According to Vu The Binh, Vice President and General Secretary of the Vietnam Internet Association (VIA), the introduction of low-Earth orbit (LEO) satellite internet services like Elon Musk's Starlink could significantly narrow the digital divide in Vietnam.

The government recently approved a pilot project for SpaceX to provide Starlink satellite internet services in Vietnam. The decision was made as part of the controlled trial policy outlined in Decree 193, issued on February 19, 2025. SpaceX, a wholly foreign-owned enterprise, will be allowed to invest in and offer satellite internet services in the country.

Starlink satellite internet pilot project

The pilot project will run for five years from the date SpaceX receives its business license, ending no later than January 1, 2031.

To proceed with commercial operations, SpaceX must complete all investment procedures, obtain telecommunications and radio frequency licenses, and comply with all Vietnamese regulations related to telecommunications and satellite frequencies.

SpaceX is also required to fulfill commitments outlined in its investment proposal, including supporting essential connectivity programs, collaborating with local businesses to distribute hardware and deliver services, and investing in ground infrastructure.

According to Vu The Binh, allowing Starlink to operate in Vietnam is a positive step. It will introduce a new broadband option, particularly valuable in areas lacking fiber optic connections, remote regions, and offshore islands.

Narrowing the digital divide

While Vietnam ranks among the top ASEAN countries in internet access and both fixed and mobile broadband penetration, significant connectivity gaps still exist.

According to the Department of Telecommunications (Ministry of Science and Technology), mobile networks currently cover 99.8% of the population but only 58% of the country's land area and 14.5% of its territorial waters. Additionally, 17% of households still lack fiber optic services, mainly in remote and rural areas.

“With Starlink’s LEO satellite broadband as an option, the digital divide will further narrow, creating greater access to digital services for all regions of the country.

People in isolated and underserved areas will gain a vital new internet option, especially where fixed broadband or 4G and 5G services are not feasible,” Binh stated.

Motivating local telecom providers to expand coverage

Despite the potential of Starlink, the National Assembly’s drafting committee acknowledges that LEO satellite internet may have lower quality and higher costs compared to fiber optic services. For instance, Starlink's internet costs are estimated to be around six times higher than standard fiber broadband.

Additionally, LEO satellite systems face limitations in subscriber capacity and are primarily targeted at areas lacking high-speed internet access, such as remote and offshore regions.

Therefore, LEO satellite services are not expected to compete directly with existing fixed and mobile telecommunications services in urban and well-connected areas. Instead, they will complement these services by extending coverage to less accessible locations.

Vu The Binh noted that the introduction of advanced services like Starlink will increase consumer choice while encouraging local telecom providers to enhance coverage and service quality.

“Vietnam’s telecom market has been highly competitive for decades, so I don’t think Starlink's presence will cause local providers much concern. Instead, it could serve as motivation for them to continue expanding coverage and improving service quality. Moreover, internet service prices in Vietnam are already quite low, while Starlink’s subscription costs are expected to be significantly higher. As a result, its impact on urban areas will likely be minimal, while it can greatly benefit underserved and remote locations,” Binh explained.

Van Anh