Vietnam Airlines Joins the IPS Vietnam 2026 International Forum on Sustainable Aviation Fuel

Within the framework of the IPS Vietnam 2026 International Forum on sustainable aviation fuel (SAF) taking place in Da Nang on May 7-8, Vietnam Airlines participated in presenting its roadmap for SAF implementation and the challenges that airlines are facing during the green transition process.

The forum was co-organized by the Asian Sustainable Aviation Fuel Association (ASAFA) and the Da Nang Innovative Startup Support Center (DISSC), with the attendance of many regulatory bodies, international organizations, and businesses in the aviation – energy sector.

Speaking at the forum, Mr. Fabrice Espinosa – General Director of ASAFA argued that Vietnam possesses many favorable conditions to develop a sustainable aviation fuel ecosystem thanks to potential raw material sources and its position in the regional supply chain. However, according to him, SAF cannot develop effectively without cross-border policy coordination and common standards among nations.

Representing the People's Committee of Da Nang City, Vice Chairman Ho Quang Buu assessed that the forum took place in the context of the world accelerating the energy transition process, while opening up opportunities for Vietnam and Da Nang to head towards a greener, more sustainable development model.

At the forum, representatives of the Ministry of Industry and Trade and the Civil Aviation Authority of Vietnam also emphasized the role of SAF in the greenhouse gas emission reduction goals of the transport sector. According to regulatory bodies, the IPS Vietnam 2026 International Forum was organized in the context that the world is entering a phase of profound energy transition with strong commitments to emission reduction and sustainable development. For Vietnam in general and Da Nang city in particular, this is not only a challenge but also an opportunity to reposition the development model towards being greener, smarter, and more sustainable.

Meanwhile, representatives of the Ministry of Industry and Trade and the Civil Aviation Authority of Vietnam both emphasized that SAF is becoming one of the focal solutions to implement the emission reduction targets of the transport industry. According to Mr. Dao Duy Anh – Deputy Director General of the Department of Innovation, Green Transition and Industry Extension, Vietnam is step by step deploying synchronous solutions from developing raw material sources, receiving production technology, to building a sustainable fuel distribution system.

One of the notable contents of the forum was the discussion session on "creating SAF market demand", in which Vietnam Airlines presented the perspective from the airline's side. Mr. Nguyen Thanh Son – Deputy Head of the Supplies Management Department of Vietnam Airlines said that the aviation industry is under tremendous pressure from new emission reduction regulations around the world.

Accordingly, the European Union has applied a mandatory regulation to use a minimum of 2% SAF from the beginning of 2025; Singapore expects to apply a 1% rate from 2027 and gradually increase to 3-5% by 2030; while ICAO's CORSIA mechanism will enter the global mandatory compliance phase from 2027. According to Vietnam Airlines, SAF currently costs 2-4 times higher than traditional Jet A-1 jet fuel, creating great pressure on operating costs.

At the forum, Vietnam Airlines simultaneously shared the airline's SAF deployment steps in Vietnam. Accordingly, by 2025, the airline has deployed about 2,200 tons of SAF. In May 2024, Vietnam Airlines operated flight VN660 on the Singapore – Hanoi route using SAF; continuing to apply SAF on commercial flights in 2025 and aiming for integration across the entire flight network.

The airline also mentioned current difficulties such as heavy reliance on imported SAF sources, limited storage and fuel blending infrastructure, along with differences in certification mechanisms between ISCC EU and ISCC CORSIA standards.

According to the Vietnam Airlines representative, for the Vietnamese aviation industry to maintain competitiveness in the context of increasingly tightening emission standards, synchronous coordination among the State, airlines, energy enterprises, and financial institutions is required in building a national roadmap, financial mechanisms, and SAF infrastructure investment.

Vietnam Airlines also proposed a roadmap for SAF development in Vietnam based on four pillars including building a national roadmap, perfecting financial mechanisms, investing in infrastructure, and synchronizing regulations with international standards.

In addition to policy discussion sessions, IPS Vietnam 2026 also focused on technology and financial solutions for SAF with the participation of Airbus, Axens, Honeywell UOP, and the Asian Development Bank (ADB). The forum also witnessed many cooperation agreements signed to promote the sustainable aviation fuel ecosystem in Vietnam and the region.

Previously, Vietnam Airlines had also officially launched the "Green Alliance" with the participation of regulatory bodies, international organizations, and partners in the fields of energy, services, infrastructure, and technology to promote sustainable development initiatives in aviation. Participating and sharing at IPS Vietnam 2026 continues to show Vietnam Airlines' orientation in expanding cooperation to promote the use of sustainable aviation fuel (SAF), reduce carbon emissions, and step by step realize the goal of green aviation development according to the airline's ESG strategy.