SpaceX Starlink Communication Service Plan To Vietnam Postponed Due To Foreign Ownership Limit

JAKARTA - SpaceX's plan to provide communication services to Vietnam using its Starlink satellite has been delayed. Three sources familiar with the matter revealed that talks between SpaceX and Vietnamese authorities had stalled, resulting in delays in support for Vietnam's coast guard drones using the service.

Vietnam, is planning to improve its internet infrastructure after experiencing disruption to its five main underwater fiber optic cables. In this context, satellite services are considered important for vast mountainous areas and at sea, especially in the South China Sea, where Vietnam often deals with China over contested boundaries.

A source familiar with the talks stated that SpaceX had participated in the US business mission to Vietnam in March 2023. They showed interest in offering services in the country. However, talks stalled in the last quarter of 2023 when it became clear that Vietnam would not weaken foreign ownership restrictions for companies like SpaceX.

The halt to the talks had a direct impact on the previously unreported Starlink test service, which Vietnamese coast guard used to direct drones in the South China Sea and the Gulf of Thailand. This shows how important the service is in coast guard operational activities to maintain water security.

While it is not yet clear whether talks will resume in the future, this delay reflects challenges in overcoming the regulatory and policy constraints in force in Vietnam. SpaceX has been seeking exceptions to regulations that limit foreign ownership in the telecommunications sector, but the revision of the latest law does not meet the request.

Currently, neither SpaceX nor Vietnam's information ministry have made official comments regarding this delay. However, the delay raises questions about the role of satellite services in national security and how the Vietnamese government will respond to challenges in facing the need for better internet infrastructure in the future.