Vietnam Ethanol Market was valued at USD 147.00 million in 2022 and is further anticipated to grow at a CAGR of 4.57%, during the forecast period, owing to rising demand from the automotive sector. The growth of the market is primarily driven by the increasing demand for renewable energy sources. Ethanol is seen as a viable alternative to fossil fuels, as it is a renewable resource that can be produced domestically.
Ethanol, also known as ethyl alcohol, is a colorless, flammable, and volatile liquid that is used as a fuel, solvent, and ingredient in a wide range of products, from alcoholic beverages to personal care items. It is one of the oldest and most widely produced organic chemicals in the world.
In addition to its use as a fuel, ethanol is also used in the production of a wide range of products, including personal care items, cleaning agents, and industrial chemicals. It is a common ingredient in perfumes, lotions, and hair care products because of its ability to dissolve and blend with other substances. Ethanol is also used in the production of antiseptics and disinfectants because of its ability to kill bacteria and other microorganisms.
While ethanol has many benefits, it also has some drawbacks. One of the biggest criticisms of ethanol is that it competes with food production for crops such as corn, which can drive up the cost of food. Additionally, ethanol production can require a lot of water and energy, which can have environmental impacts. There are also concerns about the impact of increased ethanol production on land use and deforestation.
Ethanol is a key component of the global energy market and has been increasingly used as an alternative fuel source in Vietnam. As a developing country with a growing population and economy, Vietnam has a significant demand for energy, and the ethanol market has been expanding in recent years.
The demand for ethanol in Vietnam is driven by the government's efforts to reduce the country's reliance on imported petroleum and to promote renewable energy sources. In 2018, the government issued a decree mandating a 5% ethanol blend in gasoline. This mandate was increased to 10% in 2020, and the government has plans to increase the blend ratio to 15% by 2025.
Favorable Government Initiatives and Increasing Demand for Renewable Energy Sources is Driving Market Growth
As concerns about climate change and energy security have increased globally, there has been a growing demand for renewable energy sources. Ethanol is seen as a viable alternative to fossil fuels, as it is a renewable resource that can be produced domestically.
Rising Concerns about the Environmental Impact of Fossil Fuels
Major Challenges Faced by Ethanol Market
Another challenge facing the Vietnam ethanol market is the lack of infrastructure for production, transportation, and distribution. The ethanol supply chain in Vietnam is not well-developed, which limits the ability of producers to reach consumers in different regions. The lack of infrastructure makes it difficult to store and transport ethanol, which can lead to quality issues and loss of product. This creates a barrier for ethanol producers who are looking to expand their operations, as they must invest in new infrastructure to reach new markets.
Vietnam ethanol market also faces competition from other energy sources, such as gasoline and diesel. While ethanol has a lower carbon footprint and is considered a more sustainable option, it is often more expensive than fossil fuels.
Recent Development
- One of the most
significant developments in the Vietnam ethanol market over the last two years
has been changes to government policy. In 2020, the government announced that
it would increase the ethanol blend mandate from 5% to 10%. This was a major
step towards promoting the use of ethanol as a fuel source and reducing the
country's dependence on imported petroleum. The government has also provided
incentives for ethanol producers, including tax breaks and subsidies, which
have helped to encourage investment in the industry. These policy changes have
had a significant impact on the growth of the Vietnam ethanol market, with
several new production facilities being planned or under construction.
- Vietnam ethanol market
has seen a significant increase in investment over the last two years. Several
major ethanol producers have announced plans to expand their operations in
Vietnam, including Thai-based PTT and Japanese trading house Itochu. Vietnamese
companies such as Petro Vietnam and Binh Son Refining and Petrochemical Co.
have also announced plans to invest in ethanol production facilities. These
investments are expected to help boost the production capacity of the Vietnam
ethanol market, making it more competitive with other energy sources.
Market Segmentation
Market Players
|
Attribute
|
Details
|
|
Market
size value in 2022
|
USD
147.00 Million
|
|
Revenue
Forecast in 2028
|
USD
193.09 Million
|
|
Growth
Rate
|
4.57
%
|
|
Base
Year
|
2022
|
|
Historical
Years
|
2018 –
2021
|
|
Estimated
Year
|
2023
|
|
Forecast
Period
|
2024
– 2028
|
|
Quantitative
Units
|
Revenue
in USD Million , Volume in Thousand Tonnes and CAGR for 2018-2022 and 2023-2028
|
|
Report
Coverage
|
Revenue
forecast, company share, competitive landscape, growth factors, and trends
|
|
Segments
Covered
|
Type
Raw
Material
Purity
Grade
Application
|
|
Regional
Scope
|
Central
Region; Southern Region; Northern Region;
|
|
Key
Companies Profiled
|
Tung
Lam Company Limited, Thinh Cuong Co. Ltd., Le Gia Co., Ltd, Duy Minh Joint
Stock Company, Hanoi Liquor And Beverage Joint Stock Company, Sapa Trading
& Services Company Limited, Anh Duy Trading Co., Ltd, Nguyen Khoi Trading
Company Limited, Kim Ha Viet Company Limited, VMCGroup Vietnam Joint Stock
Company
|
|
Customization
Scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing
and Purchase Options
|
Avail
customized purchase options to meet your exact research needs. Explore purchase
options
|
|
Delivery
Format
|
PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
|
