Biofuel directive bids to boost Vietnam's net-zero ambitions

Turning Vietnam's net-zero commitment into tangible outcomes requires a stable and consistent regulatory environment that can support the rapid development of renewable and low-carbon energy solutions.

- By Minh Vu

Vietnam's fuel roadmap could deliver wider economic benefits

As Vietnam pushes forward with its commitment to reach net-zero emissions by 2050, the focus is shifting from pledges to implementation.

One of the most immediate policy moves involves biofuels. Vietnam is preparing to introduce mandatory nationwide blending of E10 bio-gasoline starting from June, a measure designed to reduce fossil fuel consumption while supporting domestic ethanol production.

At the end of February, the prime minister issued a directive to accelerate the production, blending, distribution and use of biofuels. The directive aims to advance the gradual replacement of fossil fuels, strengthen energy security and support Vietnam's emissions reduction commitments.

Yet biofuel consumption remains below policy targets. Implementation has been uneven, inspection and supervision have not been consistently enforced, and the distribution network has yet to operate at full efficiency. Current tax and financial policies are also considered insufficient to create strong incentives for both producers and consumers.

To address these gaps, the Ministry of Industry and Trade (MoIT) has been tasked with developing a detailed roadmap for biofuel blending. The ministry will also oversee investment in biofuel production projects, ensure stable supply to the market and strengthen monitoring of import, blending and distribution activities.