In addition, the ministry said it will consider lowering the current tax on ethanol from 15% to 10% for some ethanol products. 

According to the ministry, Vietnam encourages the use of ethanol in making biofuel and the use of biofuel as they are considered to be more environmentally friendly compared to fossil fuels.

In light of rising global prices, the country also aimed at greater imports of ethanol to help ease supply shortfalls.

The ministry said lowering most favoured nation tariffs and tariffs on imported ethanol were effective steps taken to bring down petrol prices in Vietnam and to help reduce the economy's input cost.

In addition, the move has been said to provide a boost to exports, especially to the US.