Vietnam’s growing adoption of Huawei and ZTE 5G equipment signals a geopolitical shift toward Beijing, raising fresh security concerns among Western governments.
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| Vietnam’s new 5G contracts with Huawei and ZTE deepen China’s tech footprint in the region, complicating Hanoi’s balancing act between Beijing and Washington. Image: CH |
HANOI, VIETNAM — November 28, 2025:
Vietnam’s quiet but significant shift toward Chinese telecommunications suppliers is reshaping the strategic landscape of Southeast Asia. Throughout this year, China’s Huawei and ZTE have secured multiple 5G equipment contracts in Vietnam, marking a notable departure from Hanoi’s previous caution toward Chinese technology. According to sources cited by Reuters, the deals reflect warming ties between Vietnam and Beijing at a moment when relations with Washington are strained by newly imposed U.S. tariffs on Vietnamese goods.
For years, Vietnam resisted adopting Chinese technology in sensitive sectors, mindful of both security concerns and geopolitical optics. Its telecom networks traditionally leaned toward suppliers like Sweden’s Ericsson, Finland’s Nokia, and U.S. chipmaker Qualcomm. But new procurement data—previously unreported—shows Chinese firms steadily gaining ground. In April, a consortium including Huawei won a $23 million 5G equipment contract, shortly after the White House announced tariffs on Vietnamese exports. ZTE has also secured at least two antenna contracts exceeding $20 million, with one awarded just last week. While the timing may be coincidental, the sequence has unsettled Western officials who view Chinese telecom involvement as a direct security threat.
The United States has long pushed for Vietnam to keep Chinese vendors out of its digital infrastructure, from terrestrial networks to undersea cables. Washington, along with several European governments, has classified Huawei and ZTE as unacceptable security risks, banning them from domestic networks. That pressure has shaped Vietnam’s historically cautious “wait-and-see” stance. But analysts say Hanoi’s calculus is shifting. Nguyen Hung of RMIT University Vietnam notes that Vietnam’s economic priorities increasingly outweigh geopolitical hesitation, especially as it deepens cooperation with Beijing on sensitive projects including cross-border rail corridors and special economic zones along the Chinese border.
Even as Huawei lost several 5G bids earlier this year, it remained active through partnerships and technical agreements. In June, it signed a 5G technology transfer deal with Viettel, the powerful telecom arm of Vietnam’s military. Cost remains a compelling factor: a Viettel employee told Reuters that Chinese equipment is significantly cheaper than Western alternatives—an advantage that matters for a fast-growing but cost-sensitive telecom market.
The developments have prompted concern in recent meetings among senior Western diplomats in Hanoi. One U.S. official warned that incorporating Chinese components could erode trust in Vietnam’s networks and jeopardize future cooperation on advanced technology, including semiconductors and cybersecurity initiatives. Another discussion reportedly explored the possibility of isolating network segments that use Chinese equipment to contain potential data vulnerabilities.
However, experts caution that segmentation may offer only limited protection. Telecommunications lawyer Innocenzo Genna argues that even suppliers of seemingly low-risk components, such as antennas, could gain indirect access points. This raises an uncomfortable prospect for Western companies like Ericsson and Qualcomm: sharing technical responsibility within networks that include vendors they fundamentally distrust.
Vietnam’s growing reliance on Chinese 5G suppliers underscores its delicate balancing act in the escalating U.S.–China rivalry. As a non-aligned but strategically vital nation, Vietnam must navigate competing pressures, supply-chain dependencies, and economic imperatives. With Huawei and ZTE expanding their footprint, the country’s telecom decisions are becoming a new front in the global struggle for technological influence—one that could redefine alliances and reshape Asia’s digital future.