Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2007
Effective Start Year: 
2007
Effective End Year: 
2015
Scope: 
National
Document Type: 
Other
Economic Sector: 
Energy, Multi-Sector
Energy Types: 
Renewable, Bioenergy
Issued by: 
The Prime Minister of Government
Overall Summary: 
A Decision of the Prime Minister of Government to approve the scheme on development of biofuels up to 2015, with a vision to 2025 (below referred to as the scheme for short) .
Renewable Energy
RE priorities: 
To develop biofuel, a new and renewable energy, for use as an alternative to partially replace conventional fossil fuels, contributing to assuring energy security and environmental protection.--- To form and strongly develop the biofuel production industry, and build an open market favorable for promoting enterprises' investment in projects on production and trading of and provision of services related to biofuel products.
RE targets: 
By 2010, to develop various models of trial production and use of biofuels with a total annual output of 100,000 tons of E5 and 50,000 tons of B5 in order to satisfy 0.4% of the whole country's gasoline and oil demand.---During 2011-2015: To build and develop biofuel production and using establishments nationwide. By 2015, the output of ethanol and vegetable oil will reach 250,000 tons (enough for blending 5 million tons of E5 and B5), satisfying 1% of the whole country's gasoline and oil demand.---Vision to 2025: The biofuel production technology applied in Vietnam will attain the world's advanced level. The ethanol and vegetable oil output will reach 1.8 million tons, satisfying some 5% of the whole country's gasoline and oil demand.
RE action plans: 
From now to 2010: [...] To map out a schedule for use of biofuels as an alternative to partially replace fossil fuels currently used for transportation and other industries, and formulate a pilot model of biofuel distribution in some provinces and cities; [...] To plan and develop raw material areas for production of alcohol, vegetable oil and animal fat (sugar cane, cassava, maize, oil-bearing plants, recovered animal fat, etc.) for biofuel production.---During 2011-2015: To develop the production and extensive use of biofuels as an alternative to conventional fossil fuels. To expand biofuel production establishments and the network of distribution of biofuels for transportation and other industries; To develop raw material areas under planning, put raw-material plant varieties of high yield and pest resistance into mass production, thus ensuring sufficient supply of biomass materials to be converted into biofuel.
RE capital subsidy, grant, or rebate: 
Perfecting the system of mechanisms, policies and legal documents for biofuel development: [...] provide concessional loans and land use rights to enterprises, organizations and individuals at home and abroad in order to encourage and create favorable conditions for them to invest in developing biofuel production in Vietnam. In the 2007-2015 period, to classify investment in biofuel production as a domain eligible for special investment incentives.
RE public awareness/promotional programmes: 
Raising public awareness about biofuel development: To step up communication and popularization efforts to make the public aware of the important role, great socio-economic benefits and environmental protection effect of biofuel in sustainable development. To widely propagate information on the building and development of a biofuel market and the use of biofuels in Vietnam.
Cooperation in RE: 
To take the initiative in formulating and implementing international cooperation programs and projects in order to make use of the international community's assistance in terms of experience, knowledge, finance and equipment, and attract investment for development of biofuel production and consumption in Vietnam.
Environment
Energy environmental priorities: 
To develop [...] contributing to assuring energy security and environmental protection.
Land use change for energy production purposes: 
From now to 2010: [...] To plan and develop raw material areas for production of alcohol, vegetable oil and animal fat (sugar cane, cassava, maize, oil-bearing plants, recovered animal fat, etc.) for biofuel production.---During 2011-2015: [...] To develop raw material areas under planning, put raw-material plant varieties of high yield and pest resistance into mass production, thus ensuring sufficient supply of biomass materials to be converted into biofuel.
Pricing
Energy taxation: 
Perfecting the system of mechanisms, policies and legal documents for biofuel development: - To renew tax mechanisms and policies [...].
Energy Supply and Infrastructure
Infrastructure development priorities: 
To develop biofuel, a new and renewable energy, for use as an alternative to partially replace conventional fossil fuels, contributing to assuring energy security and environmental protection.---By 2010, to develop various models of trial production and use of biofuels with a total annual output of 100,000 tons of E5 and 50,000 tons of B5 in order to satisfy 0.4% of the whole country's gasoline and oil demand.---By 2015, the output of ethanol and vegetable oil will reach 250,000 tons (enough for blending 5 million tons of E5 and B5), satisfying 1% of the whole country's gasoline and oil demand.---Vision to 2025: [...] The ethanol and vegetable oil output will reach 1.8 million tons, satisfying some 5% of the whole country's gasoline and oil demand.
Trade
Import taxes and fee exemptions: 
Raw materials, components, machinery and equipment to be used in scientific research and technological development for biofuel production are exempted from import tax. Raw materials, components, machinery and equipment used for biofuel production are eligible for the lowest import tax rate.
Investment
Energy sector investment priorities: 
To establish and encourage enterprises of all economic sectors to invest in researching into, transferring, receiving and applying technologies to biofuel production; to efficiently apply new technical and technological advances to producing and trading in biofuel production and providing services related to biofuel products.---To make intensive investment in upgrading the system of agencies engaged in scientific research and technological development related to biofuels; to additionally supply modern machinery and equipment and modernize material and technical foundations for existing laboratories so that they are able to approach and receive technologies for producing commercial biofuels from biomass; To invest in and put into operation a number of advanced laboratories capable of efficiently facilitating research into biofuel raw materials, production and blending technologies, giving special priority to researches into basic techniques for the purpose of quickly creating products and producing biofuels on an industrial scale.--- Increasing investment and diversifying funding sources for the effective implementation of the scheme [...] Investment capital for development of the biofuel production industry shall be provided by enterprises.
Financial incentives for energy infrastructure: 
Perfecting the system of mechanisms, policies and legal documents for biofuel development: [...] provide concessional loans and land use rights to enterprises, organizations and individuals at home and abroad in order to encourage and create favorable conditions for them to invest in developing biofuel production in Vietnam. In the 2007-2015 period, to classify investment in biofuel production as a domain eligible for special investment incentives.
Tax and duty exemptions for energy equipment: 
Biofuel production enterprises are entitled to income tax exemption or reduction for biofuel products according to the Government's Decree No. 24/2007/ND-CP of February 14, 2007, detailing the implementation of the Law on Enterprise Income Tax. They are entitled to the highest land rent and land use incentives for 20 years.
Intellectual property rights: 
To step up the strict and adequate enforcement of regulations on intellectual property, including protection of copyright and industrial property rights to microorganisms, plant varieties, technological processes, machinery, equipment, etc., involved in the biofuel production technology.
Project permitting: 
Perfecting the system of mechanisms, policies and legal documents for biofuel development: [...] provide concessional loans and land use rights to enterprises, organizations and individuals at home and abroad in order to encourage and create favorable conditions for them to invest in developing biofuel production in Vietnam.
Investment climate development: 
To take the initiative in formulating and implementing international cooperation programs and projects in order to make use of the international community's assistance in terms of experience, knowledge, finance and equipment, and attract investment for development of biofuel production and consumption in Vietnam.---Perfecting the system of mechanisms, policies and legal documents for biofuel development: [...] provide concessional loans and land use rights to enterprises, organizations and individuals at home and abroad in order to encourage and create favorable conditions for them to invest in developing biofuel production in Vietnam.
Governance
National policy structure: 
From now to 2010: - To formulate a system of mechanisms, policies and legal documents in order to create a legal setting for attracting investment in and encouraging industrial-scale production and use of biofuels. ---Perfecting the system of mechanisms, policies and legal documents for biofuel development.
Public database availability: 
To establish and operate online a national database on biofuels in order to promptly and adequately supply and exchange the latest basic information on biofuel production equipment and technology to concerned units and individuals.
Technology
Clean energy technology priorities: 
From now to 2010: [...] To research into, approach and master technologies for producing biofuels from biomass and appropriate blending technologies, and solve the question of raising the efficiency of conversion of biomass into fuel; [...]To plan and develop raw material areas for production of alcohol, vegetable oil and animal fat (sugar cane, cassava, maize, oil-bearing plants, recovered animal fat, etc.) for biofuel production; To train human resources to initially satisfy the biofuel development need.---During 2011-2015: To develop the production and extensive use of biofuels as an alternative to conventional fossil fuels. To expand biofuel production establishments and the network of distribution of biofuels for transportation and other industries; - To develop raw material areas under planning, put raw-material plant varieties of high yield and pest resistance into mass production, thus ensuring sufficient supply of biomass materials to be converted into biofuel.
Clean energy technology transfer: 
To take the initiative in receiving, mastering and transferring technical and technological advances and new scientific achievements related to biofuel production in the world so as to quickly, vigorously and sustainably develop Vietnam's biofuel production industry.---Stepping up the application of research results to practical production, promoting technology transfer and creating an investment environment favorable for the development of biofuel production [...].---To send specialized scientific and technological personnel to countries with a developed biofuel production industry to attend short-term professional training courses of between 6 and 12 months;
Clean energy technology deployment: 
Intensifying the building of material and technical foundations and training of human resources to satisfy the biofuel development.
R&D renewable energy: 
From now to 2010: To develop biofuel, a new and renewable energy, for use as an alternative to partially replace conventional fossil fuels, contributing to assuring energy security and environmental protection; To research into, approach and master technologies for producing biofuels from biomass and appropriate blending technologies, and solve the question of raising the efficiency of conversion of biomass into fuel; To approach and master the technology for producing seedlings of high-yield plants for biofuel production.---During 2011-2015: - To research into, master and produce materials and additives for biofuel production; To successfully apply modern fermentation technologies in order to diversify raw material sources to be used in the process of converting biomass into biofuel.---To promote and support the research into and hybridization of new microorganism species and industrial plant varieties [...] and improve the process of industrial-scale cultivation to be applied to production of high-quality raw materials in large quantities to satisfy the need for development of Vietnam's biofuel production industry. ---To train at home technological engineers specialized in the technology for biofuel production from the stage of biomass production to the stage of conversion of biomass into fuels under the scheme; To train technical workers who are highly skilled in biofuel production technology for the implementation of the scheme in enterprises and localities; To train managerial officers of ministries, branches and enterprises in knowledge about and state management capacity with regard to biofuel development and application.
Technology collaboration with other member States: 
To organize the implementation of around 20 schemes and projects on international cooperation with foreign scientific and technological organizations, foreign scientists and technologists in conducting research into, producing and using biofuels in Vietnam.---To intensify bilateral cooperation and expand multilateral cooperation with countries with a developed biofuel industry as well as foreign organizations and individuals with biofuel development potential in order to learn their experience in biofuel development.