Barack Obama has announced he will lift an embargo on the sale of lethal weapons to Vietnam in a major warming of relations between the former enemies.
"The United States is fully lifting the ban on the sale of military equipment to Vietnam that has been in place for some fifty years," Mr Obama said at a joint press conference with Vietnamese president Tran Dai Quang in Hanoi.
He insisted the decision to lift the embargo was not linked to China's increased military presence in the South China Sea.
"The decision to lift the ban was not based on China or any other considerations, it's based on our desire to complete what has been a lengthy process of moving towards normalisation with Vietnam," he said.
His visit to America's former enemy proved that "hearts can change and peace is possible," he added.
The removal of the embargo was announced despite fierce criticism of Vietnam's human rights record, with some claiming the country has dragged its heels in reforming its justice system.
But the president said the sale of arms would depend on Vietnam meetings its targets over human rights improvements and that trades would be approved on a case-by-case basis.
Vietnam's war with the United States ended in 1975, and it has since become a key component in America's defence strategy on the South China Sea.
At the same joint press conference Mr Quang hailed "another crucial milestone" in the US-Vietnam relationship after the countries agreed on a multiple entry visa scheme to encourage further trade between small businesses.
He also paid tribute to the "long effort to overcome grievance" on both sides and quoted Ho Chi Minh about welcoming a warm spring after a "cold winter."
Mr Obama stressed he was doing as much as he could to address lingering problems in Vietnam created by the war, such as hotspots across the country containing Agent Orange residues.
He said the US had invested nearly $90 million in dioxin remediation at the Da Nang International Airport.
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