Vietnam is planning to implement regulations that would permit Elon Musk's Starlink to offer satellite internet services in the country, while requiring full ownership of any local subsidiary, as indicated by a draft of the regulations.
This shift opens the door for Starlink to begin operations in Vietnam, aligning with its parent company SpaceX, according to a government official.
The sudden change in position could be viewed as a conciliatory gesture toward SpaceX amid concerns in Vietnam about tariff threats from U.S. President Donald Trump, a source familiar with the matter mentioned.
The move is seen as a demonstration by Vietnam that they are willing to engage in diplomatic negotiations if required by the Trump administration, the source added.
All informants chose to remain anonymous in order to speak candidly.
Efforts by SpaceX to enter the Vietnamese market, which comprises nearly 100 million people, were initiated in late 2023 when the Communist-led country refused to lift the ban on foreign control of satellite internet providers—a condition set by Musk, who currently advises Trump.
The proposed regulations, slated for approval by parliament in a special session on Wednesday, allow complete foreign control of operations for internet providers utilizing a network of low-orbit satellites, under a trial program scheduled until the conclusion of 2030.
This provision is outlined in a 12-page resolution aimed at eliminating hindrances in scientific, technological, and innovation endeavors. Projects submitted under this pilot initiative would necessitate endorsement from Vietnam's prime minister.
Neither SpaceX nor Vietnam's information ministry responded to requests for comments.
SpaceX has been expanding its network of suppliers in Vietnam, with the Vietnamese government stating that the company is interested in investing in the country.
If numerous Vietnamese companies and individuals were to subscribe to Starlink, it could aid in reducing the significant surplus in goods and services that Vietnam maintains with the United States, according to a source familiar with the discussions.
In the previous year, the surplus reached $123.5 billion, ranking as the fourth largest among U.S. trade partners, according to U.S. data.
Trump recently instructed his team to devise reciprocal measures against all countries that levy taxes on U.S. imports by April 1, with countries having notable imbalances set to be closely monitored by his aides.
Potential U.S. tariffs could significantly disrupt Vietnam's export-dependent economy, with the U.S. being its main market. Following Trump's imposition of tariffs on China in 2018, numerous China-based manufacturers relocated operations to Vietnam.
As part of the efforts to reduce its surplus with the U.S., Vietnam has also increased imports of U.S. agricultural products and is exploring additional potential imports.