By day, the bright array of mustard-yellow shophouses and wooden merchant homes are set against a backdrop of grey skies but come nightfall and it’s transformed into a fairytale type setting.

The riverside streets glow with lanterns and fairy lights and the tinsel-draped shopfronts turn Hoi An - a trading port on Vietnam’s central coast - into Asia’s answer to a Christmas market.

Around half an hour from Da Nang airport, the ‘market’ sells beers for 30p, hot chocolates for £1.50, and the old town is lit by hundreds of coloured lanterns.

Hoi An is a charming city that is also a UNESCO-listed trading port on Vietnam’s central coast.

There’s no single cordoned-off square with entry gates and security barriers. Instead, the “market” spills through the lanes of Hoi An Ancient Town and across the bridge to the night market on Nguyen Hoang Street.

Stalls selling handicrafts, lanterns, sweets and souvenirs line the narrow streets beside the river and in December you get a mash-up of Vietnamese lantern festival and Western Christmas.

Asia travel specialists TransIndus say December is one of the most atmospheric times to see the town. “By December you’re into Hoi An’s cooler winter period,” a spokesperson said.

“Daytimes are usually in the low- to mid-20s, so it’s T-shirt weather for exploring the old streets, and in the evenings you might just want a light jacket if there’s a breeze coming off the river.”

However, December is the tail end of the rainy season, so a passing shower or a grey spell is to be expected. “When the rain clears and the pavements start to dry, the reflections from the lanterns in the puddles are beautiful,” they added.

“You get steam rising off the street-food stalls, scooters back out within minutes, and the whole old town has this slightly surreal, cinematic feel.”

And you can stay in a guest house or a three-star hotel for just £10 to £15 a night. Even in many tourist-facing places along the river, a drink is still well under what you’d pay in Manchester or London.

Of course you’ll have to fork out a bit to get there, TransIndus analysed flight prices on Skyscanner for London to Vietnam routes.

In December it found that return fares start from around £386 if you can be flexible on dates and are happy to take an indirect route into Vietnam.

• Debenhams reduces 'classy' £595 watch gift to £69 that 'makes you look smart'