Vietnam Sustainable Aviation Fuel Market Assessment, By Fuel type [Biofuel, Power to Liquid Fuel, Hydrogen Fuel, Gas-to-Liquid], By Technology [Fischer-Tropsch and Synthetic Paraffinic Kerosene, Hydroprocessed Esters and Fatty Acids, Hydroprocessed Fermented Sugars to Synthetic Isoparaffins, FT-SPK With Aromatics, Hydrocarbon-Hydroprocessed Esters and Fatty Acids, Others], By Application [Commercial, Defense, Others], By Region, Opportunities and Forecast, 2024-2032F

Vietnam sustainable aviation fuel market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2032.

Vietnam Sustainable Aviation Fuel Market Size, Growth, Report 2032

Vietnam Government is expected to blend 10% sustainable aviation fuel (SAF) in jet kerosene by 2035. As part of the global shift in the aviation industry toward sustainable energy standards, Vietnam's market for sustainable aviation fuel (SAF) is growing rapidly. The industry's dedication toward eco-friendly fuel alternatives and the urgent need to reduce the effects of climate change are driving market expansion.
Diverse SAFs are available in the market, such as hydrogen fuels, power-to-liquid fuels, and biofuels. These fuels are used in a variety of aircraft platforms, ranging from commercial airliners to military jets. Although the market's future seems bright, there are obstacles to overcome by building a strong supply chain, maintaining cost competitiveness, and negotiating complicated regulatory environments. Nevertheless, due to robust government support and international environmental commitments, Vietnam is well-positioned to play a major role in the aviation industry's transition to cleaner fuels. Overcoming these obstacles will be essential as the market develops sectors that can reach its aggressive carbon neutrality targets so that SAF can be widely adopted.
<h2 style="text-align: justify;">Biofuel Sector Holds the Highest Market Share</h2>
Vietnam sustainable aviation fuel market share is being dominated by the biofuel segment. This is due to the country's abundant biomass resources and policies implemented by the government to lower carbon emissions. Vietnam is a major producer of biomass resources, which are progressively being diverted from conventional usage to the production of biofuel for the transportation sector. According to the Vietnam Energy Outlook Report, biofuel production is expected to increase significantly by 2050, with an estimated 544 PJ produced. The National Energy Master Plan (NEMP), which emphasizes the use of biofuels in difficult-to-abate industries, such as aviation, is largely responsible for the rise in demand. Vietnam's shift towards renewable energy is driving the sector's rapid expansion with biofuels playing a key role in the country's net-zero goals by 2050. Vietnam's industry leadership in the SAF market is anticipated to consolidate as it continues to increase its ability to produce biofuels.
For instance, in January 2024, Vietnam Airlines became the first airline in the country to operate commercial passenger flights using sustainable aviation fuel or SAF. At Changi Airport in Singapore, the airline refueled an Airbus A321 with SAF in preparation for its May 27 return flight to Hanoi. This is the first time Neste's SAF supply capabilities at Singapore Changi Airport have helped a visiting carrier from Asia-Pacific. Neste used its integrated supply chain to deliver SAF to Vietnam Airlines at Changi Airport after producing it as a refinery in Singapore. The airline feels that by utilizing SAF, it will be possible to provide passengers with exceptional service quality and environmental friendliness while helping to create a more sustainable future for the aviation sector.
<h2 style="text-align: justify;">Technology Advancements Boosts Market Growth</h2>
Vietnam's market share of sustainable aviation fuel is rising dramatically due to the technological improvements. The increase has been largely attributed to advancements in the fuel production industry, particularly in the creation of renewable fuels. Vietnam is making significant progress in integrating cutting-edge technology to manufacture biofuels and synthetic fuels, which are essential for the aviation sector's decarbonization efforts, according to the Vietnam Energy Outlook Report. Modern techniques such as manufacturing synthetic gas, biomass gasification, and renewable liquid fuels like renewable jet fuel are advancing the market. Vietnam's emphasis on improving the entire renewable fuel supply chain which includes production, transmission, storage, and distribution. The nation's dedication to creating e-fuels and green hydrogen, as delineated in the Hydrogen Strategy, bolsters the SAF market. As these technologies advance, it is anticipated that they will further lower production costs and boost productivity, securing Vietnam's place in the global SAF market.
For instance, in May 2024, to reach its net zero emission goals, Vietnam Airlines is adding wide-body aircraft to its fleet, such as Boeing 787 and Airbus A350. These planes are more competitive and efficient as they can accommodate 311-367 passengers and have a bigger cargo capacity. Due to their integrated technology that lowers pollutants and fuel consumption, the new generation of airplanes is especially environmentally friendly. Comparing Vietjet's current fleet to other airlines, it can save 15-20% on fuel and lower emissions per passenger by 25-30%. Vietnam is focusing on improving the production, transport, storage, and distribution of renewable fuels, which supports these achievements. The nation's dedication to developing e-fuels and green hydrogen, as delineated in the Hydrogen Strategy, reinforces the SAF market.
<h2 style="text-align: justify;">Southern Vietnam is Expected to Hold the Highest Market Share</h2>
Due to its advantageous location and strong infrastructure for renewable energy, the southern area of Vietnam is expected to hold the largest market share of sustainable aviation fuel. Owing to its significant solar and wind energy capacities which are essential for the generation of SAF, the south-central region is growing fast due to the rise in infrastructure projects. With large onshore and offshore wind farms contributing to the energy mix, the region has the greatest percentage of wind capacity in the country. The South's supremacy in the SAF market is further cemented by the numerous linkages that connect it to other regions of the country, allowing for efficient distribution of the generated renewable energy. With growing investments in renewable energy infrastructure in South, Vietnam is anticipated to maintain this regional advantage as it moves closer to its net-zero targets. Due to the region's strategic significance and potential for renewable energy, it leads the SAF market to Vietnam's larger energy transition initiatives.
<a href="https://www.marketsandata.com/industry-reports/vietnam-sustainable-aviation-fuel-market/sample-request">Download Free Sample Report</a>
<h2 style="text-align: justify;">Government Focus on Sustainability to Influence Market Growth</h2>
The sustainable aviation fuel market is expanding due to the Vietnamese government's dedication to sustainability. Through strategic frameworks such as the Power Development Plan (PDP8) and the National Climate Change Strategy for 2050, the nation hopes to attain net-zero emissions. Government regulations encourage the use of renewable fuel in several industries, including aviation. These programs are incorporated into the National Energy Master Plan (NEMP), which is a larger strategy for minimizing reliance on imported fuel and maximizing domestic resources. For the SAF market to flourish and meet global climate goals, these plans must align with Vietnam's sustainability objectives.
For instance, in March 2024, a Japanese business called Toyo Group is investigating the possibility of producing sustainable aviation fuel and has made a sizable investment in Vietnam. Real estate, energy, and projects including a USD 220 million (VND 5519 billion) renewable energy plant in Bac Ninh province and a USD 40 million (VND 1003 billion) Green Energy Plant in Binh Dinh province, are among the company's current investments. JGC Holdings Corporation, an engineering firm with experience in major projects in petrochemical, energy, and other industrial sectors is working with Toyo Group.
Future Market Scenario (2024 &ndash; 2032F)
Vietnam's market for sustainable aviation fuel has a positive outlook, owing to the nation's strong environmental policies, developing technological capabilities, and advantageous geographic location. The SAF market is anticipated to expand rapidly as Vietnam works toward its goal of net-zero emissions by 2050, aided by initiatives such as the Power Development Plan (PDP8) and the National Energy Master Plan. The development of renewable energy sources, such as biofuels and synthetic fuels, is given priority in these frameworks as they are crucial for decarbonizing the aviation industry. Technological developments that will further improve the efficiency and economics of SAF generation include the development of green hydrogen and biomass gasification. Vietnam is in a strong position to dominate the region in SAF production due to its technological advancements and rising investments in renewable energy infrastructure, especially in the south-central and south-east regions.
Report Scope
&ldquo;Vietnam Sustainable Aviation Fuel Market Assessment, Opportunities and Forecast, 2024-2032F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Vietnam sustainable aviation fuel market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
<table>
<tbody>
<tr>
<td width="301">
Report Attribute
</td>
<td width="301">
Details
</td>
</tr>
<tr>
<td width="301">
Base Year of the Analysis
</td>
<td width="301">
2024
</td>
</tr>
<tr>
<td width="301">
Forecast Period
</td>
<td width="301">
2024-2032
</td>
</tr>
<tr>
<td width="301">
Volume Forecast in 2032
</td>
<td width="301">
40 million Liters
</td>
</tr>
<tr>
<td width="301">
Segments Covered
</td>
<td width="301">
Fuel Type, Technology, Application
</td>
</tr>
<tr>
<td width="301">
Regions Covered
</td>
<td width="301">
North, South, Central
</td>
</tr>
<tr>
<td width="301">
Key Companies Profile
</td>
<td width="301">
Neste Oyj, World Energy LLC, SAF One Energy Management Ltd, Gevo Inc, Vietnam Air Petrol Company Limited, Tan Son Nhat Petrol Commercial JSC, Nihon Toyo Co., Ltd.
</td>
</tr>
<tr>
<td width="301">
Customization Scope
</td>
<td width="301">
15% free report customization with purchase
</td>
</tr>
<tr>
<td width="301">
Pricing and Purchase Options
</td>
<td width="301">
Avail the customized purchase options to fulfill your precise research needs
</td>
</tr>
<tr>
<td width="301">
Delivery Format
</td>
<td width="301">
PDF and Excel through email (subject to the license purchased)
</td>
</tr>
</tbody>
</table>
In the report,&nbsp;Vietnam sustainable aviation fuel market&nbsp;has been segmented into the following categories:&nbsp;
<ul style="text-align: justify;">
<li>By Fuel Type</li>
<li>Biofuel</li>
<li>Power to Liquid Fuel</li>
<li>Hydrogen Fuel</li>
<li>Gas-to-Liquid</li>
<li>By Technology</li>
<li>Fischer-Tropsch (FT) and Synthetic Paraffinic Kerosene (SPK)</li>
<li>Hydroprocessed Esters and Fatty Acids</li>
<li>Hydroprocessed Fermented Sugars to Synthetic Isoparaffins</li>
<li>FT-SPK With Aromatics</li>
<li>Hydrocarbon-Hydroprocessed Esters and Fatty Acids</li>
<li>Others</li>
<li>By Application</li>
<li>Commercial</li>
<li>Defense</li>
<li>Others</li>
<li>By Region</li>
<li>North</li>
<li>South</li>
<li>Central</li>
</ul>
Key Players Landscape and Outlook
The sustainable aviation fuel market in Vietnam is in its early stages, with major aviation firms such as VietJet Air and Bamboo Airways spearheading early initiatives. International corporations such as Neste and World Energy are seeking collaborations to access this developing industry. The market is expanding due to the international pressure for decarbonization and constant government support. With space for rapid expansion in Vietnam's aviation industry, sustainability becomes more popular throughout Southeast Asia, the SAF aviation fuel market is expected to boost in the forecast years.
For instance, in December 2023, to promote sustainable aviation fuel (SAF) in Vietnam, Dubai-based SAF One and Vietnamese low-cost carrier Vietjet Air have teamed. A Memorandum of Understanding (MoU) was inked in Dubai during COP28 to help the airline and SAF One to work together. SAF One, which was founded in May by Sencirc Holding, based in Abu Dhabi, and Novus Aviation Capital, focuses on assets in the circular economy. The collaboration comes at the same time as Jeff Ovens is named SAF One's Chief Operating Officer, effective January 2024, and there is an increasing emphasis on SAF supply and procurement in Asia-Pacific.
For instance, in March 2024, Japanese renewables firm Nihon Toyo has already deployed many energy projects in Vietnam, including a USD 40 million green energy factory project in Binh Dinh, a USD 220-million waste treatment factory in Bac Ninh, and a USD 60 million cosmetics plant in Ho Chi Minh City.
Key Players Operating in Vietnam sustainable aviation fuel Market are:
<ul style="text-align: justify;">
<li>Neste Oyj</li>
<li>World Energy LLC</li>
<li>Gevo Inc</li>
<li>SAF One Energy Management Ltd</li>
<li>Vietnam Air Petrol Company Limited</li>
<li>Tan Son Nhat Petrol Commercial JSC</li>
<li>Nihon Toyo Co., Ltd.</li>
</ul>
Markets and Data&rsquo;s reports answer the following questions:
<ul style="text-align: justify;">
<li>What is the current and future market size of the product/service in question globally or specific to different countries?</li>
<li>How are the markets divided into different product/service segments and the market size and growth of each segment?&nbsp;</li>
<li>What is the market potential of different product segments and their investment case</li>
<li>How are the markets predicted to develop in the future and what factors will drive or inhibit growth?</li>
<li>What is the business environment and regulatory landscape specific to the product/service?</li>
</ul>
If you can't find what you're searching for or have any custom requirements for Vietnam sustainable aviation fuel market, you may approach our team at&nbsp;<a href="mailto:info@marketsandata.com">info@marketsandata.com</a>.

Vietnam Sustainable Aviation Fuel Market Assessment, Opportunities and Forecast, 2024-2032F

Vietnam sustainable aviation fuel is experiencing growth due to the rising government incentives and favorable policies, higher investments, growing concerns regarding environmental sustainability, and strategic partnership between companies.

FAQs

Industry Reports

Blogs

Case Studies

Industry News

Press Release

Infographics