SpaceX investment

Vietnam Welcomes SpaceX: $1.5 Billion Starlink Investment to Enhance Digital Infrastructure

Vietnam is looking at a glow-up in its digital infrastructure as tech colossus SpaceX plans to invest $1.5 billion. This injection of investment will allow Elon Musk’s SpaceX to mark itself as the biggest digital player in Southeast Asia.

The Vietnam government announced this big news and declared that SpaceX plans to invest $1.5 billion. This investment in the country will be done with the launch of its Starlink satellite services. This will enhance Vietnam's digital infrastructure and provide improved internet connectivity to its 100 million people.

President To Lam said, "The Vietnamese government is considering the (investment) proposal of SpaceX."

The statement came following a meeting between Lam and SpaceX government affairs official Tim Hughes in New York. In this meeting, Hughes revealed the company's plans to invest in Vietnam's promising market for satellite internet services.

With this agreement in place, the investment will also work towards benefiting education and disaster prevention efforts in Vietnam.

As per a statement given by SpaceX's senior vice president for global business and government affairs, Tim Hughes, “SpaceX's deployment of internet services in Vietnam aimed mainly to benefit education and disaster prevention efforts.”

The talks of this investment have been in the works for quite some time now but shut down in 2023. After the issues regarding ownership and control were put on hold, the Vietnamese government and SpaceX have come to seek this investment.

The deadlock came when SpaceX sought a controlling stake in the company but the government of Vietnam limits foreign holdings in the company to 50%.

Now, the development of satellite in Vietnam has become paramount as rocky terrains hinder internet coverage, especially in rural areas.

In this, SpaceX's Satellite internet is a reliable solution, especially for tasks such as patrolling the disputed South China Sea. However, this may raise concerns with China.

The investment also highlights Vietnam's attractiveness as a major industrial hub, with US firms and contractors operating in the country. Apple, with dozens of suppliers in Vietnam, has expressed interest in increasing spending on them.

Still SpaceX's investment is subject to approval from the Vietnamese government. Also, the details on the investment location and timeline are yet to be clarified.

The company has not responded to requests for comment, while Vietnam's foreign ministry remains silent. Now, this significant investment underscores SpaceX's commitment to expanding its presence in Southeast Asia and providing innovative solutions to improve internet connectivity.