Vietnam's used cooking oil market is growing due to increasing demand for sustainable and environmentally friendly products. Collection and re-processing of used cooking oil are becoming profitable, as the oil can be converted into biodiesel, a renewable energy source. However, the market also faces challenges, such as a need for more regulations, leading to low-quality products and environmental hazards. Additionally, consumers still need more awareness about the benefits and proper disposal methods of used cooking oil, leading to its improper disposal and negative environmental impact.

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Vietnam's used cooking oil market is organized through a network of collectors, processors, and distributors. Collectors gather the used oil from restaurants and other food establishments, then sell it to processors who refine and purify the oil for biodiesel production or as a feedstock for animal feed. The processed oil is then sold to distributors who distribute it to various end-users such as biodiesel producers, animal feed manufacturers, and other industrial customers. The market is relatively fragmented, with small and medium-sized enterprises dominating the sector. Still, larger companies are also entering the market and investing in developing more advanced technologies for used oil collection and processing.