03 October 2024
SpaceX plans to invest US$1.5 billion in Vietnam in the near future to convince the government to allow the company to launch its Starlink in the country.
The investment plan was proposed by Tim Hughes, SpaceX’s senior VP for global business and government affairs.
The Vietnamese government is reportedly considering the investment proposal, and asked SpaceX to coordinate with relevant Vietnamese agencies and partners to complete any investment procedures.
SpaceX has been actively lobbying to get approval to launch Starlink in Vietnam since September 2023 as part of its broader strategy to expand in Southeast Asia. So far, Starlink has been cleared to offer services in the Philippines, Malaysia and Indonesia.
According to Reuters, a key sticking point in the discussions between SpaceX and the Vietnam government is rules regarding foreign ownership. SpaceX would need to set up a JV with a local partner to operate in Vietnam, and would be limited to a 50% stake, whereas SpaceX wants a controlling stake. SpaceX would also need to find a way to comply with laws regarding domestic data storage and content restrictions.
