While Starlink's service could enhance internet access in remote regions, users will still need to comply with Vietnam's strict cybersecurity laws, which mandate local data storage.

Vietnam is poised to permit Elon Musk's Starlink to provide satellite internet services, a strategic move aimed at alleviating trade tensions with the United States.

This decision highlights Vietnam's adaptability in embracing new technologies and may lead to discussions about data compliance with local authorities.

Under the new pilot scheme, projects will require approval from Vietnam's prime minister, which is intended to foster scientific and technological innovation.

Wall Street analysts maintain a neutral outlook on Tesla, with a Hold consensus rating suggesting a potential downside of over 4% from its current stock price.

Experts caution that while increased internet access may benefit citizens, it could also lead to tighter government control over online activities.

As Vietnam embraces these changes, Tesla faces its own challenges, with its stock down 12% in 2025 due to declining sales in key markets like Europe and China.

The draft regulations, which are anticipated to be approved by parliament, will allow full foreign ownership under a pilot program that will last until the end of 2030.

This policy shift is seen as an effort to strengthen Vietnam's ties with the U.S., particularly in light of ongoing trade tensions during the Trump administration.

These regulations are part of a broader Vietnamese initiative to eliminate barriers to technological innovation, with the pilot scheme extending until 2030.

The legislation is part of a wider initiative aimed at advancing science, technology, and national digital transformation while safeguarding national security.

Musk's other major venture, Tesla, continues to struggle, impacted by his political activities and a downturn in sales.