Huawei and ZTE Secure 5G Deals in Vietnam
- Vietnam embraces Chinese tech amid strained US relations
- ZTE, Huawei win major contracts as Vietnam shifts approach
- Western officials cast doubts on tech cooperation with Hanoi, sources say
Huawei and ZTE have signed several contracts this year to provide 5G equipment in Vietnam, signaling a change in Hanoi’s approach to Chinese technology. For years, Vietnam avoided using Chinese firms in sensitive infrastructure, but recent warming ties with Beijing have altered that stance. Relations with Washington have cooled following U.S. tariffs on Vietnamese goods, creating space for Chinese companies to expand. Public procurement data shows that while European and U.S. firms remain central to Vietnam’s 5G core, Chinese suppliers are gaining ground in smaller tenders.
Contracts and Regional Dynamics
A consortium including Huawei won a $23 million deal in April, shortly after U.S. tariffs were announced. ZTE secured at least two contracts worth more than $20 million for 5G antennas, with the first disclosed in September. Although the timing raises questions, it remains unclear whether the tariffs directly influenced these wins. Western officials have expressed concern, noting that Washington has long opposed Chinese involvement in Vietnam’s digital infrastructure.
Vietnam’s evolving relationship with China extends beyond telecom projects. The two countries have recently advanced cross-border rail initiatives and special economic zones, projects previously considered security risks by Hanoi. Huawei, despite losing several bids, signed an agreement in June to transfer 5G technology to Viettel, Vietnam’s army-owned telecom operator. Analysts suggest that cost advantages and closer political ties are driving Vietnam’s willingness to integrate Chinese technology.
Western Reactions and Security Concerns
The deals have been discussed in meetings among Western officials in Hanoi, where concerns about data security were raised. U.S. representatives warned that reliance on Chinese equipment could undermine trust and limit access to advanced American technologies. Some officials explored whether network areas using Chinese components could be isolated to reduce risks. Telecommunications lawyer Innocenzo Genna noted that Western contractors may face challenges working alongside firms they consider unreliable.
Vietnam’s balancing act between global powers highlights its strategic importance in the technology race. The country has become a major manufacturing hub for companies like Apple and Samsung, relying on both Chinese components and Western markets. Interestingly, Huawei and ZTE remain banned from U.S. networks due to national security concerns, yet they continue to find opportunities in regions navigating complex geopolitical pressures. This underscores how global telecom competition is shaped not only by technology but also by shifting political and economic alliances.
