Vietnam's olive branch to Musk sets a bad precedent

VIETNAM WAS OFTEN viewed as a winner during the first US-China trade war. This time around, such a victory looks less certain as it faces the threat of tariffs. But the Southeast Asian nation appears to be trying to come out on top again by opening itself up to business with Elon Musk.

- Bloomberg

Last week, Vietnam approved new regulations that would allow Musk's Starlink to provide satellite internet services in the country and maintain full ownership over any subsidiary — an abrupt reversal of the local rules that had previously barred overseas companies from fully owning satellite internet providers. Talks between regulators and the company have been going on for years, sputtering in 2023 after lawmakers signaled they would not make an exception to the domestic partnership policies. The government said last September that SpaceX, Starlink's parent company, had plans to invest $1.5 billion in Vietnam, but it still didn't give details on its potential entry into the market.

So, what's behind the sudden reversal now? Apparently, the threat of tariffs spurred Vietnamese lawmakers to extend an "olive branch" to the business owned by Donald Trump's close ally.