A Historic meet took place between US President Barack Obama and Vietnam’s Communist Party leader, Nguyen Phu Trong at the White House.
This was the first such meeting since the two countries returned to normalized diplomatic relations 20 years ago.
Mr Obama said the two countries were deepening co-operation despite differing political philosophies.
Analysts predict that US and Vietnam are aiming for stronger ties with increasing assertiveness of China.
The historic meet marks the 40th year since the end of the Vietnam War.
“Obviously, there has been a difficult history between our two countries in the 20th Century and there continues to be significant differences in political philosophy and political systems,” Mr Obama said.
“What we have seen is the emergence of a constructive relationship that is based on mutual respect and that has benefited the people of both countries.”
Mr Trong described the talks as “cordial, constructive, positive and frank”.
“What is of utmost importance is that we have been transformed from former enemies to become friends [and] comprehensive partners,” he said.
“I am convinced our relationship will continue to grow in the future.”
Mr Trong said that he had invited Mr Obama to visit Vietnam and the President had accepted.
Trade talks were also a part of the agenda for the meeting. President Obama is venturing to create a 12-nation free trade plan known as Trans-Pacific Partnership that would include Vietnam.
However, the meeting on Tuesday was not welcomed by everyone.
As a group of US lawmakers wrote an open letter to Mr Obama complaining about the hosting of the meeting. While a group of protestors outside the White House raised slogans and protested against the human rights violations in Vietnam.