SpaceX Plans $15 Billion Investment in Vietnam

By Khanh Vu and Francesco Guarascio
HANOI (Reuters) – Elon Musk’s SpaceX plans to invest $15 billion in Vietnam soon, as stated by the government. This could facilitate the launch of Starlink satellite services.

After months of talks, initially stalled at the end of 2023, discussions about Starlink’s satellite internet and communications services resumed. President To Lam remarked that the Vietnamese government is considering SpaceX’s investment proposal, encouraging collaboration to finalize preparations.

This announcement followed a meeting in New York between President To Lam and SpaceX official Tim Hughes, who highlighted Vietnam as a promising market for satellite internet.

Details concerning the nature and timeline of SpaceX’s investment remain unclear. SpaceX and Vietnam’s foreign ministry did not respond to requests for comments.

With a population of 100 million, Vietnam represents a significant user base for U.S. internet companies like Meta’s Facebook and Alphabet’s Google. However, the country’s aging infrastructure often disrupts crucial undersea optic fiber cables, impacting service reliability. Satellite internet could enhance internet services, particularly for monitoring in the disputed South China Sea, an area of tension with China.

Hughes mentioned that SpaceX’s goal is to provide Starlink services primarily for education and disaster prevention in Vietnam, following the revival of talks between the two parties.

Last year’s negotiations faced challenges around ownership regulations, which limit foreign stakes in local companies to 50%. Additionally, Vietnam mandates that data be stored domestically and has stringent online visibility controls.

Despite these issues, industry sources indicate that SpaceX has local suppliers in Vietnam, a significant industrial hub for U.S. companies and their contractors, including Apple, which aims to increase investment in the region.