Collaboration strengthens between Vietnam and Huawei towards technological advancement
Vietnam’s Deputy Prime Minister Trần Lưu Quang recently welcomed Zhengjun Zhang, Huawei’s Deputy Chairman for the Asia-Pacific region, at the Government Headquarters. Zhang revealed Huawei’s global revenue reached $99.4 billion in 2023, with projections to climb above $100 billion in 2024. The first quarter alone of 2024 has already seen revenue of $25.2 billion.
Commitment to innovation through research and development
Emphasizing the importance of research and development, Huawei invested over $23.2 billion in R&D in 2023, which constituted more than 23% of its total revenue. These investments have secured Huawei a leading position globally in areas such as 5G, artificial intelligence, data centers, and digital capabilities.
In the field of 5G networks, Huawei has not only marked its presence in the Chinese and European markets but is also involved in over 60% of approximately 100,000 5G base stations across Southeast Asia.
Deepening ties with Vietnam
Since first investing in Vietnam in 1998, Huawei has actively cooperated with local partners, including an agreement with the Ministry of Information and Communications to assist small and medium-sized enterprises and a memorandum with the Vietnam’s Posts and Telecommunications Institute to foster the training of 10,000 IT professionals over the next five years. Huawei is also exploring the deployment of the first 5G innovation center in Vietnam alongside these partners.
Noting the Deputy Chairman’s ambition for Huawei to be an influential player in Vietnam’s 5G, digital transformation, artificial intelligence, and green transition, Deputy Prime Minister Trần Lưu Quang praised Huawei’s achievements. The Vietnamese Government harbors a desire for foreign investors, including those from China, to invest in fields relevant to Vietnam’s needs and investors’ strengths, like digital transformation and green technology.
The Prime Minister of Vietnam, Phạm Minh Chính, had echoed a similar sentiment in previous conversations with Chinese enterprises, reassuring them of the government’s commitment to listening, providing support, and creating favorable conditions for foreign investors to achieve long-term, sustainable success in Vietnam.
Important Questions and Answers:
Q1: What is the significance of Huawei’s revenue projection for 2024?
A1: Huawei’s projection of surpassing $100 billion in revenue for 2024 indicates its resilience and adaptability despite the global economic challenges and its own specific hurdles, such as trade tensions between the USA and China. The company’s focus on R&D is allowing it to maintain a competitive edge in technology advancement.
Q2: How is Huawei’s investment in Vietnam beneficial for both parties?
A2: Huawei’s investment in Vietnam is mutually beneficial as it supports Vietnam’s technological development and growth in ICT while simultaneously allowing Huawei to expand its presence and market share in one of Southeast Asia’s rapidly growing economies.
Q3: What might be some key challenges for Huawei in reaching its revenue goals
A3: Huawei faces challenges that include geopolitical tensions, especially with Western nations like the USA, supply chain disruptions due to sanctions, competition from other global tech firms, and public perception issues associated with data privacy and security.
Key Controversies:
Huawei has faced allegations of espionage and has been scrutinized by various countries for its ties with the Chinese government, leading to bans from participating in 5G infrastructure in places like the US, UK, and Australia. The company has consistently denied these allegations.
Advantages of Huawei’s R&D Focus:
– Technological Leadership: By investing heavily in R&D, Huawei is well-positioned to pioneer in technologies like 5G and AI.
– Innovation: Continuous R&D leads to the development of innovative products and services.
– Competitive Edge: R&D can maintain or increase Huawei’s competitiveness internationally.
Disadvantages of Huawei’s R&D Focus:
– High Costs: R&D is expensive, which might lead to financial strain especially if market access is limited by bans and trade restrictions.
– Risk of Failure: Not all R&D initiatives lead to commercially successful products.
– Dependency on Patents: The tech industry is heavily reliant on patents. Tense geopolitical relations could affect Huawei’s ability to operate in global markets.
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