Mining, steel, construction firms set to capitalize on Vietnam's nuclear power development

The mining sector is expected to benefit significantly from the development of the Ninh Thuan nuclear power plants in Vietnam, said Nguyen The Minh, head of research at broker Yuanta Securities Vietnam.

The National Assembly, Vietnam’s parliament, on Wednesday approved a resolution on special mechanisms and policies for the development of the Ninh Thuan nuclear power project.

Located in the south-central province of Ninh Thuan, the project consists of two plants with a combined capacity of 4,000 MW. Ninh Thuan 1 will be built in Phuoc Dinh commune, Thuan Nam district, while Ninh Thuan 2 will be located in Vinh Hai commune, Ninh Hai district.

In its latest draft amendment to the power development plan VIII (PDP VIII), the Ministry of Industry and Trade said that the Ninh Thuan 1 could operate from 2035 at the earliest. The ministry also estimated that the project would require at least $22 billion in investment.

The development of the nuclear power plants is expected to boost the mining sector, as nuclear facilities require essential materials such as uranium, zirconium, titanium, copper, aluminum, lead, and zinc for equipment manufacturing and fuel production, Minh noted.

Potential corporate beneficiaries may include Masan High-Tech Materials (HoSE: MSR), Vinacomin-Minerals Holding Corporation (HNX: KSV), and Vietnam Mineral Resources & Metallurgy JSC, among others.

The steel and special metals industries are also likely to benefit, with key players including Hoa Phat Group (HoSE: HPG) and Vietnam Steel Corporation (UPCoM: TVN), he added.

Several companies in the construction and infrastructure sectors stand to gain as well, such as Coteccons (HoSE: CTD), Hoa Binh Group (UPCoM: HBC), Vinaconex (HoSE: VCG), and Song Da Construction & Service JSC (UPCoM: XLV).

Additionally, the mechanical, machinery, and electrical equipment manufacturing industries will capitalize on the project, the analyst said. Notable beneficiaries could include Vietnam Machinery Installation Corporation - JSC (UPCoM: LLM), Construction Machinery Corporation - JSC (UPCoM: TCK), and Hanoi Electromechanical Manufacturing JSC.

The transportation and logistics sectors may also see positive impacts, with Vietnam Railways Corporation (VNR) and Airports Corporation of Vietnam (UPCoM: ACV) among the potential beneficiaries.