Many component suppliers for Elon Musk’s SpaceX corporation are relocating production to Vietnam, creating opportunities for the country to become an attractive destination for FDI in the aerospace and high-tech equipment sectors worldwide.
Vietnam Producing New Components for SpaceX?
According to multiple sources, some component suppliers for SpaceX are moving production to Vietnam, including Wistron Neweb Corporation, Universal Microwave Technology, and Shenmao Technology.
Among these, Wistron NeWeb Corporation (WNC) is reportedly manufacturing routers and network equipment for Starlink satellite internet at a factory in Ha Nam Province, Vietnam, according to Reuters. The Wistron factory in Ha Nam currently employs about 3,000 workers, and this number is expected to increase to 6,000 in the near future. Recruitment banners have been displayed at the factory since October 2024. The Wistron factory in Ha Nam is believed to be producing components for SpaceX’s aerospace operations.
The Wistron factory in Ha Nam is reportedly manufacturing components for the aerospace company SpaceX.
In addition to WNC, two other important SpaceX partners are also investing in Vietnam. Universal Microwave Technology has received a $5 million investment license to build a factory in the Thang Long Industrial Park, Vinh Phuc Province, covering an area of 3,360 m². According to a recent announcement, Universal Microwave Technology plans to increase its investment in Vietnam to $12 million in multiple phases. Similarly, Shenmao Technology, a supplier of solder materials for printed circuit boards, has recently announced a $5 million investment to build a production facility in Vietnam.
According to Reuters, the reason why component manufacturing partners are shifting or expanding production to Vietnam is largely driven by SpaceX’s requirements, motivated by concerns over geopolitical risks. After decades of concentrating production in China and Taiwan, major electronics assemblers like Foxconn, Wistron, and others are racing to establish operations in Southeast Asia, Japan, and even Europe to mitigate political risks and avoid disruptions from the U.S.-China trade war.
SpaceX plans to invest $1.5 billion in Vietnam
In addition to encouraging its partners to relocate production, Elon Musk’s corporation is planning a direct investment of $1.5 billion in Vietnam. During a meeting with General Secretary To Lam on September twenty-fifth, Tim Hughes, Vice President of SpaceX, described Vietnam as a strategic market in SpaceX’s plans to develop its Starlink satellite Internet. However, SpaceX representatives have yet to provide further details on the timeline or format of the investment in Vietnam.
General secretary To Lam met with Tim Hughes, senior vice president of SpaceX, on September 25.
The establishment of SpaceX and its partners’ manufacturing base in Vietnam not only opens opportunities for deeper integration into the global technology value chain but also reinforces Vietnam’s position as a strategic manufacturing hub in Southeast Asia. This development presents a valuable chance for domestic enterprises to learn and enhance their competitiveness in the high-tech industrial sector.
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