It depends entirely on landed cost, not ex-works price, and the answer can flip between the two corridors. China typically offers the lowest factory-gate prices and the widest range, but Chinese solar imports into India can attract substantially higher effective duty (Basic Customs Duty, plus Anti-Dumping Duty on certain products and periods), which can push the landed cost above a Vietnamese alternative that started more expensive. Vietnam often lands more competitively once duty is applied, but has a narrower supplier base. The only reliable way to answer for your specific order is to compare both corridors on total landed, compliant cost for your exact product and HSN code, against the notifications currently in force.
”- Ex-works price says almost nothing, duty and freight decide which corridor is genuinely cheaper.
- China offers the lowest factory-gate prices and widest range, but can carry substantially higher effective duty.
- Vietnam often lands more competitively after duty, but has a narrower supplier base.
- The answer flips depending on product, HSN classification and the notifications in force at the time.
- Compare both corridors on landed compliant cost for your exact order, never on sticker price.
Why the ex-works price misleads you
If you compare a Chinese quote and a Vietnamese quote at the factory gate, China usually wins. That comparison is close to meaningless, because it omits the two things that actually determine what you pay: duty and freight.
Duty in particular can be decisive. Solar imports into India attract Basic Customs Duty, and on certain products and in certain periods, Anti-Dumping Duty applies on top, which stacks. The combined effective duty can be large enough to overturn a meaningful ex-works advantage. For how that stack works, see import duty on solar panels from China to India.
So the real question is never "which factory is cheaper", it is "which corridor lands cheaper for my exact product". Those are different questions with different answers.
How the two corridors compare
| China | Vietnam | |
|---|---|---|
| Ex-works price | Typically the lowest | Usually higher than China |
| Supplier range | Widest, deepest volume | Narrower base |
| Duty exposure | Can be substantially higher (BCD, plus ADD on certain products/periods) | Often lower effective duty exposure |
| Landed cost outcome | Can end up higher despite lower ex-works | Often more competitive once landed |
| Guide | Import from China | Import from Vietnam |
Please note: duty treatment is product specific, origin specific and time-bound. It changes by notification. Treat the pattern above as directional, not as a current rate for your shipment.
How to build the comparison properly
To answer the question for your actual order, build both corridors to the same landed number:
- Fix the specification. Both corridors must quote the identical product, or you are not comparing anything. Define it in your bill of materials.
- Get the correct HSN code. Classification drives the duty applied, and module versus cell classification changes it.
- Confirm current duty for each corridor against the latest customs notification, including any ADD in force for that product and origin.
- Add freight and insurance for each route.
- Add certification and clearance costs.
- Compare the totals. Only now do you know which is cheaper.
The fastest way to do this is to let both corridors quote against one specification at once, which is exactly what posting a single RFQ on VyaparCred does, verified suppliers across China, Vietnam and other corridors quote the same spec, and you compare landed, compliant cost side by side.
What else should decide it, beyond price
Landed cost is the main input, but not the only one. Three factors that regularly change the decision:
- Compliance. The module must be an eligible listed model for scheme projects, regardless of origin. See is ALMM mandatory in India. A cheaper corridor is worthless if the model is not listed.
- Supplier depth. China's breadth means more options and easier volume. Vietnam's narrower base can mean fewer alternatives if a supplier disappoints.
- Concentration risk. Sourcing everything from one corridor exposes you to a single policy or duty change. Some buyers deliberately split for resilience, accepting a small cost premium.
Whichever corridor wins, verify the supplier before you commit, see how to verify a solar module manufacturer.
Fund the import, whichever corridor wins
An import ties up cash from the moment you pay the supplier until your project pays you, and that is true in both corridors. Rather than fund the landed cost, including duty, from your own reserves, attach financing to the order.
Trade Finance and LC lets you pay the overseas supplier safely and can lock the INR rate, protecting your margin from a currency move between order and payment, a real risk on a large import. PO Finance can fund up to 100% of the accepted order. For the full menu, see how to finance a bulk solar panel purchase and the import process guide.
Compare both corridors on one RFQ
VyaparCred lets you post a single specification and receive verified quotes from China, Vietnam and every other corridor, with duty, freight and certification factored into the comparison.
Verified suppliers in both corridors quote the same specification, so landed costs compare honestly.
Certification (ALMM, IEC) is confirmed before a supplier can quote, in every corridor.
Attach Trade Finance to pay the overseas supplier safely and lock the INR rate.