The Vietnamese delegation was led by Deputy Defence Minister Senior Lt Gen Ngyyen Chi Vinh, while the Indian side was headed by Defence Secretary R K Mathur.
Vinh also called on National Security Advisor Ajit Doval and Army chief Gen Dalbir Singh Suhag.
The annual dialogue comes two months after Prime Minister Narendra Modi held wide-ranging talks with his Vietnamese counterpart here.
Though defence officials remained tight-lipped about what transpired during the meeting, sources said all issues relating to cooperation in the crucial sector were discussed.
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Vietnam wants the vessel for surveillance off its coast and around its military bases in the Spratly island chain in the South China Sea where it is building a credible naval deterrent to China with Kilo-class submarines from Russia.
The sources also said that talks are on to train Vietnam Air Force pilots in flying Sukhoi fighters as well.
India is already training Vietnam Navy personnel in operating the Russian-origin Kilo-class submarine among other areas.