#27 Setting Up a Solar Panel Factory in SE Asia: Key Considerations
Several of our clients have asked about setting up solar panel assembly operations in Cambodia and Vietnam. The advantages are clear, but there are important considerations to evaluate.
Advantages
Southeast Asian countries offer lower labor costs, preferential trade agreements with EU and US markets, and growing renewable energy infrastructure. Cambodia, in particular, offers duty-free access to the EU under the Everything But Arms (EBA) initiative.
Challenges
Key challenges include supply chain logistics (solar cells and laminating materials must be imported), skilled labor availability for precision manufacturing, and maintaining quality control consistency across a distributed workforce. Companies must also navigate local regulations regarding foreign investment and environmental permits.
Our Perspective
From our experience working with factories across Asia, successful setups require careful planning, strong local partnerships, and a phased approach that starts with assembly and gradually builds toward full manufacturing capability.
