Vietnam accelerates biofuel adoption amid energy supply concerns


Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan. — VNA/VNS

HANOI: Although a mandatory roadmap for biofuel blending will take effect from June 1, Vietnam should consider accelerating the use of biofuel-blended petrol in response to increasingly complex geopolitical developments affecting global energy supplies.

This was said by Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, on Monday.

Speaking at a conference on implementing the roadmap for blending biofuel, the Deputy Minister said that adoption of the fuel would help reduce Vietnam’s reliance on conventional fossil-based fuel.

According to the Industry and Trade Ministry, Vietnam already has a roadmap for blending and using biofuels.

However, developments in the global oil market over the past week have highlighted the volatility of international energy supplies.

Under the roadmap, authorities must carefully prepare several key elements, including ethanol supply, blending and distribution systems, and management and monitoring mechanisms to ensure transparency, efficiency and compliance with technical standards.

Do Van Tuan, chairman of the Viet Nam Biofuels Association, noted that Circular 50 stipulates that from June 1 petrol sold in Vietnam must be either E5 or E10 biofuel-blended gasoline.

However, companies are already able to sell these fuels ahead of the deadline.

In practice, several major petroleum distributors began selling E10 petrol as early as Aug 1, 2025, and throughout March this year E10 has been introduced to the market in increasing volumes.

“If Vietnam can proactively secure ethanol supply, it will clearly help ease pressure on crude oil imports and refined petroleum products, which are currently heavily affected by instability and conflict in the Middle East,” Tuan said.

Following government directives, the Industry and Trade Ministry issued Circular 50 on Nov 7, 2025, establishing new regulations on the blending ratio of biofuels with conventional fuels to replace the previous roadmap.

The circular’s implementation has also been reinforced by Directive 07 issued by the Prime Minister on Feb 26, which calls for stronger production, blending, distribution and use of biofuel petrol.

Tan said that expanding the use of E5 and E10 bio petrol reduces emissions compared with traditional petrol, thus contributing to environmental protection.

In addition, it supports the development of the biofuel industry, creates stable demand for agricultural products and helps reduce dependence on imported petroleum.

Amid growing uncertainty in global energy supplies due to armed conflicts, many countries, including the United States, Brazil, European nations, China and Thailand, have widely adopted higher ethanol blends, such as E10, E15 and E20.

In Vietnam, E5 petrol has been distributed nationwide since 2018, while E10 was introduced to the market on Aug 1, 2025.

“In practice, there have been no recorded cases of negative reactions related to the quality of E5 or E10 petrol affecting vehicle performance or damaging engines,” the Deputy Minister said.

He added that the development and expansion of biofuel use is an inevitable trend in the global energy transition.

For Vietnam, bio petrol represents an important solution for reducing greenhouse gas emissions, fulfilling international climate commitments, strengthening energy security and diversifying fuel supply sources.

Vietnam also has significant potential and favourable conditions for producing ethanol feedstocks.

The country has operated E100 ethanol production plants for many years and possesses an extensive petroleum distribution network.

However, to fully leverage these advantages, closer coordination is required among ministries, local authorities, research institutions and the business community. — Viet Nam News/ANN

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