While there has yet to be a defined concept of "strategic minerals," Vietnam has developed a similar term, reflecting Vietnam’s interest in this matter. The Geological Strategy for Minerals and Mining Industry by 2030, Vision towards 2045 (dated April 2023), uses the term "strategic and important minerals." The Strategy identifies these minerals as "rare earth elements, radioactive minerals (uranium-thorium), rare metals (lithium, beryllium, cobalt), metals in short supply (gold, tin-tungsten, copper, nickel), industrial minerals, construction materials, and alternative minerals to replace sand and river pebbles."[1]
Vietnam has a significant demand for strategic minerals. Based on current economic development rates, forecasts predict that Vietnam's need for mineral resources will grow by an average of 6.5% annually [2]. Furthermore, as Vietnam strives to achieve a net-zero emissions target by 2050, strategic minerals will play a crucial role in facilitating the transition from conventional energy sources to greener alternatives.
Vietnam enjoys favorable conditions for mineral exploitation. Firstly, Vietnam ranks among the global leaders in terms of reserves and production of several important minerals. According to the U.S. Geological Survey (USGS) report in 2019, Vietnam was the world’s second-largest producer of tungsten, accounting for 5.4% of global production and 2.8% of global reserves. It also ranked 11th in bauxite production, accounting for 1.1% of global production, with reserves making up 12% of the world’s total [3], including clean nickel sources [4].
In particular, rare-earth elements are one of Vietnam's strategic minerals with significant potential. Although the current production volume is modest (accounting for only 0.6% of global production in 2019), Vietnam's reserves constitute 18% of the global total, second only to China [5]. Additionally, Vietnam has potential deep-sea mineral resources, including in the East Sea (South China Sea). The Ponaga Program, a collaboration between France and the University of Science and Technology of Hanoi in 1993, discovered iron-manganese crusts and nodules while exploring oil and gas in the continental shelf in the South China Sea. Some studies, particularly from China, have identified valuable minerals in the South China Sea [6], including polymetallic nodules and metal-rich layers.
Secondly, Vietnam also possesses other advantages in the regional mineral supply chain: (i) processing capabilities for certain minerals, as Vietnam is currently ranked as the world's 14th largest steel producer and the second-largest bismuth producer [7]; (ii) a strategic geographical location with access to key regional markets such as China, Japan, and South Korea, all of whom are major importers of rare earth minerals[8]; (iii) political stability and good relations with countries involved in mineral imports and exports.
Thirdly, Vietnam has established a policy framework on this issue. Resolution No. 10-NQ/TW dated February 10, 2022 of the Politburo on the strategic orientation for geology, minerals, and mining industry until 2030, vision towards 2045 emphasizes focusing on investigating and assessing strategic and important minerals. The strategy incorporates requirements for surveying and defining promising areas, overall potential assessment, exploration to meet extraction and processing needs, and balancing between exploitation and national mineral reserves for strategic and important minerals.
In July 2023, Deputy Prime Minister Tran Hong Ha approved the Exploration, Exploitation, Processing, and Utilization Plan for various types of minerals during the period 2021-2030, vision towards 2050 [9]. The plan sets specific goals for certain types of minerals with large reserves and strategic importance during the prescribed period. In addition, Vietnam is also participating in the negotiation process within the framework of the International Seabed Authority (ISA) for deep-sea mining. [10]
Fourthly, Vietnam has undertaken various actions to implement the aforementioned orientations. Domestically, Vietnam has been actively exploiting various strategic minerals. Tungsten production, for example, reaches approximately 4,800 tons per year, with the prominent Nui Phao mine in Dai Tu District, Thai Nguyen Province being a key source. Significant manganese and chromium mines include Cau Dinh chromite mine (Thanh Hoa) and manganese mines in Cao Bang, Tuyen Quang, and Ha Tinh.
Internationally, Vietnam is striving to become an important production base for electronic equipment and components in Southeast Asia while also emerging as a growing renewable energy market. Countries such as South Korea, Japan, and Canada are forming partnerships with the Vietnamese government and private companies to establish a rare earth supply chain and other important materials. Australian companies are also considering investments in Vietnam's mining sector, including the Australian Strategic Minerals (ASM) company, which signed an agreement in mid-December 2022 with the Vietnam Rare Earth Joint Stock Company to provide long-term rare earth oxide supply for ASM's metal plant.
However, Vietnam's policies regarding minerals, especially strategic minerals, still have some shortcomings. Firstly, some sectors have yet to develop their full potential. Certain minerals such as lithium (the lithium mine in La Vi - Ba To, Quang Ngai has an estimated reserve of about 1 million tons of ore or 10,000 tons of Li2O but remains unexploited) and nickel (estimated reserves of about 3.6 million tons, mainly in Thanh Hoa with over 3 million tons, Son La, and Cao Bang, but with low production), have not have not been fully exploited or utilized.
Secondly, there are many management shortcomings. Issues like illegal mining, smuggling, and resource loss are still prevalent across various minerals ranging from gold, manganese, to rare earths. Many mineral mining projects also cause environmental pollution, affecting people's lives and sparking public outrage. The licensing process for mining still has its flaws, often resulting in permits being grated to companies with insufficient financial or technological capacity.
Thirdly, the mining and processing technologies are outdated. Vietnam lacks the ability to deeply process minerals to upgrade their quality, and in some cases, unable to exploit certain types of minerals (such as rare earths at the Dong Pao mine). Some new minerals are only mined in raw forms, with limited refining and processing into high-value-added products, thus resulting in limited downstream profits. Certain minerals, such as rare earths, are not encouraged to be exported in raw form due to limited profitability, thus requiring complex processing of refined exports with accompanying hazardous substances. Furthermore, without proper technologies, rare earth mining can also cause serious environmental consequences.
Lastly, Vietnam has not been extensively involved in the research, exploration, processing, and mining of deep-sea minerals. The Geological, Mineral, and Mining Industry Strategy incorporates the requirements for exploring and investigating deep-sea and offshore minerals, including geological surveys of certain deep-sea areas, adjacent international waters, and discovery of deep-sea minerals. However, the current focus is mainly on exploration. Vietnam also lacks expertise in this field, while policy incentives and financial resources are still limited. Consequently, few discoveries of solid deep-sea minerals have been announced.
Hoang Do - Ngoc Mai - Viet Ha
East Sea Institute, Diplomatic Academy of Vietnam
Translated and edited by ND, NN, HD
References
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