[True Burn Hong Kong Stock Trends] Emei International (01870.HK) enters the fast lane in Vietnam, adding more confidence to growth?

E.ME International Holdings (01870.HK)$ACME INTL HLDGS(01870.HK), which is actively expanding new growth areas, has been continuously deploying its domestic and overseas new energy businesses since 2022. In the overseas market, following the earlier announcement of entering New Zealand through M&A and signing a cooperation framework agreement to develop its new energy business in markets such as the Philippines, the company recently made another breakthrough by announcing its latest deployment in Vietnam. This means that in the near future, E.ME International is expected to flourish in multiple locations, shine in overseas new energy businesses, and achieve rapid growth continuously. The company's enormous potential value is self-evident.

To do a good job, one must first sharpen one's tools. E.ME International naturally understands this well. In the first half of this year, the company announced the appointment of Wu Chunli, former deputy general manager of China Energy Engineering Corporation Limited (03996.HK)$CH ENERGY ENG(03996.HK), as the group's chief expert. According to the company's announcement, Mr. Wu is a professor-level senior engineer with over 30 years of rich experience in the power engineering industry. Mr. Wu previously served as deputy general manager of China Energy Engineering Corporation Limited (03996.HK)$CH ENERGY ENG(03996.HK). Since joining China Energy Engineering in 1985, Mr. Wu has held several key positions in the company's subsidiaries, including deputy director of the Talent Exchange Service Center of the Electric Power Planning & Design Institute, assistant to the president and director of the Personnel Department, vice president, deputy general manager of China Power Engineering Consulting Group, and general manager of China Power Engineering Consulting Group.

Under the leadership of energy expert Wu Chunli, E.ME International's new energy business is expected to take on a new look. As mentioned earlier, while E.ME International is diligently advancing its business in New Zealand and the potential Philippine market, it has recently targeted the Vietnamese market, which has great potential for new energy business development in the ASEAN region. Through its wholly-owned subsidiary Blooming Power Limited ("BPL"), the company signed a Memorandum of Understanding (MoU) with Vietnam's DCH Investment and Construction JSC. ("DCH") to invest, develop, and operate renewable energy projects in a digital hub data center located in Nam Chau Duc Industrial Urban Service Zone, Chau Duc District, Ba Ria-Vung Tau Province, Vietnam, thereby launching its new energy business in Vietnam. According to the MoU, DCH will be responsible for the investment, construction, and operation of the digital hub, while BPL and DCH will cooperate in investing, financing, developing, and operating rooftop solar projects and ground-mounted solar projects within the digital hub.

Although there are currently no projected revenue data after the project's completion, as E.ME International's first project in Vietnam's renewable energy market, it will serve as an excellent demonstration. In fact, the Nam Chau Duc Industrial Urban Service Zone is one of the most high-profile industrial park projects in Vietnam in recent years, with a total area of 2,287 hectares, including 1,556 hectares of industrial land and 731 hectares of high-quality residential areas (featuring two 18-hole golf courses). The developer is Sonadezi Corporation, in which the Vietnamese government holds shares. Building an outstanding renewable energy power generation project in such a high-profile industrial park will undoubtedly attract more potential customers and lay a solid foundation for E.ME International to accelerate its expansion in Vietnam's new energy business.

Vietnam's Rapidly Growing Economy and Electricity Demand

According to the Economic Complexity Report published by Harvard University's Growth Lab, Vietnam is expected to become one of the fastest-growing economies by 2030 and lead global growth. In Asia, several economies, including Vietnam, Cambodia, Indonesia, Malaysia, China, and India, already possess the key elements needed to drive rapid growth over the next decade.

However, behind the rapid macroeconomic growth, Vietnam faces a huge electricity shortage. The latest forecast from Vietnam's Ministry of Industry and Trade indicates that Ho Chi Minh City's manufacturing center is expected to face an electricity shortage of over 10,000 MW by 2030, accounting for 7.5% of the total power generation capacity. Vietnam Electricity Group has also stated that the power capacity needs to be expanded by 4,000 to 5,000 MW in 2024–2025, with the northern region alone facing a shortage of 2,000 MW.

According to forecasts by independent market research institutions, Vietnam's GDP is expected to maintain an average growth rate of around 6% over the next decade. Against this backdrop, the power supply-demand gap will prompt Vietnam, which has long relied on coal power, to continue expanding the application of renewable energy, with solar energy being the top priority. Although Vietnam produces coal domestically, its output has long been insufficient to meet domestic coal power demand, and hydropower has been unable to expand in recent years due to environmental factors. Solar power installed capacity has grown rapidly over the past five years. Given the expectation of rapid economic growth, the Vietnamese government has planned to increase the country's total installed capacity to approximately 146,000 MW by 2030, with clean energy as the main focus. By 2045, coal power will account for only 9.6%, while wind and solar power will account for 50.7%. This indicates enormous growth potential in new energy sectors such as wind and solar power.

Additionally, the market expects Vietnam to invest approximately $140 billion in renewable energy by 2030, with investments potentially increasing to up to $523.1 billion by 2050. Specifically, Vietnam's grid-connected solar power capacity is expected to reach 2.2 GW, 2.4 GW, and 2.5 GW in 2024, 2025, and 2026, respectively.

In the future, E.ME International is expected to accelerate its business expansion in Vietnam through this cooperation with DCH. Driven by favorable factors such as the Vietnamese new energy project, the expected launch of a 5,200 MW renewable energy project in the Philippines, and the continuous expansion of its New Zealand business, E.ME International's rapid growth in the coming years is already a foregone conclusion. It is worth paying extra attention to.