In the draft circular regulating the roadmap for blending biofuel with traditional fuels in Vietnam, the Ministry of Industry and Trade (MOIT) has proposed that from January 1, 2026, all gasoline blended, produced, and sold nationwide for gasoline-powered vehicles must be E10.

From January 1, 2031, all gasoline sold must be E15 or other biofuel blends as regulated by MOIT.

Regarding the roadmap to shift from fossil gasoline to E10 nationwide, Do Van Tuan, chair of the Vietnam Biofuel Association, said that domestic production capacity is improving, and with additional import options, Vietnam can fully ensure a stable ethanol supply for the proposed transition.

With advances in ethanol production technology in Vietnam and globally, the production cost of ethanol has been decreasing. Over the past eight years, ethanol prices have consistently been 20-30 percent lower than fossil gasoline. Blending 10 percent ethanol into gasoline will significantly reduce the cost of E10.

However, according to Tuan, price is not the main issue. The real purpose and most important benefit of switching from fossil fuel to E10 is reducing environmental pollution without increasing social costs. This is an optimal solution that brings broad economic and social benefits and helps balance trade with the US through ethanol imports from that country.

“Biofuel opens a path toward sustainable development for Vietnamese agriculture by creating stable demand for agricultural products,” he said.

Vietnam has over 500,000 hectares of cassava plantations, producing more than 10 million tons annually. However, cassava prices are unstable due to heavy dependence on raw dry exports to the Chinese market.

Once the ethanol industry grows, cassava will have a stable output, allowing farmers to produce with peace of mind instead of worrying about unsold crops and low prices.

Notably, many ethanol plants have upgraded their technologies to not only produce ethanol but also recover byproducts such as liquid CO2, fusel oil, and DDGS (used in animal feed production), thereby lowering costs and increasing competitiveness. This comes in line with the circular economy model that Vietnam is striving for.

E10’s standout benefits are environmental friendliness and renewability, partially replacing traditional fuels. Using E10 leverages agricultural by-products like corn, potatoes, and cassava.

Thus, the use of biofuel also generates sustainable income for farmers.

Vietnam consumes over 10 million tons of gasoline annually. If E10 is applied to both RON92 and RON95 fuels, the ethanol demand for blending would be about 1 million tons per year. If E15 is used, the demand would rise to 1.5 million tons per year.

Currently, Vietnam has six ethanol plants, with four operating, but only at around 35 percent capacity due to limited market demand. When the E10 fuel program begins on January 1, 2026, these plants will be able to run at full capacity, and new projects will be added, meeting about 50 percent of the ethanol blending demand.

“Domestically produced ethanol is fully competitive with imported products in terms of price. We will only import ethanol when local supply falls short,” said Tuan.

Mixed reactions from the public

Public opinion remains divided over the feasibility of using biofuel.

Nguyen Duong Son, a VietNamNet reader, wrote: “This will help farmers avoid the ‘good harvest, low price’ trap, i.e., if China stops buying, the cassava just will pile up. So this policy is really helpful.”

Reader Nsdungtruong1802 hopes for policies to protect and promote domestic raw material development: “Cassava is easy to grow. People can plant it widely in dry hilly areas. This brings a real opportunity for development and income for rural communities.”

Businesses should cooperate with local farmers to develop raw material farming areas, creating jobs and income for rural communities, instead of importing corn and cassava to produce ethanol.

However, many other readers remain skeptical about biofuel quality.

MrNghia commented: “Biofuel is just a fancy name for low-quality gasoline. I tried using E5 when it first came out and had to stop after a few times pushing my bike, replacing spark plugs and fuel pumps. Are these damages compensated?”

Duy Hy Nguyen wrote: “Ethanol contains alcohol, and alcohol absorbs moisture. If ethanol sits too long in a tank, it draws in water, which then gets into the combustion chamber through the carburetor and damages the engine. Why don’t E10 suppliers clearly explain this risk to consumers?”

Tam An