Paying Vietnamese suppliers in CHF/VND: a guide for Swiss businesses

Vietnam has become an important manufacturing and sourcing market for internationally active businesses. Swiss companies may work with Vietnamese suppliers for products ranging from electrical equipment and machinery to clothing, footwear and food products.

Supplier payments often involve paying a deposit before production and settling the final balance before shipping. During this period, movements in the CHF/VND exchange rate can affect the cost in Swiss francs and put pressure on a business’s cash flow. Agreeing a price in Vietnamese dong (VND)  can give the buyer more control over the conversion, but it also requires access to the currency and a suitable payment method.

This guide explains how Swiss businesses can choose the invoice currency, pay suppliers locally in VND and manage future payments, recurring transactions and financing.

What should you agree on with a Vietnamese supplier before making a payment?

Payment terms should be clearly set out before production begins. The contract, purchase order or commercial agreement should state the total price, invoice currency, deposit, remaining balance and dates or milestones that trigger each payment.

The parties should also agree on the delivery terms and the documents required before the balance is released. Depending on the transaction, these may include an invoice, packing list, inspection report or shipping documents.

A common structure might involve a deposit before production and a balance before shipping. For example, a supplier may request 30% when the order is confirmed and 70% once production is complete. This is only one possible arrangement. The percentages and timing depend on factors such as the product, order value, commercial relationship and negotiating position of each party.

Should you pay your Vietnamese supplier in VND?

A supplier may quote in VND, USD, CHF or another currency. When the invoice is issued in a currency other than VND, the supplier may include the cost of conversion and a margin for possible exchange-rate fluctuations in its price.

Paying directly in VND separates the commercial price from the currency conversion. The buyer can see the amount requested by the supplier, review the CHF/VND rate before making the conversion and compare the associated payment costs.

This does not mean that paying in VND will always be cheaper. It is therefore useful to compare both options before agreeing the invoice currency.

Review:

• supplier’s pricing, 

• exchange rate available to the buyer, 

• payment method, 

• transaction fees,

• any intermediary costs. 

CHF to VND exchange rates

Use our currency calculator below to estimate CHF to VND conversions based on current exchange rates.

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*Currency rates used are indicative based on the mid-market rate with example spreads used to demonstrate the difference between an average for Swiss banks vs one typically offered by SwissFx.

This is for informational purposes only and you may get a different rate when exchanging money.

Please contact us for an exact price.

Send

CHF

Receive

EUR

You could save up to*

EUR

*Currency rates used are indicative based on the mid-market rate with example spreads used to demonstrate the difference between an average for Swiss banks vs one typically offered by SwissFx.

This is for informational purposes only and you may get a different rate when exchanging money.

Please contact us for an exact price.

Send

CHF

Receive

EUR

You could save up to*

EUR

*Currency rates used are indicative based on the mid-market rate with example spreads used to demonstrate the difference between an average for Swiss banks vs one typically offered by SwissFx.

This is for informational purposes only and you may get a different rate when exchanging money.

Please contact us for an exact price.

How do international and local VND payments compare?

• A traditional international transfer may pass through the SWIFT network and one or more intermediary banks before reaching the supplier. Each stage can affect the delivery time and the final amount received.

• A local VND payment follows domestic payment rails within Vietnam. The sender arranges the conversion and payment through a provider with local payment capabilities, while the supplier receives VND through the Vietnamese banking system.

Using a local route may reduce reliance on intermediary banks and make the payment structure easier to understand. It can also avoid some international transfer charges and additional currency conversions, depending on the payment setup.

SwissFx supports both local and international payments in VND.

This gives a Swiss business the option to convert CHF into VND and pay the supplier in its local currency from the same platform. The exchange rate and payment details can be reviewed before the transaction is executed.

How can the CHF/VND exchange rate affect the payment?

When a supplier requests a deposit and a later balance, the two payments are converted at different times. Even if the VND price remains fixed, the final cost in Swiss francs can therefore change during production.

Example and scenarios

Imagine a Swiss importer orders goods worth VND 10 billion. It pays a 30% deposit and the remaining 70% when production is complete. If the Swiss franc buys fewer Vietnamese dong by the time the balance is due, more Swiss francs will be needed to complete the payment.

If the entire order could have been converted at VND 30,000 per CHF, its value would have been approximately CHF 333,333. In this hypothetical example, the movement between the two payment dates increases the total cost by approximately CHF 16,667. A favourable movement could produce the opposite result.

Paying at the current exchange rate

The deposit can be converted at the current CHF/VND rate as a spot transaction, while the remaining balance stays exposed to currency movements until payment. Waiting preserves flexibility but also leaves the business vulnerable to an unfavourable movement in the exchange rate.

Fixing an exchange rate for a future supplier payment

A forward contract allows a business to agree an exchange rate for a future currency transaction. In the example above, the importer could pay the deposit at the current rate and arrange a forward contract for some or all of the VND balance. This does not guarantee a better rate. Its purpose is to make the future CHF cost more predictable. 

SwissFx offers deliverable forward contracts for businesses buying VND. At settlement, the agreed CHF amount is exchanged for VND, which can then be used to pay the supplier. Forward contracts remain subject to eligibility, assessment and agreed terms.

How can recurring supplier payments be managed more efficiently?

A single supplier payment can be handled manually. The workload increases when a company places regular orders, works with several Vietnamese factories or pays suppliers across multiple countries and currencies.

Finance teams may need to transfer invoice data between accounting systems and payment platforms, enter beneficiary information repeatedly and review transactions one by one. This takes time and increases the risk of duplicate entries, incorrect references or delayed payments.

Bulk payments allow multiple transactions to be prepared and processed in one payment run. Each supplier can still receive the correct amount and currency, while the business reduces the number of separate manual steps.

SwissFx bulk payments can be incorporated into existing finance workflows, including payroll and ERP systems. Payment details can be prepared or uploaded, reviewed together and then sent in a single run. 

How can businesses finance larger supplier payments?

Paying a supplier before the goods have been shipped or sold creates a timing gap. The business must use its available cash while it waits for delivery, distribution and customer payments. This can be particularly significant for machinery, large production runs or seasonal stock. Even when an order is profitable, the payment schedule can restrict the funds available for payroll, operating costs or other supplier commitments.

Supplier-payment finance provides a separate source of credit for an approved invoice. This can support liquidity when supplier invoices fall due before the related customer funds are received. It can also allow the supplier to be paid according to the agreed commercial terms without using the company’s entire day-to-day cash reserve.

Under the SwissFx process, the lending partner pays the supplier in local currency, while the Swiss business repays in its domestic currency up to 150 days later. Financing is subject to credit checks. For the structure described here, businesses must have:

• More than £1 million in operating revenue

• Tangible net worth above £100,000

• At least two years of trading history

The amount, repayment period and terms depend on the credit assessment and transaction.

What should you check before paying a supplier in Vietnam?

Frequently asked questions

Bringing SwissFx payment, currency and cash-flow solutions together

Paying a supplier in Vietnam involves more than sending the invoice amount. The commercial agreement determines when the money is due. The invoice currency affects who manages the conversion. The payment rail influences how the funds reach the supplier, while the gap between the deposit and balance creates a potential CHF/VND exposure.

These decisions should be reviewed together. A local VND payment may give the buyer more control over the conversion. A forward contract may address a defined future exposure. Bulk payments can support recurring workflows, while supplier-payment finance can address a separate cash-flow constraint.