Vietnam E10 Mandate: Petrolimex (PLX) and PV Oil (OIL) Dominate 1M m3/Month Blending Capacity

Overview

The Ministry of Justice has approved a draft resolution mandating a roadmap for E10 biofuel usage, requiring approximately 1 million cubic meters of E10 per month. Petrolimex (PLX) and PV Oil (OIL) are the two largest licensed blenders, with combined capacity of 775,000 m3/month, representing 89% of domestic gasoline supply. The policy shift reinforces the dominant market position of these two state-linked distributors.

Key Facts

• The Ministry of Justice issued a review document on June 1, 2026, for the draft resolution on E10 roadmap.
• Average domestic gasoline consumption is about 1 million m3/month.
• Under the proposed structure, 15% would be E5 RON92 and 85% E10 RON95, requiring 92,000-100,000 m3/month of fuel ethanol (E100).
• Domestic E100 production capacity is currently about 25,000 m3/month, with potential to rise to 44,000 m3/month after plant upgrades.
• Short-term imports of E100 are estimated at 75,000 m3/month.
• Three licensed blenders have total capacity of 895,000 m3/month: Petrolimex (455,000 m3/month, expanding to 550,000), PV Oil (320,000), and Saigon Petro (120,000).
• The three licensed blenders cover 89% of domestic gasoline supply if 100% E10, or 96% if 85% E10 and 15% E5.

What Happened

On June 1, 2026, the Ministry of Justice published its appraisal of a draft resolution by the Ministry of Industry and Trade on the roadmap for E10 biofuel usage. The document outlines a mandatory blending requirement that would see domestic gasoline consumption shift to a mix of 15% E5 and 85% E10, requiring about 1 million m3 of E10 per month. The policy is part of Vietnam’s green economy and energy independence strategy.

According to the Ministry of Industry and Trade’s report, as of mid-April 2026, 13 enterprises have blending capability with total output of 1.18 million m3/month. However, only three are currently licensed: Petrolimex (PLX), PV Oil (OIL), and Saigon Petro. The remaining 10 are awaiting permits, with combined capacity of 297,600 m3/month.

Market Context

PLX closed at VND 39,150 on June 3, 2026, up 0.77% on volume of 1.38 million shares on HOSE. OIL closed at VND 14,800, up 0.68% on volume of 1.58 million shares on HOSE. Both stocks have been supported by the regulatory tailwind, though the broader energy sector remains sensitive to global oil prices and domestic fuel demand. The E10 mandate provides a structural volume driver for these two dominant distributors.

Strategic Significance

The E10 mandate locks in a captive demand stream for PLX and OIL, which together control the vast majority of licensed blending capacity. This regulatory moat is difficult to replicate, as new entrants must secure permits and build infrastructure. The requirement for imported ethanol also creates a new supply chain dynamic, but the blending margin itself is likely to be regulated. For long-term investors, the key is the volume certainty: with 89% of domestic gasoline supply passing through these two companies, the policy effectively guarantees their market share in the biofuel segment.

What to Watch

• Final approval of the draft resolution by the National Assembly or relevant authority.
• Timeline for the 10 pending blending permit applications and their impact on market share.
• Domestic E100 production ramp-up and import volumes, which affect blending costs.
• Any changes to the blending margin or pricing formula for E10.
• Q2 2026 earnings reports from PLX and OIL for volume and margin trends.