Forecast
Period
|
2026-2030
|
Market
Size (2024)
|
USD
66.45 Million
|
Market
Size (2030)
|
USD
102.51 Million
|
CAGR
(2025-2030)
|
7.45%
|
Fastest
Growing Segment
|
Polyurethane
(PU)
|
Largest
Market
|
Southern
Vietnam
|
Market Overview
Vietnam 1,4
Butanediol Market was
valued at USD 66.45 Million in 2024 and is expected to reach USD 102.51 Million
by 2030 with a CAGR of 7.45% during the forecast period. The Vietnam 1,4
Butanediol Market is experiencing significant growth driven by several key
factors. One major driver is the increasing demand for 1,4 butanediol in
various industries such as automotive, textiles, and electronics. The growing
automotive production in Vietnam, combined with the rise in industrial
activities, is leading to a higher demand for 1,4 butanediol in the
manufacturing of plastics, coatings, and polyurethane foams. Vietnam’s
expanding textile sector, which is one of the largest in Southeast Asia,
utilizes 1,4 butanediol in the production of spandex fibers, contributing to
the market's growth. Tosoh Corp. is constructing a new crude MDI splitter plant in Vietnam to
meet the increasing demand for polyurethane/urea products in Southeast Asia.
Located in the Phu My3 Special Industrial Park in Ba Ria Vung Tau Province, the
plant will have a distillation capacity of 100 kilotonnes per year.
Another factor is the shift towards sustainable and
eco-friendly production methods. As 1,4 butanediol can be derived from
renewable feedstocks, this appeals to manufacturers looking to reduce their
environmental impact. Trade dynamics in the ASEAN region, particularly with
China, are facilitating the movement of raw materials and finished products,
further boosting the market. The Vietnamese government's ongoing support for
industrial development and infrastructure investment is creating a conducive
environment for the growth of the 1,4 butanediol market in the country.
Key Market Drivers
Growing Demand from the Automotive Industry
The automotive industry in Vietnam is witnessing
significant growth, with increased production of vehicles for both domestic
consumption and export. BYD introduced two new models in Vietnam, expanding
its lineup in the Southeast Asian nation to five. On October 18, 2024, the
Chinese new energy vehicle (NEV) manufacturer unveiled the all-electric Han EV
sedan and the M6 electric MPV (multi-purpose vehicle) in Vietnam. This
expansion is driven by factors such as urbanization, rising disposable income,
and a growing middle class. As the demand for automobiles increases, so does
the need for materials that can enhance vehicle performance, safety, and
durability. One such material is 1,4 butanediol, which is used in the
production of plastics, plasticizers, and polyurethane foams that are integral
to car manufacturing. 1,4 butanediol is specifically used in the production of
flexible automotive parts, including interiors, seating materials, and body
panels, all of which require high-performance materials. With the global
automotive industry transitioning toward electric vehicles (EVs), 1,4
butanediol plays a crucial role in the development of lighter, more
energy-efficient components, such as battery casings and internal parts. As
Vietnam's automotive sector continues to develop and innovate, the demand for
1,4 butanediol is expected to rise significantly, further contributing to the
growth of the market. The Vietnamese government's initiatives to foster the
automotive industry through subsidies, tax incentives, and improved
infrastructure also create a favorable environment for increased consumption of
1,4 butanediol in the automotive sector.
Expansion of the Textile and Apparel Industry
Vietnam's textile and apparel industry has become
one of the largest in Southeast Asia, with the country being a significant
exporter of garments to global markets, including the United States, Europe,
and Asia. In December 2024, Recover the world’s leading producer of
recycled cotton fiber and cotton fiber blends, has announced the opening of its
newest manufacturing facility in Vietnam, marking a key milestone in the
company’s global expansion strategy. The facility is expected to begin
operations by early 2025. By pioneering large-scale recycling technology,
Recover aims to drive significant sustainability in Vietnam's rapidly growing
textile production market.
The demand for high-quality, durable, and
comfortable fabrics is a major driver behind the use of 1,4 butanediol in the
production of spandex fibers. Spandex, known for its elasticity and
stretchability, is used in the manufacture of a wide range of apparel, from
activewear and sportswear to casual and formal clothing. As consumers continue
to prioritize comfort and performance in clothing, the demand for fabrics made
with spandex continues to rise, directly boosting the need for 1,4 butanediol.
Vietnam's increasing focus on sustainability and eco-friendly textiles is also
influencing the market, as spandex fibers derived from renewable feedstocks are
gaining popularity. With the global fashion industry moving towards more
sustainable practices, there is a growing demand for materials like 1,4
butanediol, which can be sourced from bio-based raw materials. This trend
aligns with Vietnam’s ambitions to position itself as a leader in the
production of environmentally responsible textiles, driving further demand for
1,4 butanediol within the textile sector.
Rising Demand for Consumer Electronics
The consumer electronics market is one of the
fastest-growing sectors globally, and Vietnam is capitalizing on this trend by
becoming an important manufacturing hub for products such as smartphones,
computers, and wearables. With the increasing penetration of smart devices,
there is a rising demand for materials that offer durability, flexibility, and
protection. 1,4 butanediol is used in the production of coatings, plasticizers,
and components for electronic devices, particularly those that require high-performance
materials to ensure longevity and resistance to wear and tear. For example, 1,4
butanediol is used in creating flexible coatings for screens and electronic
components, making them more resistant to scratches and environmental damage. As
consumer electronics continue to evolve with advancements like foldable screens
and flexible displays, the need for materials that can withstand bending and
stretching is growing. 1,4 butanediol's role in providing these characteristics
positions it as an essential compound in the production of next-generation
electronics. Vietnam's increasing role in the global supply chain for
electronics further strengthens the demand for 1,4 butanediol, as the country
looks to meet the needs of both local and international markets.
Government Initiatives and Industrial Growth
The Vietnamese government has been highly proactive
in promoting industrial growth, particularly in the chemical and manufacturing
sectors, through a combination of policies, incentives, and infrastructure
development. Vietnam has implemented several measures to attract foreign direct
investment (FDI) into its chemical sector, including offering tax breaks,
reducing regulatory barriers, and creating special economic zones designed to
foster industrial growth. As the government encourages more industrial activity,
including in sectors that use 1,4 butanediol such as automotive, textiles, and
electronics, demand for this compound has surged. In June 2024, Vietnam’s
southern coastal province of Ba Ria-Vung Tau has emerged as the top destination
for foreign direct investment (FDI) in the country, attracting USD 1.64 billion
from January to May, marking a 12.6-fold increase compared to the same period
last year. During the first five months of the year, the province, which
borders Ho Chi Minh City, secured 18 new foreign-invested projects totaling USD
1.52 billion, along with an additional USD 120 million in investment for nine
existing projects. The government’s focus on improving infrastructure, such
as roadways, ports, and transportation networks, has made it easier to source
and distribute raw materials, further boosting the efficiency of chemical
production. In addition, Vietnam’s participation in international trade
agreements such as the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement
(EVFTA) has enhanced its manufacturing capabilities. These agreements open up
new opportunities for exporting 1,4 butanediol-derived products to
international markets, creating a favorable environment for local manufacturers
to scale their production and meet growing domestic demand.

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Key Market Challenges
Dependence on Imported Raw Materials
One of the significant challenges facing the
Vietnam 1,4 butanediol market is its heavy dependence on imported raw
materials, especially for the production of petrochemical-based 1,4 butanediol.
While Vietnam has a growing chemical manufacturing sector, it lacks sufficient
domestic production capabilities for certain feedstocks required in 1,4
butanediol production. This reliance on imports can create vulnerabilities in
the supply chain, particularly during times of global disruptions, such as
trade restrictions, natural disasters, or fluctuations in crude oil prices. The
prices of raw materials can be volatile, and supply shortages can lead to
increased production costs and delays in manufacturing. Dependency on foreign
suppliers means that Vietnamese manufacturers are exposed to currency exchange
risks, which can affect the profitability and competitiveness of local products
in both domestic and international markets. In an industry where price competitiveness
is crucial, these supply chain challenges can make it difficult for Vietnamese
producers to maintain consistent pricing and quality for their 1,4 butanediol
products. This dependency on imports highlights the need for Vietnam to invest
in developing domestic raw material supply chains or to explore alternative,
more sustainable feedstocks to reduce its vulnerability to global supply chain
disruptions.
Lack of Advanced Technological Capabilities
Another challenge hindering the growth of the
Vietnam 1,4 butanediol market is the limited access to advanced technological
capabilities in the production of 1,4 butanediol, especially bio-based 1,4
butanediol. While there is growing interest in bio-based chemicals globally,
the technology required to efficiently produce bio-based 1,4 butanediol at a
competitive cost is still evolving. In Vietnam, the chemical manufacturing
sector lacks the research and development infrastructure and investment needed
to support the scale-up of bio-based production. Traditional manufacturing
methods, reliant on petrochemical feedstocks, dominate the market, but they
come with environmental and sustainability concerns. While some international
companies have advanced technological capabilities to produce 1,4 butanediol
from renewable resources, Vietnamese manufacturers often lack the technological
expertise and financial resources to adopt such processes. This gap in
technological capabilities limits the ability of local producers to innovate,
improve production efficiencies, and reduce costs. The slower adoption of
advanced technologies puts Vietnamese manufacturers at a disadvantage compared
to their global counterparts, particularly as industries worldwide are
increasingly demanding more sustainable and efficient chemical products. To
address this challenge, Vietnam needs to increase investment in research and
development, foster partnerships with international companies for technology
transfer, and create a supportive ecosystem that encourages innovation in the
chemical sector.
Key Market Trends
International Trade and Export Opportunities
Vietnam’s strategic location in Southeast Asia,
coupled with its active participation in global trade networks, has made it an
attractive hub for manufacturing and exporting 1,4 butanediol and its
derivatives. The country’s involvement in various international trade
agreements has further strengthened its ability to engage in cross-border
trade. For instance, Vietnam's membership in the ASEAN Economic Community (AEC)
facilitates the free movement of goods and services, including chemicals like
1,4 butanediol, within the region. The country’s free trade agreements (FTAs)
with major economic blocs such as the European Union and the United States
offer tariff reductions and expanded access to key markets. This allows
Vietnamese manufacturers to export 1,4 butanediol-based products at competitive
prices, while also ensuring a steady supply of raw materials from international
sources. As the demand for 1,4 butanediol increases in global markets,
Vietnam’s role as a manufacturing and export hub continues to grow, boosting
the local market’s development and creating more opportunities for local
producers.
Technological Advancements in Chemical
Manufacturing
Technological advancements in chemical
manufacturing are playing a significant role in shaping the future of the 1,4
butanediol market in Vietnam. New and improved production processes,
particularly those focused on bio-based 1,4 butanediol, are making it possible
to produce high-quality products at lower costs. Fermentation-based methods,
which involve the use of microorganisms to convert biomass into 1,4 butanediol,
are becoming more efficient and scalable, leading to increased production
capacity and reduced environmental impact. Innovations in catalyst design and
process optimization are making conventional production methods more
sustainable and cost-effective. These technological advancements not only
reduce production costs but also improve the quality and consistency of the
final product. As Vietnam continues to embrace these technological innovations,
its chemical manufacturing sector is becoming more competitive in the global
1,4 butanediol market. These advancements enable local manufacturers to meet
rising demand while positioning Vietnam as a leader in producing high-quality,
sustainable chemicals for global markets.
Segmental Insights
Application Insights
Based on the Application, Polyurethane
(PU) is currently one of the most dominant drivers of the Vietnam 1,4
Butanediol market. Polyurethane is a highly versatile polymer that plays a
critical role in a wide range of industries, including automotive,
construction, electronics, and textiles, all of which are important sectors in
Vietnam’s economy. The increasing demand for polyurethane-based products,
especially in the automotive and construction industries, has significantly
impacted the demand for 1,4 Butanediol, as it is a key raw material in the
production of polyurethanes. In the automotive sector, the demand for
lightweight materials has risen sharply due to the need for improved fuel
efficiency and the growing trend of electric vehicles (EVs). Polyurethane,
derived from 1,4 Butanediol, is used extensively in the production of flexible
foams for car seats, insulation materials, and dashboards, as well as in
coatings and adhesives. The automotive industry in Vietnam is expanding
rapidly, with both local manufacturers and international players increasing
production capacity. As a result, the need for 1,4 Butanediol to produce
polyurethane materials is growing, directly impacting the market.
Similarly, the construction
industry in Vietnam is booming, with an increase in residential and commercial
construction projects. Polyurethane is used in insulation materials, coatings,
and adhesives, all of which are essential to modern construction. The rise in
demand for energy-efficient buildings and sustainable construction practices is
further driving the need for polyurethane, thus increasing the demand for 1,4
Butanediol as a raw material. The textile industry’s demand for
polyurethane-based products, particularly in the form of spandex fibers, has
also contributed significantly to the market. Vietnam’s textile industry is one
of the largest in Southeast Asia, and with rising consumer demand for
comfortable and durable fabrics, the need for polyurethane has surged. Spandex,
which is made from polyurethane, is used in activewear, sportswear, and other
apparel, driving the demand for 1,4 Butanediol.

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Regional Insights
Southern Vietnam was the dominant region
in the Vietnam 1,4 Butanediol market. This is primarily due to the region's
strong industrial base, significant infrastructure development, and its position
as the hub for manufacturing and export activities. Southern Vietnam,
particularly the Ho Chi Minh City area, is home to a large concentration of
chemical manufacturing facilities, industrial parks, and multinational
corporations. These companies heavily rely on 1,4 Butanediol as a key raw
material for various industries, including automotive, textiles, electronics,
and chemicals.
The region’s industrial sector is growing rapidly,
with an increasing number of local and international companies setting up
production units in areas such as Ho Chi Minh City, Binh Duong, and Dong Nai.
These areas are vital to the production of a wide array of goods that require
1,4 Butanediol derivatives, particularly in industries like polyurethane
production, automotive manufacturing, and textile production. Southern
Vietnam’s economic growth, driven by industrialization and export-oriented
policies, creates a substantial demand for 1,4 Butanediol, especially in the
production of polyurethanes used in automotive parts and insulation materials,
as well as in the production of spandex fibers for textiles. Southern Vietnam
is strategically located with proximity to international shipping ports, which
supports the region’s role as the key export hub for chemical products,
including those derived from 1,4 Butanediol. The presence of established trade
links with international markets, especially in the ASEAN region, China, and
beyond, makes Southern Vietnam a crucial player in the 1,4 Butanediol market.
These trade dynamics further fuel the demand for 1,4 Butanediol, both for
domestic use and for export, strengthening the region’s position in the market.
Recent Developments
- In April 2024, Hyosung, intends to invest $1 billion in a facility
in Vietnam that will utilize Genomatica’s fermentation technology to convert
sugar into 1,4-butanediol (BDO), a key precursor for spandex traditionally
produced from coal or natural gas. The company aims to produce 50,000 metric
tons of bio-based BDO annually by 2026, with plans to increase production to
200,000 metric tons per year by 2035.
- In October 2024, Vietnam's
first integrated petrochemical complex, situated in Long Sơn commune, Vũng Tàu
City, officially began its commercial operations. With a substantial investment
exceeding USD 5 billion from Thailand's SCG Group, the facility is set to
manufacture a diverse range of petrochemical products, including key plastic
resins like polyethylene (PE) and polypropylene (PP). These materials will not
only meet domestic demand but also strengthen export potential, reducing
Vietnam’s dependence on imported polyolefins and boosting the competitiveness
of downstream industries.
- In May 2024, SKC Ltd., the
chemicals division of South Korea’s second-largest conglomerate, SK Group,
announced on Sunday that its biodegradable material unit has commenced
construction on a new plant in Vietnam. Once completed, the facility is
expected to become the largest single production site for polybutylene adipate
terephthalate (PBAT) in the world.
- In October 2024, The Pearl
Vietnam Factory is the latest addition to the global network of Pearl
Polyurethane Systems, highlighting Vietnam as a crucial component in the global
supply chain. Pearl Polyurethane Systems states that Pearl Vietnam, alongside
other partners in the supply chain, will provide a range of polyurethane (PU)
products, prepolymers, and polyester resins.
Key Market Players
- Evonik Vietnam LLC
- Vina MC Infonics Co., Ltd. (Mitsubishi Chemical Corporation)
- LyondellBasell Vietnam Company Limited
- Dow Chemical Vietnam LLC
- Mapei Vietnam Ltd.
- HUD Vietnam Co., Ltd.
- Inoac Vietnam Co., Ltd.
By Application
|
By Region
|
- Tetrahydrofuran
(THF)
- Polybutylene
Terephthalate (PBT)
- Gamma-Butyrolactone
(GBL)
- Polyurethane
(PU)
- Others
|
- Southern
Vietnam
- Northern Vietnam
- Central
Vietnam
|
Report Scope:
In this report, the Vietnam 1,4 Butanediol Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Vietnam 1,4 Butanediol Market, By Application:
o Tetrahydrofuran (THF)
o Polybutylene Terephthalate (PBT)
o Gamma-Butyrolactone (GBL)
o Polyurethane (PU)
o Others
- Vietnam 1,4 Butanediol Market, By Region:
o Southern Vietnam
o Northern Vietnam
o Central Vietnam
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Vietnam 1,4
Butanediol Market.
Available Customizations:
Vietnam 1,4 Butanediol Market report with
the given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Vietnam 1,4 Butanediol Market is an upcoming report
to be released soon. If you wish an early delivery of this report or want to
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