Huawei and ZTE have secured a series of 5G equipment contracts in Vietnam this year, marking a major development in the 5G industry in the country.
These 5G network contracts highlight the growing presence of Chinese telecom equipment vendors in a market that had long kept them at arm’s length over security and geopolitical concerns, Reuters news report said.
A consortium led by Huawei won a contract worth about $23 million in April to supply 5G equipment to a state-owned operator. The deal was finalised just weeks after the United States announced tariffs on Vietnamese goods, adding geopolitical weight to the timing.
ZTE has secured at least two contracts totalling more than $20 million for 5G antennas, with the latest awarded last week. The first publicly disclosed ZTE deal appeared in September, following the implementation of U.S. tariffs in August.
These contract wins mark one of the most significant entries by Chinese suppliers into Vietnam’s 5G rollout. For years, Huawei and ZTE struggled to gain traction as Vietnam prioritised Western vendors such as Ericsson and Nokia for core network deployments.
While Chinese firms have not been chosen for Vietnam’s 5G core infrastructure, their ability to secure sizeable radio and antenna deals signals a broader opening of the market.
The deals indicate that cost advantages and expanding bilateral cooperation are playing an influential role in Vietnam’s 5G build-out strategy. Huawei and ZTE’s wins position them as emerging contenders in one of Southeast Asia’s most strategically watched telecom markets.
Vietnam’s telecom market is dominated by three major operators – Viettel, VNPT’s VinaPhone, and MobiFone – which together account for the vast majority of mobile subscribers and network investments.
Viettel remains the largest telecom operator with more than half of the country’s mobile user base, holding around 56 percent market share. Viettel serves tens of millions of subscribers and is driving an aggressive 5G rollout, targeting up to 20,000 new 5G base stations in 2025 as part of its broader plan to expand nationwide high speed coverage. Viettel has over six million 5G users and aims to reach 10 million by the end of the year, supported by heavy capex focused on radio infrastructure and enterprise connectivity.
VNPT, through its VinaPhone brand, is the second largest player with roughly 21 percent market share. It has several million 5G users and has extended next generation coverage to all provincial centres, key airports, industrial parks and government zones. The operator continues to invest in 5G, fibre networks and digital services targeting both consumers and enterprises, with capex directed at strengthening its nationwide footprint and expanding strategic connectivity for public sector partners.
MobiFone holds close to 18 percent market share and is also accelerating its 5G buildout. The company plans to deploy around 10,000 new 5G base stations as it transitions users away from legacy 2G and 3G networks. Its investment priorities include expanding urban and provincial 5G coverage and modernising its network to handle rising data demand.
Beyond the top three, Vietnamobile and smaller MVNOs have only a marginal presence. Vietnamobile holds less than 2 percent market share, while MVNOs collectively account for just over 2 percent of subscribers. These smaller players focus on niche markets and low cost prepaid offerings and do not have large scale capex plans.
The combined rollout efforts of Viettel, VNPT and MobiFone have resulted in the deployment of more than 11,000 5G base stations nationwide, covering roughly a quarter of Vietnam’s population. The operators continue to increase capital expenditure to support 5G adoption, enterprise connectivity and digital transformation initiatives, aligning with the country’s national digital strategy. Reuters report did not reveal the name of telecom operators which placed 5G network orders.
Baburajan Kizhakedath