The list, released by U.S.-based online booking travel agency Booking.com, was based on more than 232 million verified reviews made on the travel and accommodation booking website.
"As an ancient town that sits along Thu Bon River, Hoi An impresses travelers with its unique architectural ensemble that features iconic yellow houses and rich traditional heritage," Booking.com stated.
The 400-year-old town is best discovered by foot as it has plenty of stores selling from silk dresses and suits, leather goods, to quirky souvenirs.
"Traffic and pollution are almost entirely absent in this town, offering travelers a one-of-a-kind leisure and relaxation experience," it said.
Phong Nha, famous for its ancient limestone karsts and vast network of caves, is home to UNESCO heritage site Phong Nha-Ke Bang National Park and the world's largest cave Son Doong.
Ninh Binh, around two hours from Hanoi and home to limestone karst mountains and ancient pagodas, ranked third on the list, followed by Hue, Vietnam's former imperial capital, and Mui Ne resort town in Binh Thuan Province.
The top 10 also included Tuy Hoa and Dong Hoi in central Vietnam, Mai Chau and Sa Pa in the northern highlands, and Con Dao off the southern coast.
Earlier, Hoi An was the only destination in Vietnam to break into the list of 10 most welcoming cities on Earth endorsed by global travelers of Booking.com.