During 14th and 15th centuries, the cape that would become Vũng Tàu was a swamp which European trading ships visited regularly. The ships' activities inspired the name Vũng Tàu, which means "anchorage". The Portuguese navigators passed Vũng Tàu many times and named it after Saint Jacques. The French invaded Vietnam afterwards and called it Cape Saint Jacques. The cliff of Vũng Tàu is now called Mũi Nghinh Phong (literally meaning “Cape of breeze welcome”).
Vũng Tàu was originally referred to as Tam Thắng ("Three Boats") in memory of the first 3 villages in this area: Thắng Nhất, Thắng Nhị, Thắng Tam. It was within the province of Biên Hòa under the Nguyen dynasty. Under the reign of king Gia Long (1761–1820), when Malay pirates built a base here and subsequently became a danger to traders in Gia Dinh city, the king sent 3 troupes of army to crack down on the pirates. The pirates were ousted and solders of these troupes were given the land as a reward.
During the Vietnam War, Vũng Tàu was home to the Australian Army and American support units, and was a popular spot for in-country R&R for U.S. combat troops. After the war, Vũng Tàu was a common launching place for the Vietnamese Boat People fleing the communists.
On May 30 1979, Vũng Tàu town was made the capital of Vung Tau-Con Dao Special Admistrative Zone.
On August 12 1991, the province of Ba Ria-Vũng Tàu was officially founded and Vũng Tàu town officially became Vũng Tàu city.
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