Vietnam has revised the Most-Favored-Nation (MFN) tariff on ethanol, reducing it from 15 to 10 percent. The new tariff rate went into effect on July 15, 2023.
“This tariff rate reduction will immediately increase the competitiveness of U.S. ethanol in Vietnam,” said Chris Markey, U.S. Grains Council’s assistant regional director for Southeast Asia & Oceania.
The previous 15 percent import tariff put U.S. ethanol on an uneven playing field relative to other octane boosters, such as methyl tert-butyl ether (MTBE) and benzene, and preblended gasoline – petroleum products with carbon intensity scores nearly 50 percent higher than U.S. corn ethanol.
Vietnam consumes roughly three billion gallons of gasoline per year, with consumption forecasted to grow at a double-digit rate until 2030. Approximately 17 million gallons of U.S. ethanol were shipped to Vietnam in 2022, predominantly via the transshipment point of South Korea.
The Council is working closely with its Vietnamese counterparts to move toward an expansion of Vietnam’s current E5 RON92 mandate to all grades of gasoline, which would create a 95-million-gallon export market for U.S. ethanol.
U.S. Grains Council Global Update
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