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The involvement of Chinese vendors in the rollout of Vietnam's 5G network may deter foreign companies from investing in the Southeast Asian nation, a top EU official said on Tuesday.
European telecom firms Ericsson and Nokia are developing Vietnam's core 5G network, but in recent months Vietnamese state-owned operators have awarded 5G contracts to Chinese rivals Huawei and ZTE.
That marks a notable shift following years of caution towards China, and the change has sparked concerns among Western officials.
"Be careful with dependencies in strategic areas," EU Commissioner for International Partnerships Jozef Sikela said when asked about the Chinese contracts.
"5G is the new battlefield," he told Reuters on the sidelines of an EU-Vietnam investment forum in Hanoi. "Through the network you can access a lot and you can control a lot, and you have to be always careful who is your trusted vendor."
"If investors have doubts about the security of their data, they might decide not to take the risk and not to invest," he said.
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Vietnam is a major industrial hub and hosts large manufacturing operations of big Western multinationals, including European firms Adidas and Lego. Its decades-long economic boom hinges on foreign investment.
The European Union and European states on Tuesday announced a new package of investment in Vietnam's transport and energy sector.
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