Mobifone, Vietnam’s police-owned telecom operator, is now discussing new contracts with Chinese tech companies to build parts of its 5G network.
Talks ahead of high-level visit
The development comes just before the official visit of Vietnam’s top leader To Lam to China.
Reuters reported that Mobifone plans to launch a tender for advanced antennas, also known as base stations.
Chinese firms are expected to play a significant role in the country’s 5G rollout.
The report noted that a decision to award contracts to Chinese suppliers has already been made, with another source mentioning possible quotas for them.
Departure from earlier stance
Any agreement would build on last year’s deals by major operators Viettel and VNPT, which signed contracts with Huawei and ZTE.
This represents a clear shift from 2020, when Vietnam joined the US-led Clean Network initiative and pledged to avoid Chinese 5G equipment.
Security worries raised by US
A US State Department spokesperson told Reuters that countries should place national security ahead of cheaper equipment.
The spokesperson warned that Chinese intelligence services can force companies to hand over sensitive data.
Washington has already banned Huawei and ZTE from US networks, describing them as security threats.
Mobifone’s current 5G setup is limited but includes Huawei base stations in central Ho Chi Minh City, close to the US Consulate and foreign offices.
US officials have cautioned Vietnam that depending on Chinese suppliers could put future American investment at risk.
Vietnam’s perspective on costs and reliability
Vietnamese officials believe Chinese equipment offers better value and reliability.
They point out that much of the country’s 5G infrastructure has been built by Ericsson, Nokia, and Qualcomm.
Nevertheless, the latest steps suggest Hanoi is ready to strengthen cooperation with Chinese firms, even amid pressure from the West.
