Amazon's Global Satellite Expansion: Vietnam Welcomes Kuiper Amid Rising Competitive Stakes

As of last week, Amazon (AMZN) experienced a decrease of 1.12% in its stock price, while showing a slight increase of 0.07% over the past week and an overall growth of 4.38% year-to-date. The company's latest market capitalization is valued at $2,442.265 billion, reflecting a slight downturn, although it maintains a steady overall growth trend from the beginning of the year.

In recent developments, Amazon has revealed plans to expand its Kuiper satellite service to Vietnam, according to the country's Ministry of Science and Technology. This declaration followed discussions in Hanoi between Vietnam’s Deputy Minister Phạm Đức Long and Gonzalo de Dios, Amazon’s head of Global Licensing and the Kuiper Project. Amazon committed to investing $570 million by 2030 to establish the necessary infrastructure in collaboration with local partners, with plans to build up to six ground stations and terminal manufacturing facilities in Bắc Ninh province.

Amazon registered "Amazon Kuiper Vietnam LLC" in Ho Chi Minh City and officially submitted an application to operate low-Earth orbit satellite services. The Kuiper Project aims to provide broadband internet services to remote areas and islands via a network of low-Earth orbit satellites. The company is planning a pilot project to serve consumers, businesses, and governmental clients within five years.

Notably, Amazon faces competition in this domain from SpaceX’s Starlink, which has already received approval from the Vietnamese government to implement a similar satellite internet plan during the same period.

Earlier in April, Amazon launched the first 27 satellites as part of its Kuiper project from Florida, marking a significant step in the deployment of its long-awaited space internet network. As of now, Amazon has not yet responded to requests for comments on this development.

In North America, Amazon has recently implemented significant adjustments to its FBA inventory management rules for the U.S. and Canadian marketplaces. As of September 30, the bulk liquidation program has switched to default automatic enrollment, requiring sellers to opt out manually. Additionally, a logistics donation program is now mandatory for all sellers, with items not set for inventory processing subject to automatic liquidation or donation at standard disposal fees.

Furthermore, Amazon announced an increase in logistics service fees during the 2025 holiday shipping season, which will affect shipments from October 15, 2025, to January 14, 2026. The new fee structure will vary according to item size tier and shipping weight, covering Fulfillment by Amazon (FBA), Canada and Mexico remote fulfillment, multi-channel fulfillment (MCF), and Prime Purchase Services. Sellers are advised to adjust their pricing strategies proactively to manage rising costs, as new peak fulfillment fees will be applied on shipments departing from operations centers starting October 15.

Additionally, Amazon is bolstering its global presence, as evident by the establishment of its first property in Vietnam, the creation of Amazon Kuiper Vietnam LLC, and application for a license to operate its low-Earth orbit satellite service in the country. The move is part of Amazon's broader strategy to enhance its satellite network, Kuiper, aimed at providing broadband internet services to remote areas and islands through a low-orbit satellite system.

In line with these new endeavors, the company is also gearing up for its 2025 Amazon Prime Day event slated for October 7-8, which will be hosted across 16 countries including the USA, Germany, Japan, and Singapore. Sellers will need to be attentive to the updated fee structures during the peak holiday fulfillment period as they navigate strategies amidst the ever-evolving e-commerce landscape.