On May 15, 2023, the Prime Minister signed Decision No. 500/QD-TTg, approving the National Power Development Plan for 2021-2030, with a vision to 2050 (PDP VIII).  PDP VIII guides for a national electricity consumption CAGR of 9% in 2021-2030, with an assumption for GDP growth of 7% p.a. during the period. PDP VIII also emphasizes the transition to green energy as renewable power (including hydropower) is targeted to account for up to 39%-47% and 72% of total electricity production by 2030 and 2050, respectively (see more on page 2).

In our view, the long-awaited approval of PDP VIII should benefit stocks with direct or indirect exposure to renewable power such as PVS, HDG, REE, PC1 and GEG. We currently have BUY ratings for PVS, HDG and REE (respective target prices of VND33,000/share, VND40,800/share and VND85,300/share) and MARKET PERFORM ratings for PC1 and GEG (respective target prices of VND29,400/share and VND12,900/share). According to HDG, its giant An Phong wind farm project (300 MW) is included in PDP VIII, which should help the company to achieve its target of doubling its capacity to 1,000 MW over the next five years. 

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