Stepping into the world of retail in Vietnam can be a revelation, especially for foreigners adjusting to the local financial landscape. One British expat, who moved to the country to work as a sales director, discovered this first-hand when he encountered a budgeting practice that seemed almost quaint yet profoundly effective. At the home of a friend, he was shown a drawer brimming with envelopes, each earmarked for specific expenses such as Tet celebrations, emergency savings, and even a future refrigerator. He was struck by the simplicity of it all: “They know exactly where their money ends up, even without spreadsheets,” he remarked.
As he settled into his new life, the 34-year-old Briton began dating a woman who would eventually become his wife. This relationship opened a window into the Vietnamese approach to personal finance, characterized by careful consideration for every expense. Major purchases are discussed well in advance and pursued only when funds are available or when there is an urgent need. Borrowing, particularly from banks, is seen as a last resort, often introduced through family or friends. “Vietnamese people are very afraid of debt,” he noted, highlighting a stark contrast to western financial habits.
The couple’s differing attitudes towards money often led to disagreements. While he was inclined to take risks—wielding credit for investments and chasing opportunities—his wife adopted a more cautious stance. When he entertained the idea of investing in a UK startup, her probing questions forced him to reconsider: What if it failed? Could they afford to recover? Would he feel comfortable discussing this investment with their children one day? These moments of reflection revealed to him the striking reality that many Vietnamese manage to buy homes, invest in land, and support families—all on modest incomes.
He learned that the real essence of financial success lies not in how much you earn, but in how much you can save. An eye-opening experience occurred when he decided against purchasing a new car after noticing his wife’s family relied on old faithful motorbikes. “In Vietnam, no one cares what you drive as long as it gets you there,” he mused. Eventually, the couple was able to secure a plot of land on the outskirts of Hanoi, representing a prudent and distinctly Vietnamese choice.
Gradually, his mindset began to shift; a $10 sandwich triggered thoughts of a more economical $2 bowl of pho. He observed a similar transformation among many other foreigners who find themselves rethinking their approach to money during their time in the country.
A report by Navigos Group indicates that about 50% of expats experience culture shock, with financial habits playing a significant role in this adjustment. Statista highlights that in 2023, only 7% of Vietnamese adults held a credit card, making this one of the lowest rates in the region. Moreover, a World Bank survey revealed that a staggering 64% of Vietnamese strive to avoid borrowing even when facing financial hardships.
William Gray, a financial advisor at Infinity Financial Solutions, noted that many foreigners adapt their financial behaviors once they embrace the culture. “Limited access to credit forces them to live within their means,” he said, especially when they begin making joint financial decisions with a Vietnamese partner. This leads to priorities centered on saving and acquiring property rather than accumulating debt.
In 2024, Liam Ward, a 30-year-old expat in Ho Chi Minh City, found himself embroiled in a spirited debate with his Vietnamese girlfriend over their savings strategy as they prepared to cohabitate. He envisioned their savings funding travel adventures, while she viewed them as a safeguard against potential disasters like job loss or unexpected illness.
“There is a clear gap in how the two cultures perceive money,” Ward stated. The couple ultimately reached a compromise by investing in gold, a practice he initially found perplexing. He worried about its liquidity in emergencies but soon learned that gold is a quick and accessible means of creating cash when needed. After experiencing volatile price spikes in late 2024 and early 2025, he acknowledged, “It turns out this is how many Vietnamese build and grow their wealth.”
What budgeting method stood out to the expat living in Vietnam?
He discovered a simple yet disciplined approach where his friend stored money in envelopes labeled for different expenses, ensuring a clear understanding of spending without needing spreadsheets.
How do Vietnamese attitudes toward debt differ from those in Western cultures?
Vietnamese people are generally cautious about borrowing and prefer to rely on savings and family support rather than accumulating debt, contrasting with Western habits that more readily embrace credit.
What financial lesson did the expat learn through his relationship?
He realized that financial success is not about high earnings but about effective saving and spending, leading him to appreciate the value of modest living and careful budgeting.
