Vietnam revives ethanol plants as nationwide E10 fuel mandate drives demand

From 1 June 2026, Vietnam required all RON95 gasoline to contain 10% ethanol (E10), replacing the earlier limited E5 use. The mandate creates a monthly ethanol demand of about 92,000‑100,000 m³ (roughly 11 billion liters per year). Domestic production currently supplies only around 25,000 m³ per month, roughly 25‑30% of the requirement, leaving a sizable import gap.

The surge in demand has led to the restart of previously idle ethanol plants, notably the Dung Quat facility owned by BSR‑BF, which resumed full‑capacity operation in early 2026 after an 11‑year shutdown. Other plants in Quảng Nam and Bình Phước are operating, while new projects are under development. The United States, identified by USDA as Vietnam’s largest ethanol supplier in 2025 with a 58% market share and $4.3 million in sales, is expected to increase exports to fill the shortfall. The policy also opens opportunities for U.S. DDGS feedstock exports.