As the global push toward renewable energy, electric vehicles (EVs), and clean technologies accelerates, the demand for critical minerals has reached unprecedented levels. Central to this transformation is Vietnam, a Southeast Asian nation increasingly emerging as a strategic hub for critical mineral supply chains. With rich deposits of bauxite, tungsten, and rare earth elements (REEs), a reformed legal framework, and growing international partnerships, Vietnam is rising from relative obscurity to become a vital player in the global minerals market.
Vietnam's mineral wealth is considerable. In 2022, Vietnam was the world's second-largest producer of tungsten (5.7% of global production), third in cement (2.9%), fifth in fluorspar (2.7%), and sixth in rare earths (1.4%), with a remarkable 17% of the world’s known rare earth reserves. It also holds 19% of the world’s bauxite reserves, primarily located in the Central Highlands. Beyond these, the country also produces antimony, titanium minerals, phosphate rock, and processed materials, including refined copper and rolled steel products.
These numbers reflect a growing maturity in Vietnam’s mining sector. In 2022, the mineral sector accounted for 2.8% of Vietnam’s gross domestic product (GDP), showing a 30% increase in output compared to the previous year. Mineral employment rose by 12%, totaling 196,000 jobs. Domestic investment in the sector reached US$1.25 billion, with foreign direct investment (FDI) at US$19.7 million across 108 projects.
Recognizing its mineral potential as a linchpin for economic modernization and energy transition, Vietnam has introduced comprehensive reforms. The amended Petroleum Law, effective from July 2024, extends exploitation contract durations and incentivizes foreign participation by removing previous tender policy limitations. More significantly, the 2024 Geology and Minerals Law introduces a new classification for mineral resources and standardizes licensing and concession procedures, with a focus on environmental, economic, and strategic considerations. Projects meeting “green taxonomy” standards are awarded tax breaks and preferential loans, and competitive auctioning now determines most mineral rights. This legal clarity and increased transparency are helping Vietnam shed its previous image as a risky investment destination.
Long regarded as a sleeping giant, Vietnam’s rare earth sector is now stirring. In 2022, Vietnam’s REO output soared an estimated 760% to 4,300 tons, almost all exported to China. However, this surge only scratched the surface of the country's potential, which includes the formerly estimated 22 million tons of rare earth reserves (revised down to 3.5 million for caution), mostly located in Lai Châu, Yên Bái, and the Red River fault zone.
The Dong Pao mine in Lai Châu, once dormant, is now the cornerstone of this rare earth revival. The Vietnamese government has begun tendering new concessions, with companies like Australia's Blackstone Minerals and Vietnam Rare Earth JSC (VTRE) positioning themselves to lead. VTRE also operates the country’s only REE separation facility in Hải Phòng, with a current production capacity of 5,000 tons of REOs annually and expansion plans underway.
Vietnam’s rare earth strategy is not limited to extraction; it aims to build an end-to-end value chain. Blackstone Minerals and VTRE are developing projects that include separation plants and potential refining capabilities. Talks are underway with EV giants VinFast and Rivian for offtake agreements, ensuring stable demand and financial viability.
Moreover, agreements with Australia’s Strategic Materials (ASM) and Korea’s Setopia on purchasing and metalizing REOs underline Vietnam’s growing downstream ambitions. Meanwhile, South Korean and Chinese companies are building magnet manufacturing plants in Vietnam, exploiting synergies between mining and end-use industries. Despite the progress, Vietnam's mineral industry is still in its formative stages. The country currently lacks the technology and scalability to meet the global standards of mineral refining, especially for rare earths and aluminum. For example, only 40% of the necessary steps for rare earth oxide purification can currently be performed domestically.
Infrastructure constraints further hinder Vietnam’s ambitions. High logistics costs, transport making up 60% of total logistics expenses, coupled with congested ports, limited railway networks, and unstable energy supply, reduce the competitiveness of Vietnamese exports. Efforts are underway to address these issues, including the US$8.7 billion Lao Cai–Hanoi–Hai Phong rail project and expansion of the North-South expressway.
Vietnam is a powerhouse in bauxite extraction, holding 5.8 billion tons in reserves, mainly in Dak Nong and Lam Dong provinces. The government’s plan to produce 114.5 million tons annually (2021-2030) and expand deep processing capacity signals a massive industrial push. Projects by VINACOMIN and private players like Hoa Phat Group aim to turn Vietnam into a regional aluminum hub.
Vietnam’s tungsten sector is also robust, with the Nui Phao mine in Thai Nguyen Province being one of the largest deposits outside China. Operated by Masan High-Tech Materials, the mine has pivoted from raw mineral extraction toward high-tech tungsten processing. Masan's downstream capabilities, producing ammonium paratungstate and blue/yellow tungsten oxides, set Vietnam apart as a rare non-Chinese advanced tungsten processor.
Vietnam’s evolution in critical minerals is being closely watched by global powers eager to diversify from China. Given the U.S. Inflation Reduction Act, which favors EVs with batteries sourced outside China, and Australia’s 2023–2030 Critical Minerals Strategy, both countries now view Vietnam as a linchpin in reshaping global supply chains. Bilateral initiatives with the U.S. and recent Korea-Vietnam agreements during the 2025 critical minerals summit reinforce this trend.
Korean companies, including LS Cable & System and automakers, are increasing imports from Vietnam, and strategic centers like the Korea–Vietnam Critical Minerals Supply Chain Center are formalizing cooperation in mining, refining, and infrastructure development.
As Vietnam rises in importance, it is walking a geopolitical tightrope between the U.S. and China. With elevated diplomatic ties to the U.S. and extensive trade relations with China, Vietnam is striving for a neutral but beneficial stance. The recent tension over the purported U.S.-Vietnam rare earth deal exemplifies this balancing act.
Vietnam is also tightening environmental controls. In 2023, crackdowns on illegal REE exports led to arrests of senior industry executives and seizure of over 13,000 tons of illicit ores. These actions, although alarming, signal the government’s intention to enforce international environmental standards and attract responsible investors.
Vietnam’s vision for 2030 includes producing up to 60,000 tons of REOs annually, roughly 5–15% of China’s current output. If executed, this potential would make Vietnam a cornerstone of a diversified, resilient critical minerals supply chain.
However, much depends on the successful ramp-up of mining projects like Dong Pao, foreign partnerships that bring in processing technology and capital, and the nation’s ability to build secure, green, and value-added supply chains. The competition for off-take deals, the pace of infrastructure development, and Washington’s sustained support will define the next phase of Vietnam’s mineral renaissance.
In an era driven by energy transition imperatives, security concerns, and technological revolutions, Vietnam is no longer a peripheral player. It stands at the frontline of reshaping the global map of mineral supply, and the world is taking notice. As Dr. Dan Linh Nguyen of Hanoi University of Science and Technology summarized, “With the global race on to get to net zero, the time is right for Vietnam to play a central role in mining and processing the minerals the world desperately needs.”