Vietnam plans to adopt rules that would allow Elon Musk's Starlink to provide satellite internet services in the country while maintaining full ownership of any local subsidiary, a draft of the regulations shows.

The change paves the way for Starlink to launch in Vietnam and follows protracted talks with its parent company SpaceX, a government official said.

It represents a sudden shift in stance and can be seen as "an olive branch" to SpaceX amid nervousness in Vietnam about tariff threats from U.S. President Donald Trump, according to a person familiar with the matter.