Experts say that timely investment and policy innovation could help the country strengthen energy security, reduce carbon emissions and capture a share of the rapidly expanding global SAF market.
On May 7, the Asia Sustainable Aviation Fuel Association, the Da Nang Innovation Startup Support Center, Star Consulting and Veritas Consulting co-hosted the Innovation and Policy Summit Vietnam 2026 in Da Nang City.
Speaking at the forum, Mr. Fabrice Espinosa, founder and CEO of the Asia Sustainable Aviation Fuel Association (ASAFA), said that Vietnam has strong potential to develop a competitive sustainable aviation fuel (SAF) ecosystem thanks to its abundant biomass resources, existing industrial capacity and strategic position within ASEAN.
He emphasized that this is a decisive moment for Vietnam, as global supply chains and investment flows are already taking shape. Entering the market too late could make it difficult for the country to establish a competitive advantage.
Beyond goal of reducing carbon emissions, SAF is also expected to strengthen energy security and reduce dependence on imported fuels. According to estimates shared at the forum, if ASEAN countries achieve a 5 percent SAF usage rate by 2030, the regional market could reach approximately US$25 billion annually.
During the forum, participants noted that Vietnam possesses favorable conditions for SAF development, including feedstock from agriculture, used cooking oil, and industrial by-products, as well as a growing energy and petrochemical refining industry. Vietnam has also taken initial steps toward SAF adoption through test flights using sustainable aviation fuel, the issuance of national standards, and participation in international aviation emission-reduction mechanisms.
The forum also highlighted several policy recommendations, including financial and tax incentives for companies investing in SAF production, stronger cooperation among airlines, energy firms, and raw material suppliers, and expanded international collaboration in technology transfer and carbon markets.
