Vietnam reveals SpaceX is eyeing $1.5 billion to pave the way for the country's Starlink launch

Vietnam's government says SpaceX is investing $1.5 billion in Vietnam, paving the way for the launch of Starlink satellites after negotiation disputes led to the cancellation of the plan.

On September 26, 2567, Reuters reported that the Vietnamese government said Elon Musk's SpaceX planned to invest $1.5 billion in the country.

The deal could help push forward discussions and resolve a dispute over the launch of Starlink satellite services in Vietnam, which was stalled in late 2566 after months of negotiations, the sources said.

Vietnamese President To Lam said the government is considering SpaceX's investment proposal and called on the company to cooperate closely to finalize the plan.

The report states that this announcement came after Mr. Lam and Mr. Tim Hughes, Senior Vice President of Global Business and Government Affairs at SpaceX, met in New York. Mr. Hughes indicated that SpaceX views Vietnam as a promising market for satellite internet services.

However, the Vietnamese government has not provided specific details on where SpaceX will invest and when the deal will be completed.

SpaceX and Vietnam's foreign ministry have not yet responded to Reuters' requests for comment on the matter.

With a population of over 100 million, Vietnam is a key market for US internet and technology companies such as Facebook and Alphabet. However, the country's aging internet infrastructure could pose problems for submarine fiber optic cable operations.

Vietnam's mountainous terrain also makes internet service unreliable and often inefficient, so it needs satellite internet, a technology that could help it perform missions such as patrolling activities in the disputed South China Sea, where Vietnam has had frequent tensions with China over the area, and Beijing could be unhappy with the move.

The news comes after a recent report in which Hughes said SpaceX intends to offer Starlink services in Vietnam, stressing that the services will primarily focus on improving education and disaster prevention efforts in the country.

Discussions of SpaceX’s plans in Vietnam in 2566 have been hampered by concerns about the ownership structure of the company SpaceX would need to set up. Vietnamese regulations limit foreign ownership in a company to 50%, while SpaceX aims to own enough to gain control of the company. It is not clear whether this issue remains an obstacle.

Vietnam also requires data to be stored domestically and enforces strict regulations on online content.

Industry sources say SpaceX already has suppliers in Vietnam, a key industrial hub for large US companies and their contractors. Apple, for example, which has a large number of suppliers in Vietnam, announced in April plans to increase its investment in the country as well.

Reference: reuters.com

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