Solar PV market under duress from dependence on imports

As one of the fastest-developing countries in solar thanks to the current feed-in tariff, Vietnam’s billion-dollar solar panel market is mostly dominated by foreign investors and depending on imports.

Solar PV market under duress from dependence on imports
The large solar panel market in this country is currently presided over by overseas investors.

The Indian Ministry of Commerce and Industry a fortnight ago launched an anti-dumping probe into solar cells originating from China, Thailand, and Vietnam, following a petition by the Indian Solar Manufacturers Association. The move has shocked Vietnam-based panel producers.

The ministry said that solar panel products originating or imported from the three countries have a high margin of dumping, exceeding the minimum threshold of 2 per cent.

The Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade said producers and exporters should contact the Indian ministry to register for questionnaires and keep abreast of relevant information coming from India. Any action deemed uncooperative could lead to India imposing anti-dumping duties, it warned.

“The imposition of a high anti-dumping tax will reduce competitive advantages and lose part or all of the Indian export market to competitors from India and other countries,” warned a representative of the Trade Remedies Authority of Vietnam.

However, according to the General Department of Vietnam Customs, last year Vietnamese groups imported 114.6 million photovoltaic (PV) panels with a value of up to $2.4 billion, a substantial increase on 2019’s figures of 36.2 million panels imported at around $845 million.

Some developers as well as engineering and procurement companies said that with the boom in solar power in Vietnam over recent years, many projects have raced to commence operations and seize the incentives on offer, leading to large import demand.

Nguyen Thuy Ngan, brand director of locally-invested Solar BK, said that it is the only domestic enterprise producing solar cells with international standards at a competitive price, but accounts for less than 1 per cent of the market share in Vietnam. “We have policies to encourage renewable energy but there is lack of policy for PV manufacturers. Therefore, the market share worth billions of US dollars is mostly in the hands of foreign enterprises, mostly China,” Ngan said.

 

China is the world’s largest producer of PV equipment and some well-known Chinese manufacturers including Trina Solar, JA Solar, and Bowerway Group have their facilities to Vietnam.

The northern province of Bac Giang currently hosts eight projects belonging to Chinese and Taiwanese investors, which will form the largest solar energy equipment manufacturing chain in the country with a total capacity of 5,200MW per year.

In 2018, India imposed a safeguard duty on solar cells imported from China and Malaysia for two years, a move that was expected to increase costs and push up tariffs from record lows. Under that, a levy of 25 per cent was imposed on imports in the first year starting July 30, and 20 and 15 per cent for two subsequent six-month periods, respectively.

According to a TechSci Research report on Vietnam’s solar PV equipment market, it is forecast to cross $3.7 billion in value by 2025. Market growth can be attributed to the increasing electricity demand from industrial and commercial as well as residential end-user segments, rising investments in solar energy, and favourable regulatory scenarios, the report explained.

The electricity demand in Vietnam has grown by around 30 per cent since 2000 and is expected to continue growing over the next decade. By 2025, the solar PV equipment market is anticipated to witness robust growth on account of increasing investments in solar projects and a government focus on reducing carbon emissions.

VIR

Vietnam’s renewable energy: Key guidance to investors

Vietnam’s renewable energy: Key guidance to investors

Solar power capacity is increasing thanks to significant changes in feed-in-tariff.

Solar power capacity to be cut due to oversupply

Solar power capacity to be cut due to oversupply

Nguyen Duc Ninh, Director of the National Power Regulation Centre, has said Vietnam will cut its renewable electricity capacity due to oversupply.

 
 

Other News

.
VN stock market hits record, big names rise
VN stock market hits record, big names rise
FEATUREicon  14/07/2021 

The Vietnamese stock market in the first half (H1) of 2021 broke many records.

Aviation sector eyes recovery in 2023-24
Aviation sector eyes recovery in 2023-24
BUSINESSicon  14/07/2021 

Vietnam's aviation market is hoped to recover in 2023-24, according to a Vietnam Airlines' representative.

Exporters face slew of difficulties due to COVID
Exporters face slew of difficulties due to COVID
BUSINESSicon  14/07/2021 

Though exports remain strong, several sectors face difficulties due to the COVID-19 pandemic and require support from the Government if they are to sustain the growth, experts said.

Ministry proposes reduction in insurance deposits for travel firms
Ministry proposes reduction in insurance deposits for travel firms
BUSINESSicon  14/07/2021 

The Ministry of Culture, Sports and Tourism wants to reduce the value of insurance deposits by 80 per cent to help travel companies that are struggling because of COVID-19.

Mekong Delta: attractive destination for renewable energy development
Mekong Delta: attractive destination for renewable energy development
BUSINESSicon  14/07/2021 

Taking advantage of its natural conditions and investment attraction policies, the Cuu Long (Mekong) Delta has become a destination for investors in renewable energy projects.

Banks agree to reduce lending interest rates from July
Banks agree to reduce lending interest rates from July
BUSINESSicon  14/07/2021 

Commercial banks have agreed to slash the lending interest rate in order to help businesses and people overcome the difficulties caused by the Covid-19 crisis.

Industrial real estate market hit hard by fourth Covid wave
Industrial real estate market hit hard by fourth Covid wave
FEATUREicon  14/07/2021 

The latest Covid-19 outbreak, which began in late April, has slowed down the industrial real estate market. There have been only small-scale projects and no large scale one announced.

Banks lending big to keep agriculture sector ticking
Banks lending big to keep agriculture sector ticking
BUSINESSicon  14/07/2021 

According to the State Bank of Vietnam’s department of credit for economic sectors, as of April credit injected into rural and agricultural development had reached VND2.3 quadrillion ($100 billion), or 24.6% of the banking sector’s total loans.

IFC helps boost green credit in Vietnam
IFC helps boost green credit in Vietnam
BUSINESSicon  14/07/2021 

The International Finance Corporation (IFC) has provided a 100 million USD long-term loan for the Orient Commercial Joint Stock Bank (OCB) to increase the private sector’s contributions to green and sustainable growth in Vietnam.

Hotels as 5-star quarantine sites: new way to make profit
Hotels as 5-star quarantine sites: new way to make profit
FEATUREicon  14/07/2021 

For over the past year, one of the largest 5-star hotels in Ha Long City, Quang Ninh Province, has been used as a quarantine site for visitors who enter Vietnam by air. 

Businesses in HCM City, Long An suspend operations to prevent spread of COVID-19
Businesses in HCM City, Long An suspend operations to prevent spread of COVID-19
BUSINESSicon  13/07/2021 

Authorities in HCM City and Long An Province have suspended operations of a number of businesses so that epidemic prevention measures can be carried out.

Shares nosedive on panic sell-off
Shares nosedive on panic sell-off
BUSINESSicon  13/07/2021 

Vietnamese shares plunged on Monday as panic selling flooded the market, following surging COVID-19 cases, reinforcing fears of further economic pain from restrictions induced by the virus.

Vietnam is second-fastest growing stock market with multi-billion dollar records: report
Vietnam is second-fastest growing stock market with multi-billion dollar records: report
BUSINESSicon  13/07/2021 

The State Securities Commission (SSC) has reported that Vietnam was the second-fastest growing stock market in the first half of the year, despite the fourth Covid-19 outbreak.

Vietnam Airlines resumes several international routes as of mid-July
Vietnam Airlines resumes several international routes as of mid-July
BUSINESSicon  12/07/2021 

Vietnam Airlines announced on July 12 that it will reopen international routes from the country to a number of destinations in Asia, Europe, and Australia between July and October.

Banks make huge profits, hope interest rate reductions are far off
Banks make huge profits, hope interest rate reductions are far off
FEATUREicon  13/07/2021 

Banks have reported huge profits for Q2 and H1 due to high credit growth rates and lending interest rates, while capital mobilization cost has been low.

GDP still grows in midst of tribulations among the poor, businesses
GDP still grows in midst of tribulations among the poor, businesses
FEATUREicon  13/07/2021 

Do GDP calculations take into account the fact that a taxi driver gets poorer by 10 times more as he has to spend VND100,000 on nCoV testing a day, and informal workers have no access to cheap meals in HCM City?

Coal conundrum ahead forces Vietnam to rethink priorities
Coal conundrum ahead forces Vietnam to rethink priorities
BUSINESSicon  12/07/2021 

While the pressure on the environment and issues like climate change are increasing, it remains difficult for Vietnamese companies and the government to turn away from fossil fuels completely.

Debt under control thanks to prudent and effective actions
Debt under control thanks to prudent and effective actions
BUSINESSicon  12/07/2021 

Effective usage of the state budget has helped Vietnam succeed in bringing public debt under control since 2016, ensuring national financial security.

VIETNAM BUSINESS NEWS JULY 13
VIETNAM BUSINESS NEWS JULY 13
BUSINESSicon  13/07/2021 

Khanh Hoa proposes developing Van Phong-Nha Trang expy project

Vietnam spends nearly $2 billion importing meat
Vietnam spends nearly $2 billion importing meat
BUSINESSicon  12/07/2021 

Vietnam's total import turnover of livestock products in the first six months of 2021 is estimated at US$1.82 billion, a year-on-year increase of 8.9 per cent.

 
 
 
Leave your comment on an article

OR QUICK LOGIN