Xi and Nguyen Phu Trong, general secretary of the Vietnamese Communist Party, reviewed an honor guard and headed for talks behind closed doors.
It was Xi's first overseas trip since consolidating his power at a party congress last month.
Xi and US President Donald Trump, among others, just finished an Asia-Pacific economic summit in the Vietnamese coastal city of Danang.
"It's our policy to settle disputes in the East Sea through peaceful negotiations and with respect for diplomatic and legal process in accordance with international law, including the UN Convention on the Law of the Sea," he said, referring to the South China Sea.
Quang made the comments today during a joint news conference with Trump. Trump had offered during a meeting earlier today with Quang to serve as a mediator on the South China Sea disputes.
Vietnam and China, along with four other governments, claim all or parts of the South China Sea, which is believed to sit atop rich natural resources and occupies one of the world's busiest sea lanes.
Vietnam has become the most vocal opponent of China's moves after Philippine President Rodrigo Duterte softened his country's stance on China.
Tran Viet Thai of the Vietnam Diplomatic Academy said Xi's visit is important to build mutual trust.
"The visit marks a new step forward in Vietnam-China relations," he said. "Hopefully the relations will continue to stabilize, because the two sides currently share great interests in broadening their cooperation and maintaining stability."
The two communist neighbors have in recent months experienced spats over the South China Sea.
In July, Vietnam had to suspend an oil and gas exploration project conducted by Spain's Repsol company, under apparent pressure from China. In September, Vietnam protested live-fire drills by China near the Paracel islands.
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