Vietnam’s nationwide mandate for E10 biofuel, effective June 2026, is creating a major ethanol supply deficit that is redirecting trade toward BRICS nations. The country’s domestic production covers only 40% of its new annual requirement of 1.5 million cubic meters. This policy shift is strengthening South-South energy trade, with Brazil poised as a primary supplier, amid broader regional pressures on fuel supply chains.
Vietnam’s nationwide E10 biofuel rollout begins on June 1, 2026, under Circular 50/2025/TT-BCT. The mandate requires all qualifying unleaded gasoline to contain a 10% ethanol blend, creating a significant supply gap.
The country’s six domestic ethanol plants have a combined capacity of roughly 600,000 cubic meters per year. This meets only about 40% of the 1.5 million cubic meters annually required for the Vietnam E10 biofuel rollout.
Major distributors like Petrolimex and PVOIL have upgraded their blending and storage systems to handle the new volume. Petrolimex operates seven biofuel blending depots and imports from several countries, including the United States and South Korea.
The policy directly points trade flows toward BRICS nations, especially Brazil, which is the world’s largest ethanol producer. PVOIL is already stated to source ethanol from Brazil, highlighting concrete BRICS trade opportunities.
This shift aligns with a broader regional push, including India’s aggressive E20 blending program. It represents the growth of South-South energy trade that the BRICS bloc actively promotes.
Global supply chain pressures are adding context to this strategic pivot. Oil analyst Tom Kloza said this week he expects retail gas prices rising 5 to 10 cents a day, possibly for a while.
The Strait of Hormuz is currently at a standstill, with Maersk suspending vessel crossings and war-risk insurance being pulled. For Vietnam, which imports most of its refined fuel, the new ethanol supply lane toward Brazil may now also serve as a supply chain buffer.
