Like most countries in Southeast Asia, the situation of the ethnic Chinese community in Vietnam has been a sensitive issue raising complex questions about ethnic relations, national policy on minorities and citizenship, economic domination of the local economy, and larger strategic interests. Certainly, in recent years, there were times when Vietnam's critical relations with its giant neighbour, China, got entangled with the question of the Hoa (Chinese) community in Vietnam. But present-day considerations are actually rooted in a much larger reality conditioned by both geography and history. Geographical proximity has meant a very early and long engagement with China. It had meant Chinese colonization and with that the inevitable influx of Chinese population and cultural influence. Even after the Vietnamese statehood was established permanently, there were at various times waves of Chinese migrants and periodic invasions from this huge northern neighbour. In the course of this long history, a Chinese community has emerged as a relatively permanent fixture in Vietnamese society. What makes the Chinese community distinct goes beyond numbers. It is also where they have settled, what trades they have chosen, and how they have been responding to the shifting socio-political realities of a new land. This first chapter looks at such historical trends.

1. Chinese immigration and economic activities in Vietnam before the colonial period

a. Stages of Chinese immigration

Being contiguous with China, with routes of communication both by land and by sea well developed for more than two millennia, Vietnam was the first country in Southeast Asia to receive large numbers of Chinese immigrants. These people were drawn to Vietnam for several reasons:

1. Harsh natural conditions with disasters such as famine and epidemics forced the Chinese to look for a more favourable environment. Vietnam was also a favoured place for settlement because its way of life was not too different from that of China, thus making it easier for the Chinese migrants to adapt.

2. Earning a living and doing business was easier in Vietnam because of Chinas stiff taxes and restrictive policies on business activities.