Vietnam’s policy in the field of rare earth metals

This article examines Vietnam’s government policy in the rare earth metals (REM) sector. Vietnam holds some of the world’s largest REM reserves and aspires to establish a key position in the global market. Industry development is part of the national energy and industrial strategy. However, the industry faces a number of challenges: a lack of modern technology, limited production capacity, and a high dependence on foreign technology, primarily Chinese. Environmental risks also remain significant, including soil and water pollution with heavy metals and chemical reagents, as well as weak waste management. The government is taking steps to improve legislation and attract foreign investment. Particular attention is being paid to leveraging international trade agreements (EVFTA, CPTPP) to integrate into global supply chains and diversify partnerships to reduce dependence on China. With effective resource management, a favorable investment environment, and enhanced environmental controls, Vietnam could become a leading player in the REM market, especially given growing domestic demand for electric vehicles, solar panels, and other high-tech products.