John Hutton, the Secretary of State for Business and Enterprise, is urging British companies to open up businesses in Vietnam, saying there will be "major opportunities" in "one of the most dynamic economies".
This week he became the first UK trade secretary to visit the communist country and used the opportunity to call for oil and financial businesses to invest in Vietnam.
"It is Asia that is strong, and pulling through what is going to be a difficult couple of years," Hutton said. "Relationships are stronger now than ever before. I think there will be major opportunities for British companies."
Hutton has held meetings with the Vietnamese prime minister and deputy prime minister, as well as British businesses already present in the country.
Vietnam has a population of 85 million people, of which 58% are aged under 30. Many of its inhabitants are becoming more affluent. Last year Vietnam had a GDP rate of 8.5%, and a savings rate of 30%.
Although the British government is "making very good progress" in its discussions with Vietnam, Hutton said he was "anxious to see progress, particularly in the energy sector, banking and financial services sectors".
He said the record oil price had been raised in his talks with ministers.
"Non-Opec countries have to address this problem," said Hutton. "Vietnam is looking to do this. Firstly, it is looking to increase production and open the round of development sites and is investing in refining capacity."
A number of British companies have already made commitments to invest in the country, including BP, Rolls-Royce, Vodafone and GSK.
Prudential has a 41% share of the insurance market and HSBC has a stake in the life assurer's biggest rival, Bao Vietnam.
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