The signing of the agreement took place Wednesday in the presence of visiting U.S. Vice President Kamala Harris, Vietnam’s Deputy Minister of Foreign Affairs Nguyen Quoc Dung and Hanoi Chairman Chu Ngoc Anh.

The new embassy, at a cost of $1.2 billion, will be located on a 3.2-hectare land lot in Cau Giay District that will be leased for 99 years, according to the agreement signed by U.S. Embassy Chargé d’Affaires Christopher Klein and Hanoi Department of Natural Resources Director Bui Duy Cuong.

The new embassy campus will be inspired by Vietnam’s famous Ha Long Bay, have features of Vietnam's farming culture and showcase "the future-oriented, active, adaptable and transparent foreign diplomacy" pursued by the U.S., according to the U.S. Embassy.

The two countries had agreed on the U.S. building a new embassy campus in 2019. Hanoi approved the land lease earlier this year.