A new development in Vietnam’s telecom sector suggests that the country may expand cooperation with Chinese technology companies for its 5G network rollout. Reports indicate that Mobifone, Vietnam’s police-owned telecom operator, is currently in discussions with Chinese tech firms for contracts related to building parts of its 5G infrastructure.
The talks come ahead of the official visit of Vietnam’s top leader To Lam to China. According to a report by an international news agency, Mobifone is expected to launch a tender for advanced antennas, also known as base stations. Chinese companies could play a significant role in this upcoming 5G deployment. The report also stated that the decision to award contracts to Chinese suppliers may already have been made, while another source mentioned the possibility of quotas for them.
Shift from earlier policy
If confirmed, the move would mark a clear shift from Vietnam’s earlier stance. In 2020, the country joined the Clean Network initiative, a US-led effort that aimed to exclude Chinese 5G equipment from telecom networks.
However, in 2024, Vietnam’s telecom leaders Viettel and VNPT signed agreements with Huawei and ZTE, indicating a gradual shift in policy.
US raises security concerns
The report also highlighted security concerns raised by the US State Department. A spokesperson told the news agency that countries should prioritise national security over lower-cost equipment, warning that Chinese intelligence services could compel companies to share sensitive data.
The United States has already banned Huawei and ZTE from its domestic telecom networks, describing them as “security threats.”
Currently, Mobifone’s 5G infrastructure remains limited. However, it already includes Huawei base stations located in central Ho Chi Minh City, close to the U.S. Consulate and several foreign offices.
US officials have also warned that heavy reliance on Chinese suppliers could affect future American investment in Vietnam. Despite this, Vietnamese officials reportedly believe that Chinese equipment is cheaper and reliable. They also noted that most of the country’s existing 5G network has been built using technology from Ericsson, Nokia, and Qualcomm.
The latest discussions suggest that Hanoi may deepen its telecom cooperation with Chinese companies despite pressure from Western countries.
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