From 1653 to the 19th century, Nha Trang was a deserted area rich in wildlife (animals like tigers) and was a part of Hà Bạc, Vĩnh Xương County, Diên Khánh Province. After just two decades in the early 20th century, Nha Trang underwent a rapid change. On 30 August 1924, the Governor-General of French Indochina decreed Nha Trang as a town let (center Urbain). Nha Trang Town let was established from the ancient villages of Xương Huân, Phương Câu, Vạn Thạnh, Phương Sài, and Phước Hải.
During French Indochina, Nha Trang was seen as de facto capital of Khanh Hoa Province. The colonial administration offices (like Envoy Office, Commanding Office, Trade Office, Post Office) were situated in Nha Trang. Local royal offices like Province Chief, Provincial Judge, Military Commander are in Dien Khanh city(a walled military city 10 km southwest of Nha Trang).
On 7 May 1937, the Governor-General of French Indochina by another decree upgraded Nha Trang Townlet to town. At this time, Nha Trang Town had five wards based on the ancient villages merged to make the town: Xương Huân, Phương Câu, Vạn Thạnh, Phương Sài, and Phước Hải.
On 27 January 1958, the president of the Republic of Vietnam, Ngô Đình Diệm by Decree 18-BNV abrogated the town status of Nha Trang and divided Nha Trang into two rural communes: Nha Trang Đông (Eastern Nha Trang) and Nha Trang Tây (Western Nha Trang), under the administration of Vĩnh Xương County.
On 22 October 1970, the government of the Republic of Vietnam by Decree 132-SL/NV reestablished Nha Trang Town on the ground of Nha Trang Đông and Nha Trang Tây and other rural communes, namely Vĩnh Hải, Vĩnh Phước, Vĩnh Trường, Vĩnh Nguyên, and villages Phước Hải (Vĩnh Thái Commune), Vĩnh Điềm Hạ (Vĩnh Hiệp Commune), Ngọc Thảo, Ngọc Hội, Lư Cấm Villages (Vĩnh Ngọc Commune) under the administration of Vinh Xuong County, together with
