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Vietnam Airlines and Pacific airline has a near-monopoly on domestic flights, which are relatively expensive. The departure tax on domestic flights is about US$1.50 , payable in Vietnamese dong only.
Ultra cheap buses and minibuses criss-cross the country in an impressive network of routes. These are smarter, faster and safer than they used to be and are a good way to meet locals. The alternative, used by many foreigners, is to charter a minibus. They cost more can be faster as they don't stop as often; ask at budget hotels and cafes for details.
While sometimes train travel can be slower than bus travel, it is safer and more relaxed, and you're likely to have decent legroom. There are several types of train, including the famous Reunification Express ; but think twice before you take a crowded, snail-paced local train. Petty theft can be a problem on trains, especially in budget class. Children throwing things at carriages, everything from rocks to cow dung, is another problem, and you're advised to keep the metal shield on the window in place.
Hire cars and drivers are available at reasonable prices. You'll still be stopped by the police to pay all sorts of 'fines', but at least you'll have a local with you to do the negotiating. You can hire a motorcycle to drive yourself if you have an International Driver's Permit endorsed for motorcycles, but you'll need nerves of steel.
Traveling through Vietnam, and around the towns and cities, by bicycle is worth considering, though the traffic is still a hazard on highways without wide shoulders. Trains and buses will carry your bike when you want a break.
Other than the sophisticated local bus networks in Hanoi and Ho Chi Minh City, local transport is by taxi (some metered, some not) or cyclo (pedal-powered vehicles that are cheap and plentiful). If you're in a hurry, and fearless, try flagging down any passing motorbike. Many people will be happy to give you a lift for a fee a little higher than the equivalent cyclo fare.
 

source Lonely Planet