EU’s Jozef Sikela Warns Vietnam’s Huawei, ZTE 5G Deals Could Spark Major Data Security Fears
EU Industry Chief Jozef Sikela issued a stark warning in Hanoi on March 24, 2026, declaring Vietnam's recent 5G contracts with Chinese tech giants Huawei and ZTE pose significant data security risks—a strategic shift that has triggered immediate Western concern. The move marks a pivotal change in Vietnam's previously cautious stance toward Chinese involvement in critical infrastructure, raising alarms that the choice of network vendor is itself a strategic decision with profound security implications.
EU warns investors may pull back as Vietnam adds Chinese vendors to key 5G contracts
Asked about the Chinese contracts, Jozef said, “Be careful with dependencies in strategic areas.” He then put the warning in even harder terms.“5G is the new battlefield.” He said a network gives access to a lot and control over a lot, and that countries must be careful about who they trust to supply that technology.
Jozef added, “If investors have doubts about the security of their data, they might decide not to take the risk and not to invest.”
Meanwhile, research from Mordor Intelligence says the market is expected to grow from $33.4 billion in 2025 to $39.63 billion in 2026.
By 2031, it is projected to reach $93.05 billion. That would mean a compound annual growth rate of 18.66% over the forecast period. Those numbers show why governments, telecom operators, and investors are treating 5G as more than just another tech upgrade.
The growth is thanks to a rise in usage across smartphones, cars, industrial IoT, and smart city systems.
The companies listed in the market include Qualcomm, MediaTek, Samsung Electronics, Huawei Technologies, Nokia, Broadcom, Marvell Technology, Texas Instruments, NXP Semiconductors, and Infineon Technologies.
All in all, Asia-Pacific still leads the 5G chipset market, as China, Japan, South Korea, and India are all expanding 5G infrastructure while also investing in domestic chip capacity, according to data from Index Box.
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