Report Overview

Vietnam Solar Energy Market- Industry Trends & Forecast Report 2028

Vietnam solar energy market is witnessing prolific demand and expected to grow at a CAGR of 7.3% during the forecast period (2022-2028). Vietnam's solar energy market has been heavily supported by the government's recent initiatives, such as the National Power Development Master Plan (PDP VII) for 2011-2020, and its vision for 2030. Vietnam's PDP VII intends to increase the share of renewable energy to roughly 7% by 2020 and above 10% by 2030. It will also reduce the use of imported coal-fired electricity, thereby driving the growth of Vietnam’s solar energy market. Further, the government has allowed 100% foreign ownership of Vietnamese companies in the energy sector, boosting demand for solar energy in Vietnam.

Vietnam Solar Energy Overview

Solar energy is the process of converting sunlight into energy, either directly through photovoltaics or indirectly through concentrated energy. Solar energy technologies harness the sun's energy to generate heat, light, electricity for homes, businesses, and industries. Some of the technologies developed to take advantage of solar energy are solar electricity, photovoltaic systems, and solar hot water. Solar energy is becoming increasingly popular in Vietnam for generating electricity. The widespread popularity of PV technology in Vietnam can be attributed to the growth of the country’s solar power market.

Vietnam Solar Energy Market Trend

Growth Drivers

Approval of Feed-in-Tariffs (FiT) in Vietnam

FiTs are responsible for much of Vietnam's recent success with solar energy. FiTs stimulate investment in renewable energy by guaranteeing producers a price above the market. FITs also help limit the risks associated with renewable energy production because they typically involve long-term commitments. In April 2020, the Vietnamese government finalized new solar FiTs, 10 months after the previous FiT scheme expired in June 2019. The new tariffs are 10-24% lower than before and remain uniform across areas while differing by type (ground-mounted, floating, and rooftop). The latest judgment stipulates that solar projects must be operational by December 31, 2020, to qualify for the higher FiT rates. As a result of the approval of FiTs, the solar energy market in Vietnam has been growing at a fast pace.

Increasing Electricity Demand

The Vietnamese Energy Ministry predicts that the country will suffer significant power shortages as the development of new power plants lags behind the country's rapidly expanding energy consumption. With increasing industrialization and economic modernization, energy demand is expected to rise by more than 8% each year between 2021 and 2030. The demand for electricity in Vietnam is predicted to rise from 265-278 TWh in 2020 to 572-632 TWh in 2030. Vietnam will need 96,500MW of electricity by 2025, and 129,500MW of electricity by 2030 to meet the rising demand. Thus, Vietnam is majorly focusing on renewable energy sources to meet the future demand for electricity, which has propelled the growth of Vietnam solar energy market.

Restraints

Delays in Projects due to the Complex Regulatory Framework

While Vietnam is expected to face power shortages in the coming years, government restrictions prevent the country from fully utilizing the potential of renewable energy. According to the country's Department of Industry and Trade, nine of the 15 operating solar projects in Ninh Thuan, one of the country's solar power hotspots, are functioning at only 30-60% of their maximum capacity. It is because Vietnam's transmission networks are incapable of handling a surge in renewable energy generation. Following the government's announcement of an enticing incentive rate last year, 91 solar farms began operating in the country, resulting in transmission lines operating at up to 360% of their safe capacity limit. Therefore, complex regulations have hindered the growth of the solar energy market in Vietnam.

Impact of COVID-19 on Vietnam Solar Energy Market

Vietnam has seen a decrease in overall energy consumption, disrupted supply chains, and a decline in economic development as a result of the COVID-19 pandemic. As a result of disrupted supply chains and lockdowns, there were delays in projects and a lack of investment during the pandemic. Moreover, due to supply chain problems currently affecting solar cell and module delivery from China, as well as other pandemic-related economic concerns, enterprises faced a difficult time becoming operational.

Vietnam Solar Energy Market: By End-User Industry

Based on end-user industries, the Vietnam solar energy market is grouped into electricity generation, heating, charging and lighting. In 2021, electricity generation accounted for the largest share in the Vietnam solar energy market and is expected to grow at a healthy CAGR during the forecast period. The Vietnam energy industry ministry had warned of power shortages between 2021 and 2025, with the most severe deficit of 5 billion kWh in 2023 due to delays in the construction of new thermal and gas-fired facilities. Owing to the delays in the construction of power plants, the government started FDI on renewable energy projects in Vietnam to fulfill the electricity demand, which has driven the growth of the renewable energy sector in Vietnam for electricity generation.

Vietnam Solar Energy Market - Competitive Landscape

Some of the key players in the Vietnam Solar Energy market are Sharp Energy Solutions Corporation, Tata Power Solar Systems Ltd., Giang Son, Berkeley Energy Commercial & Industrial Solutions, Trina Solar, Yingli Solar, BCG Energy, Wuxi Suntech Power Co. Ltd., Vivaan Solar, GE Renewable, Siemens Energy, German ASEAN Power, B.Grimm Power Public Co. Ltd., Schletter Group, JA Solar, Sunseap International, Nippon Sheet Glass, Ecoprogetti, Tata Power, Shapoorji Pallonji Infrastructure Capital, Gulf Energy Development, InfraCo Asia Development, and ACWA Power, and other prominent players. Efforts by the government to install solar energy plants throughout the region and achieve net-zero emissions by 2030 have fueled competition in the market. In addition, the Vietnamese government is collaborating with foreign companies to commission and install new projects, which has increased competition in the market.

Recent Developments

• In December 2021, Lego announced its plans to develop a new manufacturing unit in Vietnam to keep up with the increased demand for its products in Asia. The toymaker stated that it will invest more than USD 1 billion in the project. The critical fact about this factory is that it will be a zero carbon-neutral factory running on renewable energy, mainly on solar power.

• In October 2021, SkyX Solar, which has roughly 30 MWp of solar projects in operation and is a strategic partner of EDF Renewables, announced its plans to invest over $100 million in the next several years to create 200MWp of rooftop solar and distributed energy solar projects for commercial and industrial customers in Vietnam.

Scope of the Report

By Technology

• Photovoltaic Systems
• Concentrated Solar Power Systems

By Solar Module

• Monocrystalline
• Polycrystalline
• Cadmium Telluride
• Amorphous Silicon Cells
• Others

By Application

• Industrial
• Commercial
• Residential

By End-User Industry

• Electricity Generation
• Heating
• Charging and Lighting

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. Vietnam Solar Energy Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Recent Development
   4. Government Regulations
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
   6. Technological Advancement
5. Vietnam Solar Energy Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology
         1. Photovoltaic Systems
         2. Concentrated Solar Power Systems
      2. By Solar Module
         1. Monocrystalline
         2. Polycrystalline
         3. Cadmium Telluride
         4. Amorphous Silicon Cells
         5. Others
      3. By Application
         1. Residential
         2. Commercial
         3. Industrial
      4. By End-User Industry
         1. Electricity Generation
         2. Heating
         3. Charging and Lighting
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development
      1. Merger Acquisition, Joint Venture, Product Launch
7. Impact of Covid-19 on Vietnam Solar Energy Market Industry
8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
   1. Sharp Energy Solutions Corporation
   2. TATA POWER SOLAR SYSTEMS LTD.
   3. Giang Son
   4. Berkeley Energy Commercial & Industrial Solutions
   5. Yingli Solar
   6. Wuxi Suntech Power CO. Ltd
   7. Vivaan Solar
   8. GE Renewable
   9. Siemens Energy
   10. BCG Energy
   11. Wuxi Suntech Power Co. Ltd
   12. German ASEAN Power
   13. B.Grimm Power Public Co Ltd
   14. Schletter Group
   15. JA Solar
   16. Sunseap International
   17. Nippon Sheet Glass
   18. Ecoprogetti
   19. Shapoorji Pallonji Infrastructure Capital
   20. ACWA Power
   21. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Fig 1: Vietnam Solar Energy Segmentation

Fig 2: Vietnam Solar Energy Market Value Chain Analysis

Fig 3: Company Market Share Analysis, 2021

Fig 4: Vietnam Solar Energy Market Size, By Value (USD Million), 2018-2028

Fig 5: Vietnam Solar Energy Market Share, By Technology, By Value, 2018-2028

Fig 6: Vietnam Solar Energy Market Share, By Solar Module, By Value, 2018-2028

Fig 7: Vietnam Solar Energy Market Share, By Application, By Value, 2018-2028

Fig 8: Vietnam Solar Energy Market Share, By End-User Industry, By Value, 2018-2028

List of Table

Table 1: Vietnam Solar Energy Market Size, By Technology, By Value, 2018-2028

Table 2: Vietnam Solar Energy Market Size, By Solar Module, By Value, 2018-2028

Table 3: Vietnam Solar Energy Market Size, By Application, By Value, 2018-2028

Table 4: Vietnam Solar Energy Market Size, By End-User Industry, By Value, 2018-2028

Table 5: Sharp Energy Solutions Corporation Financial Analysis

Table 6: Sharp Energy Solutions Corporation Business Overview

Table 7: Tata Power Solar Systems Ltd. Financial Analysis

Table 8: Tata Power Solar Systems Ltd. Business Overview

Table 9: Giang Son Financial Analysis

Table 10: Giang Son Business Overview

Table 11: Berkeley Energy Commercial & Industrial Solutions Financial Analysis

Table 12: Berkeley Energy Commercial & Industrial Solutions Business Overview

Table 13: Yingli Solar Financial Analysis

Table 14: Yingli Solar Business Overview

Table 15: Wuxi Suntech Power CO. Ltd Financial Analysis

Table 16: Wuxi Suntech Power CO. Ltd Business Overview

Table 17: GE Renewable Energy Financial Analysis

Table 18: GE Renewable Energy Business Overview

Table 19: Siemens Energy Pvt Ltd Financial Analysis

Table 20: BCG Energy Business Overview

Table 21: BCG Energy Financial Analysis