This is just to verify and let any other Expats out there wondering if paypal works in vietnam...
Yes it does, its a painless process to link a bank account and withdrawal to bank takes 2 to 4 working days and the cost is only 60 000 VND ( around 3 Dollars ).
You are also not limited to big known banks, the only requirement is that the bank you use supports VND as a currency and can provide you with a Swift code.
I opened a BIDV bank account, mainly because on my first day here when i was running from bank to bank to try and convert my RMB to VNd they were the most friendly and most helpful. BIDV is not a big bank at all, and i linked it easily in less than 2 minutes.