Our experts help guide you through diverse regulations and market dynamics of Asia's IT industry. The complex terrain and unpredictable weather have exposed the limitations of traditional communication methods in maintaining connections in affected areas. For instance, during the Yagi storm, reports indicated that transmission towers were damaged, and some areas experienced loss of mobile communication due to power outages. As a result, there is a growing demand for satellite internet as an alternative telecommunications solution to enhance connectivity between the mainland and remote regions of Vietnam, particularly during extreme weather events. Vietnam’s internet infrastructure Vietnam’s internet has seen significant growth, but its infrastructure is still limited compared to its user base and population size. Currently, there are six submarine cable lines in operation, three of which are over ten years old, and one new cable was added in December 2024. Among these cables, the SMW3, which connects Southeast Asia, the Middle East, and Western Europe, is nearing the end of its operational life after more than two decades of service. According to the Speedtest Global Index, as of November 2024, Vietnam ranked 44th out of more than 100 countries for mobile speeds and 36th for fixed broadband speeds. There is a gap in internet speed in rural and urban provinces due to the limited infrastructure in remote areas. The country’s internet operations heavily depend on these submarine cables, resulting in frequent interruptions and incidents that lead to slow speed and inconveniences for domestic users. Meanwhile, data storage and processing in Vietnam are also limited by its modest number and scale of data, with only 28 centers compared to countries in the region, such as Singapore (103), Malaysia (45), and Indonesia (69). Vietnam’s businesses that provide cloud computing services mainly resell services from foreign platforms. These setbacks have disadvantaged Vietnam’s Internet connection ecosystem compared to other advanced countries in ASEAN. Benefits of Starlink satellite technology to Vietnam’s internet system Satellite internet in Vietnam began with the launch of the Vinasat-1 satellite in 2008, followed by the Vinasat-2 satellite in 2012, both by VNPT. These geostationary telecommunication satellites have a lifespan of 15 years, meaning Vinasat-1 will officially expire in 2023, followed by Vinasat-2 in 2026. This situation raises the need for a new solution to ensure the continuity of the telecommunications system for both the mainland and coastal areas. With the expansion of space technology across various new fields, satellite communication technology offers the advantage of providing internet access to remote and underserved areas, thereby improving access to education through online courses and enhancing healthcare through telemedicine. Furthermore, satellite systems can bolster connectivity during disasters, improving response and management capabilities. Another benefit is that satellites connect remote areas to the global economy, fostering the growth of e-commerce and the Internet economy, which creates new business opportunities and attracts investments in these locations. Starlink, for example, has a satellite system, which could help Vietnam save costs in building its own system while gaining immediate access to internet services. Starlink upstages Vietnam’s internet connectivity The current advantages of internet systems in Vietnam are the affordability and a wide range of services due to the variety of internet service providers such as FPT, Viettel, and VNPT. For a household, Viettel charges an internet installation fee of around VND 300,000 (US$11.90), with monthly fees ranging from VND 165,000 to VND 300,000 (US$6.55-11.90) depending on connection speed. To compare, as the first announcement to Vietnamese customers in 2021, the Starlink kit costs US$599, and the monthly package is US$99. FIND BUSINESS SUPPORT