Biodiesel

In 2007, under Prime Minister Decision no. 177/2007/QD-Ttg, signed on November 20, 2007, the government set a target to produce 50,000 tonnes of B5 (5% v/v of biodiesel blended with 95% v/v conventional diesel) as part of its biofuels (biodiesel and ethanol) volume, to replace 0.4% of Viet Nam’s gasoline and diesel demand by 2010.

The target for biofuel production was then increased to 250,000 tonnes, to replace about 1% of demand, and then to 1.8 million tonnes to replace about 5% of the country’s transportation fuel demand, by 2015 and by 2025 respectively.

However, the government has been postponing implementation of the biodiesel mandate. Although trials of biodiesel in buses and ships have been conducted, biodiesel was eventually left out of Viet Nam’s biofuels discussion.