Strengthening linkages between agriculture and processing industry
According to Mr. Bui Ngoc Bao - Chairman of the Vietnam Petroleum Association, with a blending ratio of 5% or 10% such as E5, E10, B5, B10, Vietnam can significantly reduce its dependence on fossil fuels. This is especially meaningful for an economy still with a large proportion of agriculture like Vietnam. The biofuel program has created output for agricultural products such as cassava and corn, contributing to strengthening links between agriculture and processing industries.
With a blending ratio of 10%, the amount of fossil fuels replaced is very significant. When the program is well implemented and moves to higher levels such as E15, E20 or B15, B20 as some countries have implemented, the effectiveness of reducing dependence on imported fuels will be even clearer.
Regarding the level of readiness, it can be affirmed that gasoline businesses have been preparing for a long time thanks to the experience of deploying E5 gasoline. When E10 is applied synchronously, businesses will have to restructure technical systems, raw material sources and market plans. Businesses that do not have available facilities have also proactively worked with major hubs to hire blending and storage services" - Mr. Bao assessed.
Accompanying the implementation of major policies
From a business perspective, Mr. Nguyen Anh - Director of Song Tra Commercial Petroleum Joint Stock Company (Quang Ngai province) said that gasoline and oil trading units in Quang Ngai province are pioneering and supporting the sale of E10 gasoline.
We hope that the Ministry of Industry and Trade and Quang Ngai province will actively promote propaganda to car dealers as well as consumers to understand and accompany in implementing this major policy. We also hope that management units will provide support for gasoline and oil traders in washing tanks and tanks when converting gasoline types" - Mr. Anh proposed.
Dr. Giang Chan Tay - Director of Boi Ngoc One Member Limited Liability Company (exploiting gasoline and oil business in Vinh Long) said that for businesses that have deployed E5 gasoline before, switching to E10 gasoline business is not too complicated. Infrastructure systems such as tanks and pumps of businesses can basically meet the needs after being cleaned and adjusted accordingly. Operating personnel also have certain experience, ready to adapt to new requirements. For businesses that need to upgrade infrastructure, this process is also being gradually calculated to suit technical standards and safety requirements.
In addition, Dr. Giang Chan Tay noted the loss factor in the bio-gasoline business, a technical characteristic that has been recorded in the actual E5 gasoline business, when the evaporation rate of E10 gasoline is higher than mineral gasoline.
The Ministry of Industry and Trade and the Ministry of Finance need to coordinate in researching and determining a reasonable loss rate to include in the cost structure. At the same time, it is also necessary to consider appropriate compensation mechanisms for the loss incurred exceeding the normal level, which can be specifically quantified according to a ratio (about 0.6%), equivalent to about 180-190 VND/liter according to the current price level, to ensure that businesses are not damaged during the conversion process" - Dr. Giang Chan Tay proposed.
According to Dr. Giang Chan Tay, the policy of developing biofuels is correct and in line with the general trend of the world. For the transition process to take place effectively, a clear policy framework is needed, strong enough in encouraging and having a risk sharing mechanism, thereby helping businesses feel secure in investing and maintaining a stable and sustainable distribution system:
If there is close coordination between management agencies and the business community, along with practical support policies, the deployment of E10 gasoline will achieve positive results, contributing to ensuring energy security and promoting green growth" - Dr. Giang Chan Tay emphasized.
