According to information from the Quang Ninh Province Electronic Information Portal, on February 10, 2024, Mr. Nguyen Xuan Ky, Member of the Central Party Committee, Provincial Party Secretary, Chairman of the Provincial People’s Council, visited and encouraged workers working during Tet and inspected the production and business situation at Jinko Solar (Viet Nam) Industrial Co., Ltd, Song Khoai Industrial Park, Quang Yen Town. This is one of the businesses with the largest number of workers working during Tet in the province.
On the first day of Tet, Jinko Solar’s factories at Song Khoai Industrial Park, Quang Yen Town had 1,800 workers working, an increase of nearly 1,000 workers compared to Tet 2023. All workshops operated normally like before Tet. To encourage workers to work during the Tet holiday, in addition to a triple salary compared to normal days, the Company also rewarded an additional VND 3 million to all workers working during Tet.
Secretary of the Provincial Party Committee, Chairman of the Provincial People’s Council of Quang Ninh Province visited and inspected the production situation at Jinko Solar Industrial Co., Ltd, Viet Nam. Photo: Quang Ninh Provincial Portal
Jinko Solar’s rapid growth in Vietnam for 3 years
Information at the event shows that Jinko Solar Industrial Co., Ltd has planned for 2024 with an expected revenue of about USD 2.4 billion (over VND 58,000 billion), tripled compared to 2023 (equivalent to VND 19,000 billion).
Jinko Solar (NYSE: JKS) is the world’s largest solar panel manufacturer from China. According to the introduction, the Company holds a large market share in Europe, South America, the Middle East, and Southeast Asia. In the total capacity of about 75GW in 2023, only about 8% is supplied to the Chinese market, while the remaining is for export.
The Company currently has 14 manufacturing facilities, with 3 facilities located outside China, in Vietnam, Malaysia, and Florida (USA). This is also the first solar panel manufacturer from China to be listed on the US stock market in 2010.
Jinko Solar plans to build a 7GW factory in Vietnam starting from late 2020. By the end of March 2021, Jinko Solar Industrial Co., Ltd was established in Vietnam with a charter capital of over VND 500 billion. At the same time, Quang Ninh Province granted investment registration certificates to Jinko Solar’s project named “Jinko Solar PV Photoelectric Cell Technology Project, Vietnam” (Jinko Solar 1) with a total investment capital of nearly USD 500 million.
At the end of September 2021, Jinko Solar’s second project named “Jinko Solar Silic Sheet Project, Vietnam” (Jinko Solar 2) was granted an investment certificate with an investment scale of over USD 365.6 million, with an area of over 20 hectares.
The total investment capital of the 2 projects that the Group invested in Song Khoai Industrial Park is up to USD 865.6 million. The products of Jinko Solar 2 project are the input materials for Jinko Solar 1 project. The production facility in Quang Ninh is also the first place where Jinko operates according to a complete and closed production model.
At the end of November of the same year, the Company increased its capital to nearly VND 2,400 billion and doubled the number of workers to 4,668 people.
However, not stopping at these 2 projects, on October 22, 2023, Jinko Solar Vietnam was issued an investment registration certificate for the Jinko Solar Hai Ha Vietnam Photoelectric Cell Technology Combination Project with a total investment of USD 1.5 billion. This event marks an important milestone helping Quang Ninh attract over USD 3 billion of FDI capital – leading the localities attracting FDI in 2023, and becoming an important province in the global production chain of Jinko Solar when accounting for about 50% of the company’s total production products abroad.
At present, the charter capital of Jinko Solar Industrial Co., Ltd in Vietnam is nearly VND 3,900 billion. It is known that Jinko Solar Vietnam’s plant is nominal as an export processing enterprise (EPE), so the products are for export or “on-site export”.
Jinko Solar’s position in the Vietnamese market
Sharing on Forbes Vietnam, Mr. Samresh Kumar, CEO of SkyX Solar, one of the largest foreign solar energy investors with the largest peak capacity, said that currently Chinese companies occupy at least 60% of the Vietnam’s photovoltaic module market. Among them, Jinko Solar brand has the largest market share. The Company holds a monopoly position in solar panels with a market share of about 38%, doubling the market share of all other Chinese companies combined.
Jinko Solar’s photovoltaic modules appeared in Vietnam’s largest and earliest solar energy projects such as Trung Nam Phuoc Minh solar power plant, Xuan Thien solar power project, Phu My solar power plant (belonging to Bamboo Capital Group), Dau Tieng solar power project, Cư Jut rooftop solar farm project or My Son 1 and 2 solar power projects.
However, based on the 2023 revenue of the manufacturer in Vietnam, with VND 19,000 billion, Jinko Solar Industrial Co., Ltd is only nearly equal to 30% of JA Solar Vietnam – a company with current charter capital of VND 1,980 billion and revenue of nearly VND 68,000 billion. It is estimated that in 2024, JA Solar Vietnam’s revenue will double, reaching an estimated VND 136,000 billion.
Meanwhile, in 2022, according to data from Vietdata, JA Solar Vietnam’s revenue reached about VND 28,000 billion, ranking 2nd after VinaSolar (revenue of about VND 35,000 billion).
Also as “rapid” as Jinko Solar, in October 2023, the JA Solar Vietnam factory announced an expansion with a total investment capital of USD 477 million (VND 10,971 billion), an additional increase of USD 378 million (equivalent to VND 8,694 billion) in investment capital. Initially, the project had an investment capital of USD 280 million. After the additional adjustment of USD 378 million, the total investment capital of the project is USD 658 million. Accordingly, JA Solar Corporation is the foreign company with the largest increase in adjusted capital in Bac Giang in 2023.
Until now, JA Solar has invested in 3 projects in Bac Giang, with a total investment capital of USD 967 million, specializing in silicon wafers and high-performance photovoltaic cell assembly.
