KEY POINTS
- Vietnam’s third-largest telecom operator, the police-owned Mobifone, is reportedly in talks with Chinese tech giants, including Huawei, for new 5G infrastructure contracts.
- This move follows 2025 agreements between market leaders Viettel and VNPT with Huawei and ZTE, marking a significant departure from Vietnam’s previous exclusion of Chinese 5G equipment.
- U.S. officials have warned that reliance on Chinese suppliers could jeopardize future American investment and national security, while Vietnamese officials cite cost-effectiveness and reliability as primary drivers.
Vietnam is signaling a major strategic shift in its telecommunications landscape by deepening its reliance on Chinese technology for the national 5G rollout. According to recent reports, Mobifone, the state-owned operator under the Ministry of Public Security, is currently negotiating with Chinese firms to build substantial portions of its network. These discussions precede an upcoming official visit to Beijing by Vietnam’s top leader, To Lam, highlighting a period of warming diplomatic and economic ties between the two neighboring communist nations.
The potential deal follows a trend established last year when industry leaders Viettel and VNPT—which were recently honored at MWC 2026 for their network achievements—signed contracts with Huawei and ZTE. This is a notable reversal from 2020, when Vietnam largely aligned with the U.S.-led “Clean Network” initiative to keep Chinese vendors out of sensitive digital infrastructure. While Western firms like Ericsson, Nokia, and Qualcomm remain critical providers for the core 5G systems, Chinese companies are increasingly winning tenders for essential components like base stations and advanced antennas.
Western diplomats in Hanoi have expressed significant apprehension regarding these developments. In recent high-level meetings, U.S. officials cautioned that incorporating Chinese equipment could undermine the integrity of Vietnam’s data networks and potentially limit the country’s access to advanced American technologies. Washington has long designated Huawei and ZTE as national security threats, alleging that they could be compelled by Beijing’s intelligence services to share sensitive data. Some Vietnamese officials have explored the possibility of “sealing off” areas using Chinese tech from the rest of the network to mitigate leak risks, though experts remain skeptical of such isolation.
Despite these warnings, the “wait-and-see” approach Vietnam previously held toward Chinese tech is giving way to pragmatic economic priorities. Industry insiders suggest that Chinese equipment is not only significantly cheaper but also highly reliable for the rapid expansion required to meet Vietnam’s goal of near-universal 5G coverage. Furthermore, as ties with Washington have faced friction over recent trade tariffs, Hanoi appears more willing to diversify its technological partnerships and integrate more deeply with China’s digital supply chain.
As the 5G rollout accelerates, particularly in industrial hubs like Ho Chi Minh City, the balance between cost, speed, and security will define Vietnam’s digital future. While the country continues to collaborate with Western giants on 6G research and AI-integrated systems, the inclusion of Chinese firms in its 5G infrastructure sets a new precedent for its “bamboo diplomacy,” navigating the intense technological competition between the world’s two largest economies.
