SpaceX's Starlink Plans in Vietnam Stalled by Ownership Restrictions

According to sources familiar with the matter, SpaceX, the space exploration company led by Tesla CEO Elon Musk, had plans to offer its Starlink satellite communications services to Vietnam. Talks between SpaceX and Vietnamese government authorities have been ongoing for several months, with senior executives from SpaceX visiting Vietnam in March of last year as part of a large business delegation. The discussions, which took place between representatives of SpaceX and Vietnam's Ministry of Information, continued until November of the same year, according to a government official.

However, negotiations between the two parties hit a roadblock in the last quarter of 2023, as Vietnamese lawmakers refused to ease restrictions on foreign ownership in SpaceX’s sector. This deadlock in negotiations led to the disruption of a pilot information technology service provided by SpaceX Starlink to the Vietnam Coast Guard in November. The service involved using SpaceX satellites to guide drones in Vietnamese waters.

It remains uncertain whether talks will resume between SpaceX and Vietnamese authorities, as neither party has commented on the matter. The issue at hand revolves around SpaceX's desire for an exception to Vietnam's legal regulations, which currently limit foreign ownership of telecommunications companies with network infrastructure to less than 50% non-controlling equity. Although amendments to the country's telecommunications law were passed in November, they did not relax these restrictions.

In February of this year, Vietnamese authorities released a draft decree outlining revised laws and regulations, which included specific requirements for satellite service providers regarding local data storage and data flow control. The source also mentioned that SpaceX has been discussing the provision of technical services for military outposts with Vietnam, but a concrete agreement has yet to be reached.