China and Vietnam should settle their disputes in the South China Sea through talks and move to jointly exploit its waters, Chinese Foreign Minister Wang Yi said.

"We have agreed that settling the maritime issues is extremely important for the healthy and sustainable development of bilateral relations," he told reporters.

The push for easing tensions came after a meeting between Wang Yi and Vietnamese Foreign Minister and Deputy Prime Minister Pham Binh Minh in Hanoi.

China claims 90 per cent of the potentially energy-rich maritime territory and has been building on and militarising rocky outcrops and reefs in its waters.

Brunei, Malaysia, the Philippines, Taiwan and Vietnam also lay claim to parts of it, through which about $US5 trillion ($AU6.5 trillion) of trade passes each year.

Vietnam is the country most openly at odds with China over the issue.

"The two sides should better manage disputes through talks and refrain from taking unilateral actions that may further complicate and expand the disputes," Mr Wang said.

The USS John S McCain conducts a patrol in the South China Sea while supporting security efforts in the region. ( AP/US Navy: James Vazquez )

"At the same time, [the two sides] should promote cooperation at the sea, including holding talks on joint exploitation."

Mr Wang and Mr Minh said bilateral relations had seen positive development, with rising trade and investment as the two neighbours further opened up markets to each other.

Bilateral trade exceeded $130 billion last year.

Mr Minh added that Vietnam and China shared responsibility to maintain peace and stability in the region, reiterating Vietnam's stance that the maritime disputes must be resolved in a peaceful manner and according to international law.

Reuters