The US Geological Survey’s Mineral Commodity Summaries 2024 report has revised down Vietnam’s expected output of rare earths for 2023 from 1,200 to just 600 tons. This is out of reserves estimated to be as big as 22 million tons–the second largest in the world after China.

Of note, Vietnam has actively been courting foreign partners to exploit its rare earth reserves. In fact, the issue was raised with US President Joseph Biden when he visited the country in September, 2023, during which the he committed the US to support Vietnam’s quest to develop its rare earth resources–an idea that ruffled feathers in China with the country’s state media brushing off the idea as ‘unrealistic’.

Possibly by coincidence, possibly not, this was succeeded by a chain of development in Vietnam’s rare earth’s industry. 

First, it was reported on October 16 that Vietnam’s only rare earth processing firm, Vietnam Rare Earth (VRE), reported revenue in 2022 of less than US$10,000.

Days later it was announced that VRE had partnered with Australia’s Blackstone Minerals to bid on a mining licence for Vietnam’s Dong Pao mine which covers 132 hectares and is estimated to contain 11.3 million tons of rare earths.

Then, just days after that it was announced that the owner of VRE had been arrested on tax-related charges.

Needless to say, production has likely suffered, hence the USGS’s revision, and Vietnam’s plan to mine 20,000 tons a year by the end of 2030 has not got off to a great start.