Chinese Vendors Win Vietnam 5G Contracts, EU Warns of Investment Risks
Ericsson and Nokia are building Vietnam’s core 5G network but recent state-owned contracts went to Huawei and ZTE. An EU commissioner warned that Chinese vendors’ participation risks data security doubts that could scare off foreign investors from Vietnam’s critical telecom build-out.
1. EU Security Alert
EU Commissioner Jozef Sikela warned that reliance on Huawei and ZTE in Vietnam’s 5G network poses strategic risks, citing potential data security vulnerabilities that could undermine investor confidence.
2. Shift in Vietnam’s 5G Awards
Vietnamese state-owned telecom operators recently granted core 5G contracts to Huawei and ZTE, diverting from Ericsson and Nokia’s ongoing development of the network’s backbone infrastructure.
3. Potential Impact on Ericsson
Concerns over network security and reduced investor appetite may challenge Ericsson’s growth in Vietnam, a key industrial hub whose economic expansion heavily relies on foreign-funded telecom projects.