Prime Highlight
- Huawei and ZTE are helping Vietnam accelerate its 5G expansion through key supply contracts, boosting the country’s digital transformation.
- These partnerships showcase Vietnam’s ability to integrate cost-effective technology while maintaining a balanced, diversified telecom ecosystem.
Key Facts
- Huawei secured a $23 million 5G supply contract, and ZTE won over $20 million in antenna deals, contributing to network growth.
- Vietnam continues to develop a robust 5G infrastructure with collaboration from both Chinese and Western technology providers.
Background
China’s top telecom companies, Huawei and ZTE, have won several contracts this year to provide 5G equipment in Vietnam. The deals come as ties between Hanoi and Beijing continue to strengthen bonds and as Vietnam looks to expand its fast-growing telecom sector.
According to public procurement data seen by Reuters, a consortium including Huawei won a $23 million 5G supply contract in April. ZTE has also secured more than $20 million in two recent antenna contracts, including one finalised last week. These contracts add to a growing list of technical collaborations between Vietnamese state-owned operators and Chinese suppliers.
Vietnam has long taken a cautious approach to Chinese technology, but analysts say the country is now pursuing a more flexible strategy. Nguyen Hung, a supply-chain specialist at RMIT University Vietnam, said Hanoi is prioritising economic growth and broader regional integration. Lower equipment costs offered by Chinese vendors have also influenced procurement decisions, one telecom industry source said.
Even with the new deals, Vietnam still relies on Western suppliers for its main 5G network. Ericsson and Nokia handle the key infrastructure, and Qualcomm supplies important components. This balanced approach helps Vietnam work with different partners while expanding its network across the country.
Diplomats in Hanoi have talked about these recent developments, and some Western officials have raised concerns about the role of Chinese companies. However, Vietnamese operators are looking at technical steps to protect the network and keep the trust of all partners.
As Vietnam moves forward with its digital transformation, the new contracts show its efforts to build stronger regional ties and diversify its tech sector. These steps are helping Vietnam become one of the most active 5G markets in Southeast Asia.
