SpaceX, the company owned by American billionaire Elon Musk, plans to invest US$1.5 billion in Viet Nam to support the launch of its Starlink satellite internet service, which is based on low-Earth orbit (LEO) satellite technology. This announcement was made by the Viet Namese government on September 26, following a meeting between SpaceX Vice President Tim Hughes and the General Secretary of the Communist Party of Viet Nam, To Lam.
Previously, Starlink had planned to enter the Viet Namese market, but discussions stalled at the end of 2023 due to a deadlock. The talks were hindered by issues related to the ownership of a company that SpaceX would need to establish in Viet Nam, where regulations limit foreign ownership to 50%, while SpaceX sought full control.
According to a report by Reuters, President To Lam invited SpaceX to collaborate with the government in preparing for the US$1.5 billion investment in Viet Nam, which is seen as a potential market for satellite internet services.
However, the government has not disclosed the investment location or the detailed timeline for the agreement. SpaceX, based in the United States, has not commented on the matter, nor has the Viet Namese Ministry of Foreign Affairs.
Transforming Viet Nam's Internet Landscape
With a population of 100 million, Viet Nam represents a significant market for U.S. internet companies like Facebook and Alphabet. However, outdated equipment can disrupt critical undersea optical cables. Additionally, the country's vast mountainous terrain makes internet services less reliable, which is why satellite internet could be a solution, especially for enhancing patrols in the South China Sea, which is contested with China.
This investment is also expected to accelerate the digitalization process in Viet Nam, aligning with the government’s efforts to improve internet and technology infrastructure.
Transforming Education with Starlink
The news of this investment follows a report from the Viet Namese government portal indicating that SpaceX plans to offer Starlink services in the country, after the continuation of discussions between the two parties. Tim Hughes, SpaceX’s Senior Vice President, stated that this internet service is expected to support the education sector as well as disaster prevention efforts.
Meanwhile, although it is unclear whether ownership issues remain an obstacle, industry sources have indicated that SpaceX has already secured supplier partnerships in Viet Nam, as reported by Reuters. The country is also known as a major industrial hub, hosting various manufacturing operations for U.S. companies and their contractors.
