Biofuel is a strategic choice
On March 9 in Hanoi, the Ministry of Industry and Trade organized a conference to deploy the roadmap for blending biofuels with traditional fuels according to Circular No. 50/2025/TT-BCT. This is a step to concretize the major policies of the Party and State on energy transition, reducing dependence on fossil fuels and towards the goal of net zero emissions by 2050.
Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that in the context of increasingly complex climate change and the global energy supply chain often interrupted by geopolitical conflicts, the development of alternative energy sources, including biofuels, is a strategic requirement for each country.
Bio-gasoline is created by blending fuel ethanol with mineral gasoline. In which, E10 gasoline has a ratio of 10% ethanol and 90% base gasoline. According to the new roadmap, from June 1, 2026, unleaded gasoline circulating in the Vietnamese market will have to be blended into E10 bio-gasoline, while E5 gasoline will continue to be used in parallel until the end of 2030.
Reduce dependence on gasoline and oil imports
One of the important benefits of biofuel is contributing to reducing dependence on imported fuel sources.Currently, Vietnam still has to import about one-third of finished gasoline and oil, while the world energy supply is constantly fluctuating.
According to experts, when international oil prices increase sharply, import costs of gasoline and oil will lead to price increase pressure in the country.In case the global supply is disrupted, the risk of fuel shortage may also occur.
In that context, increasing the proportion of biofuels such as E10 gasoline is considered a solution to help Vietnam be more proactive in energy supply.
The development of biofuels creates stable output for many agricultural products such as cassava, sugarcane and corn. These are the main raw materials for ethanol production, not only contributing to increasing farmers' income but also promoting rural economic development.
According to the Vietnam Biofuel Association, Vietnam produces about 5 million tons of cassava each year, of which more than 1.3 million tons are used to produce ethanol. This is an important raw material source for the domestic biofuel industry.
Businesses prepare for the transition phase
To implement the biofuel roadmap, many businesses in the energy industry have proactively prepared technical infrastructure and raw material supply.
Dung Quat Refinery, one of the two largest oil refineries in Vietnam, said it is preparing to receive about 60,000 tons of fuel ethanol to serve the blending of E10 gasoline.
The unit supplying ethanol for Dung Quat Refinery is the Central Petroleum Biofuel Joint Stock Company, which has now completed the trial run phase and produced fuel ethanol products. In the initial operation phase, the factory produced about 470m3 of ethanol and has exported the first batch to supply to BSR to serve the blending of E10 RON95 bio-gasoline.
After the testing phase, the factory continues to optimize technical processes to improve production efficiency. When operating at optimal capacity, ethanol production is expected to reach about 60,000 tons per year, an average of more than 5,000 tons per month. The main input material is dried cassava slices, supplied under long-term contracts to ensure a stable source of raw materials.
Many large petroleum enterprises such as Petrolimex and PVOIL have started piloting the sale of E10 gasoline in some localities from 2025. Initial results show that no negative feedback from consumers has been recorded regarding gasoline quality as well as impact on vehicle engines.
Statistics from the Ministry of Industry and Trade show that currently 12 out of 26 key petroleum traders have bio-gasoline blending facilities, with a total blending capacity of about 965,000m3 per month, capable of meeting mixing needs nationwide.
Still challenges in ethanol supply
Through calculations, to deploy E10 gasoline nationwide, Vietnam needs about 92,000 - 100,000m3 of ethanol per month. Meanwhile, domestic factories can currently only produce about 25,000m3 per month, equivalent to nearly 30% of the demand.
The rest will have to be supplemented from import sources, mainly from major markets such as the US and Brazil. This poses a requirement to soon invest in expanding the capacity of domestic ethanol plants and developing stable raw material areas.
Petroleum businesses also believe that switching to biofuel will incur additional costs for investing in tank systems, transporting and storing ethanol. Therefore, appropriate support policies on taxes and business costs are needed to create favorable conditions for the conversion process.
Reality shows that bio-gasoline has been widely used in many countries such as the US, Brazil, Thailand or the Philippines. In the US, about 98% of gasoline sold on the market is mixed with ethanol, while in Thailand, E10 gasoline accounts for more than 80% of the consumption market share.
E10 gasoline may be deployed soon before June 1, 2026
Mr. Do Van Tuan - Chairman of the Vietnam Biofuel Association said that according to Circular No. 50/2025/TT-BCT, from June 1, 2026, unleaded gasoline according to current technical regulations will be required to be blended into E10 gasoline for use in gasoline engines nationwide. However, the effective date of the Circular has started from January 1, 2026. This means that legally, businesses can completely deploy earlier, without necessarily having to wait until June 1, 2026".
However, Mr. Do Van Tuan also said that the deployment of E10 gasoline in the present still has challenges. The first is the issue of procedures and technical infrastructure. Currently, licensing ethanol blending stations with mineral gasoline is still problematic. According to information from management agencies, up to this point, only about 3/26 key traders are eligible and licensed. The remaining businesses are still in the process of completing dossiers.
The second is the issue of business decision-making by key traders. The State or ministries can only play the role of promoting and supervising, while the decision to buy ethanol or deploy blending still belongs to key traders. If businesses do not proactively sign ethanol import contracts or prepare good supply sources, the deployment of E10 will also face difficulties. Tuyet Lan (recorded)
