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Yes, it is possible to rent cars. Possible, but definitely NOT advisable, at least until you get used to suicidal Vietnamese drivers.  And even before driving, get used to looking BOTH ways before you step off the footpath, because motorbike drivers constantly drive in the wrong direction next to the footpath.  One previous newspaper report listed driving the wrong way as one of the three biggest causes of road death in Hanoi. Drivers here disobey ALL traffic laws, and there is minimal enforcement. The government was very pleased to announce a road toll of only 8998 last year, which is complete rubbish. It is perhaps as much as 50,000. Don't drive a car and don't add yourself to the statistics.

The US State Department's biggest danger warning for travelers in VN is driving and motor vehicle accidents.

Personally I don't see any problems driving a car here, well except that parking thing..
you just need to keep your eyes open, one thing you have to remember that people are trying to bully you giving way, but sometimes that is the only way you can make turns.

And it seems this is old post.. well .. i don't mind