Vietnam and Russia signed a deal on Sunday on the construction of Vietnam's first nuclear power plant, the Vietnam News Agency reported.

The deal was signed during the visit of Russian President Dmitry Medvedev in Hanoi. Medvedev is here for an official visit and the 2nd ASEAN-Russia Summit that was held on Saturday.

Medvedev and Vietnamese President Nguyen Minh Triet witnessed the signing ceremony of the deal.

The deal is worth nearly $5 billion, said the report. It is expected to significantly contribute to Vietnam's energy sector, which is in the way of modernization to meet the growing demand of the economy.

In Sunday's meeting between two presidents of Vietnam and Russia, Triet and Medvedev expressed pleasure in the two country's traditional friendship and strategic relations, the Vietnam News Agency reported.

The two presidents informed each other about the socio-economic situation in each country and discussed bilateral issues as well as regional and international issues of common interests.

Both sides said that Vietnam-Russia trade cooperation in recent years has made remarkable development, especially in strategic sectors such as oil, gas and nuclear energy, said the report.