Vietnam States Musk’s SpaceX Plans $15 Billion Starlink Investment, According to Reuters

By Khanh Vu and Francesco Guarascio

HANOI – SpaceX, led by Elon Musk, has announced plans to invest $15 billion in Vietnam, according to the government of the Communist-run country. This investment may help overcome the delays surrounding the launch of SpaceX’s Starlink satellite services in the region.

Earlier discussions regarding Starlink’s satellite internet and communication services had stalled at the end of 2023, though negotiations resumed later. President To Lam stated that the Vietnamese government is currently reviewing SpaceX’s investment proposal and urged the company to collaborate closely to finalize the necessary preparations.

This announcement follows a meeting in New York between Lam and Tim Hughes, a representative from SpaceX, where the company expressed its intention to invest significantly in Vietnam—a market considered promising for satellite internet services. However, specifics regarding the exact nature of the investment, as well as a timeline for further agreements, remain unspecified.

SpaceX has not yet commented on the matter, and Vietnam’s foreign ministry has also not responded to inquiries regarding this investment.

With a population of 100 million, Vietnam represents a substantial user base for U.S. internet companies. Yet, issues with outdated infrastructure can disrupt the functioning of critical undersea optic fiber cables, while geographical challenges further undermine internet reliability. The adoption of satellite internet could enhance service delivery in remote areas and assist in monitoring activities in the contested South China Sea, an area of ongoing tension with China.

This development coincides with a recent report indicating that Hughes mentioned SpaceX’s ambition to provide Starlink services to Vietnam following the resumption of discussions. He highlighted that the deployment aims to primarily support education and disaster management efforts.

Previous negotiations encountered obstacles surrounding ownership requirements for the company SpaceX would need to establish in Vietnam, which limits foreign ownership to 50%. SpaceX sought a controlling stake, presenting a potential challenge to securing an agreement. It remains uncertain whether this issue continues to pose a barrier.

Additionally, Vietnam has regulations mandating data localization and imposes strict controls over online content visibility.

Industry insiders have noted that SpaceX has suppliers located in Vietnam, a key industrial center that hosts many U.S. companies and their contractors. Notably, Apple has also expressed intentions to enhance its investments in the region through its network of suppliers.