Trina's planned investment underscores the growing interest of Chinese businesses in setting up factories there as they seek to avoid escalating geopolitical and trade tensions between Beijing and Washington. — Reuters
HANOI: Chinese solar panel maker Trina Solar is planning to build its third factory in Vietnam, three people familiar with the matter say, a move that would boost exports to the United States following punitive duties to be imposed on products it makes in Thailand.
Trina, one of the world’s biggest solar panel makers by sales, would invest US$400mil in the plant that would span 25ha of industrial land. Production is set to begin in 2025, one of the sources with direct knowledge of the plan said.
Another person who was involved in discussions with the company said Trina had flagged US$600mil in possible investment in Vietnam.
The sources declined to be named because the project details remained confidential. Trina did not reply to requests for comment.
Trina’s Vietnam investment follows an investigation by the US Department of Commerce which concluded last month that Trina was among five Chinese solar firms that used their plants in Thailand and other South-East Asian countries to dodge punitive tariffs on Chinese-made panels, which the United States said benefit from unfair state subsidies.
The tariffs, which are due to come into effect from the middle of next year, only impact Trina’s Thailand operation so far, but the widespread practice of Chinese firms setting up facilities in South-East Asia for export to the United States remains under close scrutiny.
The top-producing countries in the region account for about 80% of US panel supplies.
Vietnam provided about one-third of all US imports of solar panels in the first quarter of this year, according to S&P Global Market Intelligence.
Trina is already one of the biggest solar panel makers in Vietnam, and its planned investment underscores the growing interest of Chinese businesses in setting up factories there as they seek to avoid escalating geopolitical and trade tensions between Beijing and Washington.
China is the second biggest foreign investor in Vietnam this year, pouring US$2.7bil into its neighbour from January to mid-August, or more than five times the value of investments by US companies during the same period, according to Vietnamese government data.
Trina has two plants in Vietnam: one began making silicon wafers last month with an expected annual output of 6.5 gigawatts (GW) and another one that produces solar cells and panels.
It was not immediately clear what product the new plant would manufacture. One source said it would focus on making solar cells, and another on silicon wafers.
Another source said Trina Vietnam’s power supply problems were being considered as the company weighed options for its possible expansion. — Reuters
