Taoism and Vietnamese belief no longer exist across borders, they are almost unique in Vietnam. Taoism was founded by Laozi (of Chinese and Vietnamese origin, still debated) and came from China just like Confucianism. Taoism was likely introduced to Vietnam in the 1st century AD. Taoism is not the work of a single man, but rather a synthesis, made through the ages, of the works of Chinese thinkers such as Lao Tseu, Tchouang Tseu, and Lie Tseu.

Taoist philosophy is based on the notion of TAO (ĐẠO in Vietnamese), a primordial, infinite, all-powerful principle, outside of which nothing exists. This word can have several meanings such as way, path in common language or virtue, power in the "Book of the Way and Virtue", a collection of aphorisms attributed to Lao Tseu. The TAO as a principle of order manifests itself in the cosmos, in heaven and on earth. Thus there are three TAO: supernatural order, celestial order, terrestrial and human order. These three powers form the "ONE principle"

This principle of oneness actually has two antagonistic but complementary aspects, Yin and Yang. Yin is the principle of concentration, of the earth, of darkness, of the passive, of the imperfect, of the feminine. Yang is the principle of expansion, of the sky, of light, of the active, of the perfect, of the masculine. These two opposing forces are two sides of the same coin, day and night, and represent the two principles through which Taoism manifests itself.

The great rule of Taoism lies in the following idea: to obtain wisdom, one must take into account the pros and cons because oppositions cancel each other out in the TAO. Taoist wisdom recommends preferring simplicity to overly intellectual reflection, and emptying one's soul of selfishness; humility is the greatest of virtues. The method to achieve Taoist wisdom is "non-action" (WOU WEI).

Taoist principles are essentially philosophical and were often the exclusive domain of scholars. As for the people, they needed a personal religion capable of ensuring their salvation and happiness in the other world. This is how Taoism transformed into a struggle against death and how immortal genies concerned Vietnamese people more than abstract problems.

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