5 days ago
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Vietnam is set to adopt new regulations allowing Elon Musk’s Starlink to provide satellite internet services in the country while maintaining full ownership of its local subsidiary, according to a draft of the proposed rules. The move marks a shift in policy and follows prolonged discussions with Starlink’s parent company, SpaceX, a government official confirmed.
This sudden change is viewed as a diplomatic gesture towards SpaceX amid Vietnam’s growing concerns over potential tariff threats from US President Donald Trump. A source familiar with the matter described it as “an olive branch” to the US administration, signaling Vietnam’s willingness to engage in transactional diplomacy.
SpaceX had previously encountered regulatory roadblocks in its attempt to enter Vietnam, as the country had maintained a ban on foreign control of satellite internet providers. This restriction had stalled Starlink’s launch plans in late 2023. However, the newly proposed regulations, expected to be ratified in an extraordinary parliamentary session on Wednesday, will allow full foreign ownership for providers operating a network of low-orbit satellites under a pilot program set to run until 2030. Projects under this scheme will require approval from Vietnam’s prime minister.
Neither SpaceX nor Vietnam’s Ministry of Information has commented on the development. However, SpaceX has been expanding its network of suppliers in Vietnam, and government officials have stated that the company is considering a $1.5 billion investment in the country.
Vietnam’s economic ties with the US are also a key factor in this policy shift. A significant number of Vietnamese businesses and individuals subscribing to Starlink could help reduce Vietnam’s trade surplus with the US, which reached a record $123.5 billion last year, the fourth largest among US trading partners.
President Trump recently instructed his team to develop reciprocal tariffs on all countries taxing US imports, with a deadline set for April 1. Countries with substantial trade imbalances, including Vietnam, are expected to be closely monitored. Given that Vietnam’s economy heavily relies on exports—many of which come from China-based manufacturers that relocated after Trump’s initial tariffs on China in 2018—U.S. tariffs could pose significant risks.
In addition to the Starlink deal, Vietnam has separately proposed increasing its imports of US agricultural products and is exploring other measures to narrow its trade surplus. The country’s efforts to accommodate US interests highlight its strategic balancing act in the face of evolving global trade dynamics.
Melissa Enoch
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