Vietnam’s leading telecommunications companies Huawei and ZTE have secured multiple contracts this year to supply 5G equipment in the Southeast Asian nation, highlighting a subtle shift in Hanoi’s approach to Chinese technology and prompting concern among Western officials, according to seven people familiar with the matter.
Historically cautious about integrating Chinese technology into sensitive infrastructure, Vietnam has in recent months opened its doors to Chinese tech firms as relations with Beijing improve and tensions with Washington over trade issues intensify.
The United States imposed tariffs on Vietnamese goods earlier this year, straining bilateral ties and prompting Hanoi to recalibrate its strategic priorities.
While Swedish telecom giant Ericsson and Finnish firm Nokia have won contracts for Vietnam’s 5G core network infrastructure—supported by U.S. chipmaker Qualcomm—Chinese companies have increasingly captured smaller tenders with state-owned operators, according to public procurement data not widely reported.
A consortium led by Huawei was awarded a $23 million contract for 5G equipment in April, just weeks after the White House announced tariffs on Vietnamese exports. ZTE has won at least two contracts totaling over $20 million for 5G antennas, with the first publicly disclosed deal coming in September, a month after the tariffs took effect.
The United States has long viewed the exclusion of Chinese vendors from digital infrastructure—including undersea fiber-optic cables—as a prerequisite for granting Vietnam access to advanced technologies.
Huawei and ZTE are banned from U.S. telecom networks, which Washington regards as an “unacceptable risk” to national security. Several European countries, including Sweden, have enacted similar restrictions.
Ericsson declined to comment on the involvement of Chinese companies but reaffirmed its commitment to supporting customers in Vietnam.
Vietnam, a strategically non-aligned nation, is a critical battleground in the global competition for technological influence. Its geographic proximity to China has made it a hub for multinational manufacturing, with companies such as Apple, Samsung, and Nike relying on Chinese components while catering to Western markets.
Under Western pressure, Vietnam traditionally adopted a cautious stance toward Chinese technology. “Vietnam has long taken a wait-and-see approach,” said Nguyen Hung, a supply chain specialist at RMIT University Vietnam. “But Hanoi has its own priorities. These new deals could deepen economic integration with China.”
Recent months have seen progress on other sensitive projects between Hanoi and Beijing, including cross-border rail links and special economic zones near the Chinese border, areas previously considered security risks.
Huawei, despite losing several bids for Vietnam’s 5G equipment this year, has collaborated on technical services and signed a 5G technology transfer agreement in June with Viettel, Vietnam’s army-owned telecom operator, according to the Vietnamese Ministry of Defense. Viettel declined to comment, though one source said Chinese technology was chosen for its lower cost.
The Chinese contracts have been discussed in at least two meetings of senior Western officials in Hanoi in recent weeks. In one session, a U.S. official warned that integrating Chinese technology could undermine trust in Vietnam’s networks and restrict access to U.S. advanced technology.
Officials reportedly considered whether networks using Chinese equipment could be isolated to prevent potential data leaks. However, telecommunications lawyer Innocenzo Genna noted that suppliers of antennas and equipment could still gain access to network data, creating a situation where Western contractors may have to work alongside firms they do not fully trust.
