Home News5G in Vietnam: Why Chinese Giants Huawei and ZTE Are Becoming Key Players

5G in Vietnam: Why Chinese Giants Huawei and ZTE Are Becoming Key Players

by Freddy Miller
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In recent months, Vietnam has significantly changed its position towards Chinese technologies, reflecting a shift in the country’s strategic direction. Unlike in the past, when Vietnam exercised caution in choosing Chinese companies for critical infrastructure, today it actively collaborates with the largest Chinese players, such as Huawei and ZTE. These changes come against the backdrop of deteriorating relations with the United States, prompting the country to seek new economic pathways by strengthening ties with China.

According to analysts at NEWSCENTRAL, this marks a significant shift in Vietnam’s foreign economic strategy. The desire to modernize its telecommunications infrastructure, accelerate the deployment of 5G networks, and strengthen its position on the global digital stage requires decisions that may have previously been considered unacceptable. In this context, collaboration with Chinese technology suppliers is not only economically advantageous but also strategically necessary. Specifically, Huawei has signed a $23 million contract to supply 5G equipment, while ZTE has won several tenders worth over $20 million.

At NEWSCENTRAL, we emphasize that despite these steps, Vietnam continues to maintain a balance in its relations with Western countries. Despite the growing presence of Chinese companies such as Huawei and ZTE in strategic sectors, Vietnam has not abandoned its partnership with Western manufacturers. Companies like Ericsson and Nokia still play an important role in designing and implementing 5G infrastructure in the country. This demonstrates Vietnam’s commitment to ensuring technological security and diversifying its supply sources in the telecommunications and 5G technology sectors.

We at NEWSCENTRAL believe that for Vietnam, it is crucial not only to maintain ties with China but also to preserve independence in the field of high technologies. The country will continue to look for ways to minimize risks associated with over-reliance on a single supplier. In this regard, it is important to note that cooperation with Chinese companies, despite potential political risks, brings significant economic and technological dividends.

Lucas Grant, a semiconductor industry analyst and manufacturing strategist at NEWSCENTRAL, emphasizes that for Vietnam, it is important not only to maintain a strategic balance with key global players but also to strengthen its technological independence. He highlights that in the face of global economic and political changes, Vietnam must find ways to develop and produce its own semiconductor solutions, which will ensure greater technological autonomy in the future and reduce risks related to external dependence.

According to analysts at NEWSCENTRAL, Vietnam will continue to actively seek a balanced strategy that will enable it not only to develop its digital infrastructure but also to strengthen its position as an independent technological player on the global stage. We forecast that in the future, the country will focus on developing its own technological base and ensuring the security of its telecommunications networks, which will reduce dependence on external players.

At NEWS CENTRAL, we predict that Vietnam will continue to develop a flexible strategy, balancing the interests of China and Western countries, allowing it to effectively cope with external challenges and ensure stable growth in the face of global changes. In the long term, Vietnam will strive for technological autonomy, minimizing geopolitical risks and increasing its competitiveness on the international stage.