Hanoi, the small and elegant capital of Vietnam is once again becoming a truly special tourist attraction, shrugging off its history of hostility and embracing a new era of calm and beauty in its small corner of south-east Asia.

Since 2001 Vietnamese officials have attempted to reform the country's economics, focusing particularly on tourism.

This means Hanoi, a city of countless attractions, cool shaded streets and boulevards, beautiful landscapes and trendy locals, is fast becoming the standard-bearer for the rapid changes sweeping across the nation.

Hanoi sustained severe damage during the civil war during the late 1960s and early 1970s, although much of the repair work since then has encapsulated a merging of modern buildings with the ancient streets and temples of the old city.

Today, visitors can stroll the streets of the Old Quarter before diving into a modern café to sit alongside young business-folk playing with their iPods.

Although the city has got a long way to go before catching up with the uber-trendy Ho Chi Minh City in the south, the elegance and underwhelming calm of the city and its three million inhabitants gives Hanoi the feeling of a laid-back provincial town rather than a capital city.

The Old Quarter is probably the highlight of a visit to Hanoi, with over 1,000 years of history tied up in its labyrinthine network of streets and alleyways.

Many tranquil lakes also dot the city, as well as various museums, explaining Hanoi to the often confused westerner.

Although the city has seen a rise in the number of western influences, such as American-style bars, shops and the many motorbikes that tear around, Hanoi is still a beautiful Vietnamese cultural centre.

A dizzying array of temples also lend a cultural plus point to the city, with the Bach Ma Temple in a corner of the Old Quarter noted as one of the best.

Although fairly small, the beautiful temple is well worth a visit. Built by King Ly Thai To, the pagoda depicts the legendary white horse that led the King to Hanoi.

However, the city's biggest single tourist attraction is the Ho Chi Minh Mausoleum, built in honour of the country's first president of an independent Vietnam in 1954.

Western money – especially US dollars – goes a long way in Vietnam, with an average room available for just £5 per night.

The city benefits from never really having a bad season, and with attractions available all year round, there is plenty of tourist-free time.

However, the peak seasons for tourism run from about late June to October.

The mystical and refreshing, yet vibrant city of Hanoi is certainly one to check off the list – and looks to have even more to offer in the near future.