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Vietnam’s ‘transactional diplomacy’ paves way for Musk’s Starlink amid Trump’s tariff threats
Vietnam’s sudden policy shift reflects its nervousness about Donald Trump’s tariff threats and aims to reduce Hanoi’s trade surplus with Washington
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Vietnam plans to adopt rules that would allow Elon Musk’s Starlink to provide satellite internet services in the country while maintaining full ownership of any local subsidiary, a draft of the regulations shows.
The change paves the way for Starlink to launch in Vietnam and follows protracted talks with its parent company SpaceX, a government official said.
It represents a sudden shift in stance and can be seen as “an olive branch” to SpaceX amid nervousness in Vietnam about tariff threats from US President Donald Trump, according to a person familiar with the matter.
It’s a “demonstration from the Vietnamese side that they can play the transactional diplomacy game if the Trump administration wants that,” said the person.
All sources declined to be identified so they could speak more freely.
Attempts by SpaceX to enter Vietnam – a market of nearly 100 million people – were put on hold in late 2023 after the Communist-run country declined to lift a ban on foreign control of satellite internet providers – a precondition for Musk, who is now a key adviser to Trump.
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