughly $116 in total fees with Wise. Compare that to the $3,100 we were charged through a Wells Fargo wire.
Note: Wise reviews its fees periodically so that the exact percentage may shift slightly over time. You can always see the exact fee before confirming a transfer on the Wise platform.
Veem
Veem is a business-focused payment platform that uses blockchain technology to eliminate intermediary bank fees. Veem is a strong option for businesses making regular international payments.
Current fee structure:
Premium Plan ($24.99/month): Free ACH/EFT domestic transfers, plus accounting integrations (QuickBooks, Xero, NetSuite)
Basic Plan (free): $1 per ACH/EFT transaction
International wire (local currency): $0 transaction fee, but an exchange rate spread applies (varies by payment volume and route)
USD abroad (supplier receives USD): $29 flat fee for transfers under $10,000; $40 for transfers of $10,000+
Credit card funding: 3.5% (business credit) or 2.5% (business debit)
Transfers typically take 1-6 business days, depending on the destination and method
Note: Both the sender and receiver must have Veem accounts. In our experience, most Vietnamese factories are willing to sign up when asked. Veem integrates with QuickBooks Online, Xero, and NetSuite, which helps keep your books clean.
OFX
OFX is a strong option for very large transfers ($10,000+), as its exchange rate margins tend to decrease with the transfer amount.
Key details:
No upfront transfer fee for US customers
Revenue comes from an exchange rate markup, typically 0.4-1.9% above the mid-market rate (lower markups for larger transfers, higher on weekends or exotic currencies)
Transfers to 170+ countries in 50+ currencies
Minimum transfer of $1,000 USD
No maximum transfer limit
Transfers take 1-4 business days
Offers forward contracts (lock in today's rate for future delivery) and limit orders (set a target rate)
24/7 customer support by phone
OFX is best for large transfers ($10,000+) where you want rate-lock flexibility. Rates tend to improve significantly on higher-value transfers, and they are particularly competitive above $25,000. Third-party intermediary bank fees may occasionally apply depending on the payment route.
Alternative ("Know What You're Doing") Methods
Payoneer
Payoneer is widely used by freelancers, e-commerce sellers, and businesses that receive payments from marketplaces like Amazon, Upwork, and Fiverr. It can also be used to pay suppliers when both parties have Payoneer accounts.
Current fee structure:
Sending to another Payoneer account (international): Up to 1% of the transaction amount, minimum fee of $4 (transfers under $400 incur a flat $4 fee)
Currency conversion (withdrawal to a bank in a different currency): Up to 2% above the mid-market exchange rate
Same-currency bank withdrawal (under $50,000/month cumulative): $1.50 flat fee
Same-currency bank withdrawal (over $50,000/month cumulative): 0.5%
Annual account fee: $29.95, waived if you receive $2,000 or more in payments within 12 months
Payoneer Card ATM withdrawal: $3.15 per transaction + potential network fees
For a $10,000 payment to Vietnam requiring currency conversion, expect to pay roughly $100 in transfer fees (1%) plus up to $200 in FX markup (2%), totaling $300 depending on your specific setup. Payoneer is a decent option if your supplier already uses it or if you receive funds through marketplace integrations. However, for straightforward supplier payments, Wise or Veem will generally cost less.
When to Pay a Vietnam Factory
We always recommend a 30/70 payment split:
30% deposit before production begins
70% balance after production is complete and immediately before the items are shipped
For the final payment, ensure the Incoterms used are FOB (Free on Board), meaning the goods leave the factory's possession at the port of export. If you are unclear about Trade Terms, check out this guide to the 2020 Incoterms.
Pro Tip: Tie Payments to Inspections
We recommend conducting at least two inspections: one before production to verify the factory, its capabilities, registration, and equipment, and a final inspection after production.
Tie your payments to these inspections:
Make the 30% deposit after a satisfactory pre-production inspection
Make the 70% balance after a satisfactory post-production or pre-shipment inspection
For a detailed guide on factory inspections in Vietnam, see our guide here.
Final Thoughts on Paying Manufacturers in Vietnam
Whenever you work with a factory overseas, there is risk. While you cannot eliminate business risk, you can minimize it. Do your due diligence, verify who you are working with, and protect your payments by using the methods recommended above.
Another way to protect yourself is by working with an experienced sourcing company that can help you find a trustworthy supplier and walk you through every step of sourcing, manufacturing, and shipping.
Cosmo Sourcing: Your Trusted Partner in Vietnam
If you want to source from Vietnam, contact the Cosmo Sourcing team. We have been helping clients source from Vietnam since 2014 and have worked with over 4,000 clients on more than 10,000 products. We are also established in China and among the few companies that can source from suppliers in both China and Vietnam.
Our Vietnam Sourcing services enable you to access manufacturers that are not available through typical channels, helping you avoid tariffs and diversify your supply chain. From creating a product spec sheet to sourcing, sampling, inspections, quality assurance, and shipping, Cosmo handles every step.
We have helped clients from Fortune 500 companies, brick-and-mortar stores, FBA sellers, and brand-new startups. Contact us and let us know how we can help.
