The Vietnamese government has recently officially approved the American space exploration technology company (SpaceX) to pilot the Starlink satellite internet service in the country, marking an acceleration in Vietnam's openness in the digital infrastructure sector and potentially reshaping the country's internet access landscape.
1. Pilot details: 600,000 user limit, no restrictions on foreign ownership
According to a statement released by the Vietnamese government on March 26, the pilot operation period for Starlink is tentatively set for one month, but the overall plan may continue until the end of 2030, with the following arrangements:
User scale limit: During the pilot period, the number of Starlink users in Vietnam must not exceed 600,000
Foreign ownership policy: Vietnam allows SpaceX to wholly own the local subsidiary, with no restrictions on the proportion of foreign capital
Service scope: Covers fixed broadband, mobile internet, and airborne network (such as flight Wi-Fi)
Currently, Starlink is operating in over 120 countries and regions worldwide, and Vietnam's participation will further expand its global coverage.
2. Policy background: Acceleration of the digital economy, hedging supply chain risks
Vietnam's opening of the Starlink pilot has multiple strategic considerations:
✅Upgrading the digital economy: The Vietnamese government plans to increase the digital economy's share of GDP to 30% by 2030, and high-speed internet is a core infrastructure
✅Coverage in remote areas: Vietnam's complex terrain makes it difficult for traditional fiber networks to cover comprehensively, and Starlink's low Earth orbit (LEO) satellites can fill the gap
✅Geoeconomic buffering: Introducing American companies may reduce potential trade sanction risks amid US-China tech competition
It is worth noting that this decision may be related to the trade policies of the former Trump administration. In 2020, the US and Vietnam signed the **"Double Taxation Avoidance Agreement"**, paving the way for American tech companies to invest in Vietnam.
3. Vietnamese government's attitude: From observation to active promotion
Vietnamese leaders were prepared for the introduction of Starlink:
January 2024: Vietnamese Prime Minister Fan Mingzheng instructed relevant departments to accelerate the approval process and approved the establishment of a wholly-owned subsidiary by SpaceX
February 2024: The Vietnamese Ministry of Information and Communications (MIC) conducted technical exchanges with SpaceX, assessing the spectrum compliance of Starlink
March 2025: Officially signed the pilot license
Analysts point out that the Vietnamese government hopes to leverage Starlink's low latency and high bandwidth features to promote the following areas:
🔹Remote healthcare and education: Improving service accessibility in rural areas
🔹Smart agriculture: Real-time transmission of precise agricultural data
🔹Maritime and aviation communications: Enhancing network stability for shipping and flights
4. Market impact: Local ISPs face challenges, consumers may benefit
Currently, Vietnam mainly relies on local operators such as Viettel, VNPT, FPT Telecom to provide internet services. The entry of Starlink might bring:
⚠️Increased competition: Traditional ISPs need to upgrade services, otherwise, they may lose high-end users
⚠️Reduction in tariffs: Starlink's pricing strategy may force local operators to reduce broadband costs
⚠️New business models: Such as "Starlink + 5G" hybrid networks, which may become a future trend
5. Future prospects: Formal license application may be on the agenda
Although SpaceX has not yet formally applied for a long-term operating license in Vietnam, industry insiders predict:
If the pilot goes smoothly, a formal commercial application may be submitted within 2025
Vietnam may require SpaceX to localize data centers to comply with data sovereignty regulations
In the long run, Starlink may cooperate with Vietnamese state-owned enterprises to jointly invest in satellite ground stations
Conclusion: Vietnam's "space pivot" in its digital ambitions
The pilot operation of Starlink is not only another case of Vietnam attracting foreign investment but also a key step in its digital transformation. In the context of global supply chain restructuring and intensified digital economy competition, Vietnam is trying to occupy a more advantageous position in the Southeast Asian tech race through open policies.
In the coming months, the pilot results will determine whether Starlink can take root in Vietnam, and this process will also become a typical case study of how emerging markets balance **"introducing foreign capital" with "protecting local industries"**.
