The Government leader has signed Directive No. 07/CT-TTg on promoting the production, blending, distribution and use of biofuels in Vietnam, accelerating the gradual replacement of fossil fuels, ensuring energy security and fulfilling emission reduction commitments.

The directive notes that in recent years, ministries, sectors, localities and enterprises have actively implemented various measures, developed and issued mechanisms and policies to support and encourage the production and consumption of biofuels, and stepped up communications to raise public awareness.

The development of biofuels has been identified as contributing to the expansion of alternative fuel production and use to gradually replace fossil fuels, protect the environment, safeguard national energy security, improve farmers’ incomes and promote sustainable economic development.

However, biofuel consumption remains limited and has yet to meet the targets set out in the roadmap. In some localities, consumers remain hesitant to use biofuel gasoline due to irregular and uncoordinated communications efforts and a lack of clear and official information sources. Several key petroleum trading enterprises have not implemented the programme resolutely. Inspection and supervision have not been conducted regularly and continuously, while the distribution system has operated inefficiently. Policies on taxes, environmental protection fees and other financial support mechanisms have yet to create sufficient incentives to encourage production and consumption.

To address these shortcomings and implement the new roadmap promulgated by the MoIT, and based on Resolution No. 70-NQ/TW dated August 20, 2025 of the Politburo on ensuring national energy security to 2030 with a vision to 2045, as well as Decision No. 876/QD-TTg dated July 22, 2022 approving the action programme on green energy transition, carbon dioxide and methane emission reduction in the transport sector in line with the commitment to achieve net-zero emissions by 2050 at COP26, the Prime Minister has requested ministries, sectors and localities to focus on synchronously implementing key tasks.

Ministries, ministerial-level agencies and People’s Committees of provinces and centrally run cities are required to integrate the objective of promoting biofuel consumption into sectoral and regional development strategies, master plans and plans; enhance communications and education to raise awareness; strengthen inter-sectoral coordination; and implement pilot programmes and projects in transport, industry and agriculture.

The MoIT has been tasked with taking the lead in developing a detailed plan to implement the roadmap on blending ratios of biofuels with traditional fuels, ensuring a stable supply of biofuel gasoline. The ministry will manage investment in biofuel production projects, encourage enterprises to develop infrastructure serving production and consumption, inspect and supervise compliance with regulations, and gradually ensure self-sufficiency in E100 supply.

At the same time, it will coordinate the development and promulgation of relevant national standards and technical regulations; study and propose pricing, tax, fee and financial mechanisms; closely monitor domestic and international supply-demand developments; and formulate response scenarios to market fluctuations.

The Ministry of Finance will take the lead in studying and proposing investment incentive policies and financial and credit mechanisms; reviewing and amending regulations on taxes and fees; and allocating financial resources for key projects.

The Ministry of Science and Technology will review and finalise standards and technical regulations; promote research and development of E100, B100 and second-generation biofuel production technologies; and reform administrative procedures related to blending and mixing.

The Ministry of Construction will promote the use of biofuels for transport vehicles and equipment and study sustainable aviation fuels.

The Ministry of Agriculture and Environment will develop sustainable raw material areas; encourage the production of feedstock from non-food crops, agricultural by-products and organic waste; and integrate emission reduction targets into national strategies and programmes.

The Ministry of Education and Training will develop programmes to raise awareness among pupils and students, while the Ministry of Culture, Sports and Tourism will strengthen communications through cultural activities and green tourism initiatives. The Ministry of Home Affairs will train human resources, and the Ministry of Foreign Affairs will promote international cooperation and enhance the image of Vietnam in biofuel development.

People’s Committees of provinces and centrally run cities are required to issue directives to implement the roadmap; create favourable conditions for enterprises to invest in infrastructure; and inspect and supervise the blending, distribution and use of biofuel gasoline in their localities.

The Prime Minister has assigned the MoIT, in accordance with its assigned functions and tasks, to take the lead in monitoring and urging ministries, sectors, localities, agencies, organisations and individuals concerned to strictly implement the directive. Ministers, heads of ministerial-level agencies and chairpersons of provincial and municipal People’s Committees shall be accountable to the Prime Minister for the progress and results of implementation, and must submit reports to the MoIT for consolidation before December 10 each year.