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. Ethanol is produced by the fermentation of sugars
and starches, which are found in various plants such as corn, sugarcane, and
potatoes. The process involves converting sugars into ethanol and carbon
dioxide using yeast or other microorganisms. The resulting ethanol is then
purified and distilled to increase its concentration and remove any impurities.
Ethanol is commonly used
as a fuel additive to reduce emissions and increase octane ratings in gasoline.
It can also be used as a standalone fuel in flexible fuel vehicles (FFVs),
which are designed to run on gasoline, ethanol, or any blend of the two.
Ethanol burns cleaner than gasoline, which means it produces less pollution and
greenhouse gas emissions. It also has a higher-octane rating, which means it
can be used to increase the efficiency of gasoline engines.
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
The Vietnamese
government has been actively promoting the use of ethanol as a fuel source as
part of its efforts to reduce the country's reliance on imported petroleum and
to promote sustainable 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.
The government has also
provided incentives for ethanol producers, including tax breaks and subsidies.
These incentives have encouraged investment in the ethanol industry and have
contributed to the growth of the market.
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. In
addition, ethanol has a lower carbon footprint than gasoline, which means it
produces less greenhouse gas emissions. This has made ethanol an attractive
option for governments and companies looking to reduce their carbon footprint
and meet sustainability goals.
Rising
Concerns about the Environmental Impact of Fossil Fuels
The use of fossil fuels
has been linked to a number of environmental problems, including air pollution
and climate change. As a result, there has been a growing movement towards
cleaner and more sustainable energy sources. Ethanol is seen as a cleaner
alternative to fossil fuels, as it produces less pollution and greenhouse gas
emissions. This has made ethanol an attractive option for consumers who are
concerned about the environmental impact of their energy use. In addition, the use of
ethanol can help reduce dependence on foreign oil and increase energy security.
This has made ethanol an attractive option for governments and companies
looking to reduce their reliance on imported fossil fuels.
Major
Challenges Faced by Ethanol Market
One of the biggest
challenges facing the Vietnam ethanol market is the availability of feedstocks.
Ethanol in Vietnam is typically produced from sugarcane, cassava, and corn.
However, these feedstocks are also used for food production, creating
competition between the ethanol and food industries. The competition for
feedstocks has the potential to drive up the cost of food, which could have
negative consequences for the economy and social stability in Vietnam. In
addition, if the demand for feedstocks exceeds the supply, it could result in a
shortage of ethanol, limiting the growth of the 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. The infrastructure for
fossil fuel production and distribution is well-established in Vietnam, making
it easier and more cost-effective for consumers to access gasoline and diesel.
This creates a challenge for ethanol producers, as they must compete on price
and convenience in order to win over consumers.
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.
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Market
Segmentation
Vietnam Ethanol market
is segmented based on Type, Raw Material, Purity, Grade, Application, and Region.
Based on Type, Vietnam ethanol market is divided into Bio Ethanol and Synthetic
Ethanol. Based on Raw Material, Vietnam ethanol market is segmented into Sugar
& Molasses, Cassava, Rice, Algal Biomass, Ethylene, Lignocellulosic Biomass.
Based on Purity, Vietnam ethanol market is divided into Denatured and
Undenatured. Based on Grade, Vietnam ethanol market is segregated into Biofuel,
Industrial, Food, and Others. Based on Application, Vietnam ethanol market is
fragmented into Fuel & Fuel Additives, Beverages, Industrial Solvents,
Disinfectant, Personal Care, and Others. Based on region, Vietnam ethanol market is divided
into Asia Pacific, Europe, North America, South America, and Middle East &
Africa.
Market
Players
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, etc., are
some of the key players operating in the Vietnam Ethanol Market.
|
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)
|
Report Scope:
In this report, Vietnam Ethanol Market has
been segmented into following categories, in addition to the industry trends
which have also been detailed below:
·
Ethanol Market, By Type:
o Bio
Ethanol
o Synthetic
Ethanol
·
Ethanol Market, By Raw
Material:
o Sugar
& Molasses
o Cassava
o Rice
o Algal
Biomass
o Ethylene
o Lignocellulosic
Biomass
·
Ethanol Market, By Purity:
o Denatured
o Undenatured
·
Ethanol Market, By Grade:
o Biofuel
o Industrial
o Food
o Others
·
Ethanol Market, By Application:
o Fuel
& Fuel Additives
o Beverages
o Industrial
Solvents
o Personal
Care
o Disinfectants
o Others
·
Ethanol Market, By Region:
o Central
Region
o Southern
Region
o Northern
Region
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Vietnam Ethanol market.
Available Customizations:
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).