E10 Biofuel Launches in Three Major Cities Starting August 1: A Sustainable Shift in Retail Energy!

July 28, 2025

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(Retail News) Hanoi, Ho Chi Minh City, and Hai Phong are set to usher in a new era of green fuel with the launch of E10 biofuel, a blend consisting of 10% ethanol and 90% traditional gasoline, on August 1. This initiative marks Vietnam’s inaugural step toward a nationwide transition to eco-friendly fuels, which is slated to gain momentum by 2026.

Green Revolution in Fuel

E10 is not just a nod toward reducing CO₂ emissions; it’s an ambitious project aimed at bolstering domestic ethanol production and diversifying energy sources. The plan is to gradually phase out conventional gasoline in favor of this greener alternative.

Leading the charge are Vietnam’s two largest fuel distributors, Petrolimex and PVOIL, both of which are gearing up to implement E10 on a larger scale by August 2025. Petrolimex has been busy upgrading storage tanks and refining mixing technology in Ho Chi Minh City, ensuring a consistent supply aligns with its rollout strategy. Meanwhile, PVOIL is focusing its efforts on establishing a solid presence in Hanoi and Hai Phong.

Familiarizing Consumers with Change

According to PVOIL chairman Cao Hoai Duong, the August 1 launch serves to introduce consumers to the novel fuel. To further ensure that E10 reaches all corners of the market, the company plans to provide blending services to other distributors, ensuring a stable product supply.

Petrolimex is optimistic that E10’s cost-effectiveness and environmental advantages, compared to traditional RON95 gasoline, will win over consumers. “What’s not to love about saving money while saving the planet?” they might just say.

Bracing for a New Era of Ethanol

As the countdown to launch begins, Vietnam is evaluating its ethanol supply to prepare for the upcoming rollout and its future expansion. Presently, the country boasts six ethanol plants, with two operational facilities producing approximately 100,000 cubic meters annually. At full throttle, Vietnam could generate up to 500,000 cubic meters per year, theoretically meeting the E10 blending demands.

During the initial phases, the supply chain may lean on imported ethanol. However, the long-term vision is clear: Vietnam aims to rely predominantly on domestic production, establishing a robust agricultural-energy value chain. This transition could create stable demand for feedstock like cassava and corn, whose prices have a habit of performing acrobatics.

In the backdrop of these advancements, Vietnam has committed to achieving carbon neutrality by 2050, making the emergence of E10 a critical component in its green energy puzzle. READ MORE

Related articles

Council Applauds Launch Of E10 Trial In Vietnam (U.S. Grains and Bioproducts Council)
Vietnam plans to switch to E10 biofuel nationwide from 2026 (Vietnam Plus)
Vietnam to make switch to ethanol-blended fuel in move to boost U.S. imports (Reuters)
MoIT charts new biofuel roadmap for nationwide rollout (VietStock)

Excerpt from Vietnam Plus: A draft circular of the Ministry of Industry and Trade stipulates that from January 1, 2026, E10 will be the sole fuel available nationwide for motor vehicles using petrol engines.

E10 biofuel is planned to be sold nationwide from January 1, 2026 for use in petrol-powered motor vehicles nationwide, according to a draft circular of the Ministry of Industry and Trade (MoIT).

The MoIT is seeking public feedback on a draft circular which outlines the roadmap for blending biofuels with traditional fuels in Vietnam.

Accordingly, biofuels include E10, E15, and other types of petrol made from fuel ethanol and mineral petrol blended in different ratios.

The draft stipulates that from January 1, 2026, E10 will be the sole fuel available nationwide for motor vehicles using petrol engines.

From January 1, 2031, Vietnam will switch to E15 or other biofuels regulated by the MoIT, based on the development of motor vehicles, socio-economic conditions, biofuel production and import capacity, and energy security requirements.

Since August 1, several key fuel distributors have piloted the sale of E10 in Ho Chi Minh City, Hanoi, and Hai Phong.

Nguoi Lao Dong (Workers) newspaper quoted Dao Duy Anh, Deputy Director of the MoIT’s Department of Innovation, Green Transformation, and Industrial Promotion, as saying that from January 1, 2026, when E10 is rolled out nationwide, conventional mineral petrol, including RON 95-V, will no longer be available.

Regarding pricing, the MoIT will ask the Ministry of Finance to consider and submit a proposal to the Government and the National Assembly to reduce the environmental tax on biofuels, with their environmental benefits, including greenhouse gas emissions reduction, taken into account.

Since the pilot introduction of E5-RON92 and its nationwide use since 2014, there have been no consumer complaints about negative impacts on engine performance or durability. Reports also show no evidence that ethanol blending harms engines. READ MORE

Excerpt from Reuters: Vietnam is planning to switch completely to ethanol-blended gasoline from next year, opening up the possibility for the Southeast Asian country to import more ethanol and corn from the United States.

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The switch will pave the way for the import of American ethanol and corn to Vietnam as the Southeast Asian country seeks to narrow its trade gap with the United States, its largest export market, according to one document.

"This is one of the quick and effective solutions to increase the imports of goods from the United States, reducing the surplus," it said.

The United States recorded a trade deficit of $123 billion with Vietnam last year, one of its highest globally.

Vietnam in March cut its import tariff on ethanol to 5% from 10%. Donald Trump said last month that Vietnam could import U.S. products with zero tariffs.

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The country currently has six ethanol plants with a combined capacity of 600,000 cubic metres a year, meeting around 40% of the demand for E10 gasoline production, one of the documents showed.

The documents also said using E10 gasoline would help reduce carbon emissions and align with the country's net zero targets.

Vietnam pledged to become carbon neutral by 2050 at the United Nations climate conference in Glasgow (COP26) in November 2021. READ MORE

Excerpt from VietStock: The Ministry of Industry and Trade (MoIT) is pushing for wider use of biofuels, with a plan to make E10 the standard petrol nationwide.

Under the proposal, from January 1, 2026, all petrol produced, blended, and sold for vehicles with petrol engines across the country must be E10, a fuel blend containing 10 per cent ethanol. The draft circular, now open for public consultation, sets out the roadmap for expanding the use of biofuels in the transport sector.

From January 1, 2031, the second phase would take effect, requiring all petrol sold nationwide to be E15 or another blend determined by the MoIT, depending on vehicle readiness, socioeconomic conditions, and fuel supply capacity. Meanwhile, businesses are encouraged to voluntarily produce, blend, and, along with individuals, use biodiesel such as B5 and B10 ahead of the mandatory timeline.

Vietnam has previously introduced E5 and E10 bio-gasoline, phasing out RON92 mineral petrol entirely by 2018. Between 2015 and 2019, E5 RON92 made up more than 40 per cent of domestic petrol consumption.

Since 2020, however, demand for E5 RON92 has steadily declined, now accounting for only about 20 per cent of total consumption. In some localities, the fuel is no longer available at all.

The MoIT has identified the decline in E5 RON92 consumption as stemming from challenges in storage due to its tendency to absorb water and evaporate, insufficient tax and fee incentives to encourage use, limited communication to dispel concerns about engine damage, and a lack of oversight and enforcement.

In response, the ministry stresses that a new, comprehensive roadmap is essential to overcome these shortcomings, seize international trade opportunities, and revitalise the ethanol industry. Preparations are already underway, including ethanol blending infrastructure at major storage facilities and refineries, upgrades to transport, storage, and dispensing systems at retail outlets, and the establishment of national standards for E10, E15, fuel ethanol, and biodiesel to ensure a smooth nationwide rollout of E10.

According to calculations, the country’s six operating E100 plants (excluding the suspended Phu Tho facility) have a combined annual capacity of around 600,000 cubic metres. If running at full scale, they could meet only about 40 per cent of the ethanol needed for nationwide E10 blending, which was estimated at 1.5 million cubic metres in 2024 based on total petrol demand of 15 million cu.m.

To close the gap, imports from major producers such as the US and Brazil will be required, with supply expected to come through key ports including B12 in Quang Ninh, Nha Be in Ho Chi Minh City, and Van Phong in Khanh Hoa. READ MORE