05/27/2019, 15.00
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US restrictions hit Huawei sales and revenues in Vietnam

by Tran Hung

Vietnamese consumers dump their Huawei products into the second-hand market. Google, UK-based ARM and Japan’s Panasonic halt working with the Chinese giant. Huawei wants to build the 5G network in Vietnam, but local media report that many Vietnamese are against it.

Hanoi (AsiaNews) – Sales and revenues of China's IT giant Huawei are sharply down in Vietnam, following restrictions imposed by the United States and Google, one of the most important US IT companies.

Many Vietnamese are suspicious of the Chinese multinational based in Shenzhen (in Guangdong) and have doubts about the reliability of its products.

Huawei Vietnam director Fine Fan (pictured) last March said he was "confident about the prospect of expanding business" in the Southeast Asian country.

"We cannot be beaten on quality or cost" in Vietnam, he told Nikkei Asia Review. "Huawei will provide better technology and solutions, along with financial support to local operators to deploy 5G."

However, for the US administration, Huawei poses risks to US national security, because it has to pass on information and data to the Chinese government.

Google, following the US ban, decided on 20 May to block updates to the Android operating system on Huawei phones, as well as access to apps like Google Play, Gmail and YouTube. Two days later British multinational semiconductor and software design company ARM halted working with Huawei. Last Thursday, Panasonic also announced its decision to stop working with the Chinee giant.

A survey by the Saigon Economy newspaper found that 95% of its readers do not want Huawei to win the contract for the 5G network in Vietnam. Intellectuals point out the dangers inherent in giving Chinese authorities access to information and data that run on such infrastructures.

Tuổi Trẻ newspaper and VNExpress report that "Many Vietnamese want to sell the Huawei phones after the US ban.

Currently, in Vietnam, “Huawei Group’s phones are very cheap." However, local media have reported that Huawei smartphone’s customers have been talking about the issue online forums, feeling confused, worried, and helpless to the fact their smartphones will become “bricks”.

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