Vietnam has deepened its cooperation with China’s technology sector after approving new 5G infrastructure deals with Huawei and ZTE, marking a significant shift in its regional strategy following recent U.S. tariff tensions. The agreements signal Vietnam’s growing willingness to work with major Chinese telecom firms despite previous hesitation tied to geopolitical pressure and cybersecurity concerns.
The new contracts allow Huawei and ZTE to supply key 5G equipment for Vietnamese telecom operators, enabling the country to speed up its national 5G rollout. Vietnam has been preparing for large-scale 5G deployment for several years, but uncertainty over equipment suppliers slowed progress. The renewed partnership with Chinese vendors now positions Vietnam to expand high-speed connectivity across major cities within a shorter timeline.
The shift comes shortly after Washington imposed new tariffs that hit several Asian economies, including Vietnam. These pressures appear to have pushed Hanoi to diversify its trade and technology relationships. China, eager to strengthen regional economic links, welcomed Vietnam’s openness to collaboration. The agreements also serve China’s broader ambition to maintain influence in Southeast Asia’s fast-growing digital markets.
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For Vietnam, the decision carries both technological advantages and strategic risks. Huawei and ZTE offer competitively priced equipment and strong deployment capabilities, helping Vietnam accelerate its digital transformation. The country aims to boost smart manufacturing, digital finance, and AI-driven services, all of which depend on reliable and affordable 5G networks.
However, the partnerships may complicate Vietnam’s long-standing balancing act between Beijing and Washington. The U.S. has repeatedly raised concerns about potential security vulnerabilities in Chinese-made telecom infrastructure. While Vietnam has not publicly dismissed these risks, it appears more focused on economic development and cost-effective deployment at this stage. Industry officials emphasized that Vietnam will maintain oversight mechanisms to safeguard its networks.
China’s diplomatic outreach also played a role. Bilateral relations have warmed in recent months, supported by increased trade, infrastructure cooperation, and diplomatic exchanges. The tech deals reflect this upward trajectory, with both sides highlighting the benefits of stable and mutually supportive ties. China views Vietnam as a vital economic partner, while Vietnam sees opportunities in China’s large-scale manufacturing and technology platforms.
For Huawei and ZTE, the agreements mark a valuable win as both companies face ongoing restrictions in Western markets. Southeast Asia continues to be a critical region for expansion, and Vietnam’s acceptance reinforces their relevance in global 5G development. The companies are expected to begin deployment quickly, enabling Vietnam’s telecom operators to launch broader 5G services within the next year.
The deals may also influence neighboring countries evaluating their own 5G rollout strategies. With competition intensifying among global telecom vendors, Vietnam’s move signals that Chinese technology remains attractive in markets where cost and deployment speed outweigh political concerns.
As Vietnam accelerates its digital infrastructure plans, the country will continue navigating complex geopolitical dynamics. The Huawei and ZTE agreements highlight its pragmatic approach—prioritizing economic growth and technological advancement while managing its relationships with major global powers.
