Originally built by the French administration in 1889 in Old Quarter of Hanoi when the city's two main marketplaces, one at Hang Duong Street and the other at Hang Ma Street, were closed. The most recognizable feature of the market was the 5-arch entrance corresponding to Dong Xuan Market's five domes.

Dong Xuan Market has been renovated several times since, the latest in 1994 after a fire almost destroyed the market. Nowadays, Dong Xuan Market is the largest covered market in Hanoi where the wholesale traders sell everything from clothes, household goods to foodstuffs.