HANOI, Vietnam – As Chinese new energy companies grapple with trade barriers and policy uncertainties in the United States and Europe, Vietnam is emerging as a promising alternative market. Recent data indicates a 50% year-on-year increase in cross-border orders for new energy products in Vietnam during the first quarter of 2025, with significant contributions from photovoltaic components, energy storage equipment, and electric vehicle charging stations.
According to the Vietnam Energy Association (VEA), under the Ministry of Industry and Trade, this growth accounted for 72% of the sector’s incremental volume. Customs data from Vietnam further shows that Chinese exports of new energy products to the country reached $4.86 billion from January to March 2025, marking a 42% rise and representing 68% of Vietnam’s total imports in the category.
One Hangzhou-based new energy manufacturer reported shipping 100 units of energy storage inverters to Vietnam last month, followed by an additional order for 200 units. The company’s executive shared images of container loading at Vietnamese ports, highlighting a decade-high surge in orders outside traditional Western markets.
Drivers Behind Vietnam’s New Energy Boom
Vietnam’s rapid expansion in the new energy sector is not a random occurrence but the result of aligned policy, demand, and supply chain factors. The country’s National Energy Development Strategy (2021-2030) aims for renewable energy to comprise 30% of power generation by 2030, with solar and wind accounting for at least 25%. By 2050, the goal is carbon neutrality, with renewables exceeding 70%.
In late 2024, the Ministry of Industry and Trade introduced the “New Energy Acceleration Plan,” offering 10-15% tariff reductions on imported photovoltaic components and energy storage equipment, while streamlining foreign investment approvals from six months to as little as 45 days.
On the demand side, Vietnam Electricity Group (EVN) reported a 12% increase in national electricity consumption in the first quarter of 2025, with industrial usage up 18%. Traditional thermal power covers only 65% of needs, creating a record shortfall. To address this, local governments in industrial hubs like Binh Duong, Dong Nai, and Ho Chi Minh City signed 12 distributed solar projects with Chinese firms from January to April 2025, totaling 1.2 gigawatts (GW) in capacity and boosting photovoltaic orders by 63%.
Supply chain advantages also play a key role. Shipping from China to Vietnam takes 3-5 days by sea or 72 hours by land, compared to longer cycles for European and American suppliers. A 2025 report from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products notes that Chinese firms deliver in an average of 15 days, versus 45-60 days for Western competitors, while offering full-service packages—including products, installation, and maintenance—at 20-25% lower costs.
This surge reflects a strategic match between China’s production capacity and Southeast Asia’s growing needs, positioning Vietnam as a long-term trend rather than a temporary shift amid Western trade restrictions.
Three Key Entry Windows for Businesses
Industry observers identify three critical periods over the next 1-3 years for companies to establish a foothold in Vietnam’s new energy market, evolving from order acquisition to building sustainable advantages.
First, the distributed solar “blue ocean” phase focuses on rural and county-level markets. Data from the Ministry of Industry and Trade shows an 85% growth in distributed solar installations in the first quarter of 2025, with county areas contributing 60%. This shift suits small-scale manufacturing and agricultural operations facing power shortages.
Guangdong-based Guangneng Times, for instance, targeted provinces like Ba Ria-Vung Tau and Dong Thap, securing 23 projects totaling 350 megawatts (MW) and $280 million in orders by April 2025. The Vietnam Clean Energy Association (VCEA) forecasts the county distributed solar market to exceed 5 GW by 2025-2026, with a 45% compound annual growth rate. Strategies include partnering with local governments and tailoring products like 10-50 MW stations or integrated solar-irrigation systems.
Second, the energy storage “explosion” phase anticipates integrated solar-storage solutions becoming standard. EVN data indicates an 8% solar curtailment rate in early 2025 due to grid limitations, which storage can mitigate. The International Energy Agency (IEA) projects Vietnam’s storage market to reach 2.3 GW by 2027, with over 70% in integrated projects.
Chuli Technology, a domestic storage firm, established an assembly plant in Binh Duong Province in late 2024, importing core components from China. In March 2025, it partnered with Green Energy for 12 projects worth $150 million. Emphasis here is on comprehensive solutions, local production for tariff benefits, and incentives like two years of corporate tax exemption followed by four years at half rate.
Third, the supply chain integration “barrier-building” phase shifts toward localized production and partnerships. Zhejiang-based Diansu Chong collaborated with Vietnamese automaker VinFast in early 2025, co-establishing a charging station factory with 60% localization. This yielded 12,000 units sold and a 25% market share by April 2025.
Localization involves sourcing components locally, training personnel, and fostering trust with authorities. These phases interconnect: starting with solar entry, enhancing via storage, and solidifying through integration for long-term stability.
Potential Risks and Mitigation Strategies
While opportunities abound, risks must be addressed. Policy changes, such as the October 2024 centralization of approvals causing two-month delays, require monitoring through local consultants and contractual safeguards.
Supply chain vulnerabilities, including reliance on Chinese imports for components like inverter chips, can be mitigated with 3-6 month stockpiles and diversified logistics.
Competition is intensifying, with photovoltaic prices dropping 12% in early 2025. Firms should prioritize quality, extended warranties (e.g., 10 years versus local 5-year norms), and rapid service over price wars.
In conclusion, Vietnam’s 50% order growth signals broader Southeast Asian potential for Chinese new energy firms diversifying from Western markets. Early movers are transitioning from sales to rooted operations, underscoring the need for proactive strategies in this evolving landscape.