SpaceX, an organization owned by US billionaire Elon Musk, plans to speculate $1.5 billion in Vietnam to support the launch of its Starlink satellite web service, based on satellite technology in low Earth orbit (LEO). This statement was issued by the federal government of Vietnam on September 26 after a gathering between SpaceX Vice President Tim Hughes and Secretary General of the Communist Party of Vietnam To Lam.
Starlink had previously planned to enter the Vietnamese market, but discussions stalled in late 2023 resulting from an impasse. The talks were hampered by ownership of the corporate that SpaceX would need to arrange in Vietnam, where regulations limit foreign ownership to 50% and SpaceX has sought full control.
According to a Reuters report, President To Lam has invited SpaceX to cooperate with the federal government in preparing for a $1.5 billion investment in Vietnam, which is seen as a possible marketplace for satellite Internet services.
However, the federal government didn’t reveal the placement of the investment or an in depth schedule for concluding the contract. US-based SpaceX didn’t comment on the matter, nor did the Vietnamese Ministry of Foreign Affairs.
Vietnam, with a population of 100 million, is a big marketplace for US web corporations similar to Facebook and Alphabet. However, outdated equipment can interfere with critical submarine optical cables. Additionally, the country’s vast, mountainous terrain makes web services less reliable, so satellite web may very well be an answer, especially because it steps up patrols within the South China Sea, which poses competition to China.
This investment can also be expected to speed up Vietnam’s digitalization process, aligning with the federal government’s efforts to enhance web and technology infrastructure.
The news of this investment follows a report from a Vietnamese government website that SpaceX plans to supply Starlink services within the country after continuing talks between the 2 sides. Tim Hughes, senior vp of SpaceX, said the web site is predicted to support the education sector in addition to disaster prevention efforts.
Meanwhile, while it’s unclear whether ownership issues remain a hurdle, industry sources indicate SpaceX has already secured supplier partnerships in Vietnam, in accordance with Reuters. The country can also be often called a significant industrial center where various manufacturing operations happen for American corporations and their contractors.
