SpaceX is reportedly planning to invest $1.5 billion in Vietnam in the near future, a move seen as a way of breaking the deadlock in talks with the government to allow its Starlink service into the country.
According to the state-run Vietnam News Agency, Tom Hughes, SpaceX’s SVP for global business and global affairs, offered the proposed investment on Wednesday during a meeting with To Lam, Vietnamese party general secretary and state president, who is in New York this week for the opening of the UN General Assembly.
The report said the Vietnamese government is considering the investment proposal and has asked SpaceX to “coordinate with relevant Vietnamese agencies and partners to complete the investment procedures.”
While no details were given on where or when the $1.5 billion would be invested, VNA quoted Hughes as saying that SpaceX recognizes Vietnam’s potential for SpaceX’s satellite Internet plan.
For his part, Lam reportedly expressed hope that the investment proposal would be a step forward in furthering cooperation between the Vietnamese government and SpaceX.
The report said the Vietnamese government is considering the investment proposal and has asked SpaceX to “coordinate with relevant Vietnamese agencies and partners to complete the investment procedures.”
While no details were given on where or when the $1.5 billion would be invested, VNA quoted Hughes as saying that SpaceX recognizes Vietnam’s potential for SpaceX’s satellite Internet plan.
For his part, Lam reportedly expressed hope that the investment proposal would be a step forward in furthering cooperation between the Vietnamese government and SpaceX.
SpaceX had sought an exception to the rule limiting foreign ownership to a non-controlling 50% stake in telecommunications companies with network infrastructure.
In addition to foreign ownership restrictions, foreign satellite service providers face new regulatory hurdles before entering the Vietnamese market.
A draft decree implementing Vietnam’s recently amended Telecommunications Law has added a requirement for foreign satellite service providers to establish a local ground gateway connected to the public telecommunications network. Foreign satellite service providers must ensure that all traffic generated by satellite subscriber terminals in Vietnam is routed through this local ground gateway.
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