Vietnam Pushes E10 Fuel Switch to April as Ethanol Supply and Infrastructure Face Pressure

April deadline puts fuel suppliers under pressure

Vietnam is seeking a nationwide switch to E10 biofuel by mid-April 2026, or April 30 at the latest, giving regulators and fuel distributors roughly 30 days to prepare for a transition previously scheduled for June 1. As of March 29, the central challenge is securing enough ethanol: anticipated monthly demand is 100,000 to 110,000 cubic meters, while operating domestic plants produce about 25,000 cubic meters.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan confirmed the accelerated target at a March 26 implementation conference. The Prime Minister's directive brings forward the planned mandatory rollout of E10 RON95, adding pressure to businesses preparing storage tanks, blending equipment, imports and retail supplies.

The June 1, 2026 schedule had itself represented a delay of about six months from initial targets in 2025. The latest acceleration reflects urgency over energy security and environmental commitments, while industry representatives warn that the preparation period creates exceptional operational pressure.

Tan, the deputy minister overseeing the preparations, described the scale of the task at the conference.

This is a highly demanding task. It is not easy and requires the whole system to act with greater urgency and determination than usual.

E10 consists of 90 percent gasoline and 10 percent ethanol, an alcohol typically made from corn, cassava or sugarcane. Replacing part of the gasoline with ethanol reduces fossil fuel consumption and carbon emissions. The blend is compatible with most modern vehicles, but bringing it to stations nationwide requires coordinated work across agriculture, import logistics, refineries and thousands of fuel retailers.

Vietnam has piloted E10 distribution since August 2025 in major cities including Ho Chi Minh City, Hanoi and Hai Phong. Moving from those trials to national distribution requires a much larger supply network, with fuel quality and reliable deliveries as important as the deadline itself.

Domestic ethanol production covers only part of demand

Do Van Tuan, chairman of the Vietnam Biofuels Association, puts the nationwide program's monthly ethanol requirement at 100,000 to 110,000 cubic meters. Vietnam has six fuel ethanol plants with a combined design capacity of about 41,000 cubic meters a month, but only three are operating.

Those three plants produce roughly 25,000 cubic meters monthly, covering approximately 25 to 27 percent of anticipated demand in the industry's estimates. Even an immediate return to full operation at all six plants would provide only about 41 percent of national requirements. Imports will therefore be needed both during the initial transition and after domestic production expands.

Several idle facilities stopped production in 2018 because demand for biofuels was weak. Restarting them requires substantial investment and technical preparation. Plant representatives say operations could resume in three to five months if financial support becomes available and the technical requirements are completed, a period extending beyond the April target.

Limited working capital and restricted access to bank credit are major obstacles. Working capital is the money a business needs for daily operations, including buying raw materials before it receives payment for finished products. Industry representatives are seeking targeted lending support from the central bank to help plants return to production.

The Dung Quat Oil Refinery, operated by Binh Son Refining and Petrochemical under Petrovietnam, plans to produce 60,000 tonnes of ethanol for blending following the restart of its biofuel plant. The broader supply assessment puts annual ethanol demand at approximately 1.1 million cubic meters and domestic coverage at about 40 percent. These figures underline why restarting plants and arranging imports are both central to the program.

Petrolimex and PVOIL carry most of the rollout

The Vietnam National Petroleum Group, known as Petrolimex, controls approximately 50 percent of the national fuel market. Petrovietnam Oil Corporation, or PVOIL, holds roughly 20 percent and is a subsidiary of the Vietnam National Industry and Energy Group. Together, the two enterprises under state control account for nearly 70 percent of domestic fuel sales.

Petrolimex plans to complete system upgrades around April 10, although equipment delivery delays could push completion to May 10. That possible delay would extend beyond the government's latest April deadline, making equipment arrivals an immediate concern.

Petrolimex currently operates seven biofuel blending depots with combined annual capacity of six to 6.1 million cubic meters. During the pilot, it has sold E10 at 60 petrol stations in Ho Chi Minh City and Quang Ngai province, averaging 95 cubic meters a day. That volume is 40 percent above the initial pilot level.

A complete transition would reduce Petrolimex's consumption of mineral gasoline, the petroleum component of the blend, by nearly 10 percent, or 35,000 to 40,000 cubic meters each month. The company expects that reduction to ease its dependence on gasoline imports.

PVOIL reports greater readiness after upgrading blending and storage systems at 13 depots nationwide. It maintains nearly 900 petrol stations and has more than a decade of experience blending biofuels. Company officials say it has the capacity to begin large scale E10 distribution from mid-April to late April.

PVOIL expects its total blending capacity to reach 350,000 to 380,000 cubic meters a month by December 2026. It has also prepared response scenarios for volatile global oil markets, plans to diversify supply sources and intends to accelerate E10 distribution across all its facilities.

Smaller distributors have varying levels of readiness. Saigon Petro and Anh Phat Company say they have completed basic requirements and are ready to begin E10 sales in April. The Vietnam Petroleum Association estimates that its members have combined blending capacity of approximately 965,000 cubic meters monthly, theoretically enough to meet nationwide biofuel demand once fully activated.

Imports depend on timely purchases and deliveries

Petrolimex has negotiated ethanol import contracts with partners in the United States, the Republic of Korea and Singapore to secure 45,000 to 50,000 cubic meters a month. PVOIL's established relationships with domestic producers cover approximately half its requirements, with the remainder imported from the United States, Brazil and Thailand.

India, the Philippines, Thailand and China are also expanding their biofuel programs. Their demand increases pressure on major transshipment hubs such as Singapore and South Korea, where cargo can be transferred before continuing to its destination. Vietnamese companies must arrange purchases and deliveries promptly as more buyers compete for supplies.

Do Van Tuan, chairman of the Vietnam Biofuels Association, warned that slow or poorly coordinated procurement could leave businesses facing shortages or buying in secondary markets at higher prices. He identified the main risks in the import plan.

Supplies will flow mainly from the US and Brazil on routes that sidestep the Middle East, and ethanol prices have historically been less volatile than gasoline. The real risks are timing and competition.

Ethanol shipments from the Americas can avoid Middle Eastern conflict zones that are disrupting conventional oil shipments. Historically, ethanol prices have also fluctuated less than gasoline prices. Those advantages help the supply strategy, while competition and delivery schedules remain pressing concerns for an April rollout.

Fuel standards add another supply constraint

Vietnam's national technical specifications limit oxygen content in E10 to 3.7 percent by mass. Meeting that requirement calls for base petrol with zero oxygen content before ethanol is added. In practical terms, distributors need the correct gasoline component as well as sufficient ethanol to produce a blend that meets the standard.

Domestic supply of that base fuel currently meets only about 60 percent of demand. The remaining 40 percent must be imported at higher cost, potentially increasing retail prices. The transition therefore involves two separate supply needs: ethanol for the renewable component and suitable gasoline for the rest of the blend.

The Ministry of Science and Technology is updating national technical standards for biofuels while drafting a new Law on Product Quality. Gaps also remain in regulations governing storage facilities and technical infrastructure, requiring closer coordination among ministries, sectors and local authorities.

Regular inspection and supervision must expand to check the quality of the new blend and the integrity of its distribution. Blending capacity alone is one part of readiness; storage, transport and retail arrangements also need to meet the relevant requirements.

Businesses must confirm what they can supply

Deputy Minister Tan has requested written confirmations from all businesses setting out their supply capacity. Each submission must specify volumes, timelines, sources and conditions. The Ministry of Industry and Trade will consolidate and evaluate those commitments before reporting to the competent authorities for final decisions.

As of March 29, the accelerated April target still requires that assessment of business readiness. Petrolimex's possible completion date of May 10 and the three to five months needed to restart idle ethanol plants show why the ministry is seeking detailed commitments alongside companies' stated plans.

The Ministry of Industry and Trade will also work with the Ministry of Finance on pricing policies, tax frameworks and financial incentives to support biofuel production and consumption. Those measures address the financial pressures facing producers and distributors, including investment needs and the cost of imported inputs.

The main dates show how quickly the schedule has changed:

• 2018: Several ethanol plants suspended production because biofuel demand was weak.
• 2025: Initial rollout targets preceded the later June 2026 schedule by about six months.
• August 2025: E10 pilot distribution began in major cities including Ho Chi Minh City, Hanoi and Hai Phong.
• March 26, 2026: Tan confirmed the accelerated target at the implementation conference.
• Around April 10, 2026: Petrolimex aims to complete system upgrades.
• Mid-April to April 30, 2026: The government seeks nationwide implementation, while PVOIL expects to begin large scale distribution from mid-April to late April.
• May 10, 2026: Petrolimex upgrades could extend to this date if equipment deliveries are delayed.
• June 1, 2026: The previously established mandatory rollout date for E10 RON95.
• December 2026: PVOIL expects monthly blending capacity to reach 350,000 to 380,000 cubic meters.

Cassava farmers have a stake in the transition

Vietnam cultivates nearly 600,000 hectares of cassava and produces more than 10.5 million tonnes of fresh roots annually. Cassava can supply raw material for ethanol, but fragmented cultivation and low productivity create shortages for processors.

Agricultural experts suggest broadening the range of raw materials to include maize, rice bran, agricultural by-products and rice of lower quality. Using several inputs could reduce pressure on land resources while creating additional income streams for farmers.

Vietnam currently exports approximately five million metric tons of cassava to China each year, exposing growers to volatile prices. A stronger domestic biofuel market would create another outlet for their crops, reduce vulnerability to international market shocks and add value to agricultural products.

Developing cassava varieties with higher yields and strengthening contract farming relationships between businesses and growers are key strategies for stabilizing supply. Such arrangements would connect agricultural production more closely with the needs of ethanol plants, which require dependable supplies to maintain output.

Less gasoline use supports energy and climate goals

Vietnam's E10 program is tied to its commitment to reach net-zero carbon emissions by 2050. Burning one kilogram of gasoline generates approximately 3.2 to 3.5 kilograms of carbon dioxide. Widespread adoption of E10 could reduce conventional gasoline consumption by roughly one million cubic meters annually and cut emissions by approximately 2.5 million metric tons a year.

The 10 percent ethanol share explains the intended reduction in petroleum use: for every volume of finished E10, one tenth is ethanol rather than gasoline. Across a national fuel market, that substitution can reduce the amount of conventional gasoline that distributors must obtain.

Global oil market volatility, intensified by Middle Eastern tensions and supply chain disruptions, has exposed vulnerabilities in Vietnam's reliance on fossil fuel imports. Replacing part of gasoline demand with ethanol produced domestically or sourced regionally is intended to reduce exposure to petroleum shortages and price shocks.

The program also supports international climate commitments. Increased ethanol imports from the United States may help balance bilateral trade flows while securing fuel supplies for domestic consumption, giving the transition a trade and diplomatic dimension alongside its energy objectives.

For the immediate rollout, Vietnam faces a practical balance: the blend can reduce petroleum demand, but domestic ethanol production is still too small to meet national needs. Imports are essential while factories, agricultural supply chains and blending systems expand.

Drivers retain an alternative for older vehicles

Authorities have launched public information campaigns addressing concerns about engine compatibility and fuel quality. Studies indicate that E10 is suitable for most vehicles currently in circulation, although older models with carburettors may experience some impact.

A carburettor is the part of an older engine that mixes fuel and air. Compatibility matters because a change in fuel composition can affect how a vehicle operates. E5 RON92, which contains a lower ethanol share, will remain available until 2030 for vehicles that cannot tolerate higher ethanol blends.

Consumer acceptance is another factor in the transition's success. Drivers need confidence in the fuel they buy, while distributors need consistent quality and sufficient supplies at stations. The public information effort accompanies the work on standards, inspections and retail preparation.

The April target brings those tasks together within a short preparation period. Vietnam's largest distributors are upgrading their systems, producers are seeking financing, and importers are arranging cargoes. The immediate task is to turn those plans into confirmed volumes and reliable deliveries while retaining an alternative for vehicles that need it.

The Essentials

• Vietnam seeks nationwide E10 implementation by mid-April 2026, or April 30 at the latest, ahead of the previous June 1 deadline.
• E10 contains 90 percent gasoline and 10 percent ethanol.
• Monthly ethanol demand is projected at 100,000 to 110,000 cubic meters, while three operating domestic plants produce about 25,000 cubic meters.
• All six domestic plants have combined design capacity of approximately 41,000 cubic meters a month, making imports essential even at full operation.
• Petrolimex and PVOIL together account for nearly 70 percent of domestic fuel sales and are preparing their blending, storage and retail networks.
• Petrolimex targets upgrades around April 10, with a possible delay to May 10; PVOIL expects large scale distribution from mid-April to late April.
• Businesses must provide written supply commitments covering volumes, timelines, sources and conditions.
• The program could reduce conventional gasoline use by roughly one million cubic meters and carbon dioxide emissions by approximately 2.5 million metric tons annually.
• E5 RON92 will remain available until 2030 for vehicles unable to tolerate higher ethanol blends.