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Recent Developments in The Vietnam And Philippines Power Markets And What They Mean For Equipment Suppliers

Sep 05, 2026 Leave a message

    At the Vietnam ETE & Enertec Expo held in July at the Saigon Exhibition and Convention Center in Ho Chi Minh City, switchgear and transformers were still the two categories that drew the most attention from buyers. Customers from coastal provinces in particular kept asking whether we had switchgear and transformer solutions designed for seaside salt-spray environments. The composite-housed surge arresters and drop-out fuses also attracted a steady crowd around the booth, and this time many visitors came with site photos and real project requirements rather than just collecting brochures like in previous years. Distribution network upgrade tenders in several central and southern provinces of Vietnam have recently been posted, with 22 kV line insulation retrofits and replacement of aging drop-out fuses accounting for a significant share. Transformer-mounted surge arresters and low-voltage switchgear have also been pulled into the supply lists. In projects around Da Nang, Quang Ngai, and Binh Dinh, owners are clearly more open to coastal reinforced products than before. The days of simply undercutting on price are fading, and technical managers who know their stuff are digging into details like coating thickness and sealing workmanship. The aging rate of switchgear door gaskets and the salt-spray resistance grade of arrester sheds are questions that come up repeatedly. This shift is directly affecting how equipment suppliers structure their pricing and technical proposals - showing up with standard off-the-shelf products is no longer enough.

    Transmission projects under Vietnam's eighth power development plan are also moving forward, and demand for transformers and switchgear is rising along with the line extensions. Disconnect switches, instrument transformers, and station-class surge arresters for 500 kV and 220 kV transmission projects have been generating frequent inquiries lately. In Bac Ninh, Hai Phong, and other industrial load centers, quite a few new 110 kV substations are under construction, and owners are placing more weight on life-cycle cost in transformer and switchgear tenders rather than looking only at the initial price. The acceptance standards for surge arresters and drop-out fuses have also been written in much greater detail, with a higher percentage of on-site insulation resistance and DC parameter spot checks than last year. Some suppliers have reported that if the goods arrive with incomplete test reports or fail spot checks, there is no room for negotiation - they get sent back. Storage management has also tightened: surge arresters and drop-out fuses left at site for more than six months must be retested before installation is allowed. This trend means suppliers have to control quality from the factory gate all the way to the pole, and the risk of missing documentation or failing a random check has multiplied.

    In Manila, the country's largest distribution utility, Meralco, shared a new round of distribution network reliability investment plans at this year's PhilEnergy show. Surge arresters and switchgear were placed high on the replacement list, with large numbers of old oil switches in the city's aging districts set to be replaced by vacuum switchgear and transformer bays upgraded at the same time. The National Grid Corporation of the Philippines (NGCP) is continuing its transmission projects in Luzon, and some 500 kV line and substation expansion works have entered the equipment procurement stage. Demand for high-voltage disconnect switches and surge arresters is clear, and switchgear suppliers are keeping a close eye on these large tenders. During the show, local contractors mentioned that Philippine owners are now much stricter about IP ratings and internal condensation control in switchgear. Coastal substations especially require surge arrester leads to be short and directly grounded, and the coordination between drop-out fuses and surge arresters can no longer be handled casually. These details are reshaping product design for suppliers - condensation prevention, salt-spray resistance, and ease of installation have become hard requirements for winning orders in the Philippines.

After typhoon season, the Philippines always sees a concentrated wave of spot purchases for drop-out fuses and pole-mounted disconnect switches. This year, after several rounds of heavy rainfall in Luzon, traders have already started snapping up stock. Emergency repair orders for burned-out transformers are increasing, and calls for outdoor surge arresters and low-voltage distribution boxes keep coming one after another. The nature of recovery purchasing is urgent: whoever has stock on hand takes the lead. Local project owners are particularly concerned about moisture protection in fuse tubes and anti-sticking mechanisms, because they have seen too many cases of drop-out fuses failing to drop when they should and dropping when they shouldn't during typhoon weather. For switchgear, insulation degradation in secondary circuits after flooding is a common problem, so demand for on-site drying and insulation testing services for switchgear and transformers also rises during the recovery period. This wave of demand directly affects inventory strategy - keeping commonly used models in stock before typhoon season wins more customer trust than scrambling to find goods afterward.

    Looking at the tender documents from both Vietnam and the Philippines, the anti-corrosion and moisture-proofing requirements for transformers and switchgear are converging. In coastal projects, ordinary galvanized parts are no longer well accepted, and stainless steel plus reinforced coating solutions are becoming standard clauses. For surge arresters and drop-out fuses, composite housings or composite insulating tubes are widely specified, and salt-spray test requirements have been raised from the common 400 to 500 hours to 1,000 hours. Owners are getting stricter about incoming inspection: the proportion of on-site insulation resistance and DC parameter spot checks is increasing, and surge arresters and drop-out fuses stored for more than six months must pass retesting before they can be installed on the pole. This awareness is gradually taking root among local engineering companies. When you stack up these specific requirements, they push equipment manufacturers to include anti-corrosion treatment, moisture-proof packaging, and complete documentation as part of the standard supply package. Without that, it's hard to hold a steady position in the Vietnam and Philippines markets.

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