coastal city, east-central Espírito Santo estado (state), eastern Brazil. It lies along Espírito Santo Bay, just southeast of Vitória, the state capital, and forms part of the greater Vitória metropolitan area. Vila Velha was settled in 1535 and was given city status in 1896. Chocolate and candy making are among its principal economic activities. Nearby is the 16th-century convent of Our Lady of Penha. Pop. (2005 est.) 394,800.