Earlier this year representatives of Elon Musk’s Starlink met with government officials to discuss launching Starlink in Vietnam. But whereas talks reportedly went well, seeing this ambition realised may be more complicated.

The internet has played a key role in Vietnam’s economic development. It’s brought new ideas, greater access to information, and has provided access to the biggest marketplaces in the world. In fact, Google’s e-Conomy SEA 2023 report found that the size of Vietnam’s digital economy is set to triple by 2030.

But whereas the internet has brought trade, education, and prosperity, it has also created challenges. Cross border service providers like Facebook and Google have not only given the economy a boost but have also facilitated the spread of ideas often unpalatable to Vietnam’s authorities. 

In this context, establishing a Starlink Vietnam may be somewhat challenging. That is not to say that it is not doable, but rather that there are a lot of interests that need to be balanced and hurdles that need to be considered.

Problematic regulations

Vietnam’s Cybersecurity Law dictates that cross border digital service providers must open a local office. That said, despite a deadline at the end of 2023, few big technology firms have complied. TikTok is about the only one. It opened a local office only to find itself quickly under investigation for the content being disseminated on its platform. As of writing, a long list of adverse findings against the firm has been issued, though no penalty has yet been announced.

A second key piece of legislation is the Personal Data Protection Decree. This requires firms to store the data of Vietnamese users inside Vietnam. This is essentially designed to work hand in hand with the Cybersecurity Law in that firms that fail to meet local data storage requirements can then be investigated via their local office.

In the case of a Starlink Vietnam legal entity that complies with these regulations, and that is then forced to hand over user data to the authorities, or that refuses to hand over user data, this could prove costly. The firm could be susceptible to fines, not to mention the damage it could do to its reputation elsewhere in the world.

Conflicting values

And this brings to the fore the conflicting values that need to be considered.

Elon Musk, the CEO of SpaceX, Starlink’s parent company, is a vocal advocate for free speech. When Musk took over Twitter in 2023 one of the first things he did was to reinstate accounts that had been banned for prohibited speech violations–Former US President, Donald Trump for example, was banned for ‘incitement of violence’ but was reinstated by Musk.

What’s more, the billionaire has also been an active participant in political conflicts through his Starlink operations. Just days after Russia invaded Ukraine in February of 2022, Musk announced that Starlink had been activated over Ukraine and that more Starlink terminals would be shipped to the country.

Furthermore, when protests broke out in Iran in September of 2022, the US government relaxed part of its sanctions regime to allow SpaceX to provide its Starlink service in the country. By December, there were reportedly up to 100 satellites hovering in low-earth orbit above the Middle Eastern state.

This is pertinent in that speech is heavily regulated and managed in Vietnam. Cross border service providers are often inundated with takedown requests although domain level blocking by Vietnam’s internet service providers is also commonly used. Of note, Facebook was blocked for two weeks in 2016 and the BBC has been blocked in the country since 2002.

These methods, however, may be somewhat more difficult to employ against an internet service provider based in outer space.

Affordability

All of that said, a bigger barrier may simply be the cost of accessing internet services provided from outer space.

At around US$200 a unit, a Starlink Kit (the hardware needed to receive Starlink services), is well out of the reach of most people in Vietnam–the minimum wage in Vietnam is less than US$200 a month and much lower in the hard-to-access parts of Vietnam that this service could really benefit.

And that’s not to mention the cost of the service itself which runs at about US$99 a month.

That said, Vietnam’s low wages could benefit Starlink in other ways. A Starlink Vietnam, for example, that manufactures devices for export is unlikely to ruffle any feathers and would likely be much easier to establish in Vietnam.

Furthermore, with most of the big names in tech–Google, Apple, Samsung, for example–all manufacturing in Vietnam, adding Starlink to its stable of tech behemoths would likely be seen as a coup for the country–It could also give Vietnam greater leverage over Starlink in the event it does provide internet services in the country and it runs afoul of cross-border services regulations.

Possibility or Pipedream?

But this is all hypothetical. Aside from reports that the possibility of providing Starlink services in Vietnam has been discussed, little else is known about what shape or form a Starlink Vietnam might take.

That said, the path to manufacturing in Vietnam is a path well tread and probably relatively easy to make happen; providing internet services, however, may be considerably more difficult. That is not to say it is not possible, just that it will likely take quite a bit of negotiation and compromise.

For support understanding market entry conditions in Vietnam see: Consultants in Vietnam.

Frequently asked questions

Is Starlink available in Vietnam?

Starlink is not currently available in Vietnam. Starlink representatives, however, met with Vietnam’s Prime Minister in September 2023 to discuss the possibility of making the service accessible to Vietnamese internet consumers.

How much is Starlink in Vietnam?

In 2021, it was estimated that Starlink in Vietnam would cost VND 2.3 billion (US$99) per month with the service likely to go live in 2022. That deadline has now passed and there does not appear to be a clear roadmap for the company in Vietnam. It is therefore not clear if this pricing structure will still apply if/when Starlink is available in Vietnam.

Does Starlink work in Vietnam?

Yes, Starlink works in Vietnam. In fact the technology was on show in Hanoi in October  at the Vietnam International Innovation Expo 2023. That said, it is currently not officially available for commercial use.