Energy transition needs to go in a realistic, balanced direction
In a presentation sent to the Workshop "Energy Transition - Driving Force for Double-Number Growth Goals" co-organized by Lao Dong Newspaper and the Ministry of Industry and Trade on June 9, 2026, Dr. Tran Van The - Chairman of the Board of Directors of INDEL Investment and Development Joint Stock Company said that Vietnam is facing a great opportunity to promote the energy transition process. However, according to him, this process needs to be approached in a realistic, balanced direction and with an appropriate roadmap to both ensure energy security, reduce emissions and maintain growth momentum.
According to Dr. Tran Van The, energy transition is no longer just a story of the electricity industry or the environment, but has become a factor directly affecting the competitiveness of the economy.
The country that moves faster in energy transition will have more opportunities in attracting green capital, high technology and growth models with high added value," Mr. The assessed.
However, business representatives believe that Vietnam cannot approach the transition process in a hasty way or only based on long-term goals without solutions suitable to reality.
In the coming years, gasoline and oil will continue to play an important role in transportation, logistics, production and life as Vietnam currently has more than 70 million motorbikes and millions of cars using internal combustion engines.
We cannot transform with slogans, nor can we immediately eliminate traditional energy sources when the economy still needs to ensure energy security, production stability and people's lives," Mr. The emphasized.
According to him, the issue currently raised is not to immediately eliminate fossil fuels but to find solutions to help reduce emissions right in the field of fuels that are being widely used.
In the context of Vietnam having to both ensure economic growth and implement emission reduction commitments, the energy transition problem needs to be solved in the direction of "both transitioning and maintaining stability", avoiding creating too much shock for businesses and consumers.
E10 gasoline may become a transitional solution
From the practical operation of a system of more than 100 gas stations nationwide, INDEL believes that biofuel, especially E10, can play a role as an intermediary solution in the energy transition process.
E10 gasoline is a fuel blended between 10% bioethanol and 90% mineral gasoline. Ethanol is produced from materials such as cassava, sugarcane, and corn, so it has the potential to contribute to reducing carbon emissions in the fuel lifecycle.
According to Dr. Tran Van The, the biggest advantage of E10 lies in its feasibility when it does not require immediate changes to the entire fleet of vehicles in circulation but can still help reduce emissions in road traffic - a sector that accounts for a large proportion of fuel consumption.
Electric vehicles are a long-term goal, but E10 can become an intermediate solution to help reduce emissions earlier for existing vehicles," he said.
In addition to environmental factors, the development of bio-gasoline also opens up new economic growth potential when creating more output for agricultural products such as cassava, sugarcane, corn; promoting the bio-processing industry and contributing to reducing dependence on imported fuels.
According to INDEL representatives, if developed in the right direction, the biofuel industry can also create more jobs in the agricultural, processing and logistics sectors, thereby contributing more to local economic growth.
However, the widespread deployment of E10 still faces many challenges.
One of the major barriers today is that the domestic ethanol supply is not really stable when many factories used to operate below capacity or interrupt operations. Meanwhile, distribution businesses also face new investment pressure on warehouses, tanks, logistics systems, quality control and personnel training.
Need a clear enough roadmap for businesses to boldly invest
According to Dr. Tran Van The, for businesses to boldly invest in biofuels, the most important thing is to have a clear, stable and highly predictable development roadmap.
Businesses can only invest when they know the policy roadmap. If policies are unstable or change too quickly, it is very difficult to organize the distribution system and prepare resources," he emphasized.
According to him, besides the roadmap for implementing E10, Vietnam also needs to soon complete technical standards, quality control mechanisms and appropriate support policies to encourage businesses to participate in the transition process.
In the early stages, policies on taxes, credit or infrastructure investment support may play an important role in reducing cost pressure for businesses and creating more confidence for the market.
According to Dr. Tran Van The, E10 is not the ultimate destination of energy transition, but it can become a practical step in the transitional phase, helping to reduce emissions without creating too much shock for businesses and consumers.
The problem is not choosing between growth and the environment, but finding a new growth model based on cleaner energy, more efficient use and creating higher value for the economy," he said.
