Solar module majors bullish on Vietnam
Vietnam has attracted global producers of solar modules and panels, with major American, Canadian, and Chinese investors already present, as the tropical country is ramping up investment in solar and wind power.
Shanghai-based JinkoSolar, First Solar from Tempe, Arizona, and Canada-headquartered Canadian Solar have made manufacturing in Vietnam an important part of their global production networks.
JinkoSolar's continual expansion
JinkoSolar, one of the world’s top makers of solar modules, has 12 production facilities globally, including two in Vietnam. Both are located in northern Quang Ninh province’s Song Khoai Industrial Park (IP), developed by Thailand’s Amata Corp.
The Chinese giant started building a $366 million silicon wafer plant in the IP late last September to supply its new $500 million solar photovoltaic (PV) cell facility over there, and other plants in Malaysia and the U.S. The 20-hectare wafer plant launched its first products in January this year, less than four months from its groundbreaking ceremony, and seven months ahead of the major’s initial schedule.
Explaining the rapid construction completion, Huang Jinxing, CEO of JinkoSolar (Vietnam) Industries Co., said his company did the job as fast as it could. The provincial administration had also provided full support in investment procedures, helped it rapidly import equipment and machinery, and conveniently bring more than 700 experts to the construction site, he stressed.
The 7-gigawatt (GW) wafer facility, which is also carrying out research and development, is designed with an annual output of 1.43 million silicon ingots and wafers and is expected to have about 2,200 employees when fully operational.
As for the separate PV cell plant, JinkoSolar began construction last April and put it into operation last October with about 2,250 employees. This $500 million investment is expected to generate annual sales of $1.3 billion for the global firm.
So far, JinkoSolar Vietnam has prepared building a residential quarter for its experts in the province’s Ha Long town, and another for workers in nearby Quang Yen town. Investments for the two facilities have not been disclosed.
In southern Vietnam, JinkoSolar and distributor Solar Z have installed 2 megawatts of 535-watt rooftop solar panels at a plant operated by Saigon Alcohol, Beer and Beverage Joint Stock Company (Sabeco) last August. Known for its “Bia Saigon” and “33” brands, Sabeco is Vietnam’s largest brewer. Controlled by Thai Beverage PCL, which acquired a 53.6% stake in 2017 for almost $5 billion, the brewer is carrying out an environmental program to reduce electricity costs.
Vietnam ranks third in the world for newly installed solar power capacity after China and the U.S., according to JinkoSolar. “The demand for PV modules in Vietnam has also been gradually ramped up towards monocrystalline and large silicon wafers,” the Shanghai-based company said in a release last May.
“Vietnam is one of the fastest-growing economies in Asia Pacific. JinkoSolar’s No. 1 position in the market reflects our excellence in product quality, strong network and customer service in the region,” Gener Miao, chief marketing officer of JinkoSolar, said in the release.
“We are pleased to see more innovative enterprises being recognized by top authorities in Vietnam, as the country continues to advocate for clean energy transformation and to drive the high-speed economic development of its PV market,” he added.
The New York Stock Exchange-listed company has 12 productions facilities globally and 21 overseas subsidiaries in Japan, South Korea, Vietnam, India, Turkey, Germany, Italy, Switzerland, the U.S., Mexico, Brazil, Chile, Australia, Canada, Malaysia, the UAE, and Denmark.
$830 million from First Solar
U.S. major First Solar operates three production sites globally - in Ohio; Malaysia’s Kulim; and Ho Chi Minh City, Vietnam’s southern economic hub.
The corporation has invested $830 million in two manufacturing facilities in Dong Nam Industrial Park of Cu Chi district, home to the Tunnels of Cu Chi, a very popular destination among international tourists.
First Solar marked a key milestone in Vietnam in early 2018 when it received the first equipment for manufacturing its latest, high-tech Series 6 PV module. Addressing a gathering at the time, Mike Koralewski, Senior Vice President, First Solar’s global module manufacturing, said, "We have strong customer demand for our new Series 6 product and our investment in Vietnam is a critical component of our future success."
In late March 2020, when Vietnam was facing Covid-19 outbreaks, First Solar stated from its Tempe headquarters that its manufacturing operations at the two Vietnam-based facilities were not impacted by government-mandated restrictions on movement at that time. “The safety of First Solar’s employees is a top priority,” the release noted.
Bread earner for Canadian Solar
In January 2016, the World Bank’s investment arm IFC provided Canadian Solar with a $70 million financing package to fund the Canadian firm’s module production facility in Vietnam and expansion in other markets.
With the financing, Canadian Solar Vietnam built its factory in the Vietnam Singapore Industrial Park (VSIP) Hai Phong in Hai Phong city in the same year. That time’s investment for the facility, according to the city’s data, was $30 million.
Canadian Solar’s reports have shown the significance of the plant to its global business. For example, the company shipped 3 GW of modules to more than 70 countries in the fourth quarter of 2020, with the top five markets ranked by shipments being Vietnam, China, the U.S., Brazil, and Australia. For the full year of 2020, the top five markets ranked by shipments were the U.S., Vietnam, China, Brazil and Japan.
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