Vietnam will begin testing E10 biofuel in three cities from August 1

Starting 1 August, Vietnam will begin retail sales of E10 biofuel in Hanoi, Ho Chi Minh City (HCMC), and Hai Phong, marking a significant step in the country’s clean fuel transition.

Petrolimex and PV Oil, Vietnam’s largest fuel distributors, will lead the rollout as part of efforts to cut carbon emissions, reduce dependence on fossil fuels, and boost domestic ethanol production. The pilot programme is intended to familiarise motorists with E10 ahead of a planned nationwide launch by late 2025.

The Ministry of Industry and Trade (MoIT) has identified the initiative as a key element of Vietnam’s energy transition strategy. E10—comprising 10% ethanol and 90% petrol—is already widely used in the U.S., Europe, and parts of Asia. The trial is aligned with the country’s 2022 national technical regulation (QCVN 01:2021/BKHCN) on fuel quality and supports Vietnam’s carbon reduction roadmap.

According to the MoIT, E10 offers a strategic alternative to conventional petrol, diversifying energy sources while remaining compatible with most existing vehicles and engines. Bùi Ngọc Bảo, chairman of the Vietnam Petroleum Association, expressed strong support for the pilot, citing growing domestic acceptance of E10 as a cleaner, more affordable option. He noted that the decision on a nationwide rollout will depend on pilot results, including consumer feedback, supply chain readiness, and engine performance data.

The ministry has urged agencies to intensify public outreach to raise awareness about E10’s benefits and ensure widespread fuel availability. Petrolimex has already upgraded its storage facilities in HCMC and is working with refineries to maintain a stable supply, expecting E10’s lower cost and environmental advantages to appeal to drivers currently using RON95 petrol.

Vietnam has six ethanol production plants with a combined capacity of about 100,000 cubic metres per year, though only two are fully operational. In the early stages, ethanol imports may supplement supply, but the long-term goal is to rely on domestic production, creating an agriculture-energy value chain based on feedstocks such as cassava and corn.

PV Oil chairman Cao Hoai Duong added that the company will offer blending services to other distributors to help ensure consistent nationwide supply.

With its pledge to achieve carbon neutrality by 2050, Vietnam sees the launch of E10 as a crucial early milestone in greening its transport sector while supporting rural economic development through ethanol manufacturing.