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.