According to three persons with knowledge of the situation, Trina Solar, a Chinese manufacturer of solar panels, plans to erect its third factory in Vietnam. This move would increase shipments to the United States following the imposition of punitive levies on goods made in Thailand.
The factory would cover 25 hectares of industrial property, and Trina, one of the largest solar panel manufacturers in the world by sales, would invest $400 million in it. According to one of the people with firsthand knowledge of the proposal, production will start in 2025.
Trina has reportedly indicated a potential investment in Vietnam worth $600 million, according to a second individual involved in conversations with the business.
The sources declined to be identified since the project’s specifics were still under wraps. Requests for comments from Trina were not answered.
Trina’s investment in Vietnam comes in response to a U.S. Department of Commerce investigation, which found last month that Trina was one of five Chinese solar firms that used their facilities in Southeast Asian nations like Thailand to avoid paying harsh tariffs on Chinese-made panels, which the U.S. accuses of receiving unfair state subsidies.
The tariffs, which are scheduled to go into effect in the middle of next year, will only affect Trina’s operations in Thailand for the time being, but the common practise of Chinese companies establishing facilities in Southeast Asia to export goods to the U.S. is still being closely examined.
According to S&P Global Market Intelligence, the top producing nations in the area produced over 80% of the U.S. panel supplies, with Vietnam contributing roughly one-third of all solar panel imports in the first quarter of this year.
As one of the largest solar panel manufacturers in Vietnam, Trina’s proposed investment highlights the growing interest of Chinese companies in establishing plants there as they try to prevent the escalation of geopolitical and trade tensions between Beijing and Washington. Trina is already one of the largest solar panel manufacturers in China.
According to Vietnamese government data, China is this year’s second-largest foreign investor in Vietnam behind the United States, which invested $2.7 billion in its neighbour between January and mid-August, or more than five times the amount.
Trina operates two factories in Vietnam, one of which started producing silicon wafers last month and is anticipated to produce 6.5 gigawatts (GW) of silicon wafers annually, and the other of which makes solar cells and panels.
What the new factory will produce wasn’t immediately apparent. It will primarily focus on producing silicon wafers, according to one source, and solar cells, according to another.
According to sources, the business was considering many industrial parks. Someone said Trina requested the involvement of a feng shui specialist in the decision-making process.
The most auspicious place to be is determined using the ancient Chinese geomancy practise of feng shui.
According to a different source, Trina Vietnam’s power supply issues were taken into account as the business explored options for its potential expansion.
The second-largest source of electricity in Vietnam, hydropower, was negatively impacted by a heatwave in June, prompting enterprises to temporarily halt work owing to power outages.