Vietnamese authorities have tables plans to overhaul its rare earths management system by classifying the minerals as “special strategic resources” and placing full control under the central government, VN Express has reported → view source.
The proposed amendment to the Law on Geology and Minerals would remove local authority oversight, allowing only state-approved entities to explore, mine, and process rare earths.
Exports of unprocessed ore would be banned, and the state would directly fund geological surveys to ensure efficiency and environmental protection.
The reform also includes creating a central agency with the expertise to manage all stages of the supply chain, reflecting Vietnam’s shift toward treating rare earths as critical to national security, high-tech manufacturing, and energy transition.
For some background
Vietnam’s rare earth industry briefly surged into the spotlight in 2023 following US President Joe Biden’s visit to Hanoi, when Washington pledged support for mapping Vietnam’s reserves and attracting investors.
China swiftly countered with diplomatic outreach and state media criticism, calling U.S.–Vietnam ambitions unrealistic.
The excitement, however, triggered movement in the sector, with Australian firm Blackstone Minerals and Vietnam Rare Earth (VRE) preparing to bid for the Dong Pao mine, one of Vietnam’s largest deposits.
However, the momentum quickly collapsed amid revelations that the mine’s operator, Lavreco, had reported only minimal revenue, followed by arrests of industry executives for tax and mining violations.
Of note, at the time, Vietnam was believed to have some of the biggest rare earths reserves in the world.
This has now changed with the US Geological Survey’s Mineral Commodity Summaries 2025 report, however, sharply revised Vietnam’s estimated rare earth reserves from 22 million tons to 3.5 million tons, citing company and government data.
The downgrade dropped Vietnam from one of the world’s largest holders to sixth place globally.
The report also notes that only 300 tons of rare earths were mined in 2024, reflecting how ongoing legal troubles and corruption cases within the industry have severely constrained production in recent yeras.