The possibility of flying non-stop between Vancouver and Vietnam has moved a major step closer to reality, following a new agreement between the federal governments of Canada and Vietnam that allows direct flights between the two countries for the first time.
Last week, the Government of Canada announced a major expansion of its air transport agreement with Vietnam — creating new opportunities for airlines to launch passenger and cargo services between the two countries.
The agreement, announced by Prime Minister Mark Carney as part of a new strategic partnership with Vietnam, allows airlines from each country to operate up to 14 weekly passenger flights and seven weekly dedicated cargo flights.
Under the expanded agreement, airlines will also be permitted to carry cargo between two countries as part of a service that begins or ends in their home country. This could provide additional flexibility for cargo routes connecting Canada, Vietnam, and other international markets.
This effectively removes a major regulatory barrier to establishing direct, non-stop service between Vancouver International Airport (YVR) and Vietnam, although airlines will still need to make their own final business decisions about launching routes.
The development comes just months after YVR president and CEO Tamara Vrooman publicly identified Vietnam as a particularly promising market for further growing the airport as a key Trans-Pacific gateway hub in North America, given the growing demand for both passenger travel and trade between the two countries.
Speaking at the Greater Vancouver Board of Trade in April 2026, Vrooman said approximately 58,000 passengers travelled from YVR to Vietnam in 2025 by connecting through Singapore alone, despite the lack of direct, non-stop service. She asserted that such existing passenger demand through Singapore was already sufficient to support a standalone direct, non-stop route reaching Vietnam, along with the additional cargo capacity it would provide. It should be noted that Air Canada plans to discontinue its direct, non-stop route between Singapore and Vancouver in January 2027.
Vrooman also highlighted the substantial volume of high-value goods moving between Western Canada and Vietnam, including fresh seafood and produce, machinery parts, plastics, and technology products, which are particularly suited to cargo air freight in the bellies of commercial passenger aircraft.
Freight air cargo being in the belly hold of a commercial passenger aircraft at Vancouver International Airport. (Vancouver International Airport)
Based on a presentation to the airline’s investors in Spring 2024, Air Canada has been working behind the scenes for years to potentially launch a new direct, non-stop service between YVR and Ho Chi Minh City — Vietnam’s largest city and commercial centre.
In response to last week’s announcement, Canada’s flag carrier welcomed the expanded agreement and publicly confirmed that it is working with the relevant authorities to secure the necessary approvals to launch a direct, non-stop service to Ho Chi Minh City in 2027. While Air Canada has not confirmed which Canadian city the new route would serve, Vancouver remains the highly likely candidate.
“Vietnam is an important market in the broader Canada-Southeast Asia relationship. We welcome this expanded Air Transport Agreement and look forward to obtaining the necessary government approvals to begin service to Ho Chi Minh City,” said Mark Galardo, the executive vice president and chief commercial officer, and president of cargo, of Air Canada.
Meghan Pritchard, executive director of the Canada ASEAN Business Council, added, “The Canada-ASEAN Business Council welcomes Air Canada’s intention to launch scheduled service to Ho Chi Minh City in 2027. Direct air connectivity between Canada and Vietnam would be an important step in strengthening commercial ties, supporting tourism and investment, and helping Canadian businesses deepen their engagement in one of Southeast Asia’s most dynamic markets.”
There has also been interest from the Vietnamese side. As previously reported by Daily Hive Urbanized, Vietnam Airlines identified Vancouver in early 2025 as one of several prospective international destinations it hoped to add to its network, alongside Seattle, Los Angeles, Copenhagen, Dubai, Bangalore, Dhaka and Darwin, Australia.
Ho Chi Minh City, Vietnam. (David Bokuchava/Shutterstock)
The agreement is part of Prime Minister Carney’s broader effort to diversify Canada’s trade relationships beyond the United States, with a particular focus on growing markets in Asia.
Vietnam is already Canada’s largest trading partner within the Association of Southeast Asian Nations. Two-way merchandise trade between the countries reached C$20.6 billion in 2025, including more than C$1.3 billion in Canadian exports to Vietnam, representing a 30 per cent increase in exports over the previous year.
“With every new or expanded air transport agreement we are paving the way for more convenient travel and exciting new opportunities for investment, trade, and international collaboration. I’m so pleased to see this enhanced cooperation between Canada and Vietnam, a growing market with a rich culture and history,” said federal Transport Minister Steven MacKinnon in a statement.
The federal government also pointed to Canada’s large Vietnamese community of approximately 275,000 people as another source of demand for new flights between the two countries, whether for family visits, tourism, education, or business travel.
For YVR, the agreement comes as the airport pursues a major expansion of its international cargo business, with the goal of doubling the amount of freight it handles over five years through 2030. Vrooman has identified Southeast Asia, particularly Vietnam, as a market where new passenger routes could simultaneously open up more opportunities for Western Canadian exporters.