Pocket Option: Energy sector stocks

10 min to read

10 April 2025

10 min to read

Energy sector stocks: Attractive investment opportunities for Vietnamese investors

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.

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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.

FAQ

Which energy sector stocks have the best growth potential in Vietnam?

Currently, renewable energy stocks such as PC1, GEG, and REE are considered to have the best growth potential. PC1 with its focus on wind power development, GEG with its diverse portfolio in renewable energy, and REE with its energy diversification strategy are all attracting attention from investors. Additionally, POW is also a potential choice with its increased investment in LNG gas power.

How to evaluate whether an energy sector stock is worth investing in?

To evaluate an energy sector stock, investors should consider the following factors: (1) The company's long-term development strategy, especially plans to transition to renewable energy; (2) Financial situation, particularly debt ratio and cash flow generation ability; (3) Current and future project portfolio; (4) Management capability and project implementation experience; (5) Impact level from policy changes. The Pocket Option platform provides analytical tools to help comprehensively assess these factors.

What are the biggest risks when investing in energy sector stocks in Vietnam?

The biggest risks when investing in energy sector stocks in Vietnam include: (1) Policy risks - changes in electricity prices, support mechanisms for renewable energy; (2) Weather risks, especially for hydropower and renewable energy; (3) Capital investment risks - energy projects often require large capital and long payback periods; (4) Increasing competition in the industry; (5) Technology risks as new technologies develop rapidly.

How does climate change impact energy sector stocks in Vietnam?

Climate change has a dual impact on energy sector stocks. On one hand, it creates pressure forcing businesses to transition from fossil fuels to clean energy, which can cause difficulties for traditional energy companies. On the other hand, it opens up great opportunities for companies investing in renewable energy. In Vietnam, the commitment to reduce emissions and achieve Net Zero by 2050 is driving investment in renewable energy, creating positive prospects for green energy stocks.

How to build a balanced investment portfolio with energy sector stocks?

To build a balanced investment portfolio with energy sector stocks, investors should: (1) Allocate 40-50% to renewable energy stocks such as wind and solar power; (2) Dedicate 20-30% to hydropower stocks for stable cash flow and dividends; (3) Allocate 15-20% to gas power stocks, especially companies transitioning to LNG; (4) Reserve 5-10% for energy service and distribution stocks. Consider combining large, stable companies with smaller ones that have high growth potential. The Pocket Option platform provides portfolio management tools to help monitor and adjust investment strategies in a timely manner.