Key Points
- Vietnam is awarding 5G contracts to China’s Huawei and ZTE, a significant policy shift.
- The move comes as tariffs strain Vietnam’s relationship with China, which is warming, and its ties with the U.S.
- Western officials are concerned, warning that using Chinese technology poses a national security risk.
- The U.S. has told Vietnam this could jeopardize its access to advanced American technology.
China’s top telecom firms, Huawei and ZTE, are winning contracts to help build Vietnam’s 5G network, a major shift that is strengthening ties between Hanoi and Beijing but raising red flags for Western officials.
For years, Vietnam avoided using Chinese technology in its critical infrastructure. That stance appears to be changing as its relationship with China warms, while its ties with Washington have become strained over new U.S. tariffs on Vietnamese goods.
While European companies like Nokia and Ericsson won the main contracts for the 5G “core,” the Chinese firms are now picking up smaller but significant deals. Public data shows a group including Huawei landed a $23 million deal for 5G equipment, while ZTE has secured at least two contracts for antennas worth over $20 million.
Washington has long warned Vietnam that using Chinese tech could put future U.S. support for advanced technology at risk. The U.S. and several European countries have banned Huawei and ZTE from their own networks, calling them an “unacceptable risk” to national security.
The new deals have become a hot topic for Western diplomats in Hanoi. In recent meetings, a U.S. official reportedly warned that the move could undermine trust in Vietnam’s networks.
Officials are even discussing ways to “seal off” the Chinese equipment from the rest of the network to prevent data leaks, highlighting the deep-seated security fears. The decision reflects Vietnam’s delicate balancing act amid the global U.S.-China rivalry.
