Trump made the announcement on Tuesday during his annual State of the Union address.
The summit will be held in the capital Hanoi or the seaside city of Danang on February 27 and 28.
Washington's goal for the talks is for North Korea to agree give up its nuclear weapons.
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North Korea frames the issue more broadly, seeking a removal of the "nuclear threat" from US military forces in South Korea.
Host Vietnam hopes to boost its diplomatic leverage against its powerful neighbour, China, which contests waters in the South China Sea claimed by Hanoi.
As a single-party communist state, Vietnam boasts tight political control and a tough security apparatus.
The Southeast Asian nation is seen as friendly turf for Kim. Vietnam and North Korea share a history of anti-imperialist struggle, uneasy relations with common neighbour China and a one-party police state political system.
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The flying time between North Korea and Vietnam is shorter, compared to the roughly six hour flight to Singapore, where the first Trump-Kim summit was held in June last year.
A spokesperson for the Vietnam foreign ministry recently said that Vietnam is very confident in its ability to host international events, after it successfully hosted the 2017 APEC summit in Danang.
Trump was among the leaders who attended that summit.
He also travelled to the capital Hanoi for a state visit.
