Australia and Vietnam have renewed focus on trade and defence ties, with leaders from the two nations agreeing to push for peace in the South China Sea.
Prime Minister Anthony Albanese met Vietnam's national assembly president Vuong Dinh Hue in Canberra on Wednesday.
The pair pledged to boost trade and work together on clean energy.
Mr Albanese and Mr Hue also committed to peacefully resolving international disputes and will continue freedom of navigation passes through the South China Sea.
The prime minister said the relationship between Canberra and Hanoi highlighted Australia's deepening ties to Southeast Asia.
"Australia and Vietnam share close bonds and a vision for a stable, peaceful, resilient and prosperous region," Mr Albanese said.
"Our shared ambition to elevate our formal ties is a reflection of our deepening co-operation on significant issues (including) economic, climate and strategic."
Mr Hue will meet the governor-general, senior ministers and the leader of the opposition during his visit to Canberra before flying to Melbourne to strengthen business and education ties.
Australia and Vietnam will celebrate the 50th anniversary of their diplomatic relationship next year.
