The Ministry of Industry and Trade said that in terms of scientific and technical analysis, studies show that E10 gasoline is compatible with more than 90% of current vehicles and does not require engine improvement.
Regarding the environment, E10 helps reduce CO emissions by 20 - 30% and HC by 10 - 20%.
Therefore, the application of E10 gasoline nationwide is suitable for the feasibility in Vietnam.
Moreover, according to the Ministry of Industry and Trade, this policy is placed in the context of the global energy market in the 2022-2026 period fluctuating strongly due to geopolitical factors, especially conflicts in the Middle East and disruptions to the oil supply chain.
According to the International Energy Agency (IEA), the Middle East region currently supplies about 30 - 35% of global crude oil production, so instability in this region directly affects world energy prices.
Brent oil prices in the period 2023 - 2025 fluctuated in the range of 75 - 110 USD/barrel, increasing risks for energy net importing countries such as Vietnam.
In parallel, the global energy transition trend is accelerating. The IEA Report 2024 forecasts that the proportion of biofuels in global transportation energy consumption will reach 6-8% by 2030, of which E10 gasoline is the minimum common level.
Many countries have implemented E10 as a mandatory standard. In the United States, E10 accounts for more than 95% of retail gasoline; the European Union requires a minimum renewable energy ratio in transportation of 14%; Thailand completely replaced RON91 with E10 from 2020.
Studies show that E10 can reduce CO2 emissions by 3 - 10% and reduce dependence on oil imports by about 5 - 8%.
In Vietnam, gasoline consumption demand is currently about 1 million m3/month, equivalent to about 12 million m3/year, with a growth rate of about 4-5% per year.
Vietnam still has to import 20-30% of finished gasoline and 50-70% of processing materials, creating great pressure on energy security, trade balance and macroeconomic stability.
According to the energy alternative model, if Vietnam consumes about 1 million m3 of gasoline per month and uses E10, the amount of mineral gasoline can be reduced by about 100,000 m3/month, equivalent to 1.2 million m3/year.
With an average gasoline price of 700 USD/m3, the corresponding import reduction is about 840 million USD per year.
The Ministry of Industry and Trade also assessed that the ethanol industry has a high economic spillover coefficient of 1.5 - 2 times according to the Input-Output model.
Increased ethanol demand will promote agricultural production such as cassava, corn, logistics and processing industry. Accordingly, every 1 VND invested in ethanol can generate 1.5 - 2 VND of GDP.
To meet blending needs, with a consumption level of about 1 million m3 of gasoline/month, the total need for ethanol E100 is from 92,000 - 100,000 m3/month.
Meanwhile, by April 2026, domestic E100 output reached about 25,000 m3/month from factories in Dong Nai, Quang Nam, Dak To and Dung Quat.
According to the plan to increase capacity and restore more factories in Binh Phuoc and Dak Nong, the total domestic capacity may reach 44,000 m3/month.
However, at least in the next year, Vietnam still needs to import about 75,000 m3 of E100 per month to meet the mixing needs of E5 and E10.
As of March 31, 2026, PVOIL has signed contracts to purchase 19,000 m3 of E100, PLX signed about 40,000 m3, along with existing sources from domestic enterprises.
By April 15, 2026, the total E100 volume is expected to reach 84,200 m3, still lacking about 10,000 - 15,000 m3 for nationwide deployment.
Regarding infrastructure, by March 31, 2026, the whole country will have 12/26 key traders investing in mixing stations.
Among them, 3 enterprises have been licensed to blend E10 with a total capacity of 700,000 m3/month, including PLX, PVOIL and Saigon Petro.
If the expansion plans are completed and new permits are issued, the total blending capacity may exceed 1.15 million m3/month.
The Ministry of Industry and Trade said that basically there is no need to invest in new tanks because it is only converted from RON95 mineral gasoline to E10 RON95, but it is necessary to renovate the existing system to suit the characteristics of E10 gasoline.
This shows that the transition to E10 is mainly a change in the supply chain and fuel blending, while most current vehicles can still be used without engine improvements.
