Vietnam is making bold moves to strengthen its economic ties with the United States while balancing its trade relationship. Prime Minister Pham Minh Chinh announced on Saturday that the government is expediting the licensing process for Elon Musk’s Starlink satellite internet service under a pilot scheme. This decision marks a significant policy shift, as Vietnam previously imposed strict regulations on foreign-owned satellite internet providers.
Speaking at a high-profile meeting in Hanoi with nearly 40 U.S. businesses, Chinh reaffirmed Vietnam’s commitment to fostering a more open business environment. Alongside fast-tracking Starlink’s approval, he outlined plans to increase imports of American goods, including aircraft, arms, liquefied natural gas (LNG), agricultural products, and pharmaceuticals. These measures aim to rebalance Vietnam’s trade surplus with the U.S. and avoid potential tariffs threatened by President Donald Trump.
Vietnam Opens Doors for Starlink Internet
The Vietnamese government’s website confirmed Chinh’s directive for the Ministry of Science and Technology to issue Starlink’s trial license swiftly. This aligns with a February decision by the country’s parliament to temporarily allow satellite internet companies to operate in Vietnam while maintaining local control over their subsidiaries—one of Musk’s key conditions for entering the market.
This policy shift indicates Vietnam’s growing recognition of the importance of advanced internet infrastructure, particularly in rural and remote areas where traditional broadband services remain inadequate. If successfully implemented, Starlink could revolutionize internet connectivity in the country, providing high-speed satellite internet access nationwide.
Boosting U.S. Trade Relations with Major Import Deals
To address trade imbalances with the U.S., Vietnam is exploring several major import deals. One of the most notable discussions involves the purchase of Boeing aircraft. In 2023, during a visit by former U.S. President Joe Biden, Vietnam Airlines struck an $11 billion deal to acquire 50 Boeing 737 Max jets. However, details about whether this price includes engines and other components remain unclear.
Additionally, VietJet, Vietnam’s leading low-cost airline, has an outstanding deal to buy 200 Boeing 737 Max jets. Signed in 2016 and revised multiple times, the deal has yet to materialize, with no aircraft delivered so far. The Vietnamese government has indicated that negotiations are ongoing to finalize the terms.
Beyond aviation, Vietnam is also considering increasing imports of U.S. agricultural products and liquefied natural gas (LNG). These moves could strengthen economic ties between the two nations and provide Vietnam with critical energy resources for its growing LNG industry.
Potential Military Agreements on the Horizon
Military cooperation is another key area under discussion. Vietnam has expressed interest in purchasing Lockheed Martin’s C-130 Hercules military transport planes. While no concrete agreements have been signed yet, the government’s repeated mentions of military procurement suggest that defense deals could play a role in balancing trade relations with the U.S.
A U.S. official who attended the recent business discussions in Hanoi expressed optimism that these talks would help resolve some of the existing challenges U.S. companies face in Vietnam. Chinh is expected to hold additional meetings with other foreign investors in the coming days to reassure them of Vietnam’s commitment to an open and stable economic environment.
A Strategic Shift in Vietnam’s Trade Policy
Vietnam’s proactive steps—ranging from approving Starlink’s satellite internet services to negotiating major import deals—signal a broader effort to maintain strong trade relations with the U.S. while ensuring economic stability. As the country navigates global trade tensions, these strategic decisions could play a crucial role in shaping its future economic landscape.
