It was originally developed as a naval port by the Spanish but was taken over by the Americans in 1899 during the Spanish-American War. It was occupied by the Japanese during World War II but returned to American control in year 1945.

During the Vietnam War, it became the USA's largest overseas military base. When the Americans pulled out, economic disaster loomed for the local people, but instead the site was turned into a Freeport and economic zone, a move which has been remarkably successful.