Budget carrier Jetstar will begin flying to Ho Chi Minh City from Sydney and Melbourne later this year.
The three times a week Melbourne service will kick off on May 10, followed by four weekly flights from Sydney the following day.
Flag carrier Vietnam Airlines is the only other airline offering nonstop flights between Australia and Vietnam and serves both routes on Boeing Dreamliners.
Jetstar group CEO Jayne Hrdlicka expects the routes to generate big demand for outbound travel.
"Vietnam has the potential to become as popular as Bali or Thailand for Australian travellers. From Ho Chi Minh City, travellers can fly to 15 other destinations within Vietnam on Jetstar Pacific, which offers the same low fares that Australians have come to expect from Jetstar," Hrdlicka said in a statement.
Inbound traffic is also on the rise, Hrdlicka said and Jetstar hopes to capture a big slice of the market.
"In the last 12 months, there has been a 21% increase in visitors from Vietnam to Australia and we expect to see that increase with the introduction of our low fares on the route."
To kick off the announcement and drum up awareness, the airline launched a flash sale offering one way fares starting at A$159.
