SpaceX is preparing to establish its first ground station for Starlink satellites in Vietnam by June, with plans to build a network of 10-15 stations across the country.
What Happened: The investment follows Vietnam’s recent decision to allow Starlink to operate under a five-year pilot program through 2030, permitting Elon Musk to maintain full control of SpaceX’s local subsidiary despite the country’s typical foreign ownership restrictions, Reuters reported, citing sources.
The first ground station, requiring approximately $3 million in investment, is expected to be operational in Danang by June. Vietnam’s government has mandated that “all traffic generated in Vietnam must pass through this gateway,” enabling authorities to monitor data transfers more closely in the tightly controlled nation.
SpaceX’s expansion comes amid heightened trade tensions, as President Donald Trump‘s administration prepares to announce potential tariffs on Wednesday targeting countries with large trade surpluses with the U.S., including Vietnam’s $123 billion surplus last year.
SpaceX did not immediately respond to Benzinga's request for comment.
Why It Matters: The Vietnamese government has authorized Starlink to serve up to 600,000 customers during the trial period. The report indicates that SpaceX is also discussing the possible provision of secure intranet communication services with Vietnamese authorities, though this plan awaits government approval.
Starlink previously conducted free trials in Vietnam that were reportedly used by the coast guard to guide drones in the South China Sea before being interrupted when ownership talks stalled in late 2023.
SpaceX has pledged to invest $1.5 billion in Vietnam and has directed suppliers to relocate some production operations to the Southeast Asian country, potentially creating a significant hub in a region where more than 1,500 villages have limited or no internet access.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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