01 April 2025
The Vietnamese government has announced that SpaceX will be allowed to conduct a five-year trial of its Starlink low Earth orbit (LEO) satellite broadband service in the country.
This pilot program will enable Starlink to offer both fixed and mobile satellite services, including connectivity for vessels and aircraft, marking a notable step in Vietnam's efforts to enhance its digital infrastructure.
According to a statement reported by Reuters, the trial is set to run until the end of 2030, during which Starlink will have the capacity to enrol up to 600,000 subscribers. Importantly, this pilot proposal is exempt from Vietnam's foreign ownership regulations, which typically mandate that foreign companies must establish joint ventures with local partners. Such laws would typically restrict foreign entities to a 50% stake in these partnerships, but Starlink's exemption could allow for a more flexible operational structure.
The approval follows months of lobbying from SpaceX, which had sought to navigate the complexities of Vietnam’s foreign ownership rules since September 2023. The company was adamant about maintaining a controlling stake in any joint operation, a demand that had stalled negotiations. Additionally, earlier this year, in an apparent effort to incentivize the Vietnamese government, SpaceX proposed a $1.5 billion investment in the country, as reported by the official Vietnam News Agency.
Oversight of the pilot program will be jointly managed by the Ministry of National Defense and the Ministry of Public Security, underscoring the sensitive nature of satellite communications in Vietnam's regulatory landscape. The move to allow Starlink reflects a growing recognition of the importance of advanced telecommunications infrastructure as Vietnam continues to position itself as a burgeoning economy in the AI and technology sectors.
