The Taoiseach, Bertie Ahern, has announced that the Irish Government is to open an embassy in the Vietnamese capital, Hanoi.
Mr Ahern, who is on a week-long trip to the Far East and the Middle East, made the announcement following a meeting with the Vietnamese Prime Minister, Mr Phan Van Khai.
The Taoiseach also said that Ireland's overseas aid programme is to be extended to Vietnam. Ireland's Overseas Aid programme is currently focused on Africa, and Vietnam will be the first Asian country to receive official Government development aid.
Mr Ahern told the Vietnamese Prime Minister that he looked forward to working with Hanoi as an aid partner.
The Taoiseach is in Asia to attend the fifth biannual Asia-Europe Summit in his capacity as immediate past president of the EU.
This year's conference, which opens tomorrow, is being attended by the French President, Jacques Chirac, German Chancellor, Gerhard Schroeder and other European leaders as well as heads of state and government from Asia.
European involvement in this year’s conference had been in doubt until last month over EU objections to the presence of representatives of the military government of Myanmar, formerly Burma.
Before leaving Vietnam, Mr Ahern is due to pay a visit to the Christina Noble Foundation, the charity founded by the Dublin woman to aid street children in Ho Chi Minh City.
After the summit, Mr Ahern heads for Malaysia and then Singapore, where he will meet members of the Irish business community.
On his return, he is scheduled to stop in Bahrain where he is due to meet the King and prime minister of the Gulf state.