Vietnam paves the way for Starlink, easing trade tensions with the United States

Vietnam is preparing to approve new regulations that would enable Elon Musk's Starlink to operate in the country with full ownership of its local subsidiary, according to a government official (via Reuters).

This move follows prolonged negotiations with SpaceX and is widely seen as a strategic gesture to ease trade tensions with the United States, particularly amid concerns over potential tariffs under President Donald Trump.

The planned regulatory change, part of a broader initiative to remove barriers to technological innovation, would allow foreign satellite internet providers to retain full control of their operations under a pilot program running until 2030.

The decision comes as Vietnam faces growing scrutiny over its trade surplus with the United States, and it aligns with other efforts by the government to increase imports of American goods.

SpaceX has been expanding its supply chain in Vietnam and has signalled an interest in investing $1.5 billion in the country. For now, it remains to be seen how this policy shift will impact Vietnam's economic ties with the United States and its evolving relationship with SpaceX.