EU warns Vietnam over Chinese 5G deals

The European Union has warned that Vietnam’s decision to involve Chinese firms in its 5G rollout could discourage foreign investors, citing concerns over data security.

Speaking in Hanoi, EU Commissioner Jozef Sikela said reliance on vendors such as Huawei and ZTE in strategic infrastructure could raise risks for international businesses, News.az reports, citing Reuters.

“5G is the new battlefield,” Sikela said, warning that companies may reconsider investing if they are uncertain about the safety of their data.

Vietnam has recently awarded several 5G-related contracts to Huawei and ZTE, marking a shift after years of caution toward Chinese technology providers. At the same time, European firms like Ericsson and Nokia are still involved in developing core parts of the country’s 5G infrastructure.

The move has sparked concern among Western officials, especially as some European countries and the United States have restricted Chinese telecom vendors over national security fears.

Huawei and ZTE have repeatedly rejected such concerns, calling the restrictions unfair and without evidence.

Vietnamese authorities, meanwhile, have defended their approach, highlighting the lower cost and reliability of Chinese equipment while downplaying potential risks.

The warning comes as Vietnam continues to rely heavily on foreign investment to sustain its rapid economic growth, raising the stakes for decisions involving critical digital infrastructure.

News.Az 

By Aysel Mammadzada