Huawei and ZTE Win Over $43 Million in Vietnam 5G Contracts Amid US Tensions

Chinese tech giants Huawei and ZTE have secured major 5G contracts in Vietnam this year. The deals are worth a combined total exceeding $43 million. This marks a significant strategic shift for Vietnam’s telecommunications infrastructure.The timing coincides with recent trade tensions with the United States. According to Reuters, the contracts signal a warming relationship between Hanoi and Beijing on technology cooperation.

Contract Details Reveal Strategic Infrastructure Push

A Huawei-led consortium won a $23 million contract for 5G network equipment in April. ZTE secured separate deals for 5G antennas totaling over $20 million. The equipment will be deployed by state-owned Vietnamese telecom operators.This represents a notable policy change. Vietnam had previously limited Chinese involvement in sensitive network builds due to Western security concerns.The new contracts focus on radio access network equipment and antennas. Core network infrastructure remains largely supplied by European firms Ericsson and Nokia. This mixed-vendor approach attempts to balance cost and perceived risk.

Geopolitical Shift Influences Vietnam’s Tech Choices

The move follows increased US tariff pressure on Vietnamese exports in recent months. Analysts see this as Hanoi diversifying its economic and technological partnerships. Closer integration with Chinese tech offers cost advantages for rapid 5G rollout.Western officials have expressed unease about the contracts. They warn that integrating Chinese equipment could complicate future technology sharing. The US has long counseled allies against using Huawei and ZTE gear in critical networks.Despite this, Vietnam is proceeding with the deals. The country aims to accelerate its national 5G deployment schedule. Competitive pricing and available financing from Chinese suppliers proved decisive factors.

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This influx of Chinese 5G equipment reshapes Vietnam’s digital landscape and its position in the US-China tech rivalry. The long-term security and diplomatic implications of these contracts will be closely watched by global observers.

Thought you’d like to know

How much are the new Vietnam 5G contracts worth?

The confirmed contracts for Huawei and ZTE total over $43 million. This figure covers equipment deals signed in the first half of the year. The value may increase with future agreements.

Why is Vietnam signing these deals now?

The contracts come amid trade tensions with the United States. Vietnam is also seeking faster and more affordable 5G deployment. Chinese suppliers offer competitive pricing and available technology.

Are there security concerns with this equipment?

Western governments have long expressed security concerns about Huawei and ZTE. They warn the gear could be used for espionage. The companies and Chinese government deny these allegations.

Who is still supplying Vietnam’s 5G core network?

European firms Ericsson and Nokia continue to supply Vietnam’s core 5G network infrastructure. This is considered the most sensitive part of the telecom system. The new Chinese contracts are for other network components.

How does the US view these contracts?

US officials view the contracts with concern. They see it as a setback for efforts to limit Chinese tech in allied networks. The deals could influence future US-Vietnam technology cooperation.

What does this mean for other ASEAN countries?

Vietnam’s decision may influence other Southeast Asian nations. Many are also weighing cost against security in their 5G builds. The region remains a key battleground for US and Chinese tech influence.