Vietnam set to increase biofuel use

Biofuel is expected to be sold in all localities in Vietnam in 2015.

According to the Ministry of Industry and Trade (MoIT), large petrol dealers, including the Vietnam National Petroleum Group (Petrolimex) and PVOil, will sell 5% bioethanol (E5) fuel in seven areas starting this year.

These areas include capital Hanoi, southern Ho Chi Minh City, northern Hai Phong city, central Da Nang city and Quang Ngai province, and southern Can Tho and Ba Ria-Vung Tau provinces.

The project was delayed for one year due to consumer habits and the low demand for biofuel in the domestic markets.

At present, biofuel consumption is estimated to be one-eighth of the consumption of traditional fuel products.

Despite the high investment needed for selling biofuels, they could compete with traditional petrol in the long term due to the low cost of cassava, and preferential policies on tax and fees by the government.

Vietnam has six plants producing biofuel, totaling a capacity of 535 million litres of ethanol per year. As a result, the plants could meet the nation's demand for biofuels by 2015.