Vietnam is emerging as a major hub for high-tech investment, with SpaceX committing $1.5 billion to expand its Starlink satellite internet services in the country.
This move, along with $30 million in additional investment from Wistron NeWeb Corporation, signals Vietnam’s growing role in global satellite and telecommunications manufacturing.
SpaceX’s Starlink Expansion in Vietnam
With over 1,500 villages lacking stable internet access, Vietnam sees Starlink as a crucial solution for bridging the digital divide. Elon Musk’s company has already launched 6,000 satellites globally, and discussions with Vietnamese officials are underway to facilitate regulatory approvals for Starlink’s commercial entry. The government is expediting this process, recognizing its potential to enhance education, healthcare, and disaster response in remote areas.
Vietnam’s Supply Chain Gains From SpaceX Investments
Alongside SpaceX, Taiwan-based Wistron NeWeb Corporation is expanding its operations in Ha Nam Province, doubling production of satellite communication devices and smart home products. Other SpaceX suppliers, including Universal Microwave Technology and Shenmao Technology, are also shifting production to Vietnam, reinforcing its position as a key manufacturing hub in the global aerospace supply chain.
Regulatory Hurdles and Policy Reforms
Vietnam’s legal framework requires SpaceX to partner with a local telecom provider (such as Viettel, Vinaphone, or MobiFone) to operate Starlink commercially. Current laws limit foreign ownership in telecom ventures, but upcoming regulatory changes may grant full foreign control over low-orbit satellite networks under a pilot program running until 2030.
The National Assembly’s Resolution 193 introduces financial support for telecom firms investing in 5G and satellite services. To accelerate nationwide 5G deployment, the government is considering funding up to 15% of investment costs, capped at the amount network operators have spent on acquiring 5G frequencies.
Vietnam’s Digital Transformation and FDI Growth
Vietnam’s internet and mobile penetration have surged, with 127 million active cellular connections and 78.8% of the population online. The influx of high-tech FDI, led by SpaceX and its suppliers, strengthens the country’s digital economy and advanced manufacturing sector.
While competition from regional hubs and regulatory approvals remain challenges, Vietnam’s pro-business policies and infrastructure improvements make it a top destination for global tech investments. With strong government backing, Vietnam is poised to become a leader in satellite internet, aerospace technology, and AI-driven telecommunications.
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Source: Vietnam Insider