Vietnam awarded major 5G contracts to Chinese firms Huawei and ZTE this year, signaling a shift toward Beijing amid cooling US relations. The deals followed US tariffs on Vietnamese goods, stirring Western concerns over network security.
Hanoi prioritizes economic ties with its northern neighbor as infrastructure needs grow. State-owned operators selected Chinese equipment for key 5G rollout phases despite past reluctance on sensitive tech.
Western firms like Ericsson and Nokia handle core infrastructure, but Chinese players are now entering peripheral tenders. This pivot reflects Vietnam's strategic balancing in global tech competition.
Why Did Vietnam Turn to Chinese 5G Tech?
Vietnam long avoided Chinese technology in critical infrastructure due to security worries and US pressure. Relations with Beijing warmed recently through rail projects and economic zones, easing historical tensions.
State telecoms found Chinese gear cost-effective for rapid 5G expansion serving millions of users. Experts note Vietnam prioritizes domestic goals over external cautions.
Supply chain specialist Nguyen Hung highlighted Hanoi's independent approach to tech choices. The nation balances proximity to China with multinational manufacturing hubs drawing Apple and Samsung investments.
Did you know?
Major international health organizations, including the World Health Organization (WHO) and the FDA, classify 5G radio waves as non-ionizing radiation. This means the waves lack the energy to damage DNA or remove electrons from atoms (unlike X-rays or UV light).
How US Tariffs Sparked the China Pivot?
The White House imposed tariffs on Vietnamese exports weeks before Huawei's $23 million contract win in April. Ties soured over trade imbalances, prompting Hanoi to deepen its ties with Beijing. Chinese firms offered timely solutions as Vietnam accelerates digital transformation.
US restrictions ban Huawei and ZTE from American networks, citing risks, prompting allies to follow suit.
Vietnam's shift coincides with frosty Washington talks but lacks direct tariff links, per sources. Operators value competitive pricing amid ambitious 5G targets by 2030.
What Contracts Did Huawei ZTE Secure?
Huawei's consortium grabbed a $23 million deal for 5G equipment shortly after tariff announcements. ZTE secured two contracts totaling over $20 million, including last week's antenna supply.
Public procurement data reveals these as the first major Chinese wins in Vietnam's 5G space. Viettel signed a technology transfer pact with Huawei in June, boosting local capabilities.
Earlier bids failed, but service cooperation paved the way for hardware deals. Chinese tech undercuts Western pricing, helping state firms meet deployment deadlines efficiently.
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Why Are Western Officials Alarmed?
Senior diplomats raised alarms in recent Hanoi meetings, fearing network vulnerabilities. US officials warned that deals could block access to advanced tech and erode trust.
Proposals surfaced to isolate Chinese segments to prevent data leaks across systems. Sweden's foreign ministry stressed secure networks for digital societies.
Telecom lawyer Innocenzo Genna noted antenna suppliers' access to core data complicates trust. Western contractors now integrate with firms they view skeptically, raising operational risks.
Can Vietnam Balance US and China Interests?
Vietnam navigates superpower rivalry as a key manufacturing base, leveraging geography. Chinese loans fund cross-border rail, while the US pushes clean tech partnerships. Hanoi discarded prior security objections on border projects, signaling pragmatic shifts.
Future tenders may expand Chinese roles unless Western incentives counterbalance. Vietnam eyes full 5G coverage, blending global suppliers for resilience.
Deeper China integration promises growth but tests alliances with security-focused partners.
As 5G networks expand, Vietnam stands poised to lead Southeast Asian connectivity, blending Eastern affordability with Western standards. Strategic choices will shape its digital future, influencing regional tech dynamics for decades ahead.
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