E10 from 2026: Vietnam's big step towards biofuels!

E10 from 2026: Vietnam's big step towards biofuels!

The Vietnamese Ministry of Industry and Trade recently released a comprehensive blueprint for introducing biofuels nationwide. From January 1, 2026, E10 gasoline, which consists of 10% ethanol and 90% petroleum gasoline, will become the only type of fuel for gasoline engines in Vietnam. This decision aims to meet the growing need for more environmentally friendly fuels and promote the transition to more sustainable energy sources. The ministry is supported by the Department of Innovation – Green Transformation and Industry Promotion, which will lead the implementation of the plan.

To successfully implement this initiative, all oil companies are required to blend 100% ethanol into their gasoline products. This means that all common gasoline types such as RON92, RON95 and RON97 must be fortified with ethanol from this date. Additionally, E5RON92, a biofuel that has been on the market since 2014, will continue to be available for older vehicles.

Challenges and concerns

Despite the positive ambitions, there are concerns among companies about implementation. Some companies are reluctant to invest in blending plants, leading to concerns that there may not be enough demand for these biofuels. There are also challenges in terms of high investment costs and the need for testing rooms for the new fuels.

Municipalities are also required to create plans to develop raw material sources and support the construction of biofuel plants. This is crucial to ensure the supply of the required raw materials and to enable a smooth introduction of the new fuels. To ensure product traceability and safety, there will be additional regulations highlighting the importance of biofuels.

Long term plans

A further step in this ecological transformation will be the mandatory introduction of E15 gasoline from January 1, 2031. E15 will contain 15% ethanol and serve as another component in the fuel mix. These advances are part of a long-term plan that also includes adjustments to energy and environmental policies being considered by the government.

In preparation for this transition, major fuel distributors have already launched pilot projects for the sale of E10 in major cities such as Ho Chi Minh City, Hanoi and Hai Phong since August 1, 2025. In addition, the Ministry of Industry and Trade plans to reduce the environmental tax on biofuels to encourage their use and strengthen incentives for consumers. To date, there have been no complaints from consumers about the engine performance or durability of vehicles powered by E5-RON92, further solidifying the direction for E10 and E15.

In summary, with this comprehensive biofuels plan, Vietnam is poised to play a key role in reducing carbon emissions and transitioning to more sustainable energy solutions. To ensure success, the new guidelines and requirements will be important to increase the acceptance and availability of biofuels among the wider population.