A 5G tower in Vietnam highlighting rising security concerns over foreign telecom suppliers.
Introduction: Huawei and ZTE of Vietnam 5G security concerns
A New Turning Point in Asian Telecom Vietnam’s rapidly growing economy has now joined the race for 5G technology. Chinese giants Huawei and ZTE have secured several 5G contracts in Vietnam, but these deals come just after US tariffs This appears to further strengthen relations between Vietnam and China. Western countries are concerned, raising concerns about national security threats However, Vietnam has chosen its own path This news comes from an exclusive Reuters report.
While this incident opens a new chapter in the US-China trade war, countries like Vietnam consider 5G the foundation of their digital revolution 5G networks offer faster speeds and boost smart cities, automation, and e-commerce. But this technology isn’t just about business it’s also a game of geopolitic The US considers Chinese firms a tool for espionage. Vietnam is now accommodating these firms Why? US tariffs put Vietnam under pressure, while China provided relief As a result, Huawei and ZTE gained market share.
The 5G Journey in Vietnam and 5G security concerns
Challenges from the Start: Vietnam’s telecom industry has been growing rapidly. In 2020, the country began 5G trials State-owned operators like Vitel were at the forefront. Vitel, affiliated with the Vietnamese military, is the country’s largest telecom player. By 2023, Vietnam launched commercial 5G However, challenges remained, including Western restrictions on Chinese equipment. Sweden’s Ericsson and Finland’s Nokia secured the core infrastructure American Qualcomm supplied chips, and Chinese firms were not far behind. Huawei entered Vietnam in 2019 but failed to secure major contracts. ZTE also tried, but Vietnam adopted a “wait and see” approach due to Western pressure. However, despite a change in 2025, US tariffs hurt Vietnamese exports Vietnam turned to China. The result? New Deals
Deal Details: Who, What, and How Much
According to a Reuters report, Huawei and ZTE won several contracts this year A Huawei consortium secured a $23 million contract in April for 5G equipment. This deal came just after the White House imposed tariffs on Vietnamese goods. ZTE won at least two contracts worth over $20 million for 5G antennas One was disclosed in September. The other came last week. Viettel signed a 5G technology transfer agreement with Huawei in June, which will provide local manufacturing to Vietnam ZTE’s deals are small but significant. It supplies antennas. Western firms handle the cores.
Ericsson and Nokia make 5G cores, and Qualcomm provides network equipment But Chinese firms have now gained the upper hand. These deals, as revealed by public procurement data, were unreported, with a total value exceeding $40 million. Other Vietnamese operators, such as VNPT and MobiFone, are also included Huawei focused on services, but then lost the initial bid.
US Tariff Trigger or Coincidence?
The US imposed tariffs on Vietnam in 2025 The US suspected that Vietnam was re-exporting Chinese goods. The tariffs hit Vietnam’s economy, sending exports down 10%. Vietnam responded by increasing trade with China. In 2025, bilateral trade reached $200 billion. The timing of the deals after the tariffs is questionable Huawei’s April deal came weeks after the tariffs ZTE’s September deal came after that, yet there’s no direct link. But the connection is clear Vietnam is now dependent on China. Work on cross-border rail links is accelerating Despite this, special economic zones are being created near the Chinese border.
These were previously considered a security risk, but not anymore, and the US is concerned Vietnam was kept away from Chinese contractors for undersea fiber-optic cables in exchange for US tech support. But a rift has emerged over 5G, as Western officials held meetings in Hanoi, warning These deals will break trust The US Embassy declined to comment.
Warming relations with China, economic necessity or strategy?
Vietnam and China’s relationship is complex Disputes in the South China Sea, but the economy, which connects China, are Vietnam’s largest trade partner. In 2025, investment increased by 15%. 5G deals are part of this. Despite this, Nguyen Hung, a supply chain specialist at RMIT University, says Under Western pressure, Vietnam adopted a wait-and-see approach to Chinese tech But Vietnam has its own priorities Vietnam wants to build a digital economy through 5G.
GDP growth is expected to reach 2% Chinese firms offer cheap equipment, while Western ones are expensive. But there’s a risk of data leaks Innocenzo Genna, a telecom lawyer, says, “Antenna suppliers can access network data.” Western firms will have to work with unreliable partners, yet Vietnam is included in China’s Belt and Road Initiative Rail projects are accelerating. All of this is linked to 5G and smart border management. But the US calls it a “debt trap Vietnam disagrees. It wants to strike a balance.
Security Concerns in Vietnam 5G security
The US considers Huawei and ZTE a national security threat. A ban has been in place since 2019, as has Sweden and Europe. The reasons? Backdoor access Fear of espionage In Vietnam, these deals will weaken networks Options discussed in Western meetings Sealing Chinese tech Preventing data leaks. But the difficulty is also there. Sun said, “We will support Vietnamese customers Huawei and ZTE did not comment The Chinese embassy is silent, yet these deals make Vietnam a battleground between the US and China Western tech access is at risk. Vietnam will have to choose. Furthermore, the economic benefits, which Vietnam wins, will bring jobs from these deals. Local manufacturing will increase Huawei’s tech transfer will strengthen Vitel. ZTE’s antennas are cheaper. Connectivity is faster Revolution in e-commerce and healthcare Vietnam’s 5G coverage will reach 50% by 2026.
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