Vietnam will begin piloting the sale of E10 biofuel in three major cities – Ho Chi Minh City, Hanoi and Haiphong – from August 1, the Vietnam National Petroleum Group (Petrolimex) and Petrovietnam Oil Corporation (PVOIL) have announced.

The move marks a preparatory step towards a nationwide rollout of the renewable fuel, a blend containing 10 per cent ethanol, slated for early 2026.

Petrolimex will initially offer E10 at 36 retail outlets across HCM City, while PVOIL will pilot the product at six sites – four in Hanoi and two in Haiphong.

However, questions remain over the availability of ethanol supplies to support the transition. While Vietnam has six ethanol production facilities with a total annual capacity of around 500,000 cubic metres, only two are currently operational, collectively capable of producing just 100,000 cubic metres per year.

Dao Duy Anh, deputy director of the Ministry of Industry and Trade’s Agency for Innovation, Green Transition and Industry Promotion, acknowledged that Vietnam would likely need to rely on ethanol imports during the initial phase, with abundant supply from key producers such as the US, Brazil and Argentina, as well as regional suppliers including Singapore and the Republic of Korea.

Meanwhile, domestic ethanol producers are preparing for a potential resurgence in demand. The Petrovietnam Central Biofuels Joint Stock Company, for example, is working to restart ethanol plants, including Dung Quat by late 2025.