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I couldn't find a cheaper place either. I haven't stayed there, but from what I know in other cities in Vietnam, hostels are not that popular in Vietnam.
Also, Vietnamese people tend to be not that friendly towards foreigners. This has to do with wars and other factors. So, what you heard that they don't accept foreigners is probably a valid one.
I could find a few places at around $8 with decent amenities though.
You can try getting a local to introduce you to a place. Get to know a local (some restaurant would be great - talk to someone casually). There is a very good chance they'll know some good cheap place, and if they introduce you, the guest house will happily accommodate you.
Many small guest houses do not want to pay for the booking engines or they are simply not aware of them. I have seen this a lot in South Asian and South East Asian countries.
Upvote:1
I found several accommodations in Can Tho for under $10 on traveloka.com, an Indonesian travel site.