IREX, a Vietnam-based solar company, believes domestic demand can partly offset the decline in exports to the U.S. (Photo: Lin Bo-yu)
Despite uncertainties surrounding US tariffs, Vietnam’s renewable energy market remains resilient, attracting attention from developers in Japan and France. Discussions at this year’s Solar & Storage Live Vietnam, held from July 9 to 10, focused on policy progress and reflected sustained market confidence, despite tariff-related concerns.
Local solar module manufacturers acknowledged significant impacts on solar exports caused by US tariffs. However, they remain optimistic, believing domestic and alternative export markets can help offset these losses. Some developers also view US tariffs as a short-term disruption, suggesting the U.S. will ultimately rely on imports from ASEAN countries to maintain a stable supply chain.
Can Vietnam’s domestic market rescue solar firms amid US tariff threats?
To tackle unfair trade practices, US President Donald Trump has imposed significant tariffs, including anti-dumping and countervailing duties (AD/CVD) on imported solar products from four ASEAN countries, notably Vietnam. Under the most severe scenario, Vietnam could face AD/CVD rates reaching up to 813%, combined with an additional 40% tariff on product transshipment, bringing the total potential tariff to 853%.
Solar BK, a leading module manufacturer with 20 years of operations in Vietnam, is already feeling pressure from US tariffs. Phan Thi Thanh Thao, COO of Solar BK’s subsidiary IREX, acknowledged the significant impact on exports to the U.S., prompting the company to shift its overseas focus to markets in Europe and Australia.
Fortunately for IREX, the US market accounts only a modest portion of its total exports. Additionally, the Vietnamese government’s push to expand domestic renewable energy consumption presents a promising opportunity. With its well-established supply chain, IREX sees this domestic growth as a viable way to compensate for lost business in the US market, while simultaneously supporting Vietnam’s ongoing energy transition.
Japanese module maker Leapton Energy, whose products are manufactured in China, is also feeling the impact of US tariffs. Yet, the company views Vietnam’s growing domestic market as a promising alternative.
Leapton’s sales representative, Ho Throng Thanh, said the company received significant interest at the expo, expressing confidence that Leapton’s higher quality products with longer warranty periods can effectively capture greater market share in Vietnam.
Nguyen Xuan Thang, president of French renewable energy developer GreenYellow’s Vietnam subsidiary, believes the impact of US tariffs on the Vietnamese solar industry will be temporary. According to Nguyen, the U.S. has limited alternatives and will eventually need to resume imports from the ASEAN countries.
He humorously suggested that the Trump administration introduced tariffs merely to help America’s largest solar manufacturer, First Solar, clear its excess inventory, adding that once these inventories are depleted, the tariffs will likely be removed.
IREX’s COO Phan Thi Thanh Thao (third from left) said the company has shifted its focus to markets in Europe and Australia, while expanding domestically amid the impact of US tariffs. (Photo: Solar BK)
DPPA opens door for Vietnam’s solar market, but local governments remain obstacle
Exports analyzing Vietnam’s solar market outlook agree that setting ambitious renewables targets is only the first step; the critical issue is implementation. Nguyen pointed to Vietnam’s recently introduced direct power purchase agreement (DPPA) framework, noting that although many developers are quietly preparing projects, concrete DPPA deals could emerge within the next few months.
Nguyen further explained that supply chains are under mounting pressure from brands to decarbonize, often being pushed to increase their use of renewable energy.
Ngyuen Huu Quang, clean energy investment manager at Dragon Capital, an investor focused on the Vietnamese market, said the DPPA framework offers a clearer direction but still lacks sufficient detail to many businesses.
Samresh Kumar, founder of SkyX Solar, a Vietnam-based rooftop solar developer, shared a similar view. He emphasized that while many investors and developers already have funding in place, they are still waiting and figuring out how to successfully execute projects in Vietnam.
Compared to the central government’s strong push for energy transition, Nguyen said that local authorities may be the bigger barrier to progress. He pointed to inconsistent regulations and differing interpretations across provinces, along with the need to negotiate with local utilities and vested interests— all of which test the local government’s resolve and the patience of industry stakeholders.
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