The growth rate of power enterprises in Vietnam as well as electricity consumption are both expected to increase in 2022, according to SSSI Research.

Coal power enterprises are expected to grow better, at 19 per cent, hydropower enterprises are likely to be less favorable, with a growth rate of 17 per cent, while gas power enterprises are expected to recover but at a low rate, growing 10 per cent. Electricity consumption, meanwhile, is expected to grow better, at 9.2 per cent. The domestic thermal coal price is estimated to also increase in 2022 and when consumption recovers, while the output of coal power enterprises will grow better than at gas power enterprises.

SSSI Research also expects electricity prices to increase by about 17.16 per cent in 2022. This increase will be in response to a 4.2 per cent increase in gas prices and a 15 per cent increase in coal prices next year. An increasingly competitive market can partially absorb the increase in input fuel costs.

In terms of the stock price of power enterprises, QTP’s shares and HND’s shares are considered two stocks with potential in 2022, and their market caps are expected to reach VND782 billion ($34.22 million), an increase of 27.6 per cent, and VND577 billion ($25.22 million), up 25.2 per cent compared to 2021. However, there is still a risk that price growth in the market may not be as expected if electricity consumption is poor due to Covid-19.