Vietnam has the potential to produce nearly 1 million barrels of sustainable aviation fuel (SAF) per day between 2030 and 2050 by utilising agricultural residues from crops such as rice and cassava, according to industry estimates presented at an international workshop on SAF development in ASEAN.
The assessment was shared by Sharmine Tan, Southeast Asia Sustainability Lead at Boeing, during the workshop titled “Sustainable Aviation Fuel (SAF): Policy Framework and Market Development in ASEAN” held on June 25, Vietnam Today reported.
The projection highlights Vietnam’s opportunity to turn agricultural by-products into an alternative aviation fuel source while supporting the country’s broader climate and energy transition goals.
Addressing the event, Deputy Minister of Construction Le Anh Tuan said the aviation sector’s shift toward green growth and sustainable development has become increasingly urgent as Vietnam works toward its commitment to achieve net-zero emissions by 2050 and prepares to join the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) from 2026.
According to Nguyen Thi Phuong Hien, Deputy Director at the Ministry of Construction’s Institute of Strategy and Development, Vietnam’s aviation industry continues to record one of Asia’s fastest growth rates.
Current consumption of conventional Jet A-1 aviation fuel is estimated at 2.8–3 million tonnes annually. Demand is expected to increase further, potentially raising fuel consumption to 4 million tonnes by 2030 and 11 million tonnes by 2050.
Despite the opportunity, industry experts identified economics as the main obstacle to SAF deployment.
Hien noted that SAF production currently costs between two and five times more than conventional aviation fuel and requires significant capital investment and advanced technologies. Vietnam also faces challenges related to the absence of a formal SAF adoption roadmap, limited support mechanisms, feedstock mobilisation, traceability requirements and compliance with international certification standards.
Philip Goh, Chief Executive Officer of the Asia-Pacific Sustainable Aviation Centre (APSAC), said SAF is expected to account for less than 1 per cent of global aviation fuel consumption by 2025 due to higher production costs and concentration of manufacturing in a limited number of countries.
He added that uncertain market demand and the lack of long-term fuel purchase agreements continue to discourage investment in new SAF production capacity.
To accelerate development, Hien recommended that Vietnam establish a national roadmap suited to local conditions and focus on strengthening policies supporting the SAF ecosystem.
Priority areas include securing sustainable feedstock supply, selecting appropriate technologies, developing supply chains and infrastructure, attracting investment, creating risk-sharing mechanisms and expanding international cooperation and technology transfer.
Subash S, Deputy Regional Director for Asia-Pacific at the International Civil Aviation Organization (ICAO), said each country should design an SAF roadmap based on available feedstocks, energy sources, market demand and existing infrastructure.
He added that SAF development requires coordination across transport, energy, environment, finance, industry and investment policies, with governments taking a leading role in driving adoption.
APSAC also highlighted Vietnam’s strong feedstock potential from agricultural and biomass residues including rice straw, rice husks, bagasse and other agricultural waste streams and expressed readiness to support policy development, research, training and international collaboration for the country’s SAF ambitions.
