HANOI - The Vietnam-US relations still hold a lot of potential for further development, the US Defense Secretary Leon Panetta said on Sunday, the first day visiting the country, local daily Vietnam News reported on Monday.

Speaking to the media, Panetta said his visit to Vietnam this time was to deepen military ties with the country based on the military cooperation agreement reached by both sides last year.

Accordingly, the two countries have agreed to cooperate in search and maritime rescue efforts, disaster relief, security, maritime safety and freedom.

As scheduled, Panetta will hold talks with Vietnamese Defense Minister Phung Quang Thanh, pay a courtesy visit to Vietnamese Prime Minister Nguyen Tan Dung, and meet with the media, among other activities during his three-day stay in Vietnam.

Panetta visited Vietnam after he announced at the Sangri-La Dialogue, which ended in Singapore on Sunday, that 60 percent of the US Navy warships would be stationed in the Asia Pacific in the next decade.