As tensions over the South China Sea continue to rise, Vietnam has made moves to enhance its defence ties with Australia.
During a meeting in Canberra, Prime Minister Malcolm Turnbull and Vietnamese Prime Minister Nguyen Xuan Phuc have established a new strategic partnership, with the countries defence ministers agreeing to meet annually.
Separately, the countries foreign ministers will also meet and there will also be ministerial level economic meetings.
Turnbull said the agreement is a fitting way to mark 45 years of diplomatic relations between Australia and Vietnam.
"We will work across our partnership in defence, development, education, science and research to deepen our links and advance our cooperation," Prime Minister Turnbull said.
"Together, including at the forthcoming ASEAN-Australia Special Summit, we will work for our common prosperity and security."
The two governments are expected to expand their co-operation in counter-terrorism, search and rescue, and cyber and water security.
During Prime Minister Turnbull's meeting with Prime Minister Phuc, the leaders discussed their roles in countering the threat of North Korea.
Prime Minister Phuc received a ceremonial welcome ahead of his bilateral talks with Prime Minister Turnbull, and he and his wife inspected a guard of honour and received a 19-gun salute outside Parliament House in Canberra.