SpaceX‘s initiative to provide communication services to Vietnam through its Starlink satellites has hit a roadblock, according to sources familiar with the matter. This setback has put a pause on crucial support for Vietnamese coast guard drones.
Vietnam, aiming to enhance its internet infrastructure after facing recent disruptions in its major underwater fiber-optic cables, relies on satellite services for remote mountainous regions and maritime areas, particularly the South China Sea, where territorial disputes with China persist.
Negotiations between SpaceX and Vietnamese authorities were ongoing for months, with SpaceX representatives even participating in a U.S. business mission to Vietnam last year. However, discussions were halted in late 2023 as Vietnamese lawmakers showed no signs of relaxing foreign ownership limits for SpaceX.
The interruption in talks led to the suspension of Starlink’s pilot services for Vietnam’s Coast Guard starting in November. These services were crucial for guiding drones in the South China Sea and the Gulf of Thailand.
Despite the pause, it remains uncertain whether talks between SpaceX and Vietnamese authorities will resume. Both SpaceX and Vietnam’s information ministry refrained from commenting on the matter.
SpaceX had been seeking an exception to Vietnamese regulations limiting foreign ownership in telecommunication companies, but a revision of the telecommunications law approved by parliament did not ease these restrictions.
Additionally, a draft decree released in February imposed further requirements on satellite service providers regarding local presence and data traffic controls.
SpaceX had also been exploring the possibility of providing technology services for military outposts in Vietnam. However, the current dispute over ownership limits has put these plans in jeopardy.
The deployment of Starlink has drawn attention from China, with concerns raised about its impact on the security of space assets. This adds another layer of complexity to the situation, given the ongoing tensions in the South China Sea.
As talks remain on hold, uncertainties persist regarding the future of satellite services crucial for Vietnam’s communication infrastructure and coast guard operations.