New Year's Day, recognized as Tet Nguyen Dan, is the most important holiday in Vietnam, similar to Christmas in the western world. The celebration starts with the Lunar New Year and traditionally spans a week or more, marking the beginning of the lunar calendar. The exact dates change every year and are usually in late January or early February. This holiday is the time for family reunions, reminiscent sessions, and a myriad of customs and activities.

Vietnamese people prepare for the New Year by cooking special holiday foods, cleaning their houses for the upcoming visit of friends and family, and paying off all their debts. A huge part of the New Year celebrations in Vietnam is the importance of food. In the days leading up to the New Year, Vietnamese families will make special dishes such as banh chung, a square-shaped sticky rice cake wrapped in banana leaves and filled with pork and mung beans, symbolizing the Earth according to their ancient tale of creation.

During the holiday, Vietnamese people also offer prayers and respect to their ancestors. Ancestor worship is a common part of Vietnamese culture and during the New Year, a special altar is created in each home or business to honor these ancestors. Villages celebrate with traditional dragon and lion dances, loud music, and fireworks. It's also traditional for everyone to wish each other prosperity and luck for the New Year.