Vietnam leans into China‑backed 5G expansion as US trade squeeze hits home economy

Vietnam is moving ahead with Chinese-built 5G equipment as tariffs from Donald Trump’s White House reach deeper into its export economy, according to Reuters.

The decisions show a real change in how Hanoi handles technology tied to Beijing, after years of keeping Chinese suppliers away from sensitive systems.

New contract filings reveal fresh deals for Huawei and ZTE, even as Western governments warn that these companies pose security risks. The new reality is clear, and every number on the page shows how far this shift has gone.

For years, Vietnam held back from buying Chinese gear. That restraint has eased. The government has warmed toward Beijing at the same time relations with Washington cooled over tariffs on Vietnamese goods.

While Ericsson and Nokia still run the core of the country’s 5G system and Qualcomm supplies important equipment, Chinese companies are winning more of the supporting work. The pattern appears in recent tenders that were not widely reported.

Vietnam awards major 5G contracts to Chinese vendors

A group that includes Huawei secured a $23 million contract in April for 5G equipment. That deal landed just weeks after Trump’s team announced new tariffs on Vietnamese exports.

ZTE picked up at least two deals, including one signed last week, worth over $20 million for 5G antennas. The first deal disclosed to the public arrived in September, one month after the tariffs went into effect.

Reuters said it could not confirm whether the timing was connected to the tariffs, but Western officials voiced concern after learning about the contracts.

Washington has long tied its support for advanced technology cooperation with Vietnam to one key rule: no Chinese contractors inside Vietnam’s digital backbone. The U.S. calls Huawei and ZTE an “unacceptable risk” to national security.

Sweden and other European governments follow similar restrictions. Ericsson refused to speak on the Chinese firms but said it was “fully committed to support its customers in Vietnam.” Huawei, ZTE, Nokia, Qualcomm, the U.S. embassy, the Chinese embassy, Sweden’s foreign ministry, and Vietnam’s tech ministry did not provide comments.

Vietnam now sits in the middle of a global contest for influence. Its position next to China and its central role in supply chains for companies such as Apple, Samsung, and Nike make every telecom decision a geopolitical data point.

Those companies rely on Chinese-made parts and Western consumers. That mix pulls Vietnam in two directions at the same time.

Supply chain scholar Nguyen Hung of RMIT University Vietnam said the country long took “a wait-and-see approach” to Chinese technology because of Western pressure.

Nguyen said, “Vietnam has its own priorities,” and he noted that recent deals could push deeper business ties with China.

Other projects show the same new mood, including work on cross-border rail lines and special economic zones near the Chinese border that Vietnam once rejected over security fears.

Western diplomats raise concerns about network access

Huawei lost several 5G bids this year, tender records show. But Huawei still maintains a presence in technical services.

In June, the company signed a 5G technology transfer agreement with Viettel, the military-owned telecom operator, based on comments from Vietnam’s defense ministry. Viettel did not reply to questions.

These Chinese contract wins surfaced in at least two recent meetings of senior Western officials in Hanoi. In one meeting, a U.S. official warned the contracts could hurt trust in Vietnam’s networks and block future access to U.S. advanced technology.

In another meeting this month, officials discussed whether parts of Vietnam’s network that use Chinese technology could be walled off to stop data leaks.

Telecom lawyer Innocenzo Genna said sealing off parts of the network would not solve the problem. Genna said antenna and equipment suppliers could still reach data. He added that “Western contractors may face the awkward prospect of working alongside firms they do not trust.”

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