Diplomatic ties at ambassadorial level between the two countries were established on September 3rd, 1979.

In July 1980, Vietnam opened its Embassy in Nicaragua and the Nicaraguan Embassy in Hanoi was set up in August 1987. Shortly after President Daniel Ortega of Front Sandino National Liberation lost his election, the government of new President Violetta Chamorro closed the Nicaraguan Embassy in Hanoi. Vietnam, in April 1991, also withdrew its diplomatic mission from Managua.

During the 1979 – 1990 period, the bilateral relationship had made progress. High-ranking visits of Nicaraguan and Vietnamese leaders include those by President Daniel Ortega (March 1983), FSLN Member, Defense Minister Umberto Ortega (March 1981), FSNL Member, Minister of International Cooperation Henri Ruiz (July 1986)… Vietnamese Chairman of National Council Vo Chi Cong (July 1989), Vice Prime Minister Dong Si Nguyen (July 1983), and National Assembly Chairman Nguyen Huu Tho (April 1985)…

Political and diplomatic ties were resumed after Secretary General Daniel Ortega won the November 2006 presidential election.  Prime Minister Nguyen Tan Dung and President Daniel Ortega had a sideline meeting in September 2007 during the UN 62nd General Assembly in New York City.  Nicaragua has pledged its support to Vietnam’s bid for 2008-09 UNSC non-permanent member and recognized Vietnam as a market economy.