SpaceX eyes $15 Billion Starlink investment in Vietnam

Development revealed following meeting between SpaceX VP Hughes and Vietnam’s General Secretary To Lam

Elon Musk’s SpaceX is considering a $15 billion investment in Vietnam to expand its Starlink satellite internet services, according to a statement from Vietnam’s government.

This development was revealed following a meeting between SpaceX Senior Vice President Tim Hughes and Vietnam’s Communist Party General Secretary To Lam, who was visiting the US for the United Nations General Assembly.

The proposed investment would mark a significant step in SpaceX’s efforts to provide satellite-based internet services to the Southeast Asian nation, which has faced challenges in improving internet access due to its aging infrastructure and difficult terrain.

Starlink’s satellite network could provide much-needed internet connectivity in remote and mountainous areas of Vietnam, as well as assist with education and disaster prevention efforts.

The Vietnamese government confirmed it is currently reviewing SpaceX’s proposal but did not provide further details regarding the timeline or the specifics of the investment. SpaceX has not yet issued a formal comment on the proposal.

Negotiations to launch Starlink services in Vietnam began last year but were put on hold, reportedly due to regulatory concerns.

The talks have since resumed, with SpaceX keen to establish a stronger presence in Vietnam's growing tech and communications market.

One potential sticking point for the deal is Vietnam's limit on foreign ownership of companies, which restricts foreign investors to a 50% stake in certain sectors.

SpaceX has expressed interest in maintaining a controlling stake in its Vietnam-based operations, an issue that remains unresolved.

Vietnam’s 100 million-strong population presents a lucrative market for tech giants, with U.S. companies like Meta and Google already having significant user bases in the country.

However, Vietnam’s regulatory landscape poses challenges, including strict rules requiring local data storage and stringent content controls.

In addition to internet services, SpaceX’s investment in Vietnam could also contribute to tighter monitoring of the disputed South China Sea, a region where Vietnam’s relations with China are often strained. Such developments may not be welcomed by Beijing.

However, while SpaceX is making strides in Vietnam, the company is facing significant challenges in Brazil.

Brazilian telecommunications regulator Anatel has initiated an investigation into Starlink for non-compliance with a Supreme Court ruling that ordered a shutdown of the messaging platform X.

Anatel has stated that Starlink is the only company that has openly resisted complying with this ruling, which could jeopardize its license to operate in Brazil.

This controversy adds a layer of complexity to SpaceX's international ambitions, as it navigates regulatory environments in different countries.

The challenges in Brazil could serve as a cautionary tale for SpaceX as it seeks to expand its operations in Vietnam, highlighting the importance of adhering to local laws and regulations.

While the details of SpaceX’s investment are still being finalized, this potential $15 billion deal underscores Vietnam's growing importance in the global tech and satellite communications sectors.

If completed, it could have a significant impact on Vietnam’s digital infrastructure, boosting the country's connectivity and bolstering its tech industry.