Vietnam’s parliament moved to ban exports of raw rare earth materials as part of an overhaul of the geology and minerals law, which sets out a legal framework for an industry that has struggled to capitalize on the nation’s significant deposits.
The government will “strictly” control the exploration, exploitation and processing of rare earths and prohibit exports of raw rare earth minerals, according to the new law, which takes effect in January. Only companies with government approval will be permitted to exploit, process and use rare earths.
“These measures are designed to enable Vietnam to capture a larger share of value within the rare earth supply chain, support the emergence of high-tech manufacturing capabilities, and enhance long-term economic resilience,” said Richard Ramsawak, economics lecturer at RMIT University Vietnam.
Vietnam holds an estimated 3.5 million tons of rare earth reserves, ranking it sixth globally, according to the US Geological Survey’s 2025 report. The figure marks a major revision from the agency’s earlier estimate of about 22 million tons, which had placed Vietnam as the world’s second-largest holder after China.
Rare earths, a family of 17 metallic elements, help power everything from smartphones and laptops to fighter jets and missiles, and are almost exclusively controlled by China giving it significant economic leverage over the US.
The amended law states that deep processing of rare earths must be linked to the development of the industrial ecosystem to enhance the nation’s local value chain and ensure self-reliance in the rare earth sector.
It does also, however, encourage international cooperation in research, transfer, and tech development to support the advancement of a domestic rare-earth industry. This is an acknowledgment of the “country’s current limitations in advanced separation and refining technologies,” said Ramsawak.
Vietnam’s Ministry of Agriculture and Environment is working on a national strategy for rare earth minerals which will be submitted to the government early next year, according to a website post.
Source: www.bloomberg.com
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein