EU threatens Vietnam: If China participates in 5G, foreign companies may withdraw their investments

【By Observer Network Qi Qiqian】

After news about Vietnam discussing 5G cooperation with Chinese companies broke, the U.S. and Europe were uneasy and began issuing threats in succession.

According to Reuters, on March 24 local time, a senior European Union official claimed that if Chinese suppliers took part in the rollout of Vietnam’s 5G network, they could “deter” foreign companies from investing in the country. Previously, U.S. officials were reported to have warned Vietnam not to use Chinese telecom equipment on the grounds of so-called “security risks.”

The report said that European telecom firms Ericsson and Nokia are developing Vietnam’s 5G core network. But in recent months, despite warnings from the West, Vietnam’s state-owned operators have awarded 5G contracts to Chinese companies.

Reuters believes that a series of events signals that, against the backdrop of improving relations between China and Vietnam, Vietnam’s attitude toward Chinese 5G technology over the years has undergone a significant shift—something that has also raised concerns among Western officials.

“In strategic areas, be careful about the issue of dependency,” European International Partnerships Commissioner Joseph Siekelera stirred up trouble over the matter.

That day, Siekelera, during a break while attending the EU–Vietnam Investment Forum held in Hanoi, accepted a Reuters interview and claimed: “5G is a new battlefield. Through the network you can access many things, and you can control many things. You must always be careful about who your trusted supplier is.”

Sure enough, if the EU can’t compete, it has to “resort to underhanded tactics.”

The report mentioned that Vietnam is an important international industrial hub, attracting large-scale manufacturing business from many Western multinational companies. Decades of economic prosperity there has depended on foreign investment. On the 24th alone, European countries had just announced a package of new investment plans for Vietnam’s transportation and energy sectors.

Siekelera repeated the old story about the so-called “security risks,” and issued a threat: “If investors develop doubts about data security, they may decide not to take this risk, and therefore choose not to invest.”

Vietnam Mobile Communication Services workers are installing 5G equipment Vietnam media

Vietnam joined the U.S.-backed so-called “Clean Network” initiative in 2020 and pledged not to use Chinese 5G equipment. At present, most of the country’s 5G networks are built by European suppliers Ericsson and Nokia, and the U.S. chipmaker Qualcomm is also involved in the related construction.

On November 28 last year, Reuters cited seven people familiar with the matter, reporting that Chinese companies won a series of supply contracts for 5G equipment in Vietnam in 2025. The report holds that as China–Vietnam bilateral relations have warmed somewhat, Vietnam has begun to accept Chinese technology companies.

Earlier in March, Reuters cited sources familiar with the matter saying that Vietnam Mobile Communication Services Company (Mobifone) is discussing 5G network cooperation with Chinese technology companies. Mobifone is Vietnam’s third-largest telecom operator, and since last year it has been placed under the management of the Vietnam Ministry of Public Security.

Sources familiar with the matter said that during his February visit to the United States this year, Vietnam’s General Secretary of the Communist Party Central Committee and President To Lam received a “warning” from U.S. officials, saying that reliance on so-called “untrusted network suppliers” could jeopardize U.S. investment in Vietnam. The U.S. State Department spokesperson also slandered that Chinese telecom equipment poses so-called “security risks,” and said countries should prioritize “national security.”

However, Vietnamese officials are not concerned about the issue of “security risks.” They believe Chinese telecom equipment is more cost-effective and reliable.

A supply-chain expert at the Royal Melbourne Institute of Technology’s Vietnam campus, Nguyen Hung (phonetic transliteration), previously pointed out that under Western pressure, Vietnam has for years taken a “wait-and-see” attitude toward Chinese technology. But he added that “Vietnam also has its own priorities,” and that new agreements reached with Chinese companies may promote deeper economic integration between China and Vietnam.

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