Compressed natural gas or CNG as a transportation fuel is natural gas under pressure which remains clean and cheaper than gasoline and oil. Under the current conditions in Vietnam, gasoline and oil-powered engines can be converted to CNG fuel as a practical alternative to gasoline.

CNG is an environment-friendly gas. CNG volumes can be reduced to about 1/200 of the volume it occupies at standard atmospheric pressure and temperature. Therefore, CNG seems to be a viable transportation option. CNG does not release toxic gases such as NO, CO, SO₂ nor dust when burning. With the characteristic of complete combustion, CNG does not cause sludge buildup in combustors of vehicles, thus it can provide effective performance, increase equipment life and maintenance cycle. Using CNG-powered engines can reduce up to 93% of CO₂, 33% of NO, and up to 50% of  hydrocarbon emission compared to gasoline-powered engines. CNG cost is about 15% to 30% cheaper than gasoline and more stable than other petroleum products.

Currently, PetroVietnam Gas Corporation (PV Gas) is the single service provider to convert gasoline-powered engines to run on gas and to supply CNG as a transportation fuel in Vietnam. Up to now, more than 250 kinds of vehicles have been converted to run on CNG in Ho Chi Minh City and Vung Tau. Four CNG fueling stations have been built to serve for CNG-powered vehicles. Three of them are located in Ho Chi Minh City (Station 2 on Pho Quang Street, Tan Binh District; Station 220 on Nguyen Huu Canh Street, Binh Thanh District and another one in Tan Kien, Binh Chanh District) and one in Vung Tau (Station 449 on Nguyen An Ninh Street - Vung Tau).

CNG is also used as a fuel for buses in Ho Chi Minh City. According to Ho Chi Minh City Department of Transportation, the conversion of gasoline-powered buses to run on CNG will be implemented in three ways: To install an alternative fuel conversion device; To replace diesel buses by CNG-powered buses; To purchase new CNG-powered buses. Currently, 28 CNG-powered buses were imported from Korea and managed and operated by Saigon Passenger Transport Co.,Ltd and the Ho Chi Minh Ciy Transport Cooperative Union.

As such, CNG huge potential as a transportations fuel can fuel our transportation future because the use of saving and environment-friendly fuel has an sharply increasing tendency in Viet Nam.