Key facts
- Vietnam will mandate E10 gasoline, containing 10% ethanol, for all commercial sales starting January 1, 2026.
- The policy aims to enhance energy security by reducing reliance on imported fossil fuels.
- E10 is expected to contribute to Vietnam's commitment to achieving net-zero emissions by 2050.
- Domestic ethanol production capacity is currently around 450,000 m3/year, falling short of the estimated 1.2-1.5 million m3/year demand.
- Ethanol will be imported from countries such as the United States and Argentina to meet the shortfall.
- Some older motorcycle models may not be compatible with E10 gasoline.
Vietnam is set to mandate the use of E10 gasoline, a blend containing 10% ethanol, across the country starting January 1, 2026. This significant policy shift is designed to bolster the nation's energy security by reducing its substantial reliance on imported fossil fuels, which currently constitute 70% of its domestic supply. The transition to E10 also aligns with Vietnam's broader environmental goals, including commitments to cut greenhouse gas emissions and achieve net-zero emissions by 2050.
The implementation of E10 gasoline is viewed as a strategic move towards "endogenous energy security," where a portion of the fuel supply is controlled domestically, thereby mitigating exposure to volatile global energy markets. Ethanol, the primary biofuel component of E10, can be produced from agricultural materials, fostering a link between the energy and agricultural sectors and providing stable output for farmers.
To meet the projected annual demand of 1.2-1.5 million cubic meters of ethanol, Vietnam faces a domestic production shortfall, as current capacity stands at approximately 450,000 cubic meters per year. Consequently, the country will need to import ethanol, with the United States and Argentina identified as potential suppliers. In response, the Ministry of Industry and Trade has directed key petroleum enterprises to prepare blending facilities and distribution systems. Several domestic ethanol plants, including those in Dung Quat, Dong Nai, and Quang Nam, are undergoing preparations to restart or increase operations to bridge the supply gap.
Experts suggest that most modern motorcycles, particularly those from brands like Honda, Yamaha, and Piaggio, are compatible with E10 gasoline. However, older models manufactured before 2000 may experience issues due to material incompatibility with ethanol, potentially leading to leaks, corrosion, or blockages. Additionally, prolonged storage of E10 gasoline, exceeding three months, can result in separation and negatively impact the fuel system.