Elon Musk's SpaceX is set to invest $1.5 billion in Vietnam, according to a statement from the government of the Communist-run nation. This investment could pave the way for launching Starlink satellite services in Vietnam, which had faced delays over the past months.
Discussions surrounding Starlink's satellite internet and communication services had stalled at the end of 2023. However, these talks resumed earlier this year, signaling renewed interest from both sides.
Vietnam's President To Lam commented on the investment proposal from SpaceX, urging the company to collaborate closely to finalize preparations. This statement followed a meeting in New York between President To Lam and Tim Hughes, a government affairs official from SpaceX. Hughes indicated that the company views Vietnam as a promising market for its satellite internet services.
While the government did not provide specifics on where the investment would be directed or when further details might be established, the potential benefits for Vietnam are significant. With a population of 100 million, the country presents a large user base for internet services, particularly for major U.S. companies like Meta and Alphabet. However, Vietnam's aging infrastructure poses challenges, often disrupting operations of critical undersea optic fiber cables.
In addition, Vietnam’s varied terrain can lead to unreliable internet services, making satellite internet a viable option for enhancing connectivity. This is particularly relevant for monitoring activities in the disputed South China Sea, where tensions with China persist.
Recent updates highlighted that Hughes stated SpaceX's intent to provide Starlink services in Vietnam, emphasizing that the deployment would primarily support education and disaster prevention initiatives.
Last year's negotiations faced complications over the ownership structure of the company SpaceX would need to establish in Vietnam, as local laws restrict foreign ownership to 50%. SpaceX sought a controlling interest, and it remains uncertain if this issue has been resolved.
Moreover, Vietnam mandates that data be stored domestically and enforces strict online visibility controls. Industry insiders noted that SpaceX already collaborates with suppliers in Vietnam, an industrial hub that hosts many U.S. firms and their contractors. In April, Apple announced plans to increase its investments in Vietnam, further illustrating the country's growing significance in the tech landscape.
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