The use of biofuels not only helps safeguard national energy security and protect the environment but also provides a stable market for millions of tons of dried cassava that Vietnamese farmers previously had to sell to China at unstable prices.

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The Ministry of Industry and Trade proposes nationwide sales of E10 gasoline starting from 1/1/2026 and E15 gasoline from 1/1/2031. Photo: Tran Chung.
 
 
 

In its draft circular "Regulations on the roadmap for blending biofuels with traditional fuels in Vietnam," the Ministry of Industry and Trade has proposed that from January 1, 2026, all gasoline blended, processed, and sold nationwide for use in gasoline-powered motor vehicles must be E10.

By January 1, 2031, all gasoline for motor vehicles must be E15 or other biofuel blends as regulated by the Minister of Industry and Trade.

Regarding the shift from traditional gasoline to E10 nationwide starting in early 2026, Do Van Tuan, Chairman of the Vietnam Biofuel Association, affirmed that domestic production capacity is improving and can be supplemented with imports if needed. Vietnam is fully capable of ensuring a stable ethanol supply to support the proposed transition.

With advancements in production technology both domestically and internationally, the cost of producing ethanol is decreasing. For the past eight years, ethanol has consistently been 20-30% cheaper than traditional gasoline. Therefore, blending 10% ethanol into gasoline will result in a significant reduction in E10 prices.

However, according to Tuan, price is not the main concern. The core objective of switching from fossil gasoline to E10 is to reduce environmental pollution without increasing social costs. This is considered the optimal solution for comprehensive socio-economic benefits. It also contributes to balancing trade with the United States through ethanol imports from the country.

“Moreover, biofuels pave the way for sustainable agricultural development in Vietnam by providing a stable market for agricultural products,” said Tuan.

Vietnam currently cultivates over 500,000 hectares of cassava, yielding more than 10 million tons annually. However, the crop’s price remains volatile, heavily reliant on raw exports of dried cassava chips to China.

With the ethanol industry expanding, cassava will have a stable outlet, allowing farmers to focus on cultivation without worrying about low selling prices.

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As the ethanol industry grows, cassava will have a stable market, allowing farmers to produce with peace of mind. Photo: Tam An

Notably, several factories have upgraded their technology to extract additional byproducts such as liquid CO2, fusel oil, and DDGS (a byproduct used for animal feed), reducing costs and enhancing competitiveness. This reflects a circular economic model that the country aims to achieve.

According to the Ministry of Industry and Trade, E10’s key advantage lies in its eco-friendliness and renewability, making it an ideal partial replacement for traditional fuels. E10 is a biofuel blended with agricultural byproducts like corn, sweet potatoes, and cassava.

Hence, the widespread use of biofuel also ensures long-term income for farmers.

Vietnam consumes more than 10 million tons of gasoline annually. If E10 is applied to both RON92 and RON95 gasoline types, the required ethanol volume will be about 1 million tons per year. If E15 is implemented, the number rises to 1.5 million tons per year.

Currently, Vietnam has six ethanol production plants, four of which are operational but only running at about 35% capacity due to limited market demand. With the E10 program starting on January 1, 2026, these plants can ramp up to full capacity. Additionally, new projects will be launched to meet around 50% of the ethanol blending demand.

“Domestic ethanol production is fully competitive with imports in terms of pricing. Imports will only occur when local supply is insufficient,” said the Chairman of the Vietnam Biofuel Association.

Tam An