Vietnamese Prime Minister Pham Minh Chinh recently instructed relevant departments to expedite the issuance of a license to Elon Musk's Starlink company, allowing it to pilot satellite internet services in Vietnam and permitting Starlink to wholly own its subsidiary in Vietnam. This decision is seen as a major shift in Vietnamese policy and could be an important measure to ease US-Vietnam trade frictions.
For a long time, Vietnam has imposed restrictions on foreign equity in sensitive economic sectors such as the internet, and foreign companies usually cannot fully own local internet companies. Therefore, Starlink had not been able to enter the Vietnamese market before. However, this policy relaxation shows that Vietnam wants to strengthen economic cooperation with the US while addressing American concerns about trade balance.
During a meeting in Hanoi with executives from nearly 40 American companies, Pham Minh Chinh revealed that the government is taking steps to readjust the trade surplus with the US, including potentially increasing imports of aircraft, military equipment, liquefied natural gas, agricultural products, and pharmaceuticals from the US. He emphasized that Vietnam hopes to strengthen economic and trade relations with the US through these measures and encourage more foreign investment in the Vietnamese market.
An American official who attended the meeting told Reuters that the talks could help address some long-standing issues faced by US businesses in Vietnam. Meanwhile, sources revealed that Pham Minh Chinh also plans to have separate meetings with representatives of other foreign companies in the coming days to alleviate concerns arising from global trade tensions.
As early as September last year, the Vietnamese government stated that Starlink planned to invest $1.5 billion (about 2 billion Singapore dollars) locally, but it was not disclosed whether its operations would be officially approved. In February this year, the Vietnamese parliament passed a temporary scheme allowing satellite internet companies to provide services in Vietnam and to wholly own their local subsidiaries. This policy adjustment perfectly matches Starlink's requirements for entering the Vietnamese market.
Bloomberg commented that this event reflects the close relationship between Musk and former US President Trump, which is influencing global regulatory decisions on foreign enterprises, and Musk is benefiting from it. As Starlink and other businesses further expand into the Asian market, Musk could play a larger role in US-Vietnam trade negotiations and even become an important bargaining chip in trade negotiations between the US and other countries.
