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Solar panel production projects in Viet Nam are stalling mainly due to difficulties in the global solar panel market.— File Photo
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HA NOI (Biz Hub)— Solar panel production projects in Viet Nam are stalling mainly due to difficulties in the global solar panel market.
The general manager of Global Sphere, Nguyen Trong Nguyen, said a partner withdraw from their solar panel production joint venture one year ago.
The United Arab Emirates-based firm found out that its Vietnamese partner, WorldTech Transfer Investment, did not have sufficient financial security.
The project manufacturing solar panels in central Hue City had a total investment of US$300 million invested by WorldTech and Global Sphere, of which Global Sphere was responsible for 100 per cent of investment capital while Worldtech was to be responsible for building, managing and controlling the plant.
Construction of the project started in January 2013 in the Phong Dien Industrial Zone, Hue City. The first phase of the project would operate after 30 months of construction with an initial capacity of 60MW panels per year and then the annual capacity would increase to 250MW panels in the second phase.
However, since January this year, the project has stalled and the Hue Planning and Investment Department said they have not received official announcement on either stopping or continuing the project from the investors.
This is the third project of its kind that has faced difficulties in investment and construction. The two other projects included a project in HCM City with a registered capital of $1.2 billion and a project in central Quang Nam Province with a registered capital of $390 million.
Last year, First Solar, the US investor of a solar panel production project in HCM City, announced a temporary stop to the development of the project due to a negative balance of supply and demand in the world market for the panels.
While the Indochine Energy Industrial Company located in Chu Lai Open Economic Region, central Quang Nam Province, proposed to prolong construction of its project producing solar panels because of difficulties related with market and with production technology. — VNS