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The area now occupied by Ho Chi Minh City was for a long time part of the kingdom of Cambodia. The Vietnamese first gained entry to the region in the 17th century. Relations with France began in the 18th century, when French traders and missionaries settled in the area. In 1859 the French conquered Saigon, and in 1862 they made it the capital of their colony Cochin China. As the capital of Cochin China, Saigon was transformed into a major port city and a metropolitan centre of beautiful villas, imposing public buildings, and well-paved, tree-lined boulevards. Railway lines running north and south of the city were also constructed, and Saigon became the principal collecting point for the export of rice grown in the Mekong River delta.

Saigon was occupied by the Japanese in 1940, but French colonial authorities continued to administer Vietnam until 1945, when they were interned by the Japanese. Saigon itself was largely unaffected by World War II.

It became the capital of South Vietnam in 1954. Military headquarters for U.S. and South Vietnamese forces during the Vietnam War, it was heavily damaged and faced the overcrowding created by the influx of over 1 million refugees.

On April 30, 1975, North Vietnamese troops captured Saigon. The Communist government of Hanoi renamed it in honour of Ho Chi Minh, the leader of the Communist forces during the Vietnam War. As the old name Saigon could not be abolished, the authorities conceded to a compromise and kept the name Saigon for the centre of Ho Chi Minh City. Therefore the entire city officially is called Ho Chi Minh City, while the centre officially is Saigon.  Under communist control, Ho Chi Minh City lost its administrative functions, and strenuous efforts were made to reduce its population and dependence upon foreign imports and to nationalize its commercial enterprises.

Ho Chi Minh City retains the faded look of a European city, with its many Western-style buildings dating from the period of French colonial rule. Most of the bars and restaurants that thrived in Saigon during the Vietnam War have closed their doors. The elegant Cercle Sportif, a focal point of social life for Westerners after it was founded in 1912, is now a people's museum. The old opera house, for 20 years the National Assembly Building, was converted to a national theatre. The University of Saigon was reorganized to form the University of Ho Chi Minh City.

Nowadays, Ho Chi Minh City is the largest city in Vietnam and the economic centre of the country.