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Chinese battery to add US$300 million to northern Vietnam operations

Sunwoda, a leading Chinese battery firm, plans to invest an additional US$300 million at the Yen Lu industrial park in Vietnam’s northern province of Bac Giang, according to The Investor. The expanded facility is expected to employ 5,000 people and reap annual revenues of US$1 billion.

Notably, back in June, a Singaporean battery maker also announced plans to increase its investment by US$5.5 million in southern Vietnam. The expansion of these battery firms aligns with increasing local demand for batteries. According to Mordor Intelligence, the Vietnam battery market size is estimated to reach US$326.32 million in 2024 and US$454.11 million by 2029. This is off the back of a compound annual growth rate of 6.83 percent from 2024 to 2029.

This growth is largely being driven by growing demand for electric vehicles. The Vietnam Automobile Manufacturers Association has forecast that Vietnam will reach 1 million electric vehicles around 2028 and about 3.5 million electric vehicles by 2040. 

Sunwoda Electronic, founded in 1997 in China, is a world leader in lithium-ion batteries. The firm mainly operates in electric vehicle, computer, and phone batteries. Sunwoda established its first company in Vietnam in April 2023 in Bac Giang province.

See also: Vietnam’s Automotive Industry 2024: Foreign Investor Cheat Sheet

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