Reuters: Vietnam is considering new 5G agreements with Chinese technology companies despite security concerns raised by the United States, according to sources familiar with the matter.
Talks are underway between Vietnam’s police-owned telecom operator Mobifone and Chinese firms to build parts of its 5G network. The potential agreements would follow earlier 5G supply contracts signed last year by Vietnam’s leading telecom operators Viettel and VNPT with Chinese companies Huawei and ZTE.
Sources said Mobifone is planning to launch a tender for advanced antennas, known as base stations, which are essential for 5G infrastructure. The project could result in Chinese companies developing a significant portion of the network. One source said discussions on the tender have already involved Huawei.
The talks come ahead of a possible visit to China by Vietnam’s top leader To Lam in the coming weeks, reflecting warming relations between the two neighbouring Communist countries.
However, the United States has warned that the use of Chinese telecom equipment could pose national security risks. Washington has banned Huawei and ZTE from its telecom networks, arguing that Chinese law could require companies to share sensitive data with state intelligence services.
During a meeting with a Vietnamese delegation in Washington in February, U.S. officials reportedly warned that future American investment in Vietnam could be affected if the country relies on what the United States considers “untrusted” network providers.Vietnam had previously joined the U.S.-backed Clean Network Initiative in 2020, which aimed to exclude Chinese companies such as Huawei and ZTE from 5G networks.
Despite these concerns, Vietnamese officials have argued that Chinese telecom equipment is cheaper and reliable. So far, much of Vietnam’s 5G infrastructure has been built by European suppliers Ericsson and Nokia, with U.S. chipmaker Qualcomm also involved in the rollout.In February, Vietnam also approved satellite internet services from Starlink under a pilot scheme.
