Kim Bồng was settled in the 15th century, supposedly by four soldiers from the army of Emperor Lê Lợi, who founded the Later Lê dynasty. According to traditional stories, these four soldiers were adept at woodworking, and went on to establish the village's four most notable craft families (Huynh, Nguyen, Phan, and Truong), many of whose members carry on that trade to the present day. As the neighbouring town of Hội An developed during the late 16th and early 17th centuries, Kim Bồng's carpenters and woodworkers became more widely known; in the 17th century, local carpenters were supposedly commissioned to build a warship for the Spanish navy.[1] Craftsmen from Kim Bồng also produced most of the detail work on the buildings of the former imperial capital in Huế, and, more recently, on Vietnamese revolutionary leader Ho Chi Minh's tomb.[1][unreliable source?]

In the present day, Kim Bồng craftsmen are often involved in restoration projects. For example, since the old town of Hội An was designated a UNESCO World Heritage Site in 1999, many of the village's artisans have found work restoring historic buildings, some of which have remained otherwise untouched for hundreds of years. Local craftsmen have also worked on restoration projects in nearby Da Nang, and in Quảng Ninh Province.[1]