Former prime minister Dr Mahathir Mohamad held talks with Vietnam's top leaders in Hanoi today as part of efforts to improve relations between the two Asean, the foreign ministry said.

Mahathir, whose official visit to the communist nation began on Sunday, met President Tran Duc Luong and Prime Minister Phan Van Khai.

The controversial statesman, who retired last October after 22 years in power, is also due to hold talks with former premier Vo Van Kiet before departing on Wednesday.

Vietnamese foreign ministry spokesman Le Dung said the purpose of his visit was to "to exchange experiences on national construction and development".

This, he said would contribute "to the promotion of friendly and co-operative relations between the two countries, especially in economics, trade and investment."

Khai met Mahathir's successor Abdullah Ahmad Badawi in Malaysia in April this year.

Bilateral trade between the two Association of Southeast Asian Nations (Asean) members reached US$1.36 billion in 2003 compared with US$474 million in 1996, according to Vietnamese trade figures.