5G market shifts as Huawei and ZTE win major Vietnam contracts, signaling change in tech alliance strategy

5G market gains reshape Vietnam’s tech partnerships as Huawei and ZTE secure major contracts totaling over $43 million this year. The deals mark a significant shift in Vietnam’s approach to network infrastructure. Western officials express growing concern about Chinese technology integration in sensitive telecom systems.

5G Equipment Deals Transform Vietnam’s Infrastructure Choices

Vietnam has historically resisted Chinese technology in critical infrastructure under pressure from Western allies. Recent months show a dramatic reversal.

A Huawei-led consortium won $23 million for 5G equipment in April, just weeks after Washington announced fresh tariffs on Vietnamese goods. ZTE followed with antenna contracts exceeding $20 million, with the latest deal signed last week according to Reuters sources.

Strategic Shift Reflects Warming Vietnam-China Relations

Vietnam’s relationship with Beijing has noticeably improved after cooling ties with Washington over tariff disputes. The nation is exploring deeper economic integration with China across multiple sectors.

Beyond 5G contracts, Hanoi and Beijing have made progress on cross-border rail links and special economic zones that Vietnam previously rejected as security risks. Huawei signed an agreement in June 2025 on 5G technology transfers with Viettel, Vietnam’s army-owned main telecom operator.

Western Infrastructure Strategies Face New Challenges

Provider	Technology Focus	Status
Huawei	5G Equipment, Antennas	Multiple contracts awarded
ZTE	5G Antennas	At least two contracts secured
Ericsson	5G Core Infrastructure	Continues partnership with operators
Nokia	5G Core Infrastructure	Maintains core network contracts

Sweden’s Ericsson and Finland’s Nokia have retained control of Vietnam’s 5G core infrastructure, the most sensitive network component. However, Chinese companies now dominate equipment and antenna supply contracts with state-owned operators.

Western officials have raised serious concerns about this arrangement. A US diplomatic source warned during recent Hanoi meetings that the contracts could undermine trust in Vietnam’s networks and jeopardize future access to American advanced technology.

Security Concerns Emerge as Chinese Technology Expands

The exclusion of Chinese contractors from Vietnam’s digital infrastructure has long been identified by Washington as a key condition for supporting advanced technologies. Yet this policy appears to be shifting under economic pressure.

“Access to secure and trusted networks is key for all countries, increasingly so as more critical functions of society become digital.”

— Sweden’s Foreign Ministry, official statement

Suppliers of antennas and equipment could potentially access network data, according to telecommunications law experts. Western contractors now face the awkward prospect of working alongside firms they do not trust in shared infrastructure environments.

Officials have explored whether areas using Chinese technology could be sealed off from the rest of the network, though experts question the feasibility of this technical approach in complex 5G environments.

Why Does Vietnam’s 5G Shift Matter for Global Tech Competition?

Vietnam occupies a crucial position in global supply chains and geopolitical competition. Major multinationals including Apple, Samsung, and Nike rely on Vietnam as a manufacturing hub, integrating Chinese components with Western market access.

Hanoi’s new technology partnerships signal shifting priorities in the competition for Asian influence. The country has moved away from a “wait-and-see approach” toward Chinese technology under previous Western pressure. Cost considerations play a role, with Chinese equipment priced competitively against Western alternatives.

Sources

• Reuters – Exclusive investigation on Huawei and ZTE 5G contracts in Vietnam
• TechAsia – Analysis of deals worth over $40 million in 2025
• Scandasia – Regional telecommunications market assessment