The high price of input materials to produce ethanol and the policies on restricting imports to protect local production have made E5 petrol prices unattractive to consumers.

With the state’s policy of using E5 biofuel throughout the country from early 2018, ethanol projects that have been unprofitable will resume their operations, according to PetroVietnam’s CEO Nguyen Vu Truong Son. 

With the decision to replace RON 92 petrol with E5 biofuel commencing early next year, plus new tax policies, two ethanol plants which have been taking losses will be brought back to life.

The Ministry of Industry and Trade (MOIT) estimates that from January 1, 2018, when Vietnam shifts from using RON 92 to RON 95 and E5, total E5 consumption volume would be around 5.357 million cubic meters, or 70 percent of total fuel demand.

VietNamNet Bridge - The government’s decision to stop the use of RON 92 petrol is expected to revive a series of ethanol plants which have been bogged down in problems.

Nearly 70% of Vietnamese who joined a recent survey of carmaker Ford said fuel efficiency is more important than capacity when they decide to buy cars.

VietNamNet Bridge - Four out of seven biofuel plants have been found using Chinese technology, while three others using technology imported from China and other countries such as the US, Denmark and India.

The national oil and gas group PetroVietnam, which has insisted on building biofuel plants as part of a biofuel development strategy, has halted the operation of the Dung Quat bio-ethanol plant.

VietNamNet Bridge - Petroleum enterprises will have to begin selling biofuel (E5) at 50 percent at filling stations from December 1, but the companies are not ready to do this.

VietNamNet Bridge - Doubts have been raised about the feasibility of a plan to replace A92 petrol with E5 biofuel, even though distributors have been told to stop selling A92 to focus on E5.

The HCM City Industry and Trade Department has decided that from early December, A92 non-lead petrol will no longer be available at all 514 filling stations in the city, while only E5 biofuel will be sold.

The Ministry of Finance’s warning about the lack of VND32 trillion for state budget expenditures this year has raised concerns among businesses, as the ministry could try to raise domestic taxes and fees to ease the deficit.

VietNamNet Bridge –  The biofuel E5 (ethanol 5 percent) RON 95, used in next-generation vehicles, is still not available in Vietnam, while E5 RON 92 is being sold at hundreds of filling stations nationwide.

Investors face bumpy ride but remain bullish on Vietnam; Over 700 businesses register to join online shopping day; Pirated sheets hurt VN steel firms; Industrial production surges 7.5%; Property prices stable but buyers struggle

Viet Nam should improve public transit and road safety rather than limiting the number of motorbikes, as the two-wheeled vehicles will continue to be the country's main form of transport for the foreseeable future.

Central region takes biofuel lead; Experts urge gradual consumption tax hike; Vietnamese choose fresh fruit over other snacks; HCM City to host packaging, processing, rubber expos; FDI enterprises reduce, cut losses in HCMC

 VietNamNet Bridge – Vietnam National Oil and Gas Group (PVN) has decided to suspend oil extraction from Block Junin 2 in Venezuela because inflation has sent goods prices soaring and because the gap between the official ...

The Japanese partner in the Ethanol Binh Phuoc project has decided to withdraw from the project on the worry about the slow sale of the biofuel.

The government has decided that E5 biofuels use would be compulsory throughout the country by December 1, 2015. Meanwhile, from December 1, 2014, biofuels must be used by road vehicles in seven provinces and cities.