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Vietnam weighs new Chinese 5G deals despite U.S. security warnings

HANOI, March 6 — Vietnam is considering new fifth-generation telecoms agreements with Chinese technology companies, according to sources familiar with the discussions, potentially expanding cooperation with firms such as Huawei and ZTE despite longstanding security concerns raised by the United States.

The prospective agreements would build on contracts signed last year between the Chinese telecoms suppliers and Vietnamese partners as the Southeast Asian country accelerates the rollout of next-generation digital infrastructure.People familiar with the matter said discussions over additional deals are ongoing and could be announced in the coming months. The timing may coincide with a potential visit to China by Vietnam’s Communist Party chief To Lam, although no official confirmation of the trip has been made.Expansion of 5G cooperationVietnam has been expanding its telecommunications infrastructure as part of a broader strategy to modernise its digital economy and improve nationwide connectivity. Chinese equipment manufacturers have historically been major suppliers to telecom operators across Asia due to competitive pricing and established infrastructure capabilities.Sources said last year’s agreements between Vietnamese firms and the Chinese vendors focused on providing equipment and technical support for elements of the country’s emerging 5G network.Further agreements under discussion would deepen that cooperation, potentially covering additional infrastructure components and services as Vietnam continues its nationwide rollout.Neither Vietnamese government agencies nor the Chinese companies involved have publicly commented on the potential new arrangements.U.S. security concernsWashington has repeatedly warned governments around the world about the potential security risks associated with Chinese telecommunications providers, arguing that their equipment could be vulnerable to state interference or surveillance.

Officials from the United States have urged allies and partners to limit the involvement of Chinese companies in critical digital infrastructure, particularly in the deployment of 5G networks.Both Huawei and ZTE have consistently rejected allegations that their technology poses security risks and say they operate independently of the Chinese government.Vietnam has traditionally balanced strategic relations with both the United States and China, maintaining economic and political ties with the two powers while pursuing an independent foreign policy.

Diplomatic contextThe potential telecom agreements come amid broader diplomatic engagement between Hanoi and Beijing.People familiar with regional diplomacy said discussions about technology cooperation could precede a possible visit by To Lam to China, which would mark one of his first major overseas engagements since assuming leadership of the Vietnamese Communist Party.China remains one of Vietnam’s largest trading partners, while the United States has expanded economic and strategic cooperation with Hanoi in recent years, particularly in areas such as technology supply chains and regional security.Analysts say decisions about telecommunications infrastructure have increasingly become intertwined with geopolitical considerations as governments weigh economic benefits against strategic and security concerns.Vietnam has not publicly indicated whether it plans to restrict Chinese suppliers from its 5G networks, and telecommunications policy decisions are typically made through a combination of government regulation and commercial agreements between telecom operators and equipment providers.