Vietnam moves towards market-based fuel management with E10 rollout

Vietnam moves towards market-based fuel management with E10 rollout

The Ministry of Industry and Trade (MoIT) has implemented the nationwide use of E10 biofuel, in line with Vietnam’s emission reduction commitments and efforts to manage the petroleum market under market-based mechanisms.

The information was shared at the MoIT’s regular press briefing to review Q4/2025, held on January 29. MoIT representatives discussed various issues related to the petroleum market, including the roadmap for nationwide deployment of E10 biofuel.

Nguyen Anh Tuan, head of the Petroleum and Gas Business Management Division under the MoIT’s Department of Domestic Market Management and Development, said that the MoIT has now set out a roadmap for the application of E10 biofuel.

He added that the adoption of E10 biofuel in the country is part of a broader global trend, and Vietnam’s rollout also forms part of its efforts to fulfil international commitments, particularly on achieving net-zero emissions by 2050.

From a practical implementation perspective, Tuan noted that the entire retail systems of Petrolimex and PVOil have already introduced biofuel sales in several major localities, including Haiphong, Hanoi, and Ho Chi Minh City.

“To date, no complaints or issues related to the quality of E10 biofuel currently sold on the Vietnamese market have been recorded,” he said. “The fuel aims to meet environmental objectives while ensuring vehicle safety and protecting consumer rights. Initial monitoring results indicate that the use of E10 in pilot areas has been stable, with no notable issues arising so far.”

With a clear roadmap now in place, the MoIT will continue to work closely with key petroleum traders, distribution networks and relevant authorities to prepare the necessary conditions, ensuring that the nationwide rollout of E10 biofuel proceeds in a coordinated and smooth manner.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan

At the meeting, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan clarified some issues related to a draft decree on petroleum trading, price management, supply security and implementation of the biofuel.

Regarding price management, the deputy minister noted that throughout the process, the MoIT and the Ministry of Finance have remained focused on respecting market mechanisms.

Operating under market-based mechanisms also means granting greater autonomy to businesses in their production and trading activities.

"However, alongside this autonomy, several important factors must still be carefully considered, particularly environmental considerations and overall supply-demand balance," Tan said. "The MoIT has conducted thorough assessments to ensure harmony among different cost components, while also safeguarding petroleum supply for all regions, especially remote and disadvantaged areas.”

Deputy Minister Tan stated that a Price Stabilisation Fund will be consolidated and used strictly in accordance with legal regulations.

On supply security, he highlighted the importance of reserves and regulatory capacity. The MoIT has continuously monitored market developments and will continue to prepare reserve and regulatory measures, working closely with businesses whenever issues arise.

With regard to E10 biofuel, he confirmed that mineral petrol will continue to be supplied and used alongside E10. “The MoIT has calculated a specific roadmap to ensure requirements are met as planned, with quality remaining the top priority to avoid any risks to consumers,” he said.

“The MoIT has consulted experts, vehicle manufacturers and relevant associations, all of whom have confirmed the feasibility of using E10 fuel. During March and April, the MoIT will conduct inspections and assessments of the readiness of key traders, producers and processors, as well as infrastructure conditions and quality standards,” he added.

VIR