Two men have been arrested by Vietnamese authorities after the shooting of a senior Sydney underworld figure last week.

Lorenzo Lemalu, 24, died after being shot dead on a busy street in Ho Chi Minh City on Thursday night local time.

Mr Lemalu was suspected by NSW Police to be behind the “Coconut Cartel”, a name the group has given itself and comes from a historic slur against Pasifika people, which has waged a war with rival crime gangs in Sydney over recent months.

Lorenzo Lemalu, who was shot dead in Vietnam last week. (Supplied)

Security vision of the incident shows two men dressed in black open fire on Mr Lemalu and an associate as bystanders ran for cover.

The Vietnamese Ministry of Public Security said two suspects have been apprehended.

“Currently, law enforcement agencies are focusing on investigating, verifying, and strictly handling the individuals involved in accordance with the law,” the statement said.

An earlier alert for two men had been issued by Vietnamese authorities stating that the suspects fled in a taxi after shooting Mr Lemalu.