HANOI (Reuters) – SpaceX, led by Elon Musk, is set to invest $1.5 billion in Vietnam in the near future, according to a statement from the Vietnamese government on Thursday. This investment could potentially resolve ongoing negotiations over the launch of the Starlink satellite internet service in the country.
Discussions regarding the introduction of Starlink and other SpaceX communications services were stalled at the end of 2023, according to sources familiar with the situation, though talks have since resumed.
“The Vietnamese government is evaluating SpaceX’s investment proposal,” President To Lam said in a government report released on Thursday. He encouraged SpaceX to collaborate closely with local authorities to finalize preparations for the investment.
Lam’s comments came after a meeting in New York with Tim Hughes, SpaceX’s Vice President for Global Business and Government Affairs. Hughes confirmed the company’s intention to invest $1.5 billion in Vietnam, a promising market for its satellite internet services, the report noted.
While the government has not specified where SpaceX’s investment will be allocated, nor when the details will be finalized, the move signals SpaceX’s growing interest in the Southeast Asian nation.
Neither SpaceX nor Vietnam’s Ministry of Foreign Affairs immediately responded to requests for comment.
A Strategic Market for SpaceX
With a population of 100 million, Vietnam represents a large potential customer base for U.S. tech giants such as Meta’s Facebook and Alphabet’s Google. However, outdated infrastructure often hinders the performance of key undersea optic fiber cables, while Vietnam’s mountainous terrain further limits reliable internet access.
Satellite internet, like that offered by SpaceX’s Starlink, could enhance connectivity, particularly in remote regions. It could also support surveillance efforts in the disputed South China Sea, where Vietnam has had frequent territorial disputes with China—although this aspect might face resistance from Beijing.
Progress After Delays
The announcement follows a previous report this month in which Hughes revealed SpaceX’s plans to offer Starlink services to Vietnam, after earlier discussions resumed. He noted that the deployment of Starlink would focus on improving education and supporting disaster management, according to state media.
Earlier negotiations were delayed due to Vietnam’s restrictions on foreign ownership. SpaceX was aiming for a controlling stake in the local entity, while the country limits foreign investors to a maximum 50% ownership in certain sectors, sources told Reuters. It is unclear if this issue remains unresolved.
Vietnam also has stringent regulations requiring data to be stored locally and imposes strict controls over online content, factors that could affect the deal’s finalization.
Industry insiders have mentioned that SpaceX already sources materials from Vietnam, which has become a key manufacturing hub for U.S. companies and their supply chains. Apple, for example, has numerous suppliers in Vietnam and announced in April plans to expand investment in the country.
