US vs. China: The Hidden Battle Over Vietnam’s Subsea Cable Network!

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The United States actively encourages Vietnam to avoid using Chinese cable network laying firms, particularly HMN Technologies, in its ambitious plans to build 10 new underwater cables by 2030. This push comes as existing Vietnam’s subsea connections, which link the country to the global internet, have suffered repeated failures, making constructing new cables a top priority for the Vietnamese government.

Ageing Subsea Connections and Repeated Failures

Vietnam currently relies on five major aging subsea cables that have experienced numerous outages and faults, particularly between the end of 2022 and early 2023. These failures have underscored the urgent need for new, reliable connections to ensure stable internet access and support the country’s growing digital economy. The outages have disrupted internet services and affected businesses and daily life, highlighting the critical nature of these infrastructures.

US-Vietnam Meetings on Cable Strategy

Since January, US officials and companies have held several meetings with Vietnamese and foreign officials, as well as business executives, to discuss Vietnam’s cable strategy. These discussions have aimed to steer Vietnam away from Chinese firms and towards more experienced and reliable partners. The meetings have included high-level discussions involving representatives from the US Department of State, the Department of Commerce, and major US telecom companies.

Intelligence on Possible Sabotage

In addition to these meetings, US officials have shared intelligence with their Vietnamese counterparts about potential sabotage of the country’s submarine cables. This intelligence has further fueled concerns about the involvement of Chinese firms in Vietnam’s critical infrastructure projects. The shared intelligence has included detailed reports on past incidents of sabotage and potential vulnerabilities in submarine cable networks.

Competing for Influence in Vietnam

The US and China are both vying for influence in Vietnam, a strategically important country in Southeast Asia. Both US President Joe Biden and Chinese President Xi Jinping visited Vietnam last year, highlighting the importance both nations place on their relationship with Hanoi. Corporations from both countries have also been investing heavily in Vietnam, further intensifying the competition. The visits by both leaders included discussions on trade, investment, and strategic partnerships, reflecting the high stakes involved.

Role of APTelecom in the Discussions

APTelecom, a relatively unknown consultancy, has been involved in the discussions to persuade Vietnam to avoid Chinese firms. The consultancy has played a key role in the meetings, emphasizing the risks associated with choosing less experienced cable contractors. APTelecom has provided detailed analyses and case studies to illustrate the potential drawbacks of partnering with firms like HMN Technologies.

Convincing Vietnam to Avoid HMN Tech

The meetings have aimed to convince Vietnam that HMN Technologies, a relative newcomer in the cable-laying industry, would be a poor choice for the country’s ambitious plans. US officials and APTelecom have argued that selecting contractors with less experience and limited access to critical components could discourage US companies from investing in Vietnam. They have highlighted the importance of choosing partners with proven track records and robust supply chains.

Impact of Cable Outages on Vietnam

The repeated outages and faults in Vietnam’s main underwater cables have had significant economic and social impacts. These issues have prompted the Vietnamese government to set more ambitious targets for the construction of new cables this year. Ensuring reliable internet connectivity is crucial for Vietnam’s digital economy and its integration into the global market. The outages have affected everything from online banking to remote work, underscoring the need for a more resilient infrastructure.

AT&T’s Involvement in the Discussions

US telecoms firm AT&T, a member of the consortium that owns a cable connecting Vietnam to the United States, has also been actively involved in the discussions. AT&T representatives have held at least two meetings this year with Vietnamese officials and companies to discuss the future of Vietnam’s subsea cable infrastructure. These meetings have focused on technical specifications, project timelines, and potential partnerships.

The US push to steer Vietnam’s subsea cable plans away from Chinese firms highlights the broader geopolitical competition between the US and China in Southeast Asia. As Vietnam moves forward with its plans to build 10 new underwater cables by 2030, the decisions it makes will have significant implications for its digital future and its relationships with both superpowers. The outcome of these efforts will not only shape Vietnam’s internet infrastructure but also influence the broader strategic landscape in the region.

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