Vietnam: Critical Minerals Profile
Holder of the world's second-largest rare earth reserves emerging as a key supply chain diversification target.
Overview
Vietnam holds the world's second-largest rare earth reserves after China, estimated at approximately 22 million tonnes, making it one of the most strategically significant untapped mineral resources in the world. These deposits, concentrated in the northwestern provinces and the Central Highlands, have attracted growing international attention as nations seek to reduce dependence on Chinese rare earth supply. Vietnam is also a significant producer of tungsten, titanium mineral sands, tin, and chromite. Despite its resource potential, Vietnam has been slow to develop its rare earth deposits at commercial scale, hampered by limited processing technology, environmental concerns, infrastructure challenges, and the complexity of competing with China's established and subsidized rare earth industry. Japanese companies have been the most active foreign investors in Vietnamese rare earth development, reflecting Japan's strategic imperative to diversify rare earth supply following the 2010 Chinese export restrictions.
Key Minerals and Resources
Vietnam's critical mineral profile is defined by its endowment of rare earths, tungsten, titanium, chromium, tin, and bauxite. These minerals position the country as a significant global supplier in supply chains spanning the energy transition, advanced manufacturing, and defense sectors.
Mining and Production
Vietnam's mining sector produces a range of minerals but has not yet achieved significant rare earth production despite the country's vast reserves. Titanium mineral sand mining along the central coast is one of the more established operations, though environmental concerns and community opposition have led to increased regulatory scrutiny. Tungsten mining occurs in the northern provinces, and tin mining from alluvial and hard rock deposits supports domestic processing. Rare earth development has been the subject of multiple attempted joint ventures, particularly with Japanese partners, but commercial-scale production has remained elusive due to technical challenges, financing constraints, and environmental permitting requirements. The Vietnamese government has imposed restrictions on mineral exports to encourage domestic processing, following the model established by Indonesia, though implementation and enforcement have been uneven.
Policy and Regulation
Vietnam's mineral policy is managed by the Ministry of Natural Resources and Environment and the Ministry of Industry and Trade, with mineral rights granted under the Mineral Law. The government has placed restrictions on the export of unprocessed mineral ores, similar to Indonesia's approach, though enforcement has been less comprehensive. Rare earth development policy has been cautious, with the government aware of the environmental costs associated with rare earth mining and processing in China and seeking to avoid similar problems domestically. Vietnam has engaged with Japan, South Korea, and the United States on critical mineral cooperation, and has been identified as a priority partner in several international supply chain diversification initiatives. However, translating these diplomatic engagements into large-scale mineral production has proven slow.
International Partnerships
Vietnam's mineral partnerships are most developed with Japan, which has been the primary foreign investor in Vietnamese rare earth development. Japanese companies and government entities have invested in exploration, geological surveys, and pilot processing projects aimed at establishing Vietnamese rare earth production. Vietnam has also engaged with South Korea, the United States, and the European Union on critical mineral cooperation, and has been identified as a priority partner in multiple supply chain diversification strategies. Vietnam's membership in ASEAN and its free trade agreements with major economies provide frameworks for mineral trade cooperation. The country's proximity to China and established trade relationships create both opportunities and challenges for developing non-Chinese rare earth supply chains through Vietnam.
Supply Chain Role
Vietnam plays a specialized role in global critical mineral supply chains, contributing specific minerals that, while not always produced in the largest volumes, are essential for particular industries or serve as important diversification sources for consuming nations seeking to reduce supply concentration risks. The country's mineral exports enter complex global trading networks that ultimately feed into manufacturing supply chains for batteries, electronics, vehicles, aerospace systems, and other critical applications. Vietnam's strategic significance may increase as the global demand for critical minerals grows and consuming nations place greater emphasis on supply diversification and security of supply.
Related Country Profiles
Explore profiles of other nations that share regional ties or overlapping mineral endowments with Vietnam.
United States
North AmericaWorld's largest consumer of critical minerals driving reshoring and supply chain diversification policies.
Australia
OceaniaGlobal mining powerhouse and largest lithium producer pursuing downstream processing expansion.
China
East AsiaDominant global producer and processor of most critical minerals with unmatched refining capacity.
European Union
EuropeMajor consumer pursuing strategic autonomy through the Critical Raw Materials Act and diversification targets.
United Kingdom
EuropeHistoric mining nation rebuilding critical mineral capabilities through domestic projects and global partnerships.
Japan
East AsiaHighly import-dependent technology manufacturer leading in strategic stockpiling and recycling innovation.