First formal talks for PMs

Prime Minister John Key will hold his first formal talks with Australian Premier Julia Gillard in Vietnam this week.

He will also meet informally with United States Secretary of State Hillary Clinton at a gala dinner before the 5th East Asian Summit on Friday.

Mr Key was the first leader to congratulate Ms Gillard when she deposed Kevin Rudd in June.

The pair will have bilateral talks at Hanoi's National Convention Centre on Saturday morning before attending the summit.

Possible subjects on the table during the 45-minute talks include the Single Economic Market, trans-Tasman travel, and initiatives in the Pacific.

The Australian Government's plans for a processing centre for refugees in East Timor is also likely to come up. The controversial detention centre would see asylum seekers from across Asia apply to come to Australia and New Zealand.

Mr Key said in July he supported the move, warning that desperate boat-people would target New Zealand shores.

Ms Gillard and Mr Key first met in 2008 when she came to New Zealand for the Australia-New Zealand Business Leadership Forum.

Ms Clinton and Mr Key will have a "pull-aside" – diplomatic speak for brief informal talks – at the glitzy dinner on Friday night. Ms Clinton is due to visit Christchurch and Wellington from November 4-6 as part of her Asia-Pacific tour.

Mr Key is hoping for an invitation to the White House next year.

Friday's dinner will be hosted by Vietnamese Prime Minister Nguyen Tan Dung.