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Nguyen Anh Cuong, Deputy Director of the Department of Telecommunications.

Cuong, who also represents the Ministry of Science and Technology (MOST), shared that the Prime Minister recently approved a pilot program allowing the 100%-foreign-owned SpaceX to trial satellite internet services in Vietnam. To proceed, SpaceX must first set up a legal entity in Vietnam and register its investment project with the Ministry of Finance. Only after completing these steps can it apply for a telecommunications service license.

As part of a broader strategic vision, the Vietnamese government has identified 11 groups of key technologies, including low-orbit satellite communications. Among these, the aerospace category includes three strategic product lines: low-orbit telecommunication and remote sensing satellites, satellite ground control systems, and unmanned aerial vehicles.

Elon Musk's SpaceX previously announced a $1.5 billion investment plan to deploy its Starlink broadband service across Vietnam. The satellite-based solution aims to deliver reliable internet connectivity to remote, mountainous, coastal, and island areas where traditional internet infrastructure is limited.

The rollout of Starlink is expected to support Vietnam’s digital transformation and help bridge the digital divide. However, experts note the importance of collaboration with domestic telecom providers and investments in infrastructure and supply chains to ensure sustainable growth.

Vietnam’s mobile network currently covers 99.8% of the population but only 58% of the land area and 14.5% of national territory including maritime zones. Meanwhile, 17% of households - mostly in remote areas - remain without fiber-optic internet.

Telecom companies estimate that maintaining a mobile signal station in remote, off-grid areas could cost billions of Vietnamese dong per year. This makes such areas ideal for Starlink, which aligns with Vietnam’s definition of universal telecommunications zones.

Beyond land-based services, Starlink could also benefit maritime operations and airlines, offering broadband access to ships and aircraft.

The official launch date for SpaceX’s services in Vietnam remains unannounced. However, the move is promising for consumers seeking consistent high-speed internet access across the country - something previously out of reach.

Though Starlink is well-suited for underserved regions, its pricing model remains a concern. In other markets, the service costs around $99/month (approximately 2.4 million VND), excluding equipment fees. In contrast, fiber internet plans in Vietnam range from 200,000 to 500,000 VND/month.

Additionally, Starlink's performance may be limited in certain conditions due to higher latency and sensitivity to weather - making it an effective supplement but not a full replacement for Vietnam’s traditional internet infrastructure.

Thai Khang