Vietnam tops Southeast Asia in solar photovoltaic supply: ADB
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.
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.
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