Vietnam tops Southeast Asia in solar photovoltaic supply: ADB

By Tri Duc
Fri, August 25, 2023 | 1:38 pm GMT+7

Vietnam is the top solar photovoltaic (solar PV) supplier in Southeast Asia, accounting for 5% of the global supply, according to the Asian Development Bank (ADB).

In its “Renewable Energy Manufacturing: Opportunities for Southeast Asia” report released Thursday, the ADB says Vietnam is also a regional leader in manufacturing batteries and electric two-wheelers.

A solar photovoltaic panel factory in Ba Ria-Vung Tau province, southern Vietnam. Photo courtesy of the government portal.

A solar photovoltaic panel factory in Ba Ria-Vung Tau province, southern Vietnam. Photo courtesy of the government portal.

Solar photovoltaic

The ADB report calls Southeast Asia a global manufacturing hub of the world with 9-10% of the world’s cells and modules capacity. Most manufacturing capacity in the region has been established by manufacturers from China, such as Jinko and JA Solar in Vietnam.

The region’s nameplate capacity of 70 GW heavily outweighs the region’s demand of three GW per year, the ADB report says, adding that Southeast Asia is largely an export of solar PV.

The region boasts large potential for renewable energy deployment, the report says. Right now, Vietnam is the only regional country that has achieved a “high” score of 84% in the World Bank’s Regulatory Indicators for Sustainable Energy (RISE), far above Thailand as the runner-up with a score of 45.

Vietnam’s proximity to China, its northern neighbor, is perceived as significant benefit related to delivery time of input materials, the report says.

Vietnam is home to many major solar panel producers, including the U.S.'s First Solar, China-invested HT Solar, local firm Irex Solar, China-invested Trina Solar, Canada-invested Vina Solar, China-invested Ja Solar, and others.

In August 2023, Boway, a leading Chinese business engaging in new materials, new energy, and other industries, said it plans to invest $350 million in Hai Duong province. It signed an agreement to lease 20 hectares of land in Hai Duong’s Cong Hoa Industrial Park for project development in August 2023, in order to build a factory for manufacturing photovoltaic panels, solar energy conversion modules, high-tech alloy strip plates.

In June 2023, Vietnamese private conglomerate Damsan’s AD Green inaugurated a $45 million, 3-gigawatt factory in northern Vietnam, manufacturing solar panels for domestic and overseas markets. The facility covers almost 8 hectares at the An Ninh industrial complex in Tien Hai district, Thai Binh province.

In November 2022, Phu Tho province awarded an investment certificate for a $200-million solar cell factory to Japanese-invested Vietnam Sunergy JSC that will be built in 2023. The 13-hectare project at the Cam Khe industrial park will employ 700 people and use eco-friendly technology.

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.

U.S. major First Solar operates three production sites globally, including one in Ho Chi Minh City. 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.

Battery potential

The ADB report highlights Southeast Asia’s potential to establish an end-to-end battery value chain, given the region’s abundance in critical mineral resources and strong interest from global players to establish their footprints there.

The demand for batteries in Southeast Asia is driven by electric vehicle (EV) batteries and battery energy storage systems (BESS). In Vietnam, the main driver is EV batteries and the main players are VinES and Sumitomo, according to the ADB.

By 2030, Southeast Asia’s production output can reach 60 GWh, with Vietnam’s portion at 5 GWh. Meanwhile, the battery demand for EV and BESS in Vietnam is estimated at 10 GWh and 4-7 GWh in 2030, up from 1.4 GWh and 0.2 GWh in 2022, respectively.

Electric two-wheelers

Southeast Asia’s annual production capacity of electric two-wheelers (E2W) was about 1.4-1.6 million in 2021 and can grow to 4.5 million in 2030, the report says.

Vietnam, home to both regional firms and local startups like VinFast, PEGA and Selex, boasts the highest manufacturing capability in the region at 600,000-800,000 units a year in 2022.

This is far ahead of Indonesia with 430,000 units, Thailand with 366,000 units and Malaysia with 7,000 units.

Total E2W sales in Southeast Asia reached 240,000 units in 2021, which Vietnam dominated with 210,000 units. Vietnam’s consumption is projected to increase to 900,000 in 2030, given its target of E2Ws making up 15% of the total in 2030 and 100% by 2040.

Comments (0)
  • Read More
Malaysia commits to net zero emissions by 2050

Malaysia commits to net zero emissions by 2050

Malaysia has committed to achieving net-zero greenhouse gas emissions by 2050, positioning itself as a responsible global player in the fight against climate change despite contributing just 0.8% of global emissions.

Southeast Asia - Thu, November 14, 2024 | 8:25 am GMT+7

Thailand eyes congestion charges to ease capital traffic

Thailand eyes congestion charges to ease capital traffic

The Thai Ministry of Transport said on Tuesday that it is exploring the implementation of a congestion charge program to alleviate chronic traffic problems in the capital city of Bangkok, improve air quality and promote the use of public transportation.

Southeast Asia - Thu, November 14, 2024 | 8:24 am GMT+7

Indonesia, Japan agree to reduce greenhouse gas emission​

Indonesia, Japan agree to reduce greenhouse gas emission​

Indonesia and Japan on Tuesday agreed to start implementing the Mutual Recognition Arrangement (MRA) for the implementation of bilateral carbon trading cooperation.

Southeast Asia - Thu, November 14, 2024 | 8:22 am GMT+7

Thailand remains world's fourth biggest exporter of pet food

Thailand remains world's fourth biggest exporter of pet food

Thailand remains the world’s fourth largest pet food exporter, tapping into a booming global market valued at over $280 billion.

Southeast Asia - Thu, November 14, 2024 | 8:20 am GMT+7

Banking stocks to gain as Vietnam market nears status upgrade: experts

Banking stocks to gain as Vietnam market nears status upgrade: experts

Banking stocks are set to benefit the most from the impending upgrade of Vietnam’s stock market to “emerging market” status, with an influx of foreign investment and heightened market activity in the near future, experts say.

Banking - Thu, November 14, 2024 | 8:00 am GMT+7

Vietnam faces complex challenge as counterfeits shift to cyberspace

Vietnam faces complex challenge as counterfeits shift to cyberspace

Even as the prevalence of counterfeit goods in traditional markets has dropped significantly, their online presence has become a growing concern, says Nguyen Ngoc Ty, CEO of Non Son Fashion Company Limited, a company dedicated to producing and selling hats and helmets.

Economy - Wed, November 13, 2024 | 7:21 pm GMT+7

Japan food firm Kyokuyo completes $14 mln factory in southern Vietnam

Japan food firm Kyokuyo completes $14 mln factory in southern Vietnam

Kyokuyo Vina Foods Co., Ltd., under Japan’s food firm Kyokuyo, has completed the construction of a JPY2.1 billion ($13.5 million) factory, its first facility in Vietnam.

Companies - Wed, November 13, 2024 | 4:23 pm GMT+7

StanChart arranges $100 million syndicated loan for Vietnam-based Stavian Chemical

StanChart arranges $100 million syndicated loan for Vietnam-based Stavian Chemical

Standard Chartered Vietnam has acted as the sole mandated lead arranger and bookrunner in a $100 million maiden offshore syndicated loan transaction for Stavian Chemical JSC.

Banking - Wed, November 13, 2024 | 4:19 pm GMT+7

Vietnam dong hits historic low

Vietnam dong hits historic low

The Vietnamese dong (VND) has reached a historic low against the U.S. dollar (USD) as the greenback continues strengthening on the international market.

Banking - Wed, November 13, 2024 | 3:48 pm GMT+7

Vietnam gov't seeks parliamentary green light for colossal high-speed railway project

Vietnam gov't seeks parliamentary green light for colossal high-speed railway project

An ambitious plan to build a transnational high-speed railway route has been proposed to the Vietnamese parliament for approval amid concerns about the project’s financial feasibility.

Infrastructure - Wed, November 13, 2024 | 3:19 pm GMT+7

Climate change can cut Asia-Pacific GDP by 16.9%, Vietnam by 30%: ADB

Climate change can cut Asia-Pacific GDP by 16.9%, Vietnam by 30%: ADB

By 2070, climate change under a high-end emissions scenario can cause a total loss of 16.9% of GDP across the Asia-Pacific region, the Asian Development Bank (ADB) has said in its “Asia-Pacific Climate Report 2024.”

Economy - Wed, November 13, 2024 | 3:11 pm GMT+7

Japan beverage maker Suntory sees Jan-Sept Vietnam revenue rise to $749 mln

Japan beverage maker Suntory sees Jan-Sept Vietnam revenue rise to $749 mln

Japan-based brewing and distilling firm Suntory, a partner in Vietnam-based Suntory PepsiCo Vietnam Beverage Co. Ltd., earned in-country revenues of JPY116 billion ($749.2 million) in the first nine months of this year.

Companies - Wed, November 13, 2024 | 2:18 pm GMT+7

EV maker VinFast secures extra $3.4 bln funding from founder, Vingroup

EV maker VinFast secures extra $3.4 bln funding from founder, Vingroup

VinFast, the electric vehicle (EV) arm of Vietnam's private conglomerate Vingroup, is set to receive financial aids of VND85 trillion ($3.36 billion) from its parent firm and Vingroup chairman-founder Pham Nhat Vuong.

Companies - Wed, November 13, 2024 | 10:54 am GMT+7

Vietnam gov’t proposes nuclear power project revival as energy demand surges

Vietnam gov’t proposes nuclear power project revival as energy demand surges

The Vietnamese government has proposed resuming the nuclear power project and accelerating offshore wind power development as energy demand is forecast to grow by two-digit rates to accommodate economic growth.

Energy - Wed, November 13, 2024 | 10:41 am GMT+7

Bamboo Capital at 13: deep roots, towering shoots

Bamboo Capital at 13: deep roots, towering shoots

Vietnamese firm Bamboo Capital began its journey in 2011 as a small but promising startup. Thirteen years later, it has grown into a powerful multi-sector conglomerate.

Bamboo Capital - Wed, November 13, 2024 | 8:58 am GMT+7

Vietnam media giant YeaH1 profits handsomely from TV shows, divestments

Vietnam media giant YeaH1 profits handsomely from TV shows, divestments

YeaH1 Group, a leading media and entertainment company in Vietnam, reported an impressive profit in the first nine months of the year as also surging stock prices.

Companies - Wed, November 13, 2024 | 8:39 am GMT+7