On Saturday, Prime Minister Pham Minh Chinh of Vietnam expressed the government’s desire to quickly issue a license to Elon Musk’s Starlink company in order to provide satellite internet services to Vietnam as part of a trial program. In February, the Vietnamese parliament approved a temporary plan allowing the US satellite internet company to operate in Vietnam while ensuring full control of the local subsidiary, a precondition set by Musk.
This sudden shift in Vietnam’s stance on satellite internet providers represents a change from its usual strict restrictions on foreign ownership in sensitive economic sectors. The government stated on its website that the Prime Minister has instructed the Ministry of Technology to promptly issue a trial license to Starlink for internet services, along with discussions with other American companies.
An American official attending the Saturday meeting mentioned that the discussions could potentially resolve some outstanding issues for American trading companies in Vietnam. Prime Minister Pham Minh Chinh had also mentioned during talks with nearly 40 American companies in Hanoi that Vietnam is taking steps to rebalance its trade surplus with the US, including potential imports of aircraft, military equipment, liquefied natural gas, agricultural products, and pharmaceuticals.
Currently, the Vietnamese government is working to avoid further tariffs on its constantly growing export products by the US, which led to a record trade surplus last year and made the country vulnerable to increased tariff duties as imposed during the Trump presidency.
Several investors noted that Prime Minister Pham Minh Chinh plans to hold individual meetings with foreign companies in the coming days to address concerns stemming from the global trade tensions and their potential impact on this export-oriented country.
In recent weeks, both the US government and Vietnamese officials have proposed measures to address the trade surplus issue, although no significant deals have been announced as of yet.
The Vietnamese government has indicated willingness to import more American agricultural products and has shown interest in purchasing American liquefied natural gas for its emerging LNG industry.
Weapons trade has also been discussed, including potential purchases of Lockheed Martin’s C-130 Hercules military transport aircraft.
To reduce Vietnam’s commercial surplus with the US, the government mentioned large purchases of Boeing aircraft by Vietnamese airlines. The Vietnamese government also highlighted an agreement reached between Vietnam and Boeing during a visit by former US President Joe Biden to Hanoi in 2023 to purchase 50 Boeing 737 Max jets. The reported value of the deal on Saturday was $11 billion, but it was unclear if engine and other parts typically purchased separately were included. The White House had previously stated the deal in 2023 was valued at $7.8 billion.
The Vietnamese government mentioned ongoing discussions with Boeing to potentially lower aircraft prices, citing the deal where low-cost carrier VietJet agreed to purchase 200 Boeing 737 MAX aircraft. The deal was initially signed in 2016 and later revised, but no planes have been delivered yet despite the company’s previous plans to receive the first batch last year.
(This article was compiled based on reports from Reuters)