Vietnam's long-standing mistrust of Chinese technology has significantly changed this year with the acquisition of several 5G supply contracts by China's telecom behemoths Huawei and ZTE. The series of honours coincides with improving ties between China and Vietnam and escalating tensions between Washington and Hanoi as a result of American tariffs on Vietnamese goods.
Numerous business and diplomatic sources claim that the agreements, which were previously unreported, show Vietnam's changing priorities in a geopolitical setting where international competition for technology is becoming more fierce.
Vietnam's 5G Rollout: A Rush of Chinese Victories
Insiders' review of procurement data reveals that:
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In April, just weeks after the White House announced new tariffs on Vietnamese exports, a consortium led by Huawei was awarded a $23 million contract for 5G equipment.
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ZTE secured two more contracts for 5G antenna systems totalling more than $20 million, including one last week.
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It wasn't until September, one month after U.S. tariffs went into effect, that the first Chinese contract was made public.
Western governments have expressed concern that the presence of Chinese companies in Vietnam's digital infrastructure poses risks to network integrity and future technological cooperation, even though it is still unclear whether the contract timing was directly impacted by U.S. trade measures.
Vietnam strikes a balance between geopolitics, economics, and technology
Vietnam has long preferred non-Chinese 5G providers for critical core systems. Because of this:
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For Vietnam's primary 5G network, Ericsson (Sweden) and Nokia (Finland) won significant contracts.
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For network hardware, Qualcomm (U.S.) continued to be a major supplier.
However, a slow and deliberate recalibration is indicated by the entry of Chinese companies into smaller, state-owned operator tenders. According to analysts, tense trade relations between the United States and Vietnam may be hastening Hanoi's desire to expand its technology alliances.
Vietnam's pragmatic approach is further supported by its close proximity and industrial ties to China, which is home to major component suppliers for international brands like Samsung, Apple, and Nike.
Boosting Cooperation Between China and Vietnam
The two neighbours have recently advanced historically delicate projects outside of telecommunications:
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Cross-border railway advancements
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Near the Chinese border, new economic zones
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Frameworks for cooperation in technology
In June, Huawei signed a 5G technology transfer agreement with Vietnam's army-owned telecom operator, Viettel, despite losing several bids this year. Lower equipment costs continue to give Chinese suppliers a competitive edge, according to a Viettel insider.
Network Security Issues and Western Alerts
Senior Western officials in Hanoi have begun talking about China's recent victories. Diplomatic sources report:
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The involvement of ZTE and Huawei could erode confidence in Vietnam's networks, U.S. representatives warned
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There have been worries that Vietnam might jeopardise future access to cutting-edge American technologies, especially in defence and digital transformation initiatives
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In order to lower the risks of data exposure, officials investigated whether network segments supplied by China could be isolated; however, experts claim that this type of segmentation provides little protection
Innocenzo Genna, a telecom lawyer, warned that even suppliers of peripheral equipment, like antennas, might obtain sensitive network data, making collaboration between Chinese and Western vendors more difficult.
A pivotal moment in strategy
Vietnam is situated at the crossroads of the competition between major powers. Hanoi's procurement decisions indicate a strategic balancing act that prioritises affordability, industrial alignment, and diplomatic flexibility as the world's 5G infrastructure becomes more politicised.
According to the most recent contracts, Vietnam is willing to allow more Chinese involvement in its rollout of next-generation telecom, despite pressure from the West. A crucial question for the region's technology and security landscape is whether this recalibration improves its infrastructure or puts pressure on its Western alliances.
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