Vietnam in talks with Chinese firms for new 5G contracts despite US warnings

Mobifone, Vietnam’s police-owned telecom operator, is now in discussion with Chinese tech companies over new contracts to build parts of its 5G network, as reported by Reuters.

This latest development comes ahead of the official visit of Vietnam’s top leader To Lam to China. As per the report, Mobifone is said to launch a tender for advanced antennas, or base stations which could see Chinese firms play an important role in its 5G roll out. The Reuters report also adds that the decision to award contracts to Chinese suppliers had already been made, while another cited possible quotas for them.

Shift from the earlier ban

Any deal would follow last year’s agreements by market leaders Viettel and VNPT, which signed contracts with Huawei and ZTE. This marks a notable shift from 2020, when Vietnam joined the US-led “Clean Network” initiative pledging to exclude Chinese 5G equipment.

US security concern

The Reuters report also talks about the security concerns in this matter. A US State Department spokesperson told Reuters that countries should prioritize national security over cheaper equipment, warning that Chinese intelligence services can compel companies to share sensitive data.

Washington has already banned Huawei and ZTE from U.S. networks, labeling them “security threats.”On the other hand, Mobifone’s present 5G infrastructure is limited but it includes Huawei base stations in central Ho Chi Minh City near the U.S. Consulate and foreign offices. U.S. officials have cautioned Vietnam that reliance on Chinese suppliers could jeopardize future American investment.The Reuters report also suggests that the Vietnamese officials believe that Chinese equipment is cheaper and reliable. The officials also argue that most of the country’s 5G has been built by Ericsson, Nokia, and Qualcomm, but the latest moves suggest Hanoi is willing to deepen cooperation with Chinese firms despite Western pressure.