Huawei, ZTE Seal 5G Deals in Vietnam
China's top telecommunications companies Huawei and ZTE have secured multiple contracts this year to provide 5G equipment in Vietnam, highlighting Hanoi's deepening ties with Beijing, which has raised concerns among Western officials, according to reports.
For years, Vietnam was perceived as hesitant to adopt Chinese technology in critical infrastructure, yet in recent months it has welcomed Chinese tech firms as relations with its northern neighbour have improved while connections with Washington have cooled due to tariffs on Vietnamese products.
Sweden's Ericsson (ERICb.ST) and Finland's Nokia (NOKIA.HE) have acquired contracts for Vietnam's 5G core infrastructure, while U.S. chip manufacturer Qualcomm (QCOM.O) supplies network equipment.
Meanwhile, Chinese firms have started to capture smaller tenders with state-owned operators, as indicated by yet to be published public procurement data.
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In April, a consortium that included Huawei received a $23 million contract for 5G equipment, shortly after the White House revealed tariffs on goods from Vietnam.
ZTE has secured at least two contracts, including one last week, amounting to over $20 million for 5G antennas. The initial publicly known agreement was announced in September, one month following the implementation of U.S. tariffs.
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Reuters was unable to determine if the timing of these victories was associated with U.S. tariffs, yet the agreements sparked worries among Western officials.
Washington has long recognized the exclusion of Chinese contractors from Vietnam’s digital infrastructure, particularly regarding undersea fibre-optic cables, as a crucial requirement for backing in advanced technologies.
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Huawei and ZTE face a ban from U.S. telecom networks due to being an unacceptable risk to national security. Sweden and several other European nations impose comparable limitations.
Ericsson chose not to comment on Chinese firms, but stated it is "fully dedicated to assisting its clients in Vietnam."
Huawei, ZTE, Nokia, Qualcomm, the U.S. embassy in Vietnam, China's embassy, Sweden's foreign ministry, and Vietnam's tech ministry replied to requests for comments.