Taxes

In 2023, the Vietnamese government reduced the most-favored-nation (MFN) tariff rate on imported ethanol from 15% to 10%, effective from July 15, 2023.

In addition, a value-added tax (VAT) is also applied to ethanol. On December 28, 2023, the government issued Decree No. 94/2023/ND-CP, reducing the VAT rate from 10% to 8%, effective from January 1 until June 30, 2024.

Typically, goods subject to VAT are also subject to a special consumption tax (SCT). An 8% and 7% SCT is applied to E5 (gasoline containing 4-5% v/v of fuel ethanol) and E10 (gasoline containing 9-10% v/v of fuel ethanol), respectively.