E10 Biofuel Gets off to a Promising Start after One Month of Nationwide Rollout

July 01, 2026

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(VNA/Vietnam Plus) Petrolimex supplied nearly 500,000 cubic metres of E10 biofuel during the first month of implementation, equivalent to its average monthly gasoline sales in the first five months of 2026.

After one month of nationwide sales, E10 biofuel has shown encouraging early results, with strong public support for the country's clean energy transition and growing consumer confidence in the quality of the new fuel.

Businesses ensure stable E10 supply

According to the Vietnam National Petroleum Group (Petrolimex), the country's largest fuel distributor, the company supplied nearly 500,000 cubic metres of E10 biofuel during the first month of implementation, equivalent to its average monthly gasoline sales in the first five months of 2026. Initial results indicate rising demand for E10, a smooth transition across the retail network and a stable supply without major market disruptions.

To secure sufficient ethanol for blending, Petrolimex prepared its sourcing plans well in advance and maintained close coordination with suppliers to monitor supply, prices and logistics. The company also diversified procurement through both domestic and imported ethanol, using sea and road transport to improve flexibility and reduce dependence on any single supplier.

At the same time, Petrolimex reviewed storage, transportation and blending capacity across its network while strengthening coordination throughout the supply chain to ensure stable, safe and quality-compliant E10 distribution.

The company added that allowing fuel distributors to use designated independent testing organisations and introducing a mechanism to handle remaining stocks of unleaded gasoline before the transition helped remove operational bottlenecks and improve supply flexibility.

Similarly, the PetroVietnam Oil Corporation (PVOIL) said it had upgraded its blending facilities and expanded ethanol storage capacity to around 43,000 cubic metres, sufficient to meet blending demand for about two months. Alongside maximising domestic ethanol supplies, the company has secured imports from the US and Brazil to ensure adequate feedstock for the E10 rollout.

PVOIL has also converted all 13 of its blending facilities from batch-by-batch conformity certification to a system-based certification model, significantly shortening post-blending approval times and improving supply responsiveness. In addition, the company has introduced comprehensive quality management procedures covering blending, storage, distribution and retail to ensure that its E10 and E5 biofuels comply with both corporate standards and Vietnam's national technical regulations.

Representatives of both Petrolimex and PVOIL said they will continue selling E5 RON92 biofuel alongside E10.

Public support and consumer confidence grow

Nguyen Duc Dung, a representative of a transport company in Hanoi, said his business supports the government's policy as E10 contributes to environmental protection and strengthens Vietnam's energy security. However, he noted that E10 has slightly higher fuel consumption than RON95 petrol, affecting operating costs.

He said the company is considering restructuring its fleet, including replacing some vehicles with electric ones. Nevertheless, a more competitive pricing policy for E10 could offset the higher fuel consumption and encourage businesses to continue using the biofuel, he added.

After one month of nationwide implementation, consumer confidence in E10 has also improved markedly. Tran Van Dung, a customer who has been using E10 gasoline at a Petrolimex station on Tran Quang Khai Street in Hanoi, said his Honda CR-V has continued to run smoothly after one month on the biofuel. To assess its impact more thoroughly, he also took the vehicle to an authorised service centre for inspection, where technicians found no abnormalities in the engine or other vehicle components.

According to the Ministry of Industry and Trade (MoIT), nearly all petrol-powered cars and motorcycles currently manufactured, assembled, imported and officially distributed in Vietnam are compatible with both E5 and E10 biofuels under existing technical standards.

Nguyen Thanh Binh, Vice Chairman and Secretary General of the Vietnam Automobile, Motorcycle and Bicycle Association, said E10 has been tested and certified under Vietnam's National Standard TCVN 8401:2024, which is aligned with international ASTM and ISO standards. The Vietnam Association of Motorcycle Manufacturers (VAMM) also said that popular models produced by its members such as Honda, Yamaha, Piaggio, SYM and Suzuki are compatible with Euro 4 and Euro 5-grade E10 RON95 without requiring any technical modifications.

Assoc. Prof. Dr. Pham Huu Tuyen, Director of the Research Centre For Propulsion Systems and Autonomous Vehicles at Hanoi University of Science and Technology, said E10 poses no technical risks to vehicle performance. The fuel has been widely used and tested in many countries for years, including higher ethanol blends such as E20.

He described E10 as a practical solution for Vietnam's transition towards carbon neutrality and greener transport, as it can deliver immediate environmental benefits by utilising the existing vehicle fleet without requiring technical modifications, provided users continue to follow manufacturers' maintenance recommendations.

Fine-tuning E10 pricing mechanism

Since the fuel price adjustment on June 18, 2026, the MoIT and the Ministry of Finance (MoF) have published the reference price for E10 RON95-III, enabling businesses to expand supply more proactively.

However, Petrolimex noted that the initial pricing mechanism still has limitations and should continue to be reviewed and refined to encourage consumers to switch to biofuels while ensuring that businesses' additional costs are adequately reflected, thereby supporting stable supply and the sustainable development of the E10 market.

Nguyen Thanh Nam, Deputy Director General of the MoIT’s Agency for Domestic Market Management and Development, said domestic ethanol production remains insufficient to fully meet long-term demand, making imports necessary. Some blending facilities have yet to become fully operational, while some consumers still have concerns about E10's compatibility with older vehicles and specialised gasoline-powered equipment.

He said the ministry will continue working with other ministries, industry associations and businesses to closely monitor supply and demand for E10, E5, base petrol and fuel ethanol, ensure stable supplies, accelerate the commissioning of remaining blending facilities and strengthen domestic ethanol production capacity.

The MoIT will also step up oversight of ethanol quality, petrol blending, distribution and retail operations, while completing a comprehensive database on vehicle compatibility with E10. It will publish a full list of compatible vehicles and technical guidance for specialised vehicle categories.

At the same time, public communication efforts will be strengthened to provide accurate information and enhance public awareness of the benefits, effectiveness and safety of E10 biofuel. READ MORE

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Expanding U.S. Agricultural Exports in Vietnam’s Rising Market (U.S. Department of Agriculture)
USDA seeks applications for Agribusiness Trade Mission to Vietnam (Ethanol Producer Magazine)

Excerpt from USDA: The United States is the second-largest supplier of agricultural products to Vietnam, at $4.7 billion in 2025. Vietnam’s increasing population and rapidly growing gross domestic product (GDP) have benefitted U.S. agricultural exports. The greatest potential for U.S. agricultural exports in the Vietnamese market includes U.S. fresh fruits, dairy products, poultry and poultry products, feed and feed ingredients, cotton, ethanol, and agricultural-related products, including seafood and forestry products.

...

Ethanol (non-beverage)

The United States was the largest supplier of ethanol to Vietnam at $4.3 million in 2025, with a market share of 58 percent, followed by China (26 percent), and Japan (6 percent). The International Energy Agency forecasts Vietnam to consume around 2.9 billion gallons in 2026 and expects consumption to continue growing throughout the decade. Vietnam recently expanded its ethanol blending rate, increasing demand for ethanol for on-road fuel use. Previously, Vietnam had a 5 percent ethanol blend rate mandated for only one grade of gasoline. On June 1, 2026, Vietnam successfully began implementing a national requirement that all 95-octane unleaded gasoline must contain 10 percent ethanol (E10). This development will most likely further boost ethanol demand. In addition, on March 31, 2025, in advance of the E10 ethanol mandate, Vietnam announced the unilateral reduction of most-favored-nation (MFN) tariffs on ethanol from 10 to 5 percent. READ MORE

Excerpt from Ethanol Producer Magazine: The USDA on July 15 announced it is now accepting applications for its Agribusiness Trade Mission to Vietnam, which will be held Nov. 9-12. Ethanol and feed products are among the products the USDA identifies as having “tremendous export potential.”

According to the USDA, Vietnam is the seventh-largest export market for U.S. agriculture – valued at $5.6 billion in 2025 – making the U.S. Vietnam’s second-largest supplier of agricultural goods. With a population of more than 100 million, Vietnam is also Southeast Asia’s third-most-populous country. Combined with rising incomes and a rapidly growing gross domestic product, Vietnam offers U.S. agribusinesses tremendous export potential, due to its booming food processing, hospitality, and retail sectors, especially for products including:

Fresh fruits and dairy
Poultry and poultry products
Feed, feed ingredients and cotton
Ethanol, seafood and forestry products

Data published by the USDA indicates the U.S. exported 2.33 million gallons of ethanol to Vietnam in 2025, down from 9.44 million gallons in 2024. Vietnam accounted for only a fraction of a percent of U.S. ethanol exports in both years. Ethanol consumption in Vietnam, however, is set to increase. The country in June 2026 completed the rollout of its E10 fuel blending policy, which is expected to boost demand for U.S. ethanol.

Vietnam is already a top importer of U.S. distillers grains. According to the USDA, the U.S. exported 1.14 million metric tons of distillers grains to the country last year, accounting for nearly 10% of all U.S. distillers grains exports in 2025.

The application deadline for the USDA’s upcoming Agribusiness Trade Mission to Vietnam is July 31. Additional information is available on the USDA website. READ MORE

Excerpt from Energy.AgWired.com: On June 1, 2026, Vietnam successfully began implementing a national requirement that all 95-octane unleaded gasoline must contain 10 percent ethanol (E10). This development will most likely further boost ethanol demand. In advance of the E10 ethanol mandate, Vietnam announced the unilateral reduction of most-favored-nation (MFN) tariffs on ethanol from 10 to 5 percent.

In addition, Vietnam is a growing market for the ethanol co-product distillers dried grains with solubles (DDGS). U.S. exports of DDGS in 2025 were $272 million, up four percent from 2024. That is expected to increase this year as Vietnamese feed companies and U.S. private companies signed two memoranda of understanding in June 2025, committing to purchase 900,000 metric tons of U.S. corn and 250,000 metric tons of U.S. DDGS. READ MORE