Hanoi History
City of the Ascending Dragon
Hanoi residents are known for their civic pride, and it's little wonder given the long and storied history of their city. The city dates to the 7th century, when Chinese Sui dynasty settlers occupied the area and set up a capital called Tong Binh. In 1010 King Ly Thai To is said to have seen a golden dragon ascending from Hoan Kiem Lake. He relocated his capital to the shores of the lake and named his new city Thang Long, or "City of the Ascending Dragon." During the 11th century the old citadel was built, and 36 villages, each with its own specialized vocation, sprang up to service the royal court. This is the origin of the 36 streets that define the city's Old Quarter.
French capital
In the late 1800s, the French began to exert influence in Vietnam. The colonialists set up the protectorate of Annam in 1883–84, which meant the Hue royalty held the reins but only under the auspices of French rule. In the following years the French set up its administration and used Hanoi as the Eastern Capital of French Indochina.
In 1954 the French were defeated by the Vietminh at Dien Bien Phu, and France, Britain, the United States, and the Soviet Union decided at the Geneva Accords to divide the country at the 17th parallel. From 1954 until 1975, Hanoi served as the capital of the Democratic Republic of Vietnam, or North Vietnam, from which Ho Chi Minh initiated his struggle to reunify the country.
The decades after 1975 were a tough time for Hanoians and everyone else. Natural disasters and international isolation led to near mass starvation. Then in 1986 the government proclaimed doi moi, the move to a market economy.
Capitalism in the Capital
In the intervening 30 years the Vietnamese have learned the ways of capitalism quickly. In the 1990s Hanoi welcomed billions of dollars of foreign investment and the many international visitors eager to see this city (and nation) in the midst of renewal. One clear milestone for Vietnam was the normalization of trade relations with the United States in 2001 after years of negotiation. These market freedoms have led to a huge growth in privately run businesses such as hotels, restaurants, tour agencies, and other ventures.
The move to a market-based system hasn’t been plain sailing. Vietnam’s economy overheated massively in the years leading up to 2008 when the global financial crash decimated growth. Things have stabilized somewhat, but doubts remain as to how effectively the ruling party can manage reform. And as congestion increases and the government embarks on ever more ambitious building plans, the question of how Hanoi will preserve its ancient heritage remains unanswered.
