Vietnam’s latest moves in telecom signal a noticeable shift in its strategic positioning. Major contracts for 5G equipment have been awarded to Huawei and ZTE, marking a break from years of caution toward Chinese technology in critical infrastructure. These deals, worth more than forty million dollars combined, show Hanoi’s growing willingness to diversify its suppliers beyond the usual Western vendors.
The change comes as Vietnam’s relationship with the United States cools after tariff tensions, while ties with China become warmer. In this new climate, Chinese companies have found doors opening again in sectors that were once viewed as too sensitive. Huawei’s consortium secured a large multi-million dollar contract earlier this year, and ZTE followed with antenna-equipment deals that pushed the total above the forty-million mark.
This shift raises concerns among Western partners, who associate Chinese telecom hardware with long-standing security risks. Many governments fear potential vulnerabilities in networks that handle national communications. Even so, Vietnam appears to be balancing these risks with economic and geopolitical considerations, all while pushing toward faster, broader 5G coverage.
On the technical side, the country continues deploying thousands of base stations through Viettel and experimenting with open-architecture networks to keep its options flexible. It suggests Vietnam wants both affordability and autonomy as it builds out its next-generation infrastructure. Whether this strategic recalibration deepens or remains temporary will shape the region’s tech landscape for years.
Why it Matters ?
Vietnam’s 5G deals with Huawei and ZTE matter because they show how Vietnam balances cost-effective tech development with geopolitical risks amid US tariffs. Using Chinese equipment helps Vietnam accelerate its 5G rollout and protect its export economy. However, these contracts raise Western security concerns about data vulnerabilities and strained US-Vietnam relations, reflecting a broader regional shift as countries navigate US-China tensions through independent tech strategies
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