Set on the banks of the Thu Bon River in central Vietnam, Hoi An is, without a doubt, one of the loveliest towns in Southeast Asia.

The main action unfolds around the atmospheric Old Town, a colonial-era trading port that was added to the UNESCO World Heritage list in 1999, where dreamy canals, French-colonial merchant houses, Japanese bridges, Chinese shophouses and laid-back restaurants all compete for your attention.

In the quarter's quiet lanes, leaves drift down from shop rooftops while locals cycle past, unbothered by the heat. By evening, rows of silk lanterns glow against an inky sky.

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And with several prestigious new international hotels in the works, including the upcoming Alila Hoi An in 2020 and Rosewood Hoi An in 2021, this historic town of just 120,000 people is firmly on every seasoned traveler's radar.

Here are seven great reasons to pack your bags and set off for Hoi An:

A wealth of history

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Once a major player in the coveted spice trade, Hoi An served as a bustling Asian trading port between the 16th and 19th centuries.

The town drew merchants from Japan, China, Portugal and France, and the resulting cultural blend remains visible in everything, from the mustard-yellow shophouses to dining traditions, folk crafts and a strong coffee culture.

You can sense it in the main sights, too. At the western end of the Old Town, narrow pedestrian streets give way to an 18th-century Japanese covered bridge, while ancient ancestral homes, such as the Tan Ky House, weave together Japanese, Chinese and Vietnamese architectural traditions.

Delicious food

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Hoi An is widely considered one of Vietnam's best destinations for food lovers, and it lives up to the hype.

Here you can enjoy every kind of dining experience, from snacking on street food at roadside vendors and slurping noodles on plastic stools to savoring fresh seafood on the beach or splurging on a lavish dinner.

At the Central Market, you'll find a kaleidoscope of tropical fruit and street food, while local specialties such as white rose dumplings (made from shrimp or pork with shallots, wrapped in translucent rice paper) and crispy cao lau (noodles with pork and rice crackers) turn up on most local menus.

And let's not forget the cultural mash-up that is banh mi. Some of the town's best banh mi, stuffed with pate, barbecued pork, chili sauce and vegetables, all tucked into a crusty baguette, can be found in the Old Town at spots like Madame Phuong or Madam Khanh the Banh Mi Queen.

Chain restaurants are almost nowhere to be seen here. Instead, the norm is family-run cafes and restaurants, most with open balconies and simple furnishings.

While you'll probably want to fill up on Vietnamese cuisine at staples like Miss Lien Thao, modern spots such as Nu Eatery or Co Mai offer a fresh take on tradition.

Hoi An is also a haven for cooking classes and street food tours, with standouts like Eat Hoi An and The Red Bridge Restaurant and Cooking School offering intimate, hands-on experiences.

Souvenirs worth having

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Let's just say you might want to bring an empty suitcase.

On every corner, you'll be tempted by high-quality souvenirs, from silk-tailoring shops and made-to-order leather workshops to coffee roasters, handmade ceramics stalls, artisans crafting beautiful bamboo lanterns and modern home-decor boutiques.

There's nothing kitschy about these goods. In fact, you could treasure a suit tailored in Hoi An, or a leather bag, for years.

When it comes to tailoring, shops like Sam Ao Dai, Hung An Cloth Shop (653 Hai Ba Trung) or Sewing Bee Tailors can turn around an order the next day. But if you're not in a rush, we'd suggest leaving time for fittings.

For a more upscale experience, Yaly Couture and A Dong Silk specialize in bespoke, luxurious clothing suited to boardrooms and ballrooms alike.

Another area where Hoi An's modern designers shine is home accessories.

The bright, airy Sunday in Hoi An boutique, for instance, is full of beautiful painted tiles, bamboo furniture, eco-friendly clothing, bedding and bathroom accessories.

Beautiful beaches

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Hoi An is more of a river town than a beach resort, but sun-seekers can reach the coast with ease.

About a 10-minute drive to the northeast, travelers find themselves looking out over the East Sea, with stretches of sand running for miles in both directions.

My Khe may be the most famous strip, but An Bang Beach is the prettiest. Along this calm, largely undeveloped stretch of coast, it's all about mellow beach shacks, cold beer and live music.

Another reliable option is the beaches around the Son Tra Peninsula, a nature reserve roughly 25 minutes' drive to the north, where the water is clear and pristine.

A cyclist's paradise

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Whether you prefer to pedal a bicycle or zip around on a Vespa, Hoi An's wide-open country roads are perfect for exploring on two wheels.

The town just launched a new bike-sharing program in June, and most hotels offer bike rentals.

It's easy to ride around the Old Town or head out to Cam Nam village, an island to the south across the river, for a glimpse of rural life.

For countryside tours, Vespa Adventures is your best bet.

On the back of a restored 1960s Italian scooter, these southern tours carry travelers across the Thu Bon River on a local boat, over a wobbly bamboo footbridge and through shimmering green rice paddies where water buffalo bask in the sun.

World-class hotels

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Often combined into a two-day getaway, Hoi An and neighboring Danang, just 15 minutes up the coast, are home to some of Vietnam's most alluring hotels.

For starters, there's the secluded InterContinental Danang Sun Peninsula Resort.

Brought to life by prolific resort designer Bill Bensley, this contemporary oasis spreads across the hillsides of the Son Tra Peninsula, a nature reserve that's home to rare red-shanked douc langurs and pangolins.

Then there's the Four Seasons Resort The Nam Hai along the coast, where you can dine on refined Vietnamese street food at the beachside La Sen restaurant or indulge in spa treatments.

Nearby, Fusion Maia has become synonymous with wellness bliss, promising guests unlimited (and all-inclusive) spa treatments.

Beyond the imminent opening of Alila Hoi An, the area will also welcome the Dusit Thani Hoi An, along with the beachfront Rosewood Hoi An in 2021.

Plenty of side trips

And if you tire of Hoi An's charm and refinement? In that unlikely scenario, there are plenty of side trips around the region.

If history and architecture are your thing, Hue, the imperial capital set on the scenic Perfume River, deserves an overnight stay.

A three-hour drive north of Hoi An, it rewards history buffs with major landmarks such as the tombs of ancient emperors, various citadels and beautiful pagodas.

Nature lovers will appreciate the Marble Mountains. Easily reached from both Hoi An and Danang, staircases lead up to Buddhist pagodas hidden inside limestone grottoes.

This is also where you'll find the Instagram-famous Golden Bridge. This stunning structure, soaring above the Thien Thai garden in the Ba Na Hills, looks as though it has stood here for centuries, yet it only opened last year.