Sources: the US is urging Vietnam to avoid cable-laying firm HMN Technologies and other Chinese companies in Vietnam's plans for 10 new subsea cables by 2030
Context & Ripple Effects
The US intervention extends an earlier contest over who supplies and finances regional cable infrastructure. In 2023, Washington supported SubCom's bid for an Asia-Europe route amid concerns about Chinese spying, while Chinese state-owned telecoms pursued a separate Asia–Middle East–Europe network.
Vietnam's planned cable buildout makes supplier selection a strategic issue rather than a purely engineering procurement decision. The backdrop also includes permit delays for South China Sea cable projects and a US-backed SubCom bid for an Asia-Europe cable that showed how security concerns can shape project outcomes.
First-order effects
- Vietnamian planners and prospective cable suppliers face US pressure to exclude HMN Technologies and other Chinese firms from the country's planned 10 new subsea cables.
- Non-Chinese cable vendors gain a clearer opening to compete for Vietnam's planned routes, while Chinese suppliers risk losing access to a major prospective buildout.
Second-order effects
- Supplier choices could become a test of US confidence in Vietnam's communications infrastructure, particularly after Vietnam's Huawei and ZTE equipment deals raised questions about its network ties with China.
- Avoiding Chinese vendors may complicate procurement if it narrows the eligible supplier pool; choosing them could intensify US scrutiny of cable connections and related network partnerships.
Third-order effects
- If similar pressure is applied across regional projects, subsea-cable supply chains may split more sharply along security and geopolitical lines, with countries weighing redundancy and cost against alignment with US or Chinese technology ecosystems.
- The pattern points toward cable landing rights, equipment sourcing, and construction contracts becoming instruments of technology policy, not just telecommunications investment.
The trend: Subsea cables are increasingly being treated as strategic infrastructure, forcing countries to make supplier choices that carry broader security and diplomatic consequences.