Views: 0 Author: Site Editor Publish Time: 2026-07-16 Origin: Site
Vietnam’s solar industry is facing a major turning point. While factories continue producing solar cells and modules at high speed, the market is struggling to absorb the rapidly expanding capacity.
Over the past few years, Vietnam has become one of the world’s largest solar manufacturing hubs. Since 2019, many leading Chinese solar companies have invested heavily in Vietnam, building large-scale factories. By the end of 2025, Vietnam’s solar module production capacity is expected to exceed 30GW, accounting for around 10% of global demand.
However, behind this rapid growth lies a growing problem: production capacity has expanded much faster than market demand.
A large share of Vietnam’s solar manufacturing capacity was originally built to serve overseas markets, especially the United States.
Since 2022, the US has gradually tightened trade restrictions on solar products from Southeast Asia, including Vietnam. Following anti-circumvention investigations, some Vietnamese-made solar products linked to Chinese supply chains became subject to high anti-dumping and countervailing duties.
As a result, exporting to the US has become increasingly difficult, forcing manufacturers to search for alternative markets.
Vietnam’s own solar market is growing, but it remains too small compared with its manufacturing scale.
By 2025, Vietnam had installed around 16–17GW of solar capacity, while its annual solar additions are only about 2–3GW.
Compared with more than 30GW of manufacturing capacity, the gap between production and demand remains significant.
In addition, Vietnam’s power grid development has struggled to keep pace with renewable energy growth, creating challenges for new solar projects.
Vietnam’s solar companies are now exploring several strategies:
1. Expanding into new international markets
Europe, the Middle East, Latin America, and other emerging markets are becoming increasingly important alternatives to the US market.
2. Supporting Vietnam’s domestic energy transition
Industrial parks and large factories in Vietnam are creating new opportunities for rooftop solar and direct power purchase agreements (DPPA).
3. Moving into higher-value segments
Companies are exploring areas such as energy storage, inverters, and solar system solutions to reduce dependence on module exports.
Vietnam’s solar manufacturing boom has created a powerful industrial base, but the next stage will be more challenging.
Large production capacity alone is no longer enough. Companies will need to improve technology, diversify markets, and build stronger local supply chains to remain competitive.
Vietnam will continue to play an important role in the global solar industry — but the era of rapid expansion is shifting toward a period of strategic adjustment.
