Vietnam Shines Bright: 14 GW Solar Panel Deal
- Chinese solar giants flock to Vietnam, investing billions in manufacturing hubs to bypass trade restrictions and secure a strong foothold in the global solar market.
Chinese solar firms are increasingly favoring Vietnam as a manufacturing hub, with a recent MoU signed for a 14 GW solar panel project in Nghe An province. Hainan Drinda New Energy plans to invest $450 million for the first phase, aiming to target markets with restrictions on Made-in-China modules. Chinese companies like Jinko Solar and Trina Solar are also expanding their presence in Vietnam, with investments totaling billions of dollars.
Vietnam is expected to attract over $2.5 billion in investments from Chinese firms by 2025, solidifying its position in the global supply chain for solar products. In addition, solar inverter maker GoodWe has chosen Vietnam as its first overseas manufacturing base, further highlighting the country's appeal to Chinese renewable energy companies.
Why are Chinese solar firms increasingly choosing Vietnam as a manufacturing hub?
- Vietnam offers lower labor costs compared to China, making it an attractive option for Chinese solar firms looking to reduce manufacturing expenses.
- The Vietnamese government has implemented policies and incentives to attract foreign investment in the renewable energy sector, creating a favorable business environment for Chinese companies.
- Vietnam's strategic location provides easy access to key markets in Southeast Asia, allowing Chinese solar firms to expand their reach and increase market share.
- The increasing demand for solar energy in Vietnam and other Southeast Asian countries presents a lucrative opportunity for Chinese solar firms to establish a manufacturing presence in the region.
- By setting up manufacturing facilities in Vietnam, Chinese solar firms can bypass trade restrictions and tariffs imposed on Made-in-China products in certain markets, enabling them to remain competitive and maintain market share.
