Air Canada says it plans to begin scheduled flights to Ho Chi Minh City in 2027, after the federal government signed an expanded air transport agreement with Vietnam this week.
The airline said in a statement Thursday that the deal, reached as Prime Minister Mark Carney hosted Vietnamese General Secretary and President To Lam in Ottawa on Sept. 24, will let carriers from each country operate up to 14 weekly passenger flights and seven all-cargo flights between the two nations, once government approvals are in place.
“Vietnam is an important market in the broader Canada-Southeast Asia relationship,” said Mark Galardo, Air Canada’s executive vice-president and chief commercial officer, in the statement. “We welcome this expanded Air Transport Agreement and look forward to obtaining the necessary government approvals to begin service to Ho Chi Minh City.”
According to a readout from the Prime Minister’s Office, Carney and To Lam elevated Canada-Vietnam relations to a “strategic partnership” during their Ottawa meeting and signed four memorandums of understanding covering energy, maritime transport, the environment and food safety, in addition to the expanded aviation pact.
Federal International Trade Minister Maninder Sidhu said in the Air Canada statement that Vietnam is “one of Canada’s most dynamic trading partners in Southeast Asia.”
The Prime Minister’s Office said Vietnam is already Canada’s largest merchandise trading partner within the Association of Southeast Asian Nations, with two-way trade reaching $20.6 billion in 2025. The two governments are aiming to conclude negotiations on a Canada-ASEAN free trade agreement by the end of the year, a deal Ottawa estimates could add close to $2 billion to Canada’s gross domestic product and support about 14,000 jobs.
CBC News reported this week that the courtship reflects a mutual push to diversify away from reliance on the United States. Jeff Nankivell, president and CEO of the Asia Pacific Foundation of Canada, told CBC that Vietnam has faced steep U.S. tariffs, including a 40 per cent levy on transshipped goods, leaving it eager for new trading partners. “When we knock on the door of a country like Vietnam, it opens very quickly because they have a similar interest in diversifying,” he said.
Air Canada does not currently fly directly to Vietnam. Canadians travelling there typically connect through hubs such as Tokyo, Seoul or Hong Kong. A Ho Chi Minh City route would extend the carrier’s Asia-Pacific network, which already includes Tokyo, Seoul, Shanghai and Delhi.
The airline did not say Thursday which Canadian city the new route would depart from, what aircraft would be used, or how often flights would operate, saying those details depend on government approvals still to come on both sides.
To Lam’s visit to Ottawa also covered cooperation in aerospace, artificial intelligence, digital technology and energy security, the Prime Minister’s Office said. Both governments said they plan to stay in close contact ahead of Vietnam’s hosting of the Asia-Pacific Economic Cooperation summit in 2027 and Canada’s hosting of the Francophonie summit in 2028.
