Navigating a Complex Landscape: Huawei's 5G Ambitions in Vietnam

In 2018, at the 4G/5G International Conference in Hanoi, Huawei outlined its path to a 5G era for Vietnam. Dr. Mohamed Madkour, Vice President of Huawei Global Wireless Network Marketing, emphasized the value 5G would bring to Vietnam improving lives, businesses, and the economy.

Vietnam’s journey toward 5G has been intriguing. In the early 1990s, it was just adopting 2G network technology. However, by May 2019, Vietnam became one of the first countries to successfully establish a 5G-powered phone call. This rapid progress reflects Vietnam’s determination to embrace cutting-edge technology.

The rollout of 5G technology in Vietnam presents a fascinating case study. Despite historical ties with China, Vietnam has not wholeheartedly embraced Huawei's 5G solutions. This raises questions about the motivations behind this decision and the broader implications for the future of Vietnam's digital infrastructure. While the lingering effects of the Vietnam War might hold some influence, a deeper analysis reveals a confluence of factors shaping this complex relationship.

Security Concerns Take Center Stage

Security anxieties appear to be the primary reason for Vietnam's cautious approach towards Huawei. The ongoing geopolitical tensions between the West and China, particularly regarding potential espionage through Huawei equipment, have resonated in Vietnam. Similar to other countries, Vietnam may be wary of the possibility of backdoors or vulnerabilities within Huawei's technology that could be exploited for Chinese intelligence gathering. This concern is further amplified by the growing importance of cybersecurity in a world increasingly reliant on digital infrastructure. The potential for disruption or manipulation of critical networks is a significant risk that Vietnam, understandably, seeks to mitigate.

Beyond the War: A Drive for Technological Independence

The Vietnam War (1955–1975) profoundly shaped the nation. The conflict between North Vietnam (supported by China and the Soviet Union) and South Vietnam (backed by the US) left scars. China’s role in supporting North Vietnam during the war is etched in history. Some speculate that this historical backdrop influences Vietnam’s cautious approach toward Chinese tech companies like Huawei. While the Vietnam War undoubtedly plays a role in shaping Vietnam's national identity and its relationship with China, it's unlikely to be the sole driver of the 5G decision.

A more compelling factor is Vietnam's strategic push for technological self-reliance. This ambition is evident in Viettel, the country's largest telecommunications company, actively developing its own 5G chipsets. Viettel Group, Vietnam’s largest mobile carrier, has opted for Ericsson AB’s equipment in Hanoi and Nokia Oyj’s technology in Ho Chi Minh City, bypassing Huawei. By fostering domestic innovation, Vietnam aims to reduce dependence on foreign technology and potentially gain a competitive edge in the future. This strategy aligns with Vietnam's broader economic aspirations as it seeks to transition from a manufacturing-based economy to a more knowledge-driven and technologically advanced one.

The Allure of Alternatives: A Diversified Approach

In the absence of Huawei, Vietnam has turned to established telecommunications giants like Ericsson, Nokia, and Samsung for its 5G rollout. These companies offer proven technology, established track records in network security, and potentially more favorable geopolitical alignments. Diversifying its 5G partnerships allows Vietnam to leverage the strengths of each vendor, potentially leading to a more robust and secure network infrastructure. Additionally, competition among these companies could drive down costs and ensure Vietnam receives the most advanced technologies available.

A Potential Shift: The Allure of Cooperation

Despite the current hesitance, recent developments suggest a potential shift. In 2023, President Thuong of Vietnam requested continued cooperation with Huawei for digital infrastructure development, including 5G. This indicates a willingness to explore collaboration, possibly driven by factors like cost-effectiveness or the need for additional expertise. It's important to note that this doesn't necessarily translate into widespread adoption of Huawei's 5G solutions. However, it suggests that Vietnam might be open to a more nuanced approach, potentially involving a combination of domestic and foreign technologies.

The Road Ahead: Balancing Security and Growth

As Vietnam navigates its 5G future, it faces a delicate balancing act. The need for robust security infrastructure is paramount, but complete isolation from Chinese technology could hinder economic growth and limit access to cutting-edge solutions. Vietnam's ideal scenario might involve fostering domestic innovation while engaging in strategic partnerships with foreign vendors that prioritize security and transparency. This approach would allow Vietnam to capitalize on the opportunities presented by 5G technology while safeguarding its national interests.

Looking Forward: A Dynamic Landscape

The relationship between Vietnam and Huawei's 5G technology is far from static. Geopolitical dynamics, technological advancements, and Vietnam's evolving strategic priorities will all influence future decisions. While security concerns are likely to remain at the forefront, Vietnam's growing appetite for technological independence and potential openness to collaboration suggest a complex and evolving landscape. By carefully navigating these considerations, Vietnam can ensure a secure and prosperous digital future.

Vietnam's reluctance towards Huawei's 5G technology is rooted in historical mistrust of China, concerns over national security, and aspirations for technological self-reliance. By investing in indigenous 5G technology, Vietnam seeks to assert its technological sovereignty, stimulate economic development, and mitigate potential risks associated with foreign dependency. However, achieving these goals will require concerted efforts from the Vietnamese government, industry players, and international partners. As Vietnam navigates the complex landscape of 5G technology, balancing economic imperatives with strategic considerations will be crucial in shaping its technological future.