Huawei, ZTE Seal 5G Deals in Vietnam

China’s leading telecommunications firms Huawei and ZTE have secured a string of contracts this year to supply 5G equipment in Vietnam, in another sign of Hanoi’s strengthening ties with Beijing — a trend that has stirred concern among Western officials, seven people with direct knowledge of the matter told Francesco Guarascio of Reuters.

ZTE has won at least two contracts totaling more than $20 million for 5G antennas. (Photo: ZTE)

For years, Vietnam was viewed as reluctant to adopt Chinese technology in sensitive infrastructure.

But in recent months, it has increasingly embraced Chinese tech firms as previously cool relations with Beijing have warmed, while ties with Washington have soured over U.S. tariffs on Vietnamese goods.

Sweden’s Ericsson and Finland’s Nokia won contracts for Vietnam’s 5G core infrastructure, with U.S. chipmaker Qualcomm providing network equipment.

However, Chinese companies have recently begun winning smaller tenders from state-owned operators, according to previously unreported public procurement data.

A consortium including Huawei secured a $23 million contract for 5G equipment in April, just weeks after the White House announced new tariffs on Vietnamese goods.

ZTE has won at least two contracts totaling more than $20 million for 5G antennas — with the most recent awarded last week.

The first publicly disclosed deal came in September, one month after U.S. tariffs took effect. Reuters could not determine whether the timing was linked to the tariff actions, but the deals have raised concerns among Western officials.