Vietnam's biofuel rollout faces ethanol supply constraints

Vietnam's push to expand biofuel use is encountering supply challenges. The rollout of E10 gasoline, which blends up to 10% ethanol, has raised concerns because domestic ethanol production can only meet a portion of the demand, leaving the remainder dependent on imports. This shortfall has prompted questions about price stability and the reliability of fuel supplies for consumers and businesses.

At the same time, the Dung Quat refinery, operated by Vietnam Oil and Gas Group (BSR), has marked a milestone by selling its first batch of B5 diesel, a blend containing 4‑5% renewable diesel. The 45‑cubic‑metre shipment was delivered to the Military Oil Corporation and Nam Phúc Ltd. BSR also plans to increase monthly production of E10 gasoline to 80,000‑100,000 m³ and has previously exported a 12,000‑m³ consignment by sea. The company reported a 47% rise in six‑month revenue, underscoring the growing commercial significance of Vietnam's green fuel initiatives.