Vietnam’s telecom landscape is undergoing a marked geopolitical shift as Chinese firms Huawei and ZTE quietly win new 5G contracts after years of limited access. While Sweden’s Ericsson, Finland’s Nokia, and U.S. chipmaker Qualcomm still dominate Vietnam’s core telecom infrastructure, recent government procurement data reveals that Chinese vendors have gained traction among state-owned mobile operators—a development that Western governments view as strategically alarming.

A Gradual but Significant Reopening to Chinese Telecom Firms

The shift comes after a period of frosty relations between Hanoi and Beijing, during which Vietnam largely avoided Chinese technology in sensitive infrastructure projects. Yet a series of 2025 tenders—previously unreported—shows a meaningful change in approach.

In April, a Huawei-led consortium secured a $23 million contract for 5G equipment, just weeks after Washington imposed new tariffs on Vietnamese exports. ZTE followed with wins totaling more than $20 million, including a contract awarded last week for 5G antennas. Industry sources indicate that some tenders saw Chinese firms offering prices meaningfully below Western competitors.

These developments extend beyond simple procurement choices; they reflect Vietnam’s recalibration as relations with the U.S. become strained and Beijing offers deeper economic incentives. Analysts note that while timing does not confirm causation, the correlation between U.S. tariffs and Vietnam’s renewed openness to Chinese suppliers is difficult to ignore.

Why Vietnam Is Shifting—and Why the West Is Alarmed

For multinational corporations such as Apple, Samsung, and Nike, Vietnam’s strategic position between Western consumers and Chinese supply chains has made it a vital manufacturing hub. But as Hanoi seeks infrastructure upgrades and economic diversification, it appears increasingly willing to accept the strategic trade-offs of working with China’s telecom giants.

Huawei has been banned from U.S. networks and restricted in many European markets due to security concerns. For Washington, keeping Chinese vendors out of Vietnam’s digital infrastructure has long been a key condition for future technology cooperation.

Now, Western officials fear that even peripheral exposure—such as antennas, support systems, or equipment maintenance—could create vulnerabilities. Diplomatic sources say the issue has been raised in multiple high-level meetings, with U.S. officials warning that deeper Chinese integration could compromise trust in Vietnam’s networks and limit its access to advanced U.S. technologies.

Efforts to isolate Chinese-supplied equipment within the network have been discussed, but experts caution that suppliers of antennas and hardware may still gain access to data pathways.

Vietnam Balancing Security Risks Against Economic Realities

Vietnam insists that adopting Chinese technology is part of a broader strategy to expand economic ties with Beijing while maintaining a diverse set of global partners. State-linked operator Viettel, which signed a 5G cooperation agreement with Huawei in June, is reportedly motivated by cost advantages—an especially important factor as it seeks nationwide deployment at scale.

Hanoi is also reviving previously stalled China-linked infrastructure projects, a sign that cooperation between the two countries is likely to deepen.

What to Watch Next

Vietnam’s next moves in telecom procurement will signal whether this shift is tactical or permanent. If Chinese vendors continue to gain share in 2026, Western companies may face restricted access to Vietnam’s tech ecosystem. Conversely, any renewed U.S. engagement—whether economic or.security-oriented—could slow or reverse the trend. The coming year will determine whether Vietnam can sustain its delicate balancing act between two competing technological spheres.