Vietnamese President To Lam will meet with Prime Minister Anthony Albanese in Canberra on Tuesday.
The president arrived in Sydney on Sunday night for his first visit to Australia as both leader of Vietnam and the national Communist Party.
This dual role of party and national leader is unusual and has been labelled a significant concentration of political authority by experts like Anne Vo, a senior lecturer of Vietnamese culture and politics at the University of Wollongong.
She said the visit was crucial as Vietnam was both a nation within China's sphere of influence and an ally to the United States.
"For years, Australia and Vietnam have talked about the enormous potential in the relationship," she told AAP.
"The question now is whether they start converting that potential into capital, companies, projects and long-term economic integration."
Dr Vo said Vietnam has been considered "promising, but not urgent" by Australian business in the past but could offer economic security.
Huong Le Thu, a deputy director at the International Crisis Group, said the visit provided a chance to "exchange notes" as both nations faced international pressures from close allies.
"They need to be flexible and of course safeguard their national interests and red lines, but cooperate where they must," Dr Le Thu told AAP.
"Whether either countries have a kind of recipe to deal with current turbulences or challenges yet to come is yet to be shown."
Vietnam has one of the fastest growing economies in South-East Asia with Australia making efforts for half a century to secure a stronger relationship.
The latest move saw the signing of a Comprehensive Strategic Partnership in 2024.
Tuesday's meeting is expected to discuss furthering defence and economic cooperation.
Dr Vo said the real test from the visit would be how both leaders referred to China and the United States and how Australia could fit within Vietnam's so-called 'bamboo diplomacy'.
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