Vietnam officially began nationwide distribution of E10 gasoline on June 1, 2026. Photo: Quang Dinh / Tuoi Tre

The USDA said in a recent report that Vietnam is emerging as a promising market for U.S. agricultural products, including ethanol.

According to the report, the United States was Vietnam’s largest ethanol supplier in 2025, with exports worth US$4.3 million, accounting for 58 percent of the Southeast Asian country’s ethanol imports by value.

Citing projections from the International Energy Agency, the USDA said Vietnam’s ethanol demand is expected to reach around 2.9 billion gallons, equivalent to nearly 11 billion liters, this year and continue growing in the coming years.

The increase is primarily driven by Vietnam’s nationwide roll-out of E10 biofuel blend.

From June 1, 2026, all RON95 gasoline sold in the country must contain 10 percent ethanol, replacing conventional RON95 gasoline, while E5 RON92 continues to be available.

E10 consists of approximately 10 percent ethanol and 90 percent conventional gasoline. 

Ethanol can be produced from corn, cassava, sugarcane, or wheat.

Before the policy took effect, Vietnam reduced its most-favored-nation import tariff on ethanol from 10 percent to five percent, facilitating ethanol imports.

Besides ethanol, the USDA identified Vietnam as an increasingly important market for distillers dried grains with solubles, a livestock feed ingredient and a by-product of ethanol production.

U.S. exports of distillers dried grains with solubles to Vietnam reached $272 million in 2025, up four percent from the previous year.

According to calculations by Vietnam’s Ministry of Industry and Trade, the country currently requires between 92,000 and 100,000 cubic meters of fuel ethanol each month to blend E10 gasoline.

Domestic fuel ethanol production, however, stands at only about 25,000 cubic meters per month, enough to meet just 25-30 percent of demand.

The remaining supply will need to be imported.