The first Kilo-class submarine, known as Ha Noi, is part of the deal for 6 of its diesel-electric fast attack submarines reached during PM Dung's official visit to Russia in 2009.
Under the deal, Russia will also provide training for the Vietnamese submarine crews, while deliveries of the submarines are scheduled to be complete by 2016.
The submarines are being built at the Admiralteiskie Verfi shipyard in St. Petersburg. All six boats are due for delivery by 2016.
The Project 636 class boats displace 3,100 tons, reach speeds of 20 knots, can dive to 300 meters and carry crews of 52 people.
By Hai Minh