US to end duty-free tariffs on Vietnamese solar panels

May 17, 2024 | 20:49

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The US' duty-free tariff treatment for solar products from Cambodia, Malaysia, Thailand, and Vietnam, will end in June, according to an announcement by the White House on May 16.

US to end duty-free tariffs on Vietnamese solar panels

President Biden initiated a temporary, 24-month duty-free period in June 2022 to facilitate certain imports from Cambodia, Malaysia, Thailand, and Vietnam to ensure a steady supply of materials while the US' domestic solar manufacturing was ramped up. Since then, US solar manufacturing and deployment have both grown dramatically.

According to the White House, President Biden’s 'Investing in America' agenda has catalysed a clean-energy manufacturing and deployment boom in the US.

In response to this, China has further ramped up its solar capacity and began dumping artificially cheap modules and components onto the global market to circumvent trade enforcement measures in an attempt to put other countries’ manufacturers out of business.

Domestic solar panel groups remain overshadowed

Although the United States has frozen tariffs on Vietnamese solar panels for the next two years, the influx of cheap Chinese goods means there may not be enough domestic companies to take advantage of it.

Overseas investors boosting rooftop solar presence at IZs

Many foreign investors are funding rooftop solar panels in Vietnam to meet the increasing demands of industrial zone developers and transition towards sustainable energy sources.

No profit gain for excess rooftop power

Individuals who invest in rooftop solar power for personal use and attach it to the national electricity grid may only transfer any surplus energy to Vietnam Electricity for free, as per a new decree proposal.

By Vy Bui

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