Vietnam has paved the way for Elon Musk’s Starlink, the satellite internet service operated by SpaceX, to provide internet services within its borders. A draft of new regulations revealed that Vietnam plans to adopt rules allowing Starlink to establish operations in the country while maintaining full ownership of any local subsidiary. This marks a major milestone after a series of prolonged negotiations between Vietnam’s government and SpaceX.
The regulatory change comes at a time when Starlink, which already operates in various countries, is looking to expand its global footprint. Vietnam’s approval is seen not only as a business opportunity for the satellite service but also as a diplomatic gesture. Government officials have described the move as an “olive branch” to the United States amid growing tensions related to trade and tariffs between the two nations.
Vietnam has long been cautious about foreign ownership, particularly in sectors related to technology and infrastructure. However, the willingness to allow Starlink to maintain full control of its operations suggests a shift in the government’s approach to fostering foreign investment in high-tech industries. The approval also reflects Vietnam’s ongoing efforts to enhance its technological capabilities and bridge the digital divide, particularly in remote areas where traditional internet infrastructure is limited.
Starlink’s entry into Vietnam is expected to provide a boost to the country’s digital connectivity. With its low-orbit satellite technology, Starlink promises high-speed internet access even in the most remote regions, where fiber-optic cables and other traditional broadband services may be challenging to deploy. This move is in line with Vietnam’s broader strategy to develop its digital economy and position itself as a regional leader in technology.
The timing of the approval is significant, given the backdrop of trade disputes between the United States and Vietnam, especially concerning tariffs on goods such as electronics. In recent years, the US has threatened to impose tariffs on several Vietnamese exports in an effort to address trade imbalances. By granting Starlink the green light, Vietnam is seen as attempting to strengthen its ties with the US, offering a form of cooperation amidst these trade tensions.
With the new regulations in place, Starlink is expected to quickly move forward with its launch plans in Vietnam. As satellite internet services become increasingly vital in the modern world, Starlink’s expansion into the Southeast Asian market could have far-reaching implications for the global tech landscape.
