Vietnam’s Prime Minister, Pham Minh Chinh, has committed to fast-tracking the licensing process for Tesla TSLA and SpaceX CEO, Elon Musk‘s Starlink under a pilot scheme.
What Happened: During a meeting with nearly 40 U.S. businesses in Hanoi, Chinh called on the Ministry of Science and Technology to grant a pilot license for Starlink, according to a post on the government's website, according to a Reuters report on Saturday. The Vietnamese government has shown interest in SpaceX’s proposed $1.5 billion investment linked to its Starlink satellite service, as revealed in a government post last September.
That marked an abrupt change in Vietnam’s position on the ownership of satellite internet providers, as the nation has strict restrictions on foreign control in several economically sensitive sectors.
Chinh also mentioned that Vietnam aims to balance its trade surplus with the U.S. by considering imports of aircraft, arms, liquefied natural gas, agricultural products, and pharmaceuticals. This move aims to bypass U.S. tariffs on Vietnam’s expanding exports, which led to a record trade surplus last year.
According to the government, Vietnam’s trade surplus with the U.S. could be potentially reduced if Vietnam Airlines–JSC makes large-scale purchases of Boeing BA aircraft in a deal that could be worth $11 billion.
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Why It Matters: This push by the Vietnamese PM comes after the parliament’s previous approval in February of a temporary scheme allowing satellite internet companies to operate in the country while maintaining full control over their local subsidiaries, a condition set by Musk.
It is also evident that the export-driven nation is concerned about the tariffs that could be imposed by the Trump administration. Vietnam’s trade surplus with the U.S. expanded to $123.5 billion in 2024. This is the third-largest trade gap that the U.S. has with any country after China and Mexico. As per reports, PM Chinh is set to hold more meetings with other foreign businesses in the coming days to address concerns arising from global trade tensions.
The move to expedite Starlink’s licensing also comes at a time when the company is aggressively expanding its customer base. Starlink has launched a new $80 monthly plan in the U.S. to make satellite internet access more affordable and attract a wider range of customers. The new plan offers a lower network speed of 50-100 Mbps, compared to 150-200 Mbps for the $120 plan, and is only available in select areas.
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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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