A federal agreement allowing up to 14 weekly passenger flights and seven weekly cargo flights removes a major barrier to non-stop service between Canada and Vietnam.
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Canada and Vietnam have expanded their air transport agreement, clearing the way for airlines to begin non-stop passenger and dedicated cargo service between the two countries for the first time, federal officials said. The update, announced as part of a broader strategic partnership between the two governments, creates new opportunities for carriers from each country to launch passenger and cargo routes without relying on intermediate stops.
Under the expanded agreement, airlines are permitted to operate up to 14 weekly passenger flights and seven weekly dedicated cargo flights between Canada and Vietnam. The arrangement also allows airlines to carry cargo between the two countries as part of a service that begins or ends in their home country, a change that could add flexibility for freight connections across multiple markets.
While the regulatory framework is in place, airlines still must make their own business decisions and secure the necessary approvals before launching routes. In Canada, Air Canada is among the carriers most directly positioned to act, and the company publicly confirmed it is working with relevant authorities to secure approvals for non-stop service to Ho Chi Minh City in 2027.
“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, Air Canada’s executive vice president and chief commercial officer and president of cargo. An Air Canada president’s statement links the company’s planning timeline to the 2027 window referenced in the federal announcement.
The potential Canadian city for a non-stop route has not been confirmed by Air Canada, but Vancouver International Airport has identified Vietnam as a promising market for growth. In April 2026 remarks to the Greater Vancouver Board of Trade, YVR president and CEO Tamara Vrooman said about 58,000 passengers travelled from YVR to Vietnam in 2025 by connecting through Singapore, despite the absence of a direct non-stop option. Vrooman said the existing demand could support a stand-alone route.
Vrooman also pointed to freight opportunities and the role of belly cargo. She said Western Canada has substantial volumes of high-value goods moving to Vietnam, including fresh seafood and produce as well as machinery parts, plastics and technology products, noting these categories are particularly suited to air freight carried on passenger aircraft.
The timing matters for passenger connectivity. The background provided with the agreement notes that Air Canada plans to discontinue its direct, non-stop route between Singapore and Vancouver in January 2027. That change could affect how demand is channelled and may increase the strategic value of replacing a link to Southeast Asia with a direct Canada–Vietnam connection.
Interest is not limited to the Canadian side. Vietnam Airlines identified Vancouver as a prospective destination in early 2025, listing Vancouver among several network candidates alongside cities such as Seattle, Los Angeles, Copenhagen, Dubai, Bangalore, Dhaka and Darwin, Australia. Officials and industry statements suggest both passenger tourism and trade could influence which airlines move first once regulatory permission is granted.
Federal Transport Minister Steven MacKinnon said the expanded agreement supports travel and commercial ties between the two countries. In a written statement, he described the deal as another step to enable more convenient travel and “exciting new opportunities for investment, trade, and international collaboration.” He also pointed to Canada’s large Vietnamese community of about 275,000 people as a source of demand for family visits, tourism, education and business travel.
Trade data cited by the federal government underscores the economic rationale for new routes. Canada–Vietnam two-way merchandise trade reached C$20.6 billion in 2025, including more than C$1.3 billion in Canadian exports to Vietnam, representing a 30% increase in exports over the previous year. Vietnam is already described as Canada’s largest trading partner within the Association of Southeast Asian Nations.
For Vancouver International Airport, the agreement aligns with ongoing efforts to grow international cargo capacity. The airport has set a goal of doubling the freight it handles over the five years through 2030, and airport leadership has described Southeast Asia, including Vietnam, as a market where new passenger routes and cargo capacity could reinforce one another.
Air cargo operators and passenger airlines also face competition for limited slot capacity and aircraft, meaning regulatory approval does not guarantee immediate launch. Still, industry observers and the public statements from Air Canada and YVR indicate the expanded Canada–Vietnam framework is a key step toward removing one of the main constraints on non-stop service.
Meghan Pritchard, executive director of the Canada ASEAN Business Council, said scheduled direct air connectivity would support tourism and investment and help Canadian businesses strengthen engagement in a “dynamic” Southeast Asian market. With Air Canada’s statement referencing Ho Chi Minh City in 2027, Vancouver remains the leading candidate for the route based on publicly stated demand and YVR’s emphasis on the corridor.
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