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Vietnam Welcomes SpaceX's $1.5 Billion Starlink Investment
Vietnam anticipates a $1.5 billion investment from SpaceX. Talks on Starlink services in Vietnam resume after a hiatus in 2023. Ownership structure and data storage regulations are two major challenges.
The Vietnamese government revealed that this significant investment could help resolve the stalemate surrounding the country's Starlink satellite service launch.
After months of talks were paused at the end of 2023, discussions about offering Starlink's satellite internet connection and other communication services have resumed. According to the government portal, President To Lam stated that "the Vietnamese government is considering the (investment) proposal of SpaceX," and urged the company to work closely together to finalise preparations for the investment.
During a meeting in New York, SpaceX government affairs official Tim Hughes announced that the company intends to invest US$1.5 billion in Vietnam, seeing it as a promising market for its satellite internet service. However, no specific details about where SpaceX's investment will go or when agreements could be reached were disclosed.
Vietnam, with a population of 100 million, provides a significant user base for US internet companies such as Meta's Facebook and Alphabet. Despite this, the country faces challenges due to ageing equipment, which can disrupt the operation of critical optical fibre undersea cables. Furthermore, the presence of large mountainous areas contributes to unreliable internet services, making satellite internet an attractive option for tasks like improving surveillance in the disputed South China Sea.
SpaceX's intention to provide Starlink services to Vietnam is consistent with the company's goal of supporting the country's education and disaster prevention efforts. However, previous discussions were hampered by concerns about the ownership structure of the SpaceX entity in Vietnam. The country limits foreign ownership of local firms to half, whereas SpaceX aimed for a controlling stake.
Vietnam also enforces stringent data storage regulations, requiring information to be kept within the country and subject to strict online visibility controls. Despite these challenges, industry sources say SpaceX already has suppliers in Vietnam, leveraging the country's status as a major industrial hub for manufacturing operations by US firms and their partners.
Vietnam anticipates $1.5 billion investment from SpaceX
Talks on Starlink services in Vietnam resume after pause in 2023
Challenges include ownership structure and data storage regulations
Source: REUTERS