China’s leading telecommunication firms Huawei and ZTE have won a string of contracts this year to supply 5G equipment in Vietnam, in another sign of Hanoi’s strengthening bonds with Beijing, stirring concern among Western officials, according to seven people with direct knowledge of the situation, reports Reuters. For years, Vietnam was seen as reluctant to use Chinese technology in sensitive infrastructure, but in recent months it has embraced Chinese tech companies as sometimes frosty relations with its northern neighbour have warmed while ties with Washington have soured over tariffs on Vietnamese goods.
While Sweden’s Ericsson and Finland’s Nokia secured contracts for Vietnam’s 5G core infrastructure, with US chipmaker Qualcomm providing network equipment, Chinese companies have begun winning smaller tenders with state-owned operators, so far unreported public procurement data shows.
A consortium including Huawei was awarded a $23 million contract for 5G equipment in April, weeks after the White House announced tariffs on Vietnamese goods. ZTE has won at least two contracts, one last week, totalling more than $20 million for 5G antennas. The first publicly disclosed deal came in September, a month after US tariffs took effect.