The Rare Earth Race: White Gold in the Age of Technology and Vietnam’s Emerging Strategic Role

In the 21st century, rare earth elements (REEs) have become a vital resource fueling the green energy revolution and digital transformation. Often referred to as the “white gold” of modern industry, these 17 chemically similar elements—including lanthanum, neodymium, dysprosium, and scandium—are crucial for the manufacturing of electric vehicles (EVs), smartphones, wind turbines, solar panels, advanced batteries, and military-grade equipment. As the global economy shifts toward clean energy and high-tech industries, rare earths have gained importance as a geopolitical asset and a key part of supply chain security.

The Global Rare Earth Landscape: China’s Dominance and Strategic Risks

For decades, China has maintained a dominant position in rare earth mining and processing. As of 2024, China produces approximately 70–85% of the world’s rare earths and controls more than 90% of refining and separation capacity. This concentration has led to increasing vulnerability in global supply chains, particularly for nations seeking independence from Chinese industrial influence.

The U.S., the European Union, Japan, Australia, and other allied nations have begun to establish alternative rare earth supply chains. For example:

• Japan has discovered a massive undersea rare earth deposit near Minami-Tori-shima, estimated to contain hundreds of years’ worth of the global supply.
• The United States has resumed production at the Mountain Pass mine in California, which was once the world’s largest producer of rare earth elements.
• Australia and Brazil are investing heavily in rare earth extraction and refining technologies.

This geopolitical shift has opened the door for new players to join the race—and Vietnam is among the most promising contenders.

Vietnam’s Rare Earth Reserves: Promise and Pragmatism

Vietnam was once hailed as the second-largest holder of rare earth reserves in the world. According to older estimates from the United States Geological Survey (USGS), Vietnam had up to 22 million tons of rare earth reserves, trailing only China. However, the 2025 USGS report revised this figure down to 3.5 million tons, aligning estimates with verified geological data and current extraction capabilities.

Vietnam’s key rare earth deposits include:

• Đông Pao mine in Lai Châu Province
• Additional reserves in Yên Bái and Lào Cai provinces

While these reserves position Vietnam as a potential global supplier, the country still faces significant structural and technological barriers, including:

• Lack of domestic refining technology
• Environmental risks associated with mining
• Limited deep-processing infrastructure
• High dependence on foreign equipment (especially from China and Japan)

Foreign Investment and International Partnerships

Despite these hurdles, Vietnam’s rare earth sector is drawing increasing attention from international investorslooking to diversify supply chains and minimize geopolitical risks.

Recent strategic partnerships include:

• A trilateral cooperation between Vietnam Rare Earth JSC (VTRE), Australian Strategic Materials (ASM), and Blackstone Minerals (Australia) to develop the Đông Pao mine.
• A joint venture between Hung Hai Group and Trident Global Holdings (South Korea) to explore and process rare earths.
• LS Eco Energy (South Korea) is already importing rare earth oxides from Vietnam.
• SRE Vietnam, backed by Tokai Trade (Japan), is expanding its processing facilities in Hà Nam Province.

These collaborations are essential in enhancing Vietnam’s ability to advance along the value chain, from raw mineral extraction to rare earth oxide manufacturing and ultimately permanent magnet production.

Vietnam's Strategic Role Amid U.S.–China Trade Tensions

Trade tensions between the United States and China have intensified competition over critical minerals. China’s recent move to restrict rare earth exports—especially to U.S. defense contractors—is widely seen as a retaliatory response to Washington’s tariffs and export bans on Chinese semiconductor companies.

In this context, Vietnam is viewed as a neutral and cooperative alternative for Western nations. Its geopolitical stability, rich resources, and existing ties with G7 partners make it an ideal partner in reshaping global rare earth supply chains.

To truly capitalize on this opportunity, Vietnam must:

• Develop on-site processing technologies to produce high-purity rare earth oxides.
• Standardize its mining and environmental practices in accordance with OECD and EU benchmarks.
• Build specialized export processing zones (EPZs) and logistic hubs for rare earths and other critical minerals.

10 Key Companies Involved in Vietnam’s Rare Earth Sector

Below is a list of the top 10 companies involved in rare earth exploration, extraction, or processing in Vietnam. Many of these firms are also engaged in joint ventures with foreign partners:

1. Vietnam Rare Earth Company Limited
2. Lavreco (Lai Châu Rare Earth JSC) 
3. Hung Hai Group 
4. Hung Hai Construction Co., Ltd. 
5. Cavico Vietnam Company Limited
6. Blackstone Minerals (Australia)
7. Australian Strategic Materials – ASM (Australia) 
8. Trident Global Holdings (South Korea) 
9. LS Eco Energy (South Korea) 
10. SRE Vietnam (under Tokai Trade – Japan) 

Challenges Ahead: Environmental, Technical, and Policy-Driven

For Vietnam to evolve from a rare earth resource holder into a critical mineral hub, several long-term initiatives must be prioritized:

Environmental Regulation and ESG Standards

Mining rare earths often leads to radioactive waste, soil degradation, and water contamination. Vietnam must adopt strong environmental safeguards, implement ESG (Environmental, Social, and Governance) standards, and increase transparency to attract Western partners.

Technological Upgrading

Investing in rare earth separation, refining, and alloy-making technologies is essential. Partnerships with Japanese and Korean firms can play a catalytic role in transferring know-how and building local expertise.

Regulatory Certainty

Clear, consistent government regulations—covering export controls, investment incentives, and environmental policies—are crucial for building investor confidence.

Conclusion: Vietnam’s Emerging Role in the Global Rare Earth Supply Chain

As the global demand for clean energy, advanced electronics, and defense technologies accelerates, rare earths are becoming the new currency of geopolitical power. Countries that control the mining, refining, and export of these materials will shape the industrial future.

Vietnam, with its strategic reserves, investor-friendly policies, and international partnerships, is well-positioned to become a key link in the global rare earth supply chain. However, realizing this potential will require coordinated investments, sustainable practices, and continuous technological advancement.

With the right strategy, Vietnam can transition from being just a source of raw materials to becoming a value-added hub for critical minerals, helping to secure supply chains for the technologies that will define the next century.