Vietnam's ethanol fuel supply strained as imports cover 80% of E10 demand

Vietnam consumed over 1 billion litres of biofuel (E5 and E10) in June, with E10 accounting for about 95% of that volume. Domestic ethanol (E100) production comes from four plants, three of which are operating at roughly 67% of design capacity (15,666 t / month of a 23,300 t design). As a result, imports supplied around 73% of the ethanol needed in June and about 80% in July.

Petrolimex provided the largest share of imported ethanol, delivering more than 60,000 m³ in June, followed by PVOIL with roughly 30,000 m³. The blended fuel market showed stable sales; consumer feedback highlighted mixed experiences on fuel consumption and engine performance, but no widespread safety issues. The government aims to expand bio‑fuel use, considering second‑generation ethanol from agricultural residues to reduce reliance on imported first‑generation ethanol.

The situation underscores Vietnam’s energy security challenge as the country seeks to increase domestic ethanol supplies, broaden the bio‑fuel blend ratio and develop a sustainable supply chain for future E15 or E20 blends.