The Vietnamese Government has approved SpaceX’s five-year trial of low earth orbit (LEO) satellite internet services, with operations ending before January 1, 2031. The service is limited to 600,000 subscribers and must meet national security and defence requirements.

Space Exploration Technologies Corporation (SpaceX) of the US is currently working with the Ministry of Science and Technology to complete key procedures before launching operations in Vietnam. These include establishing  an enterprise and installing a ground gateway station- both expected to be finalized within the year. The Starlink project is estimated to involve an investment of around US$1.5 billion, aimed at connecting remote areas and supporting sectors like education, telemedicine, and disaster management.

According to Vu The Binh, Vice Chairman and General Secretary of the Vietnam Internet Association, the pilot marks a positive development for Vietnam's internet landscape. Starlink would add to the broadband options available, especially in places where fiber-optic cables have not yet deployed. Despite Vietnam’s high internet penetration rates in ASEAN, many areas still lack broadband access, contributing to a digital divide.

While the country’s internet infrastructure has improved in recent years, there are still limitations. Three out of six submarine cables in operation are over a decade old, and SMW3, a major line connecting Southeast Asia to the Middle East and Europe, is nearing the end of its service life. Mobile networks currently cover 99.8% of the population but only about 58% of the land area and 14.5% of the total territory including offshore areas. Meanwhile, 17% of households, mostly in remote areas, still lack fiber-optic internet access.

LEO satellite internet could help narrow the digital gap. However, domestic telecom providers believe that Starlink’s pilot rollout may impact their presence in remote areas, as customers in those regions would have more alternatives.

Industry experts, however, see Starlink and traditional telecom networks as complementary rather than directly competitive. While mobile networks are widely accessible, fast, and affordable, satellite internet offers broader coverage in difficult terrains, though with higher costs and potentially slower speeds.

The initial cost of Starlink is relatively high: US$500–600 for a terminal device, plus a monthly subscription of US$50–100, well beyond what many households can afford. Furthermore, LEO satellite connections are weather-dependent and prone to disruption during heavy rain or storms, which are common in Vietnam.

Binh said that the entry of a high-tech provider like SpaceX could enhance competition and drive domestic operators to expand coverage and improve service quality. He added that Vietnam’s internet and telecom prices are already among the lowest globally, making it unlikely that Starlink would have a significant impact in urban areas.

Vietnam’s first homemade radar satellite to go into space

LOTUSat-1, Vietnam’s first ever indigenous weather satellite, is expected to be launched into orbit from December 2024 to February 2025, according to the Vietnam National Satellite Centre (VNSC) at the Vietnam Academy of Science and Technology (VAST).