From January 1, 2031, the ministry proposes transitioning all gasoline to E15 (with an ethanol content of 14-15%) or other ethanol blends to be determined by the Minister of Industry and Trade based on actual conditions.

While E10 is not yet mandatory, the ministry encourages organizations and individuals to participate in the production, blending, distribution, and use of biodiesel (B5, B10).

Vietnam previously promoted biofuels such as E5 and E10 (a blend of 90% traditional gasoline and 10% ethanol), even discontinuing RON92 mineral gasoline entirely in 2018. As a result, from 2015 to 2019, E5 RON92 made up over 40% of the national gasoline market. However, since 2020, E5 RON92 consumption has declined sharply, now representing only about 20% of total gasoline sales. In some provinces, E5 has even vanished from retail stations.

The ministry attributes this decline to several key factors: difficulties in storing ethanol-blended fuels due to water absorption and evaporation; insufficient tax and fee incentives to lower prices; weak public communications that failed to dispel concerns over engine damage; and a lack of oversight and enforcement.

Given these issues, the ministry argues that a new, more comprehensive roadmap is urgently needed to overcome the "missteps" of E5, seize international trade opportunities, and revitalize Vietnam’s ethanol industry.

The ministry's proposal extends to all entities involved in producing, importing, blending, distributing, and selling biofuels. Diesel vehicles, aviation fuel, and special-purpose fuels for national defense and security are exempt from the requirement.

Vietnam ready to produce and supply E10

In terms of production, blending, and supply capacity, the Ministry of Industry and Trade affirms that Vietnam currently has six ethanol (E100) plants with a total design capacity of about 600,000 cubic meters per year. If operating at full capacity, these plants could meet roughly 40% of the annual E100 demand for E10 blending (estimated at 1.5 million cubic meters, based on 15 million cubic meters of gasoline consumption in 2024).

The remaining volume can be imported from major ethanol producers like the United States and Brazil, which are prepared to supply through major ports such as B12 (Quang Ninh), Nha Be (Ho Chi Minh City), and Van Phong (Khanh Hoa).

Regarding blending infrastructure, major fuel corporations like Petrolimex (PLX) and Vietnam Oil Corporation (PVOIL) already exceed national demand. PLX has E5/E10 blending capacity of over 8.4 million cubic meters per year, far surpassing current consumption levels. PVOIL can blend more than 1.6 million cubic meters of E5 RON92 per year, but only a small portion is currently used, leaving around 1 million cubic meters in excess capacity.

Other enterprises such as BSR (Dung Quat Refinery) and Saigon Petro have also developed the necessary infrastructure and are ready to participate in blending operations.

"Considering our production, import, and blending capabilities, Vietnam is fully prepared to mandate E10 starting January 1, 2026," the ministry affirmed.

The Ministry of Industry and Trade has tasked the Department of Innovation, Green Transition, and Industrial Promotion with leading implementation, including technology research and communication efforts. The Domestic Market Management and Development Department will coordinate with the Ministry of Finance on pricing policies, taxation, and distribution monitoring.

Provincial and municipal People’s Committees are expected to support raw material zones, blending infrastructure, and local communication. Ethanol producers are responsible for restoring plant operations, importing to fill supply gaps, and ensuring the quality of E10 before it reaches the market.

PV