Vatican City (ANTARA News/AFP) - Pope Benedict XVI on Thursday appointed the Vatican`s first envoy to Vietnam since the end of the Vietnam war, in a key step towards improving relations between the two states.

Communist-ruled Vietnam has a large Catholic population but has no formal diplomatic ties with the Holy See.

The appointment of Leopoldo Girelli, previously the Holy See`s ambassador to Indonesia, was announced by the Vatican in a statement.

Vietnam has Southeast Asia`s largest Roman Catholic community after the Philippines -- about six million among a total population of 86 million.

The Vatican and Vietnam have been at odds since the end of French colonial rule in 1954 over Church-owned land that was confiscated.

The regime severed diplomatic ties in 1975 at the country`s reunification following the Vietnam war, but relations have improved since 1990, with regular visits by Vatican cardinals to Vietnam.

Vietnamese Prime Minister Nguyen Tan Dung made a historic visit to the Vatican in 2007, marking a major thaw in relations. (*)

Editor: Kunto Wibisono
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