Industry Analysis Report: Huawei and ZTE’s 5G Deals in Vietnam (2025)

On November 27, 2025, Reuters reported that Chinese telecom giants Huawei and ZTE secured multiple 5G equipment contracts in Vietnam throughout the year, following the U.S. imposition of tariffs on Vietnamese goods [1]. Key details include:

• Huawei won a $23 million contract for 5G equipment in April 2025 as part of a consortium.
• ZTE secured at least two contracts totaling over $20 million (one finalized in the week prior to the news) for 5G antennas.
• The deals are with state-owned Vietnamese telecom operators and focus on non-core 5G equipment segments.
• Western officials expressed concerns over national security risks, as Huawei and ZTE are banned from U.S. telecom networks [1].
• Prior to these deals, Ericsson and Nokia dominated Vietnam’s 5G core infrastructure market, with Qualcomm supplying supporting network equipment [1].

The Vietnam 5G market, which had ~10 million 5G subscriptions in 2025 [2], is undergoing a supply base expansion. Huawei and ZTE’s entry into non-core segments complements existing Nordic vendor core infrastructure, enabling faster 5G deployment. This aligns with Vietnam’s goal to grow its digital economy to $39 billion in 2025 [3], supporting downstream applications like:

• Smart Tourism
  : IoT and VR solutions for automated trip planning and immersive experiences [5].
• Smart Cities
  : IoT-driven management of transportation, energy, and public services [6].
• 5G-AI Convergence
  : A key growth catalyst for digital transformation, though infrastructure strain and regulatory gaps remain bottlenecks [4].

• Nordic Vendors
  : Ericsson and Nokia retain core infrastructure market share but face competition in non-core segments (e.g., antennas) from Chinese vendors.
• Chinese Vendors
  : Huawei and ZTE gain a strategic foothold in Vietnam’s 5G market, expanding their Southeast Asian presence. ZTE’s stock performance (up 3.25% in 1 day and 9.59% over 5 days as of November 28, 2025 [0]) reflects positive investor sentiment.
• Market Dynamics
  : Vietnamese operators now have more supplier options, potentially reducing costs and accelerating deployment.

• 5G-AI Convergence
  : Identified as a critical driver of Vietnam’s digital growth, with ongoing efforts to address infrastructure and regulatory gaps [4].
• Geopolitical Influence
  : U.S. tariffs on Vietnam may have pushed the country toward Chinese vendors as alternative suppliers [1].
• Security Scrutiny
  : Western governments continue to highlight national security risks associated with Chinese telecom equipment in Southeast Asia [1].

• Vietnamese Operators
  : Access to cost-effective 5G equipment to meet deployment targets.
• Western Vendors
  : Need to adjust pricing/service offerings to retain non-core segment market share.
• U.S. Government
  : May escalate diplomatic efforts to address security concerns.
• Huawei/ZTE
  : Expand global footprint in a key Southeast Asian market, mitigating U.S.-related restrictions.
• Digital Economy Stakeholders
  : Benefit from expanded 5G coverage for smart solutions in tourism, manufacturing, and urban management [3,5,6].

1. Geopolitical Tensions
   : U.S.-China trade dynamics and tariffs on Vietnam influence vendor selection.
2. Pricing Competitiveness
   : Chinese vendors’ cost-effective solutions drive market share gains in non-core segments.
3. National Security Concerns
   : Western scrutiny limits Huawei/ZTE’s access to core infrastructure contracts.
4. Vietnam’s Digital Goals
   : Government support for 5G deployment creates opportunities for all vendors.
5. Infrastructure Readiness
   : Gaps in network infrastructure and regulations hinder full 5G potential [4].

[0] ZTE Corporation Company Overview (Internal Tool Data)
[1] Reuters. “Huawei, ZTE seal 5G deals in Vietnam after US tariffs, as ties with China warm.” https://www.reuters.com/world/china/huawei-zte-seal-5g-deals-vietnam-after-us-tariffs-ties-with-china-warm-2025-11-28/ (2025-11-27)
[2] VIR. “Vietnam has the talent to excel in digital age: Ericsson.” https://vir.com.vn/vietnam-has-the-talent-to-excel-in-digital-age-ericsson-141406.html (2025-11-25)
[3] VIR. “Vietnam’s digital economy to touch $39 billion in 2025.” https://vir.com.vn/vietnams-digital-economy-to-touch-39-billion-in-2025-141430.html (2025-11-26)
[4] VIR. “Harnessing 5G-AI convergence: growth catalyst and infrastructure pressure.” https://vir.com.vn/harnessing-5g-ai-convergence-growth-catalyst-and-infrastructure-pressure-141522.html (2025-11-26)
[5] OpenPR. “Vietnam Travel Technology Market 2025 - Top Regions, Latest.” https://www.openpr.com/news/4282104/vietnam-travel-technology-market-2025-top-regions-latest (2025)
[6] Technest. “IoT smart city applications transforming daily life.” https://technest.com.vn/iot-smart-city/ (2025)

Disclaimer: This report is for informational purposes only and does not constitute investment advice.
All data is sourced from credible public and internal tools as of November 28, 2025.