Vietnam’s government announced on Thursday that Elon Musk’s SpaceX intends to invest $1.5 billion in the country, a move that could pave the way for the launch of its Starlink satellite services. This announcement comes after months of stalled negotiations regarding Starlink’s satellite internet and communication services, which had been on hold since late 2023.
According to a report from the government portal, President To Lam expressed optimism about SpaceX’s investment proposal, urging the company to expedite preparations. This statement followed a meeting in New York with Tim Hughes, SpaceX’s government affairs official, who indicated that the company is eyeing Vietnam as a promising market for its satellite internet service.
While specific details about the investment’s application or timeline remain unclear, the Vietnamese government is actively considering SpaceX’s proposal. The U.S.-based company did not respond to requests for comment, and Vietnam’s foreign ministry has also remained silent on the matter.
With a population of approximately 100 million, Vietnam presents a significant user base for major U.S. internet companies, including Meta and Alphabet. However, the country faces challenges due to aging infrastructure that disrupts operations of essential undersea optic fiber cables. Additionally, the mountainous terrain often leads to unreliable internet services, making satellite internet a viable solution for enhancing connectivity.
The introduction of satellite internet services could also aid Vietnam in patrolling the contested South China Sea, an area of ongoing tensions with China. However, such developments may provoke a negative reaction from Beijing, raising geopolitical concerns.
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