Vietnam Opens Doors to Starlink in Diplomatic Move amid U.S. Tariff Pressures

Tuesday 18 February 2025 - 11:37

Vietnam is preparing new regulations to permit Elon Musk's Starlink to offer satellite internet services within the country while ensuring that any local subsidiary remains fully under Vietnamese ownership, according to a draft proposal. This policy shift, which follows extensive negotiations with SpaceX, marks a significant change in Vietnam’s stance.

The decision is seen as a strategic gesture toward SpaceX amid concerns over potential U.S. tariffs from President Donald Trump's administration. A source familiar with the matter described it as “an olive branch” and a sign that Vietnam is willing to engage in transactional diplomacy with the U.S. government.

Efforts by SpaceX to enter Vietnam, a market of nearly 100 million people, were stalled in late 2023 after the government refused to lift a ban on foreign control of satellite internet providers—one of Elon Musk’s key conditions. However, the new draft regulations, expected to be approved in an extraordinary parliamentary session on Wednesday, would allow full foreign control for low-orbit satellite internet providers under a pilot program running until 2030. The Vietnamese prime minister’s approval would be required for projects under this scheme.

While SpaceX and Vietnam’s Ministry of Information have not commented, SpaceX has already expanded its supplier network in Vietnam and expressed interest in investing $1.5 billion in the country.

Additionally, widespread adoption of Starlink by Vietnamese users could help reduce the large U.S.-Vietnam trade surplus, which reached a record $123.5 billion in 2024, the fourth highest among U.S. trading partners. Recently, President Trump ordered his administration to prepare reciprocal tariffs on countries with significant trade imbalances by April 1, 2025.

Vietnam, which depends heavily on U.S. markets for its exports, is seeking ways to mitigate potential U.S. duties. In addition to the Starlink initiative, the country has offered to increase imports of U.S. agricultural products and is exploring further trade opportunities to narrow the surplus.