Prime Minister Chris Luxon has inked a fresh, updated deal with Vietnam’s Government - as he looks to bolster trade between the two nations by roughly $400 million over the next half-decade.

The new agreement includes new security commitments between New Zealand and Vietnam, as tensions in the Asia-Pacific region continue to flare.

"We are clear-eyed that the risk of conflict in our wider region has risen," Luxon told the Keynote address at the ASEAN forum yesterday.

"It has become starkly apparent that we are in a world where rules are being subsumed by power as the key determinant in advancing states’ interests," Luxon said, but did not mention who the rules were being subsumed by.

"The risks for New Zealand are as real as they are for many countries here in Southeast Asia."

At this stage, details of the security element of the deal are limited, but speaking to Newstalk ZB before the trip, Luxon noted that Vietnam is in an "important geostrategic part of the world".

Luxon's comments at ASEAN come as the Government prepares to unveil a significant refresh to the Defence Capability plan.

He provided some details about that plan during his speech.

"My Government is assessing our defence capability needs right now, with a view to ensuring our Defence Force is modern, capable and fit for purpose - both for the situations it faces today and those it will face in the future."

Back home, tensions between New Zealand and China continue to remain front of mind - as three Chinese warships in the Tasman Sea move closer to Australia’s exclusive economic zone.

The situation is being monitored by the Defence Force and comes as Foreign Minister Winston Peters arrived in Beijing yesterday to meets his Chinese counterpart, Wang Yi.

Meanwhile, Luxon arrived in Hanoi last night, where he was given a red carpet welcome upon arrival; met at the airport by Vice Minister of Foreign Affairs Do Hung Viet.

Viet was the first of many politicians Luxon met within his first 48 hours of his trip to Vietnam - the bulk of which occured at the National Assembly House; Vietnam's State Government building.

Luxon and his entourage weaved their way through the enormous building last night, meeting with various different political leaders.

That included President Luong Cuong, General Secretary of the ruling Communist Party To Lam, and National Assembly Chairman Tran Thanh Man.

But the major meeting was with Prime Minister Pham Minh Chinh - the most powerful of Vietnam’s “Big Four”.

It was after that meeting, that the pair of Prime Ministers signed the new relationship agreement - upgrading the strategic partnership, to a comprehensive strategic partnership - which is the highest status deal recognised by the Vietnamese Government.

New Zealand is just the 8th country to sign such a deal, alongside the likes of Australia, the US, South Korea and Russia.

It comes as the two countries celebrate 50 years of diplomatic relations and as Luxon’s administration attempts to increase trade between the two countries by roughly $400 million to $3 billion a year.

Yesterday’s enhanced relationship agreement between Vietnam and New Zealand wasn’t the only deal signed.

Chris Luxon also oversaw the signing of almost a dozen new Memorandum of Understanding between Kiwi and Vietnamese companies.

That includes an agreement between AUT and Vietnam's National University to collaborate on AI.

"We are not a nation that rests on its laurels: we are hungry to adapt our relationship for the future," Luxon said, pitching New Zealand to Vietnamese businesses.