However, she made it clear sanctions will not be removed at this time.
"Any steps that the government takes will be carefully considered and will be, as I said, matched, because we want to see political and economic reform take hold," said Clinton in the capital city of Burma.
Clinton told reporters that during her meeting with President Thein Sein and other officials she offered the United States's support as the government continues to make progress.
"The United States is willing to match actions with actions," Clinton said.
Clinton arrived in Burma Wednesday, making her the first American secretary of State to visit the country in 50 years.
She met with Nobel Peace Prize winner and political opposition leader Aung San Suu Kyi later in the day Thursday.
The U.S. has called for Burma to open a dialogue with Suu Kyi, ease restrictions on the media, reform the country's political process and release political prisoners.