Report predicts sharp increase in ethanol demand for Vietnam
Vietnam’s fuel ethanol consumption is forecast to surge over 700% in 2026 after mandatory E5/E10 blending took effect. Total ethanol demand is expected to reach 685 million litres, with 490 million litres imported, while domestic production doubles to 210 million litres as refinery capacity expands.
Vietnam’s fuel ethanol consumption is expected to expand by more than 700% between 2025 and 2026 as a result of new ethanol blend mandates that entered into force this summer. Much of that demand is expected to be met with imports, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network.
As of June 1, 2026, Vietnam now requires ethanol to be blended into all gasoline grades. RON92 gasoline may continue to have 5% ethanol content through 2030, but all other gasoline grades must contain 10% ethanol. Ethanol-free gasoline is no longer commercially available. To keep up with growing demand, the country is ramping up both domestic ethanol production and imports.
According to the report, Vietnam consumed 112 million liters (29.59 million gallons) of ethanol last year, including 80 million liters of fuel ethanol. Ethanol consumption is expected to expand to 685 million liters this year, with 653 million liters of that volume expected to be fuel ethanol.
Domestic ethanol production is forecast to double to 210 million liters in 2026, up from 100 million liters last year. Fuel ethanol accounted for 65 million liters of that volume in 2025 and is expected to increase to 170 million liters this year.
Vietnam had only three ethanol refineries last year with a combined 220 million liters of capacity. Those facilities operated at 29.5% capacity in 2025. An additional ethanol plant is expected to be in operation this year, expanding total capacity to 320 million liters. The report predicts Vietnam’s ethanol plants will operate at 53.1% capacity in 2026.
To help meet increased ethanol demand, Brazil is currently expected to import 490 million liters of ethanol this year, all fuel ethanol. Imports were at 11 million liters last year. The U.S. was the top suppliers of ethanol to Vietnam in both 2024 and 2025.
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Source : Ethanol Producer Magazine
