Police in Binh Thuan Province, home to the city, arrested him on Sunday but did not disclose his identity.
Three days earlier locals in Thien Son village discovered the body of a foreign man in a farm.
The victim was tied up and wrapped in multiple layers of plastic and fabric, and had a number of injuries on his head.
The police identified the victim as Vasilii Echushin, 44, a Russian national.
After examining security camera footage, they identified the other Russian man as the main suspect.
The suspect admitted to having a dispute with the victim after seeking his help to find a job.
Since Echushin could not help, a fight broke out and led to the murder, he said.
He then carried the body to the farmland and left it there.