Vietnam Prime Minister Chinh Commits to Fast-Track Licensing of Musk’s Starlink Amid Trade Surplus Concerns

Key Points:

• Vietnam's PM has pledged to expedite licensing for Musk's Starlink to offer satellite internet services.
• The government aims to address a record trade surplus with the U.S. and avoid potential tariffs.
• Key measures include increasing imports of aircraft and liquefied natural gas from the U.S.

HANOI, March 1 – Vietnamese Prime Minister Pham Minh Chinh has announced a commitment to swiftly approve licensing for Starlink, Elon Musk’s satellite internet service, under a new pilot scheme in Vietnam. Addressing nearly 40 U.S. business leaders in Hanoi, Chinh emphasized the government's goal to facilitate this initiative while managing the country's vast trade surplus with the United States. This surplus, reported at over $142 billion, has led to potential tariff threats from former President Donald Trump, making Vietnam sensitive to U.S. trade policies, according to Reuters.

The rapid licensing directive follows a recent decision by the Vietnamese parliament, which approved a legal framework allowing foreign satellite providers to operate in the country while maintaining local control—one of Musk's essential conditions for entering the market. As Chinh stated, “The PM has directed the Ministry of Science and Technology to quickly issue a license to Starlink internet (services) on a trial basis,” as reported by South China Morning Post.

In addition to advancing Starlink’s entry, Chinh outlined prospective imports that could balance Vietnam’s trade equations with the U.S., including significant purchases of Boeing aircraft, liquefied natural gas, and agricultural products. The government has indicated potential deals with major U.S. companies to mitigate duties on exports, making discussions of ongoing aviation deals critical. For instance, Vietnam Airlines was reported to have struck an agreement for 50 Boeing 737 Max jets, in tandem with earlier acquisitions from VietJet for 200 jets, furthering the push for partnerships with U.S. manufacturers Bangkok Post.

Chinh’s interactions with U.S. enterprises highlight Vietnam’s approach to addressing trade imbalances while mitigating foreign policy risks amid increasing protectionist sentiments in Washington. “These discussions aim to solve some pending issues for U.S. companies in Vietnam,” remarked a U.S. official present at the meeting. Preparations are underway for further engagement with a broader array of foreign businesses, reflecting Vietnam’s proactive stance in fostering international trade relations.

The Vietnamese government aims to bolster its energy sector while reducing reliance on its export-driven ECONOMY. As the nation seeks to grow its liquefied natural gas infrastructure, interest in U.S. energy products continues to gain traction. The administration is also exploring possible military acquisitions, including C-130 Hercules transport planes, as part of broader security collaborations with the United States.

In light of these developments, the balance between economic growth, foreign investment, and compliance with international trade norms remains a pivotal topic for Vietnam's strategic planning. For more details on this unfolding situation, please visit Bangkok Post.