SpaceX Plans $1.5 Billion Starlink Investment in Vietnam

Elon Musk’s SpaceX plans to invest $1.5 billion in Vietnam soon, the government announced on Thursday, potentially breaking the deadlock over launching its Starlink satellite services.

“The Vietnamese government is considering SpaceX’s investment proposal,” a report on the government portal quoted President To Lam as saying on Thursday, urging the company to collaborate on finalizing preparations for the investment.

The statement followed Lam’s meeting in New York with Tim Hughes, SpaceX’s Senior Vice President for Global Business and Government Affairs, who confirmed the company’s intention to invest in Vietnam, a promising market for its satellite internet services.

However, the government has not specified the exact locations for SpaceX’s investment or provided a timeline for final agreements.

Vietnam, with a population of 100 million, presents a substantial market for U.S. tech giants like Meta’s Facebook and Alphabet’s Google. Yet, outdated infrastructure disrupts the country’s undersea optic fibre cables, and its mountainous regions make internet service unreliable.

This gap could be filled by satellite internet, which could also enhance surveillance in contested areas of the South China Sea, where Vietnam frequently clashes with China—a move that may not sit well with Beijing.

Earlier this month, SpaceX reiterated its interest in providing Starlink services to Vietnam, following a report on the government portal that cited Hughes.

State media reported that SpaceX’s internet services could primarily benefit education and disaster prevention.

Previous discussions were stalled over Vietnam’s restrictions on foreign ownership in domestic firms, which limits foreign stakes to 50%, while SpaceX sought a controlling interest. It remains unclear if this issue has been resolved. Additionally, Vietnam mandates that data be stored locally and tightly regulates online content.

Industry sources revealed that SpaceX has suppliers in Vietnam, a significant industrial hub with major U.S. firms and their contractors.

Apple, which has dozens of suppliers in the country, expressed interest in expanding its investments in April.

Reuters