Vietnam reduces MFN tariff rate for ethanol
Vietnam has reduced its Most-Favored-Nation (MFN) import tariff on ethanol from 10% to 5%, effective March 31. This marks the second ethanol tariff cut since mid-2023. The move supports Vietnam’s push for greater biofuel adoption. In 2024, the U.S. exported 9.44 million gallons of ethanol to Vietnam—less than 1% of total U.S. ethanol exports.
The government of Vietnam on March 31 issued a decree reducing the the country’s Most-Favored-Nation import tariff rates for a variety of commodities and products, including ethanol. The MFN rates apply to imports from the U.S.
According to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network, the decree has reduced the MFN rate for ethanol from 10% to 5%. Other products impacted by the decree include soybean meal, corn, shelled almonds, in-shell pistachios, fresh apples, fresh cherries, raisins, frozen chick drumsticks and wood products.
The March 31 decree marks the second time Vietnam has reduced its tariff on ethanol in recent years. The country in mid-2023 reduced the MFN tariff rate on ethanol from 15% to 10%.
The U.S. exported 9.44 million gallons of ethanol to Vietnam in 2024, according to data published by the USDA FAS. That volume accounted for less than 1% of the 1.91 billion gallons of ethanol exported by the U.S. last year.
Vietnam’s ministry of Industry and Trade in December 2024 issued a directive that aims to accelerate solutions for promoting the use of biofuels within the country. As part of that effort, relevant government agencies have been directed to review and develop a pricing mechanism that makes ethanol-blended gasoline more competitive with non-blended gasoline.
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Source : Ethanol Producer Magazine
