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Vietnam is set to transition to E10 gasoline nationwide from January 1, 2026, creating new opportunities for farmers and lowering fuel prices. Under the Ministry of Industry and Trade’s draft circular, all gasoline for motor vehicles must be blended with 10% ethanol by 2026, rising to 15% or other biofuel blends by 2031.

Do Van Tuan, Chairman of the Vietnam Biofuel Association, confirmed that domestic ethanol production is improving and can be supplemented with imports if necessary, ensuring a stable supply. Ethanol production costs have fallen over the past eight years, consistently 20–30% cheaper than conventional gasoline, which will reduce E10 prices.

The shift to E10 aims primarily to reduce environmental pollution without increasing social costs, while also providing a stable market for agricultural products, including cassava. Vietnam cultivates over 500,000 hectares of cassava, producing more than 10 million tons annually, but prices have been volatile due to reliance on exports to China. The growing ethanol industry now offers a reliable outlet, allowing farmers to focus on cultivation without worrying about low prices.

Several ethanol plants have upgraded technology to extract additional byproducts such as liquid CO₂, fusel oil, and DDGS for animal feed, reducing costs and enhancing competitiveness. This supports Vietnam’s move toward a circular economy.

E10, made from bio-based materials including cassava, corn, and sweet potatoes, offers eco-friendly, renewable fuel options. Vietnam consumes over 10 million tons of gasoline yearly, requiring around 1 million tons of ethanol for E10 and 1.5 million tons for E15. With the nationwide rollout, ethanol plants can expand to full capacity, with new projects expected to meet about half of the demand.

Domestic ethanol production is competitive with imports, ensuring long-term farmer income and contributing to energy security, environmental protection, and sustainable agriculture.

Source: Cassava gains value as Vietnam mandates E10 fuel nationwide