Pocket Option: Energy sector stocks
Vietnam's energy sector stock market is experiencing notable fluctuations, opening up major investment opportunities for investors. This article provides an in-depth analysis of market trends, potential stock codes, and effective investment strategies in Vietnam's energy sector.
Overview of Energy Sector Stocks in Vietnam in 2025
In 2024-2025, energy sector stocks in Vietnam have become the focus of the stock market with an average growth of 15.7% (Q1/2025), far exceeding the 8.3% increase of the VN-Index. This is not a temporary phenomenon but a long-term trend driven by the national energy development strategy and Vietnam's climate change commitments.
According to the latest report from the Ministry of Industry and Trade (March 2025), Vietnam's energy sector needs approximately $133.3 billion in investment from now until 2030. Of this, 65% will be allocated to renewable energy, creating a "golden" opportunity for companies in this field. This explains why many energy sector stock codes have increased by 25-40% in just the first 6 months of 2025.
Statistics from the Pocket Option platform show that the volume of energy stock transactions increased by 78% in the first quarter of 2025 compared to the same period last year. In particular, 68% of new investors on this platform prioritize investing in green energy stocks, clearly reflecting the sustainable investment trend gradually taking shape in Vietnam.
| Segment | Growth 2023 | Growth 2024 | Forecast 2025 | Investment Potential |
|---|---|---|---|---|
| Traditional Energy | 5.8% | 6.2% | 7.2% | Medium |
| Renewable Energy | 12.3% | 15.7% | 18.5% | High |
| Energy Services | 4.2% | 7.5% | 9.1% | Medium-high |
| Energy Distribution | 3.7% | 5.1% | 6.5% | Medium |
Analysis of Vietnamese Energy Stock Market Trends 2025
The Vietnamese energy sector stock market in 2025 is witnessing 3 main trends: (1) Strong shift from coal-fired power to renewable energy, (2) Increased investment in energy storage technology, and (3) Partial liberalization of the electricity market. These trends are creating a new "wave" of investment worth up to $5.2 billion in just the first 6 months of 2025.
Transition Trend from Traditional Energy to Renewable Energy: Golden Opportunity 2025-2030
The Power Development Plan VIII (approved in May 2023 and amended in February 2025) sets specific targets: increasing the proportion of renewable energy to 30.9-32.4% by 2030 (up from 24.8% in 2023) and 42.8-44.5% by 2050. In particular, the plan to reduce 20 planned coal-fired power plants (from 41 to 21 projects) creates a large "gap" for wind and solar power projects, opening opportunities for renewable energy sector stocks.
| Energy Type | Share 2023 | Share 2024 | Target 2030 | Target 2050 |
|---|---|---|---|---|
| Hydropower | 30.4% | 28.7% | 21.1% | 18.3% |
| Coal-fired Power | 34.3% | 32.1% | 25.5% | 9.5% |
| Wind Power | 4.8% | 7.2% | 12.9% | 21.4% |
| Solar Power | 12.8% | 14.5% | 16.6% | 20.2% |
| Gas Power | 14.9% | 15.7% | 21.5% | 24.8% |
| Others | 2.8% | 1.8% | 2.4% | 5.8% |
Q1/2025 transaction data from Pocket Option indicates a clear trend: 72% of investors have increased the proportion of green energy sector stocks in their portfolios and reduced traditional energy stocks by 35%. Notably, stocks like PC1, GEG, and BCG have grown by an average of 32.7% in Q1/2025, 3 times the increase of the VN-Index.
Impact of Decree 15/2022/ND-CP and Decision 21/2024/QD-TTg on the Energy Stock Market
The new FIT price mechanism (applied from January 2025) and Decision 21/2024/QD-TTg (issued in February 2024) on bidding mechanisms for wind/solar power projects have created a "boost" for the renewable energy market. Specifically, Decree 15/2022/ND-CP with special tax incentives has helped increase the profit margins of renewable energy businesses by an additional 3.5-4.8% in 2024, according to the SSI Research report.
- Corporate income tax incentives: Tax exemption for 4 years, 50% reduction for the next 9 years (helping save 22-35% of operating costs)
- Import tax exemption: Applicable to 127 types of renewable energy equipment that cannot be produced domestically (reducing initial investment costs by 15-18%)
- Preferential loans: Interest rates of only 3.8-4.5%/year from green energy development funds (3-4% lower than commercial interest rates)
- Bidding mechanism: Applied from Q2/2024 with 3.5GW solar power capacity and 4GW wind power to be bid in 2024-2025
Top 5 Potential Energy Sector Stocks in Vietnam 2025
After analyzing 27 energy sector stock codes listed on HOSE and HNX, we have identified 5 stocks with outstanding growth potential in 2025-2026, based on factors: (1) Project portfolio, (2) Financial capacity, (3) Profit margin, (4) Expansion capability, and (5) Current valuation.
| Stock Code | Sector | Current Price (VND) | P/E | ROE (%) | Notable Project | Price Increase Potential |
|---|---|---|---|---|---|---|
| PC1 | Renewable Energy | 24,800 | 22.7 | 12.8 | Phong Huy Wind Project (100MW) and Phong Nguyen (80MW) | 25-30% |
| GEG | Renewable Energy | 19,600 | 18.5 | 11.3 | Ho Tram Solar Complex (150MW) and Vung Tau (200MW) | 20-25% |
| REE | Diversified | 65,200 | 10.9 | 14.5 | Expansion of hydropower portfolio with 3 new projects (105MW) | 15-20% |
| POW | Gas Power | 12,500 | 15.3 | 9.2 | Nhon Trach 3&4 Project (1,598MW) using LNG gas | 18-22% |
| BCG | Renewable Energy | 10,700 | 24.8 | 8.9 | BCG Long An 1&2 Project (combined 330MW) | 22-28% |
In-depth Analysis: PC1 - "Rising Star" of Vietnam's Renewable Energy Sector
PC1 (Power Construction Joint Stock Company No. 1) is emerging as one of the pioneering companies in the wind power sector in Vietnam. With 5 operating wind power projects (total capacity of 144MW) and 3 projects under development (expected to reach 400MW by 2026), PC1 is building a leading position in the onshore and nearshore wind power segment.
PC1's Q1/2025 business results are impressive with revenue reaching 1,785 billion VND (up 27% year-on-year) and profit after tax reaching 215 billion VND (up 42% year-on-year). In particular, the gross profit margin from the renewable energy segment reached 57.2%, the highest among the company's operating areas.
Pocket Option analysts note: "PC1 has potential to increase in price by 25-30% in the next 12 months thanks to (1) Diverse wind power project portfolio, (2) Project implementation experience, (3) High rate of return from renewable energy projects, and (4) Attractive valuation with forward P/E for 2026 at only 17.5x."
Effective Investment Strategies for Vietnamese Energy Stocks in 2025
Investing in Vietnamese energy sector stocks in 2025-2026 requires a strategy that is highly adaptable to policy changes and market trends. Based on analysis of transaction data from 15,324 investors on the Pocket Option platform, we propose the following 4 effective investment strategies:
Optimal Asset Allocation Strategy According to the 4-3-2-1 Model
Unlike traditional allocation methods, the 4-3-2-1 model (developed by Pocket Option experts) has helped 78% of investors achieve returns exceeding the VN-Index by 7.3% in Q1/2025:
- 40% of portfolio: Leading renewable energy stocks (PC1, GEG, BCG) - high growth
- 30% of portfolio: Stable hydropower stocks (REE, SJD, TMP) - ensuring dividend flow of 6-8%/year
- 20% of portfolio: LNG gas power stocks (POW, NT2) - benefiting from the strategy of switching from coal to gas
- 10% of portfolio: Energy service stocks (PVS, PVD) - profits from the new investment wave
| Investment Strategy | Expected Return 2025 | Risk Level | Optimal Investment Time | Suitable Investor Type |
|---|---|---|---|---|
| Focus 70-80% on renewable energy | 28-35% | High | 3-5 years | High risk-accepting investors |
| 4-3-2-1 Model | 18-25% | Medium | 2-3 years | Balanced investors |
| High dividend portfolio from hydropower | 12-18% | Low-medium | 1-2 years | Income investors |
| Seasonal cycle trading | 20-30% | High | 3-6 months | Active investors |
Analysis of 5 Opportunities and 5 Main Risks When Investing in Energy Sector Stocks in Vietnam in 2025
Investing in energy sector stocks in Vietnam during 2025-2026 requires careful consideration of the following specific opportunities and challenges:
5 attractive investment opportunities:
- Strong electricity demand growth: Forecast to increase 9.1% in 2025 and 8.5% in 2026 (according to Power Plan VIII), much higher than GDP growth of 6.8%
- $7.75 billion support package: Announced in December 2024 from the Government and international partners (WB, ADB, JICA) dedicated to green energy development for 2025-2027
- Net Zero 2050 Commitment: Creating pressure forcing traditional energy companies to transform, opening opportunities for M&A and industry restructuring
- New project bidding mechanism: Expected 7.5GW capacity to be bid in 2025-2026, creating conditions for companies with capabilities
- Strong FDI inflow: $5.2 billion FDI registered for the energy sector in the first 6 months of 2025, up 68% compared to the same period in 2024
5 risks to be cautious about:
- Policy risk - PDP 8A: Revised version of Power Plan VIII (expected to be issued in Q3/2025) may change priorities and proportions of energy types
- Interest rate pressure: State Bank expected to increase interest rates by an additional 0.5-0.75% in 2025 affecting capital costs of energy projects
- Extreme weather risk: El Nino extending to Q2/2025 causing severe drought, affecting hydropower output (down 15-20% compared to multi-year average)
- Fluctuations in material costs: Prices of renewable energy equipment and storage batteries increased 12-18% since early 2025 due to supply chain disruptions
- Fierce competition in bidding: Participation of international energy groups like Iberdrola, EDF, and Ørsted driving competition higher, pressure to reduce electricity prices
According to analysis by Pocket Option experts, investors need to build a "risk management matrix" for each energy sector stock code, assessing sensitivity to each specific type of risk. This is especially important in the context of energy policy being in a transition phase.
| Risk Type | Impact Level | Probability of Occurrence in 2025 | Effective Prevention Strategy |
|---|---|---|---|
| Changes in FIT price mechanism | Very high (can reduce profits by 20-30%) | 75% | Diversify project portfolio, participate in both FIT price mechanism and bidding |
| Drought risk (hydropower) | High (reduces output by 15-25%) | 80% | Reduce proportion of hydropower stocks in Q2-Q3/2025, increase proportion of wind power |
| Risk of interest rate increase | Medium (increases capital cost by 3-5%) | 65% | Prioritize businesses with debt/equity ratio below 1.2 |
| International competition risk | Medium-high (reduces market share by 5-8%) | 70% | Choose businesses with partnership relationships with international groups |
| Risk of equipment cost increase | Medium (increases project cost by 5-8%) | 60% | Prioritize businesses that have signed long-term EPC contracts with fixed prices |
5 Breakthrough Trends That Will Shape Vietnam's Energy Stock Market 2025-2030
Vietnam's energy sector stock market is facing 5 breakthrough trends that will create new investment opportunities in the 2025-2030 period:
1. Offshore wind power boom: Vietnam with 3,000km of coastline and average wind speeds of 7-9m/s has potential to develop 160GW of offshore wind power. The government has approved a plan to develop 6GW by 2030. This is a great opportunity for companies like PC1, BCG, and GEG when participating in the offshore wind power value chain.
2. Battery Energy Storage Systems (BESS): Decision 500/QD-TTg (April 2024) approved the plan to develop 2.5GW of energy storage systems by 2030. Leading companies in this field like REE, Gelex will benefit greatly from BESS projects worth about $2.3 billion.
3. Green hydrogen: Identified as the energy of the future, Vietnam aims to develop 100-200MW of green hydrogen projects by 2030. This is an opportunity for PVGas (GAS) and oil and gas companies that are transforming their business models towards sustainability.
4. Smart grid: A $1.8 billion grid upgrade project (2025-2028) creates great opportunities for companies in the electrical equipment supply chain such as Gelex (GEX), Electrical Equipment (EME), and PC1.
5. Liberalization of the electricity market: The roadmap for competitive wholesale electricity market 2025-2027 and competitive retail electricity market from 2028 will create a wave of industry restructuring. Companies with the ability to adapt quickly like POW, NT2, REE will seize opportunities from this process.
- Forecast: Offshore wind power will reach a capacity of 5.2GW by 2030 (from almost 0 currently)
- Expected: 35% of all new renewable energy projects will integrate BESS storage systems
- Pioneering: 3 pilot green hydrogen projects will be operational in 2026-2027
- Investment: 15,000 billion VND will be invested in smart grid infrastructure during 2025-2027
According to Pocket Option's assessment, investors with long-term strategies who grasp these breakthrough trends early will have the opportunity to achieve superior returns from energy sector stocks in the next 5 years.
Conclusion: Investment Strategy 2025-2026 for Energy Sector Stocks
Vietnamese energy sector stocks are entering a new growth cycle driven by (1) Electricity demand increasing 9.1%/year, (2) Commitment to green energy transition, and (3) Investment flow of $133.3 billion by 2030. These three factors create a "golden triangle" for sustainable growth in the sector.
Effective investment strategy for 2025-2026 should focus on 3 main stock groups: (1) Leading renewable energy sector stocks like PC1, GEG, and BCG with 20-30% growth potential, (2) Stable hydropower stocks like REE, SJD providing dividend flow of 6-8%/year, and (3) Stocks transitioning from traditional energy to green energy like POW, NT2 with growth potential of 15-20%.
By applying the 4-3-2-1 allocation model and combining technical analysis tools from the Pocket Option platform, investors can build an effective investment portfolio, maximizing opportunities from the energy transition process in Vietnam. Remember that investing in energy sector stock codes is not only a financial opportunity but also a way to contribute to Vietnam's sustainable development.