Historically cautious about using Chinese technology in critical infrastructure, Vietnam has recently embraced Chinese firms as relations with Beijing have warmed, while tensions with Washington have risen over U.S. tariffs on Vietnamese exports. Publicly available procurement data indicates that Huawei won a $23 million contract for 5G equipment in April, shortly after U.S. tariffs were announced, while ZTE secured at least two contracts totaling over $20 million for 5G antennas.
Although European suppliers such as Sweden’s Ericsson and Finland’s Nokia, as well as U.S. chipmaker Qualcomm, continue to provide core 5G infrastructure, Chinese firms are increasingly participating in smaller, state-backed tenders. Experts note that the move could deepen economic integration with China, particularly given Hanoi’s recent progress on sensitive cross-border projects and special economic zones near the Chinese border.
Western officials have raised alarms over these developments, citing the potential risks of Chinese equipment to network security. The contracts have been discussed in high-level meetings in Hanoi, with some officials exploring ways to isolate areas using Chinese technology to prevent data leaks. Legal experts, however, caution that suppliers could still access network information, complicating cooperation between Western and Chinese firms.
Vietnamese telecom operators have highlighted cost advantages in choosing Chinese suppliers. A source at Viettel, the army-owned telecom operator, noted that Chinese technology was cheaper, while Huawei has also collaborated on technical services and signed a 5G technology transfer agreement with Viettel earlier this year.
The situation underscores Vietnam’s delicate balancing act between deepening ties with China and maintaining access to Western technologies, while pursuing its own industrial and digital development priorities.