SpaceX To Invest $1.5 Bn In Vietnam Amid Starlink Negotiations
The Vietnamese government is now examining SpaceX's investment proposal, according to a statement issued by President To Lam
Elon Musk's SpaceX plans to invest USD 1.5 billion in Vietnam, according to a government declaration. The investment may assist in concluding ongoing negotiations over the launch of SpaceX's Starlink satellite broadband services, which had previously been halted.
The Vietnamese government is now examining SpaceX's investment proposal, according to a statement issued by President To Lam after meeting with Tim Hughes, SpaceX's senior vice president for global business and government affairs, in New York. Hughes declared that SpaceX intends to invest in Vietnam, a prospective market for its satellite internet services. However, no precise site or timing for the investment was provided.
The discussions about deploying Starlink services in Vietnam had been suspended at the end of 2023, but they resumed earlier this year. The negotiations were complicated by Vietnam's restrictions on foreign ownership of telecommunications companies, which limit foreign holdings to 50 per cent. SpaceX had initially requested a majority interest, but it is unclear whether this problem has been settled.
Vietnam's demand for improved internet infrastructure, particularly in mountainous regions and locations prone to undersea cable outages, creates an opportunity for satellite services such as Starlink. Previous conversations suggest that SpaceX's potential function could include providing internet connectivity for vital tasks like education and catastrophe prevention.
Vietnam's policies require data to be maintained locally and place severe limits on online visibility. Industry insiders have also verified that SpaceX already has suppliers in Vietnam, which hosts large U.S. corporate operations. The prospective collaboration comes as other major US companies, such as Apple, have increased their presence in the country.
