What living in Vietnam taught foreigners about saving and spending

He arrived to work as a sales director at a tech company. As he made friends with local people the 34-year-old Briton continued to be surprised by their spending habits.

At one friend’s home, he was shown a drawer filled with envelopes, each marked for specific expenses like Tet, emergency savings, gifts for parents, and buying a fridge. He describes it as a simple but disciplined budgeting method. "They know exactly where their money ends up even without spreadsheets."

A few months later he started dating a woman who went on to become his wife. Through her, he came to fully understand the Vietnamese approach to personal finance. "Every expense is carefully considered," he thinks.

Big purchases are discussed, planned ahead and only made when the money is available or the need is urgent, and borrowing is a last resort and usually from family or friends before going to a bank, he says. "Vietnamese people are very afraid of debt."

He finds this the biggest difference with western lifestyles, where debt is common. He adds that many Britons rely on credit cards, car loans and buy-now-pay-later schemes to maintain lifestyles beyond their means, with the belief that they deserve to have everything right away.

But the difference in financial attitudes sparked disagreements with his wife: She was cautious, while he preferred taking risks, borrowing early, investing quickly and using leverage to chase opportunities.

He once wanted to invest in a UK startup. His wife asked: What if it fails? How long will it take to recover the money? And would he feel confident telling their children about it one day?

Her questions made him reflect on his own habits. He was surprised to see many Vietnamese buy homes, invest in land, support their parents, and raise children, all on modest incomes.

"The important thing is not how much you earn but how much you can save," he says.

He thought about buying a new car but changed his mind after seeing his wife’s family still using old, reliable motorbikes. He realized that in Vietnam no one cares what you drive as long as it gets you there.

In the end the couple was able to buy a piece of land on the outskirts of Hanoi. For Carter, it was a simple, sensible, and distinctly Vietnamese decision.

He began weighing every expense more carefully. Spending US$10 on a sandwich made him think about a $2 bowl of pho, cheaper, filling, and just as good. He noticed that many other foreigners also start thinking like Vietnamese when it comes to money after spending some time in the country.

A report by Navigos Group found that around 50% of expats experience culture shock, with financial differences accounting for 20% of such cases. They stem from both the financial system and spending habits.

According to Statista, in 2023 only 7% of Vietnamese adults had a credit card, among the lowest rates in the region.

A World Bank survey found that 64% of Vietnamese try to avoid borrowing money even when faced with financial difficulties.

William Gray (in white shirt), a financial advisor for Vietnamese expats, in Hanoi. Photo by courtesy of William Gray

William Gray, an advisor at Infinity Financial Solutions, a firm specializing in financial and investment consulting for expats in Vietnam, says many foreigners adjust their spending habits after living in Vietnam. "Limited access to credit forces them to live within their means, especially when they marry a Vietnamese partner and make financial decisions together."

Instead of relying on debt, expats begin focusing on saving, purchasing homes and possessing cash.

In 2024 Liam Ward, 30, and his Vietnamese girlfriend in HCMC had a heated argument over their savings plan while preparing to move in together. He believed savings should fund travel while she saw it as a safety cushion in case of illness, job loss and other risks.

"There is a clear gap in how the two cultures perceive money," he says. They finally agreed to buy gold and store at home, something he found strange.

He thought it would be hard to sell quickly in an emergency, but later realized he was wrong. It goes without saying gold can be easily and quickly be converted into cash.

After a few price spikes in late 2024 and early 2025, Liam agrees it is a stable and effective investment option. "It turns out this is how many Vietnamese people build and grow their wealth," he said.