Modi, the first Indian prime minister to visit the communist nation in 15 years, was welcomed by Vietnamese president Tran Dai Quant.
Modi flew in here last night for a day long packed visit to Vietnam. He leaves this evening for the G20 talks in China.
After national anthems of both India and Vietnam were played by the armed forces band, dressed in sharp white with gold tassels and black gum boots, the prime minister inspected a guard of honour by the three armed forces of the host country.
Immediately afterwards Modi, in white churidar kurta with grey jacket, was taken to the humble traditional stilt house near the palace where Vietnam's beloved leader Ho Chi Minh lived intermittently between 1958-1969.
He was shown the place by the Vietnamese president. Later he will hold talks with his Vietnamese counterpart Nguyen Xuan Phuc.