Hoang Thinh Dat JSC and Hainan Drinda New Energy Technology Co., Ltd., a Chinese firm, inked a Memorandum of Understanding (MoU) on March 26th to establish a solar panel manufacturing facility in the Hoang Mai II Industrial Park, situated within the Southeast Economic Zone of Nghe An, a central province in Vietnam.
Set to commence operations in the fourth quarter of this year, the factory will see an initial investment of $450 million for its first phase.
The recent month saw yet another Chinese company, Trina Solar Cell Co., Ltd., obtaining an investment registration certificate for a project valued at $454 million in Thai Nguyen, a northern province, focusing on solar module and battery production. This brings the cumulative investment by Chinese entities in Vietnam to $932 million.
Trina Solar Cell has previously established two projects with a combined registered investment of $478 million, dedicated to producing photovoltaic cells, silicon bars, and monocrystalline silicon panels.
According to Vietdata’s report, the solar battery market holds significant growth potential in the upcoming years.
Despite the promising prospects, the industry faces stiff competition, with domestic players yet to make substantial inroads. Currently, Irek Energy JSC stands as the lone domestic enterprise with a noticeable market share, while the majority is held by foreign-owned companies, predominantly Chinese and American.
Nguyen Mai, chairman of the Vietnam Association of Foreign-Invested Enterprises, expressed, “China leads the global arena in solar battery development, evident through numerous projects across provinces like Bac Giang, Thai Nguyen, and Bac Ninh. We embrace this influx of investment in renewable energy initiatives.”
Mai further added, “Chinese companies aren’t solely focused on solar cells; their interest extends to semiconductors. However, Vietnam must adeptly manage these emerging technologies and facilitate the transfer of technical expertise from foreign investors.”
As per the Foreign Investment Agency under the Ministry of Planning and Investment, foreign investment in Vietnam surpassed $6.17 billion as of March 20th, marking a 13.4 percent increase compared to the previous year. China leads the list of foreign investors in terms of new ventures, constituting 27.8 percent of the total.