The good news is that this 19th-century proclamation is again ringing true. Many visitors will be taken at first by Hanoi's time-capsule evocation of the colonial period. Reminders abound in the main tourist area, especially among the stately government buildings set in the wide open spaces sweeping around Ho Chi Minh's mausoleum and down to the dazzling early-1900s opera house overlooking the historic Metropole hotel.

Vibrant as it is, the colonial period is but a mere scratch on the surface of Hanoi's rich history. Almost 1,000 years ago, Ly Thai To, the first ruler of the Ly Dynasty (1009-1225), put his capital here. For eight centuries, Hanoi ruled the kingdom of Dong Kihn, which Europeans called Tonkin. Hanoi's history shines in a clutter of alleyways in the magnificent Old Quarter, just north of Hoan Kiem Lake. This is the perfect place to start a tour through the heart and soul of Hanoi, a maze of historic mercantile buildings embellished with centuries of detail, from tropical to art deco, Chinese to French colonial. Entire streets are devoted to specific trades and wares: shoes, silk, bamboo, even gravestone carving. You can find the usual collection of trinkets, from conical hats and Uncle Ho T shirts to beautiful lacquerware and baskets. There is fine woodworking at shops like Furniture Gallery (8B Ta Hien Street), which offers authentic pieces as well as reproductions, and will ship anywhere. For fine art and modern paintings, try Hoang Ha Art (149 Le Duan Street) and Trang An (15 Hang Buom Street). The major hotels can recommend reputable galleries and some, like the Metropole, even cater to enthusiasts with special packages.

After a long day of sight-seeing, retreat to Hoan Kiem, Lake of the Magic Sword. In a Vietnamese parallel to King Arthur, Emperor Ly was given a celestial sword, which was later nabbed by a turtle during a boating trip. The sword still hasn't materialized, but Ngoc Son Temple, which sits on an island in the lake, is a great place to soak up a dazzling view of modern Hanoi. Don't miss the daily shows by the famous Thang Long Water Puppet Theater. In this uniquely Vietnamese art form, puppeteers perform behind a curtain, underwater. The movements are mesmerizing, as is the musical accompaniment by a Vietnamese chamber group. Hotels book the shows for $5 per person, or you can buy tickets at the door for $2 (extra if you take in a camera).

Some say Hanoi's best coffee is served at Au Luc Café, a peaceful outdoor spot behind the Metropole (57 Ly Thai To). Club Opera, next door, features great Vietnamese cuisine inside a stylish colonial mansion. Other contenders for the king of java include Mocha Café (14-16 Nha Tho), where attendants roast beans in a groovy two-story brick colonial relic; it's a great place to sip and be seen.

Hanoi has many fantastic restaurants. Don't miss Luna d'Autunno (11b Dien Bien Phu), a pizzeria serving perhaps the finest pies this side of Rome; Emperor (18b Le Than Tong), an elegant yet affordable restaurant offering fine Vietnamese and French fushion cuisine; and Bobby Chin's world-class Red Onion, which blends a New York-style chic setting with an artfully presented Asian-California menu (warm duck salad; spicy Mediterranean sea bass with rice pilaf and yoghurt garlic sauce; salmon with tuna-oyster tartar and caviar). Long left behind, Hanoi is again a heavenly haven. Another latte, please.

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