Vietnam's FPT Telecom sees SpaceX’s Starlink entry as 'cooperation opportunity'

FPT Telecom, a subsidiary of Vietnam's leading IT giant FPT Corporation, does not see Starlink of Elon Musk company SpaceX as a competitor, but rather a potential partner, as the company is currently not engaged in satellite internet service, said its chairman.

Chairman Hoang Viet Anh made the statement at the company's AGM on Thursday in response to a shareholder's question about "competition" with SpaceX which recently received approval to pilot Starlink low-orbit satellite internet service in Vietnam.

Satellite internet is only one component of the emerging "low earth orbit economy," which is expected to take shape over the next 10 to 20 years and generate over $2 trillion globally within the next decade, FPT CEO Nguyen Van Khoa further explained.

U.S. and Chinese companies are currently investing in the newly-emerging economy, he added.

The low earth orbit economy has the potential to transform and even replace current telecommunications technologies such as 5G and 6G, according to the CEO.

Khoa said Apple has already begun integrating satellite connectivity into its products, citing its iPhone's emergency SOS feature via satellite. He added that FPT Telecom is also preparing its own strategy in this regard.

Deputy Prime Minister Nguyen Chi Dung last month signed a prime ministerial decision allowing SpaceX's "controlled pilot deployment" of telecom services using low-orbit satellite technology without any limit on foreign ownership. The pilot service will be carried out within five years from the date of licence issuance and end before January 1, 2031.

The types of services to be deployed on a pilot basis include fixed satellite services (internet access services, private leased line services for mobile receiving and transmitting stations), mobile satellite services (internet access services at sea and internet access services on airplanes).

The shareholder meeting also heard that FPT Telecom (UPCoM: FOX) plans to invest VND3.84 trillion ($149.03 million) in 2025, with VND1.05 trillion ($40.75 million) in key projects such as the data centers in District 9 and Tan Thuan district in Ho Chi Minh City and another in Hanoi, along with two submarine cable routes.

In the broadband internet segment, FPT Telecom said it strives to become the market leader within the next three years, targeting 8 million subscribers.

The company currently generates 1.5 times more revenue per user than the industry average, driven by a focus on high-paying customers and value-added services such as security cameras.

For 2025, FPT Telecom has set a revenue target of VND19.9 trillion ($772.36 million), up 13% from 2024. The company also aims to achieve a pre-tax profit of VND4.2 trillion ($163.01 million), up 17.1% year-on-year.

In 2024, it posted net revenue of VND17.61 trillion ($683.48 million) and a pre-tax profit of VND3.59 trillion ($139.33 million), marking year-on-year increases of over 11% and 18%, respectively, and exceeding the year's targets.