Vietnam is increasingly turning to Chinese telecommunications giants Huawei and ZTE for its 5G network development, a significant policy shift that appears linked to ongoing trade tensions with the United States. The move has alarmed Western officials, who have long cautioned against incorporating Chinese hardware in critical infrastructure due to security risks.

This pivot marks a departure from Vietnam's previous reluctance to use Chinese technology in sensitive sectors. Recent deals, worth over $43 million (approx. KES 5.6 billion), signal a recalibration of Hanoi's strategy as its relationship with Beijing improves.

Shifting Alliances in the Tech War

The new contracts have been awarded against a backdrop of escalating trade friction between Hanoi and Washington. In April, a consortium including Huawei secured a $23 million (approx. KES 3 billion) contract for 5G equipment, just weeks after the White House announced new tariffs on Vietnamese goods. ZTE also won at least two tenders for 5G antennas totaling more than $20 million (approx. KES 2.6 billion).

While European firms like Nokia and Ericsson remain key suppliers for Vietnam's core 5G infrastructure, the recent wins by Chinese companies in supplying other network components highlight a pragmatic, cost-driven approach. An employee at Viettel, Vietnam's largest telecom operator, noted that Chinese technology remains significantly cheaper.

The Kenyan Context: A Different Path

This development contrasts with Kenya's own 5G rollout, where Chinese technology has been a foundational element from the start. Key points on Kenya's 5G journey include:

• Early Partnership: Safaricom, the nation's leading telco, launched its 5G network using equipment from both Nokia and Huawei.
• Government Endorsement: The Kenyan government has consistently backed the partnership with Huawei, with officials stating the technology has been vetted and meets national security standards.
• Strategic Agreements: In June 2022, Kenya's Communications Authority signed a five-year, renewable technical cooperation agreement with Huawei to accelerate 5G deployment, training, and cybersecurity.

The decision by Vietnam to now embrace Chinese vendors, partly due to external economic pressures, underscores the complex choices facing nations navigating the U.S.-China tech rivalry. For countries like Kenya, the focus remains on leveraging technology to spur economic growth, a goal that has so far included close collaboration with Chinese firms.

Analysts suggest Vietnam is pursuing a form of "bamboo diplomacy," balancing its relationships with global powers to suit its national priorities. Nguyen Hung, a supply-chain specialist at RMIT University Vietnam, noted that "Vietnam has its own priorities," and these deals could lead to deeper economic integration with China.

The situation remains fluid, with a U.S. official warning that incorporating Chinese equipment could undermine trust in Vietnam's networks and jeopardize future cooperation on advanced American technologies. This places Vietnam in a delicate position, balancing the immediate economic benefits of affordable Chinese technology against the long-term strategic implications of its alliances.