From January 1, 2026, all petrol distributed across Vietnam must contain 10% ethanol, marking a pivotal milestone in the country’s shift toward green energy and its long-term carbon neutrality goals.
The nationwide adoption of E10 fuel aligns with Vietnam’s commitment to achieving net-zero emissions by 2050 and accelerating its transition to a low-carbon, sustainable energy model.
According to Tran Minh, Deputy Director of the Department of Innovation, Green Transition and Industrial Promotion, full-scale implementation of E10 gasoline will require between 1 and 1.5 million cbm of ethanol annually. With current domestic capacity meeting just 40% of that need, around 450,000 cbm, the remainder will be sourced from ethanol-rich countries such as the US and Argentina.
To ensure a smooth transition, the Ministry of Industry and Trade has directed major fuel producers and distributors to invest in infrastructure, blending systems, and logistics to support the distribution of E10 fuel nationwide starting in 2026.
Under the new directive, all petrol types, including A92 and A95, must be blended with 10% ethanol to form E10. With national petrol consumption estimated at 12–15 million cbm annually, this translates to a yearly ethanol requirement of up to 1.5 million cbm.
The ethanol supply gap has prompted a renewed focus on reviving dormant biofuel facilities, particularly those located in Dung Quat, Dong Nai, and Quang Nam. At a recent mid-year meeting on petroleum supply chaired by the Minister of Industry and Trade, the Vietnam National Industry – Energy Group and Binh Son Refining and Petrochemical JSC (BSR) outlined plans to produce E10 fuel using ethanol from the Dung Quat plant. This initiative aligns with key Party resolutions for the 2025–2030 term and supports the national agenda on green and digital transformation.
Meanwhile, Central Biofuel JSC has announced plans to reactivate its ethanol plant via strategic partnerships. General Director Pham Van Vuong said preparations will conclude by August, with start-up operations in September, testing in October, and full commercial production expected by November 2025. BSR also aims to begin trial E10 blending in August, with initial distribution in the central region.
Vietnam currently has six ethanol production plants, though only two, in Dong Nai and Quang Nam, are operating consistently, generating around 100,000 cbm annually. If all six facilities resume operations, production could reach 500,000 cbm per year.
Globally, more than 50 countries have adopted biofuels. In Vietnam, 214 fuel depots nationwide and major energy firms, including Petrolimex, PVOIL, Saigon Petro, and refineries like Binh Son and Nghi Son, are technically equipped to store, blend, and distribute E10 fuel using in-tank and in-line systems.
With the necessary infrastructure in place, Vietnam is poised to fully implement E10 fuel nationwide. This transition is expected to not only reduce dependence on imported fossil fuels but also enhance environmental protection, foster a circular economy, and strengthen Vietnam’s international climate commitments, including those made under the COP26 framework./.
(VNA)
