Published: November 30, 2025
Vietnam’s 5G rollout has just become a frontline story in the global tech and trade war.
Over the past few days, multiple reports based on a Reuters exclusive and follow‑up coverage confirm that Chinese telecom giants Huawei and ZTE have secured a string of 5G equipment contracts in Vietnam worth more than US$43 million in total. The deals, awarded in 2025 to supply antennas and other network gear, come just months after the White House imposed new tariffs on Vietnamese exports – and they signal a clear warming in Hanoi–Beijing ties as relations with Washington cool. [1]
At the same time, Western vendors Ericsson and Nokia still control Vietnam’s 5G “core” network, while Qualcomm remains a key US supplier of equipment. The result is a deliberately mixed 5G architecture – Western at the center, Chinese at the edges – that tries to balance cost, speed and geopolitics. [2]
As of 30 November 2025, no government has moved to block the contracts, but Western officials have begun raising security concerns behind closed doors, turning Vietnam’s 5G rollout into a high‑stakes test case for how far Chinese vendors can push back into sensitive networks.
What Huawei and ZTE Actually Won in Vietnam
According to procurement data and multiple media reports, the newly revealed contracts in Vietnam break down roughly as follows: [3]
- Huawei‑linked consortium – US$23 million
- Won a contract in April 2025 to supply 5G equipment to a state‑run Vietnamese operator.
- The award came just weeks after the White House announced new tariffs on Vietnamese exports. [4]
- ZTE – 5G antennas worth more than US$20 million
- At least two contracts, including one signed “last week” relative to the Nov. 28 reports.
- The first publicly disclosed ZTE deal appeared in September 2025, around a month after the tariffs took effect. [5]
Combined, those wins put the total value of Chinese‑supplied 5G kit at over US$43 million – a meaningful foothold, even if it’s still smaller than Western vendors’ share of the market. [6]
The Tech Portal notes that the contracts are tied to Vietnam’s three dominant mobile operators – Viettel, VNPT’s VinaPhone and MobiFone – which together handle almost all mobile network investment. Viettel alone plans up to 20,000 new 5G base stations next year, making aggressive rollout and cost efficiency central to its procurement strategy. [7]
From “Wait‑and‑See” to “Lean‑In”: Vietnam’s Policy Pivot
For years, Vietnam was held up in Washington as a model of caution toward Chinese tech. Under US pressure – including the Trump‑era “Clean Network” initiative aimed at excluding Huawei and ZTE from allied 5G systems – Hanoi largely kept Chinese vendors out of core digital infrastructure. [8]
That posture is now changing.
The Reuters investigation describes how Vietnam “embraced Chinese tech companies” in 2025 as ties with Beijing improved, even while relations with the United States deteriorated under new tariffs on Vietnamese goods announced by President Donald Trump’s administration. [9]
Additional analysis from outlets such as Cryptopolitan, Intellectia and AInvest tracks a common narrative:
- US trade measures are squeezing Vietnam’s export‑driven economy. [10]
- China, meanwhile, is offering cheaper equipment, financing and technology‑transfer deals. [11]
- Hanoi is recalibrating, prioritizing growth and digital modernization even if that means closer alignment with Chinese suppliers. [12]
Vietnamese and Chinese leaders have also been moving ahead on other sensitive projects, including cross‑border rail links and special economic zones near the Chinese border, signalling a broader thaw in the relationship. [13]
Who Controls Vietnam’s 5G Network – and Where
Crucially, Vietnam has not handed its entire 5G system to Chinese vendors.
According to Reuters and regional follow‑ups, the 5G network is being split as follows: [14]
- Core network (the “brain” of 5G):
- Primarily in the hands of Sweden’s Ericsson and Finland’s Nokia.
- Supported by US chipmaker Qualcomm, which supplies key network components.
- Radio access network (RAN) and antennas – the “limbs”:
- Huawei and ZTE are now supplying antennas and other non‑core equipment via the new contracts.
This “mixed vendor” approach lets Vietnam:
- Keep sensitive routing and subscriber data on Western‑built core equipment, which aligns with long‑standing US guidance. [15]
- Leverage lower‑cost Chinese hardware for rapid, wide‑area 5G coverage in cities and industrial zones. [16]
However, telecommunications experts quoted in Reuters warn that even radio and antenna suppliers can, in some cases, gain access to traffic data and network metadata – a key reason Western countries remain wary. [17]
Western Security Fears Are Back on the Table
Huawei and ZTE have been banned from US telecom networks for years on national‑security grounds, with Washington calling them an “unacceptable risk.” Several European countries, including Sweden, have imposed similar restrictions. [18]
Vietnam’s new deals are therefore not just a local procurement story; they are seen in Western capitals as a strategic test case:
- Diplomatic concern in Hanoi
Western diplomats have already discussed the contracts in at least two senior‑level meetings in Hanoi, according to Reuters. In one of them, a US official reportedly warned that bringing Chinese vendors deeper into Vietnam’s networks could erode trust and jeopardize future access to advanced US technology. [19] - Segmentation as damage control
Officials have floated the idea of cordoning off parts of the network that use Chinese gear, hoping to prevent potential data leaks – although specialists note it’s difficult to fully isolate suppliers once they are inside the network. [20] - Europe’s parallel crackdown
The EU is weighing stricter limits on Huawei and ZTE in 5G systems, a move that is boosting business expectations for Nokia and Ericsson and underlining how controversial Vietnam’s decision may look from Brussels. [21]
Sweden’s foreign ministry summed up the Western mood by stressing that “secure and trusted telecommunications infrastructure” is essential as societies digitize – a pointed reminder that security concerns won’t disappear just because Vietnam’s market is attractive. [22]
Why Hanoi Is Still Saying Yes: Economics and 5G Timelines
If the geopolitical risks are so obvious, why is Vietnam going ahead?
1. A fast‑growing 5G market
AInvest’s analysis estimates that Vietnam’s 5G infrastructure market could grow from about US$822 million in 2024 to US$2.1 billion by 2030, backed by government‑mandated digital‑transformation programs. [23]
The same report and related research highlight that: [24]
- Vietnam already has more than 11,000 5G base stations, covering roughly 26% of the population.
- National plans aim for 100% fiber‑optic connectivity by 2025 and around 99% 5G coverage by 2030.
To hit those targets, operators need to keep building – fast.
2. Cost advantages of Chinese equipment
Chinese 5G equipment is often 30–50% cheaper than comparable hardware from Nokia or Ericsson, according to data cited in AInvest’s piece and other market studies. [25]
For Viettel, VNPT and MobiFone, which collectively shoulder the cost of national 5G rollout, that price gap can translate into:
- More base stations deployed per dollar
- Faster coverage expansion, especially in non‑premium regions
- Better margins or lower retail prices in a highly competitive mobile market
3. Tech transfer and local capacity
Vietnam is not just buying boxes.
Reuters reports that Huawei signed a 5G technology‑transfer agreement with Viettel in June 2025, allowing the army‑owned operator to deepen its own capabilities while rolling out Huawei‑supplied equipment. [26]
For Hanoi, such partnerships offer:
- Training and know‑how for local engineers
- Reduced long‑term dependence on foreign experts
- Political leverage, as Vietnam positions itself as a regional manufacturing and digital hub
The Digital Economy – and Crypto – Angle
Beyond geopolitics, the 5G decision is tightly linked to Vietnam’s digital‑economy ambitions.
Analysts at Intellectia and Cryptopolitan frame the Huawei/ZTE contracts as part of a broader push to: [27]
- Support e‑commerce, fintech and cloud‑services growth
- Expand high‑speed connectivity in industrial parks used by global manufacturers such as Apple, Samsung and Nike [28]
- Lay the groundwork for more sophisticated digital‑asset and crypto markets over the long term
Intellectia notes that there is no immediate impact on cryptocurrency prices, but argues that more robust 5G infrastructure should eventually make it easier for Vietnamese users and businesses to access digital‑asset platforms and on‑chain services. [29]
In other words, Vietnam’s decision is not just about who sells base stations; it’s about who powers the next decade of its digital growth.
Risks for Investors and Policymakers
The flip side is a cluster of long‑term risks that investors, regulators and partners will now have to price in:
- Sanctions and export‑control risk
If US–China tensions escalate, Washington could tighten export controls or impose new conditions on countries that rely heavily on Huawei and ZTE – potentially affecting Vietnam’s access to advanced chips, cloud technologies or defense‑related cooperation. [30] - Data‑sovereignty and cyber‑security concerns
Even with segmentation, Western governments worry that Chinese vendors might have technical pathways – or legal obligations – that could expose sensitive data. That fear has already driven “rip and replace” programs in some European states. [31] - Market fragmentation
As more countries choose sides in the 5G supply chain, global operators may have to juggle incompatible hardware, overlapping compliance regimes and complex risk disclosures – all of which raise long‑term operating costs. [32]
Still, from an emerging‑market investor perspective, Vietnam’s 5G build‑out remains a high‑growth story. AInvest points to opportunities in private 5G networks, data centers and green digital infrastructure, especially when blended‑finance models and green bonds are used to cushion political and currency risks. [33]
What’s New Today and What to Watch Next
As of November 30, 2025, the key developments around Vietnam’s China‑backed 5G expansion are:
- The core facts of the contracts – values, vendors and timing around US tariffs – are now widely confirmed across international and regional outlets building on Reuters’ reporting. [34]
- No formal reversal or freeze of the Huawei or ZTE deals has been announced by Hanoi or its partners.
- Western media and policy think‑tanks are shifting from “what happened?” to “what does this mean?”, with fresh analysis pieces on geopolitical risk, investor exposure and the future of “clean” versus “mixed” 5G networks. [35]
Over the coming weeks, observers will be watching for:
- Any public response from the US government beyond private warnings, especially around export controls or conditions on technology cooperation with Vietnam. [36]
- Whether Vietnam issues detailed cyber‑security guidelines for mixed‑vendor 5G networks, including how Chinese equipment will be segmented or monitored.
- New tenders or pilot projects that further expand Huawei and ZTE’s footprint in Southeast Asia, using Vietnam as a showcase. [37]
References
1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.reuters.com, 6. newswav.com, 7. thetechportal.com, 8. en.wikipedia.org, 9. www.reuters.com, 10. www.cryptopolitan.com, 11. www.ainvest.com, 12. www.ainvest.com, 13. www.reuters.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.ainvest.com, 17. www.reuters.com, 18. www.malaymail.com, 19. www.reuters.com, 20. www.reuters.com, 21. scandasia.com, 22. www.reuters.com, 23. www.ainvest.com, 24. www.ainvest.com, 25. www.ainvest.com, 26. www.reuters.com, 27. intellectia.ai, 28. www.reuters.com, 29. intellectia.ai, 30. www.ainvest.com, 31. scandasia.com, 32. www.ainvest.com, 33. www.ainvest.com, 34. www.reuters.com, 35. www.ainvest.com, 36. www.reuters.com, 37. www.ainvest.com
