Korea’s SHS Global Group recently declared that it has signed a Memorandum of Understanding (MoU) with Vietnam's Gia Dinh Group to mutally invest in a factory for producing solar cell components encapsulation films in Vietnam.
The two companies plan to invest USD 40 million in the first phase to build a 5 GW capacity solar cell encapsulation films factory, which is scheduled to begin operations in the second half of 2025. Furthermore, they also plan to expand the business to a cumulative capacity of 50 GW by 2030.
Under the MoU, SHS Global will be responsible for equity investment, financial procurement, selection of equipment and raw materials as well
as activities. Gia Dinh Group will handle equity investment, provide land, obtain permits, oversee local construction, and promote local sales of the manufactured products.
SHS Global is a global sales partner of LG Chem, which produces Polyolefin Elastomer (POE), a high-value synthetic resin product. Since 2021, LG Chem has been investing in expanding its POE production capacity, aiming to achieve an annual production capacity of 380,000 tons by the end of 2023.
The product will be used for manufacturing solar cells, and the jointly produced products by both companies are intended to protect the solar cells. The market for POE used in solar cell encapsulation film is estimated to be worth USD 6.5 billion or 1.8 million tons worldwide.
Gia Dinh Group is involved in various businesses, including the construction of solar power plants in Vietnam and the local production of footwear for global brands such as Nike and Adidas.
The business group has increased its cooperation with Korean companies, as evidenced by the signing of an MoU with the Korean SEP Cooperative in June this year for the development of a carbon-neutral industrial complex in Binh Dinh province, a project worth about USD 200 million.
According to an SHS Global official, the project is part of their efforts to establish a solar supply chain in Vietnam, which is emerging as an alternative production base to China, where over 80% of the global solar supply chain is concentrated.