Though quite developed, Nha Trang has a gorgeous beach that streches on and on with some nice waves for playing in (something we didn't find very many places in Vietnam). The loads of toursists have brought plenty of beach vendors to pester you, luckily Rainbow Divers & Bar provides free chairs and umbrellas on the beach with no vendors allowed.
There are lots of dive centers in town, so this is the easiest place to do some diving. If you just want to snorkel, any of the dive shops will take you along for $10.00 (includes transport, lunch, water, sodas, and equipment). They all visit 2 spots on a 6 hour trip. We would recommend getting a wetsuit if possible, as it can be windy or cloudy and the water was pretty cold (we didn't even get in at the 2nd spot). The coral is not as shallow as in Phu Quoc, but it was in pretty good shape, though you have to put up with the plastic bags that mar the view.
Lodging is pretty cheap ($6-8 for double with bath) and there are lots of good places to eat.
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