Vietnam PM pledges quick licensing for Musk’s Starlink, more imports
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Vietnam posted a record trade surplus with the United States in 2024.
PHOTO: EPA-EFE
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HANOI – Vietnam’s Prime Minister Pham Minh Chinh said on March 1 that the government wanted to rapidly issue a licence for Mr Elon Musk’s Starlink to provide satellite internet in Vietnam under a pilot scheme.
Mr Chinh, speaking with nearly 40 American businesses in Hanoi, also said Vietnam was taking measures to rebalance its trade surplus with the US, citing potential imports of aircraft, arms, liquefied natural gas (LNG), agriculture goods and pharmaceutical products.
Hanoi is trying to avoid US duties on its ballooning exports, which contributed to a record trade surplus in 2024, making Vietnam vulnerable to reciprocal tariffs
“The Prime Minister has directed the Ministry of Science and Technology to quickly issue a licence to Starlink internet (services) on a trial basis,” the government said on its website, reporting on the discussions Mr Chinh had with US businesses.
In February, the Vietnamese Parliament approved a temporary scheme to allow satellite internet companies to provide services in Vietnam while retaining full control of their local subsidiaries, a precondition set by Mr Musk.
That represented a sudden shift in Vietnam’s stance on ownership of satellite internet providers, as the communist-run country maintains strict limits on foreign control for multiple economic sectors it considers sensitive.
A US official who attended the March 1 meeting said the discussion “will hopefully solve some pending issues” for US companies in Vietnam.
Mr Chinh is planning separate meetings with other foreign businesses in the coming days, multiple investors told Reuters, as he tries to quell concerns caused by global trade tensions and the impact they could have on the export-reliant country.
Import deals?
Among the possible measures that could reduce Vietnam’s commercial surplus with the US are massive purchases by Vietnamese airlines of Boeing planes, the government said.
It cited a deal that flag carrier Vietnam Airlines struck with Boeing in 2023 – during a visit to Hanoi by former US president Joe Biden – for the purchase of 50 737 Max jets.
Vietnam’s government reported on March 1 that the deal was worth US$11 billion (S$15 billion), without clarifying whether it included engines and other parts usually bought separately. The White House said in 2023 the value was US$7.8 billion.
The government said Vietnam was discussing possible lower prices for the planes with Boeing and also mentioned a deal that Vietnamese low-cost airline VietJet has to buy 200 Boeing 737 Max jets.
The deal was first signed in 2016 and revised afterwards, but no plane has yet been delivered, although the firm said it expected to receive the first jets in 2024.
The government and Vietnamese officials have cited for weeks multiple measures to address the trade surplus
The government has said it could import more US farm products, and officials have repeatedly expressed interest in buying LNG for Vietnam’s fledgling LNG industry.
Military deals have also been frequently discussed, including the purchase of Lockheed Martin C-130 Hercules military transport planes. REUTERS
