President Barack Obama could lift restrictions on arms sales when he makes his first visit to Vietnam next week.
That would remove a final vestige of wartime animosity but would not please China, which views growing US defence ties in its backyard with deep suspicion amid rising tensions in the disputed South China Sea.
The risk of a confrontation is growing. The Pentagon says that a US Navy reconnaissance plane had to avoid a collision with two Chinese fighter jets on Tuesday.
As part of efforts to help Southeast Asian nations counter Beijing, the US in 2014 announced it was allowing sales to Vietnam of lethal defence equipment for maritime security.
Vietnam has not bought any but wants further restrictions on arms sales removed to show relations are fully normalised.