VIETNAM'S GREEN FUEL REVOLUTION
Vietnam officially transitions to E10 bioethanol — a major step toward clean energy and reduced fossil fuel dependence.
From E5 to E10 — A Historic Shift
Starting June 1, 2026, all gas stations across Vietnam will officially stop selling E5 RON 92 gasoline, replacing it with E10 RON 92 bioethanol. This is a crucial step in the national energy strategy to increase the share of bioethanol in transportation fuel.
E5 contains 5% ethanol and 95% gasoline, while E10 doubles the ethanol content to 10%. This change will help Vietnam significantly reduce CO2 emissions while decreasing dependence on imported petroleum.
Photo: Reuters — Vietnamese gas stations transitioning to E10 biofuel
E5 vs E10 — What's Different?
Biofuels are named by their ethanol blend percentage. E5 contains 5% ethanol, E10 contains 10%. The ethanol is produced from sugarcane, cassava, or corn — renewable energy sources.
The Green Transition Journey
MOIT Issues Roadmap
Vietnam's Ministry of Industry and Trade announced the biofuel transition roadmap, starting with E5 RON 92 fully replacing conventional RON 92 gasoline.
E10 Pilot Phase Begins
The E10 pilot program launched in Ho Chi Minh City and Hanoi, testing at over 200 gas stations to assess vehicle compatibility.
Nationwide Pilot Expansion
E10 RON 92 pilot expanded to 15 provinces and cities. Ethanol plants ramped up production capacity to meet demand.
E10 Officially Nationwide
Starting June 1, 2026, E10 RON 92 officially replaces E5 RON 92 nationwide. All gas stations are required to supply E10.
E15 Target and Beyond
Vietnam targets upgrading to E15 by 2030, aiming to reduce road transport emissions by 25% compared to 2020 levels.
The Perfect Moment for Change
Photo: Reuters — Wind turbines and renewable energy booming in Vietnam
Prolonged Middle East conflicts have driven global oil prices higher, forcing Vietnam to spend over $12 billion annually on petroleum imports. Transitioning to E10 helps reduce gasoline import needs by 5-7%, saving hundreds of millions of dollars yearly.
Furthermore, Vietnam's COP26 Net Zero 2050 commitment demands concrete action in transportation — a sector accounting for 18% of national emissions. E10 is the most practical and feasible step available today, alongside global trends like the EU renewable energy milestone and the domestic rise of VinFast EV.
Energy Security + Climate Commitment + Foreign Currency Savings = The Time for Transition Is Now
For a Greener Vietnam
The E10 transition delivers impressive numbers in emission reduction and environmental protection.
Annual Estimate
~3.2 Million Tons CO2
emissions could be reduced when all motorcycles and cars use E10
What Changes at the Pump?
Note for Drivers
Modern motorcycles and cars (post-2000) require no adjustments. For older vehicles, it's recommended to check rubber seals in the fuel system, as ethanol may accelerate aging in some older rubber compounds.
From Sugarcane Fields to Fuel Tanks
Ethanol in Vietnam is produced primarily from two key raw materials: cassava and sugarcane. With over 500,000 hectares of cassava cultivation and a long-established sugar industry, Vietnam has abundant feedstock for bioethanol production.
The E10 program delivers dual benefits: farmers gain stable demand for cassava and sugarcane, while ethanol plants in Phu Tho, Quang Ngai, and Binh Phuoc gain additional revenue from biofuel production.
Photo: Unsplash — Sugarcane and cassava fields — feedstock for ethanol production
Vietnam's Energy Landscape
Vietnam is working to diversify its energy sources, reduce fossil fuel dependence, and develop renewable energy. E10 is part of this comprehensive strategy.
2030 Targets
- ●Renewables make up 30-35% of total power output
- ●15% reduction in GHG emission intensity
- ●E15 replacing E10 nationwide
- ●EVs account for 30% of new vehicle sales
Current Challenges
- ●Electricity demand growing 10-12% annually
- ●Transmission infrastructure lagging behind
- ●Growing LNG import dependence
- ●Large capital investment needed for green transition
Vietnam on the Global Biofuel Map
Many countries have long implemented biofuel mandates. Vietnam is catching up with the global trend through E10, while Brazil leads the world with E27.
🇧🇷 Brazil — The Pioneer
Brazil has mandated E27 since 2015, with over 50 years of sugarcane ethanol production. They also developed flex-fuel vehicles that run on both gasoline and pure ethanol.
🇻🇳 Vietnam — Catching Up
With the E10 transition from June 2026, Vietnam is approaching EU and US standards. The E15 target for 2030 would put Vietnam on par with many developed nations.
Barriers to Overcome
Despite many benefits, the E10 transition path is not without difficulties. Below are the biggest challenges Vietnam currently faces.
Ethanol Plant Capacity
Vietnam currently has only 3 operating ethanol plants (Phu Tho, Quang Ngai, Binh Phuoc) with a combined capacity of ~200,000 tons/year. E10 demand requires at least 400,000 tons/year.
Distribution Infrastructure
Storage facilities, tanker trucks, and blending stations need upgrading to handle higher ethanol ratios. Ethanol is hygroscopic, requiring specialized storage systems.
Feedstock Price Volatility
Cassava and sugarcane prices fluctuate seasonally and with export markets (especially cassava exports to China), making it difficult to stabilize ethanol and E10 prices.
Consumer Awareness
Many Vietnamese drivers remain skeptical about biofuel due to performance concerns and lack of official information. Mass public communication campaigns are essential.
Green Growth Engine
The E10 transition delivers not just environmental benefits but a major economic boost. Reduced petroleum imports mean foreign currency savings, while the ethanol production industry creates thousands of new rural jobs.
According to MOIT estimates, the E10 program will save Vietnam $500-700 million annually from reduced gasoline imports, while creating 15,000-20,000 additional jobs in the ethanol supply chain.
"The E10 transition is not just an environmental story — it's an economic strategy, a path to escape imported energy dependence and build a sustainable green economy."
— Vietnam Ministry of Industry and Trade, 2026▸ Vietnam's biofuel push could create a new domestic market for millions of tons of cassava and sugarcane annually
▸ E5 biofuel is 3-5% cheaper than regular gasoline -- saving the average driver $15-25/year at the pump
References
- Vietnam E10 Biofuel Mandate 2026 — Ministry of Industry and Trade (MOIT)
- Bioenergy and Ethanol in Southeast Asia — International Energy Agency (IEA)
- Vietnam Energy Transition Roadmap — World Bank
- Global Biofuel Production Statistics 2025 — REN21 Renewables Report
- Sugar and Cassava as Ethanol Feedstock in Vietnam — USDA Foreign Agricultural Service
Frequently Asked Questions
More from this topic— Vietnam Fuel Prices 2026: Live RON 95 & Diesel | ZestLab
Explore ZestLab Tools
Related Topics
Stay on top of trends
Bookmark this page and check back often for the latest updates and insights.