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Start by chopping peanuts and fresh garlic.
Heat oil in a small saucepan and when it is hot, add the chopped peanuts and garlic. Reduce to medium heat and continue frying for around 4 minutes until everything slightly browns. Keep stirring the whole time.
Remove the pan from the heat and reserve about one tablespoon of the peanut-garlic mixture.
Now add the peanut butter, soy sauce, and chili sauce. Stir until all is well combined. Whisk in the water so that the sauce gets the desired consistency.
Transfer the Vietnamese Peanut Sauce into a serving bowl and top with the reserved roasted peanuts.