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Vietnam eyes 5G deals with Chinese tech firms: sources
Mobifone, a police-owned Vietnamese telecom operator, is negotiating with Chinese firms to build parts of its 5G network, three people briefed on the plan said.
The talks follow Viettel and VNPT signing 5G supply contracts with ZTE and Huawei last year.
Mobifone plans to tender for advanced 5G base stations, with two sources citing possible quotas for Chinese firms, while a third said a decision had already been made to award contracts to them.
Vietnam joined the US Clean Network in 2020, committing not to use Huawei and ZTE equipment in 5G networks, but Viettel and VNPT have since signed contracts with these Chinese suppliers.
A US State Department spokesperson said that Chinese law allows companies to be compelled to share data, raising security concerns about Chinese 5G equipment.
US officials also cautioned in February that reliance on non-trusted providers could jeopardize future American investment in Vietnam, a source said.
🔗 Source: Reuters
🧠 Food for thought
Implications, context, and why it matters.
Cost and speed outweigh US security warnings in Vietnam
- Vietnam’s choice has an economic angle, since local officials see Chinese equipment as cheaper and dependable 1.
- Huawei and ZTE have landed more than $40 million in Vietnam 5G deals, mostly for antennas plus other non-core hardware 2.
- The spending supports a national 5G rollout that targets 99% population coverage by 2025, which tends to favor lower-priced vendors 3.
- Some awards arrived soon after the US set tariffs on Vietnamese goods, though the link between the timing and the tariffs remains unclear 2.
US sanctions paradoxically strengthen Huawei’s core business
- Vietnam aligns with a wider pattern where countries use Nokia and Ericsson for the network core (the central part of a mobile network that routes traffic and manages subscriber data) while buying lower-cost Chinese gear for parts such as antennas 2.
- This blended setup helps developing economies keep budgets in check while handling geopolitical strain without locking into one technology stack 4.
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