Vietnam Ministry Of Industry And Trade Advances Sustainable Aviation Fuel (SAF): New Opportunities For Vietnam’s Aviation And Logistics Sectors

Global Trend: Green Aviation and the Net Zero Target

The global aviation industry is under mounting pressure to reduce greenhouse gas emissions. The International Civil Aviation Organization (ICAO) has set a target of reducing CO₂ emissions by 5% by 2030, moving toward net zero emissions by 2050 in line with the Paris Agreement. To achieve this goal, ICAO requires airlines to implement mandatory emission reduction measures starting in 2027, with the use of Sustainable Aviation Fuel (SAF) considered the central solution.

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Europe Leads the Way with the SAF Roadmap

The European Union (EU) has issued Regulation ReFuelEU Aviation 2023/2405, effective from January 1, 2025, mandating the blending of SAF into Jet A-1 fuel at EU airports.

• 2025: minimum 2% SAF.
• 2030: increased to 6%.
• 2035: reaching 20%.
• 2050: aiming for 70%.

This roadmap creates both pressure and opportunity for countries engaged in international aviation trade, including Vietnam, as they participate in the global supply chain.

Vietnam’s Policy: Acting Early to Avoid Being Left Behind

The Ministry of Industry and Trade has just issued a directive on the development and application of SAF in air transport, aimed at fulfilling Vietnam’s commitment to bringing net CO₂ emissions to “zero” by 2050. The key tasks include:

• Researching, producing, and importing SAF.
• Developing domestic supply and export plans.
• Leveraging potential from agricultural by-products, recycled oil, and biomass – readily available resources in Vietnam.

Not only does this contribute to environmental protection, but the establishment of a domestic SAF market also opens up economic opportunities and creates a competitive advantage for Vietnamese aviation on international routes.

Opportunities and Challenges for Vietnam’s Logistics Industry

The adoption of SAF will bring changes to the transport–logistics chain:

• Logistics enterprises need to be prepared to support airlines in storing, supplying, and distributing the new fuel.
• Transport costs may fluctuate in the initial phase, but in the long run SAF will enhance sustainability and improve access to international markets.
• The opportunity to export SAF to markets such as the EU and ASEAN will position Vietnam as a key link in the global green aviation supply chain.

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The Role of Smart Hub Aviation (SHA)

In the context of the aviation industry’s green transition, Smart Hub Aviation supports airlines and logistics enterprises with the following solutions:

• Route optimization and operational consulting: Helping airlines reduce fuel costs and prepare their transition roadmap to SAF.
• Commercial representation & services (GSA/CSA): Connecting with international airlines and supporting the expansion of operating networks in line with new environmental standards.
• Smart aviation logistics solutions: Assisting customers in complying with transport regulations, especially as SAF gradually becomes a mandatory requirement.

With a sustainable development orientation, SHA is not only a bridge for international trade but also a strategic partner in the global green aviation trend.

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