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Accelerating biofuel roadmap can ensure stability
Vietnam Investment Review
|March 16, 2026
Amid growing pressure on global fuel supplies due to the conflicts in the Middle East, Vietnam is accelerating the development and adoption of biofuel, especially E10 petrol, in an attempt to boost energy self-sufficiency.
From June 1, unleaded petrol in accordance with the current national technical regulations must be blended into E10 petrol for use in petrol engines nationwide, while the blending and processing of E5RON92 for use in petrol engines shall continue until the end of 2030 to allow the market to gradually adapt.
Biofuels are produced by blending conventional mineral petrol with ethanol — a type of bioalcohol derived from plant-based materials such as sugarcane, cassava, corn, or wheat. Ethanol is made through the fermentation of sugars or starches in plants, then distilled and refined for use as a fuel.
Depending on the ratio of blended ethanol, there are different types of biofuels in the market. E5 is a blend of 5 per cent ethanol and 95 per cent petrol. E10 contains 10 per cent ethanol, while E85 comprises as much as 85 per cent ethanol. In Vietnam, E5 has become the most widely used biofuel following its nationwide distribution in 2018.
Biofuels provide an important advantage in strengthening supply security. Currently, about 60 per cent of the global ethanol supply comes from the US and Brazil. This means ethanol supply is less affected by transportation disruptions or geopolitical conflicts in the Middle East —a region that has a significant impact on the oil market.
This story is from the March 16, 2026 edition of Vietnam Investment Review.
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