Hanoi and the Vatican have not had formal relations since the 1950s although Vietnam is home to more than 6 million Catholics, making it one of the biggest communities of faithful in Asia.

The two sides have held nearly 20 meetings in the past two decades, but this week's talks represented the first time the agenda expressly included a discussion of eventual normalisation.

"This is my wish," Vatican Undersecretary of State Monsignor Pietro Parolin told reporters when asked if he thought the Pope could visit the Southeast Asian country this year.

"But of course it depends on many things to be discussed, to be reflected upon, and I think that it's impossible to say yes or no.

The Vietnamese government has rejected previous requests for a papal visit to the country where religion remains under state supervision. Vietnam's 86.2 million population is mostly Buddhist.

Prime Minister Nguyen Tan Dung met the Pope at the Vatican in early 2007, raising hopes for detente and the establishment of diplomatic relations soon. But the dialogue has moved slowly.

"We have had a very fruitful discussion and we are happy about that," Parolin said of the talks conducted by a working group.

"It was the first meeting, but we have already set up a good basis for further progress."

The two sides agreed to hold another round of talks, but no date or time was set.

"I hope, I think, the outcome will be diplomatic relations, this is the will of both parties, but the timing is difficult to predict."

In addition to Vietnam, elsewhere in Asia the Vatican does not have relations with China, Laos, North Korea, Myanmar and Malaysia.

Reuters - February 19, 2009