Canada and Vietnam have agreed to allow direct flights between the two countries for the first time, and Air Canada has already said it wants to use the new rights. The national carrier plans to begin service to Ho Chi Minh City in 2027, subject to the necessary government approvals.
What the new agreement allows
The expanded air transport agreement was presented by Canada's Minister of Transport, Steven MacKinnon, as part of the new strategic partnership between Canada and Vietnam, Air Journal reported on 10 October. Transport Canada said the deal responds to strong growth in the air travel market between the two countries.
Under the new terms, the designated airlines of each country can operate up to 14 combined passenger and cargo flights per week. The agreement also allows up to seven all-cargo flights per week for each country, and it grants fifth-freedom rights for all-cargo services. Those rights let an airline carry freight between two foreign countries, as long as the flight starts or ends in its home country.
According to the Canadian government's announcement, as reported by Air Journal, MacKinnon said that every new or expanded air transport agreement lays the groundwork for more convenient travel and new opportunities in investment, trade and international cooperation.
Air Canada's Ho Chi Minh City plan
Air Canada wants to use the new framework to open a scheduled route to Ho Chi Minh City in 2027. The airline has not yet said which Canadian city the flights would leave from, how often they would operate, which aircraft would be used or when they would start. The project still depends on government authorisations and regulatory steps.
Mark Galardo, Air Canada's executive vice-president and chief commercial officer, described Vietnam as an important market within Canada's wider relationship with Southeast Asia. He said the airline welcomed the expanded agreement and looked forward to receiving the government approvals needed to begin serving Ho Chi Minh City.
A market built on family ties and trade
Ottawa describes Vietnam as one of Canada's fastest-growing air travel markets in Asia. Canada is home to a Vietnamese community of about 275,000 people, which supports demand for family visits, tourism, business trips and study travel.
Trade is a second pillar. Vietnam is Canada's largest trading partner within the Association of Southeast Asian Nations (ASEAN). Bilateral merchandise trade reached 20.6 billion Canadian dollars in 2025, and Canadian exports to Vietnam passed 1.3 billion dollars, up 30% year on year. Opening up air traffic rights fits Canada's trade diversification strategy and its Indo-Pacific policy, Air Journal noted.
The all-cargo provisions are also worth watching. Seven weekly freighter flights per country, combined with fifth-freedom rights, give cargo airlines more flexibility to build routings that stop in third countries, which can make long-haul freighter operations between North America and Southeast Asia more economical.
How travellers fly today
For now, there is no direct link, and passengers between the two countries must connect through a third country. The main options are connections through large Asian hubs such as Seoul, Tokyo, Taipei or Hong Kong, depending on the Canadian departure city and the Vietnamese destination.
A nonstop or direct Air Canada service would remove that extra stop for many travellers. Ho Chi Minh City, Vietnam's largest city and its main commercial centre, is the natural first target, while the agreement's 14 weekly combination flights per country leave room for growth on more than one route over time.
What comes next
The next step for passengers will be the announcement of an actual route, with a schedule, frequencies and a date when bookings open. Until Air Canada files those details and receives the approvals it needs, the 2027 timeline remains a plan rather than a confirmed launch. Vietnamese carriers designated under the agreement would also be able to apply for their own services to Canada under the same weekly limits.
For Air Canada, a Vietnam route would add a new country to its Asia-Pacific network and give it a direct product in a market where Canadian travellers currently have to rely on foreign carriers and their hubs.
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