Highlights

• Vietnam's amended Geology and Minerals Law bans unprocessed rare earth ore exports starting January 2026.
• All foreign investors must establish domestic processing operations to access Vietnam's 22 million metric ton reserves.
• The policy shift transforms Vietnam from a raw material supplier into a value-added gatekeeper.
• Vietnam is leveraging its significant rare earth deposits to build domestic refining capacity amid U.S.-China competition over critical minerals.
• Foreign investors now face mandatory partnership requirements and state-approved processing arrangements.
• Nghe An province is already implementing detailed regulatory frameworks to operationalize the new mineral control regime.

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Vietnam has taken a decisive step in the global rare earth chess match. With amendments to its Geology and Minerals Law taking effect January 1, 2026, Hanoi has formally banned exports of unprocessed rare earth ore and tightened state control over exploration, mining, and processing. The message is clear: if you want Vietnam’s rare earths, you will help process them in Vietnam.

This move builds on earlier policy signals. Vietnam has long imposed an 18% natural resource tax on rare earths under Resolution 1084/2015/UBTVQH13 and applied export duties to rare earth mineral products under Decree 122/2016/ND-CP, with rates varying by processing level. Circular 45/2023/TT-BCT introduced minimum export quality standards, including a ≥95% TREO threshold for certain rare earth oxide products. Now, under the amended Geology and Minerals Law (Law No. 147/2025/QH15), rare earths are formally designated as strategic minerals, codifying and reinforcing the prohibition on unprocessed rare earth ore exports. The result is a regulatory framework that shifts Vietnam from feedstock supplier toward value-added gatekeeper.

A Resource with Scale—But Limited Processing

According to the U.S. Geological Survey, Vietnam holds some of the world’s largest rare earth reserves, estimated at roughly 22 million metric tons. Yet production has historically been modest. In 2022, Vietnam produced approximately 3,800 metric tons of rare earth oxides, much of which entered China’s processing chain.

Hanoi has set more ambitious goals. A 2023 government plan outlined targets to raise annual rare earth output significantly by 2030, alongside expanded domestic refining capacity. The strategic intent: capture more value per kilogram inside Vietnam rather than shipping concentrate abroad.

On the processing front, capacity remains limited but not nonexistent. A domestic plant reportedly operates at several thousand tons per year, and Japan’s Shin-Etsu Chemical has established separation capacity in northern Vietnam as cited by CSIS (opens in a new tab). Even so, total refining output remains small relative to China’s dominant position.

That is precisely why the policy shift matters.

Geopolitics in the Background

The move has drawn attention from global media including Reuters, and comes amid heightened U.S.–China competition over critical minerals. Vietnam sits in contested geopolitical terrain: economically intertwined with China, yet increasingly courted by the United States, Japan, South Korea, and the EU as part of diversification strategies.

Rare Earth Exchanges™ has framed this as Vietnam “pulling the export plug.” The new framework does not eliminate exports—but it ensures that value-added processing must occur domestically under state-approved arrangements.

Foreign investors now face a different calculus: partnership, local processing, and regulatory compliance are no longer optional.

ESG and Operational Realities

Vietnam’s key rare earth deposits, including those in Lai Châu province such as Nam Xe, present both opportunity and complexity. Like many rare earth deposits globally, they can carry elevated natural radioactivity associated with thorium and uranium. Environmental safeguards, waste management, and community engagement will determine whether scaling production proceeds smoothly.

Nghe An Moves to Operationalize Vietnam’s Revised Geology and Minerals Framework

On February 7, 2026, the People’s Committee of Nghe An province directed (opens in a new tab) its Department of Agriculture and Environment to implement Circular No. 04/2026/TT-BNNMT, issued January 16, 2026 by the Ministry of Agriculture and Environment, which amends and supplements regulations under the revised Law on Geology and Minerals (Law No. 147/2025/QH15) and related decrees. The Circular provides detailed guidance on selecting organizations and individuals to conduct surveys and general information assessments for Group IV minerals in areas where mining rights are not subject to auction. It outlines three selection scenarios depending on whether contractors or investors request or nominate survey entities, with final authority resting either with the provincial Chairman or the Department of Agriculture and Environment. The Circular also clarifies that provincial leaders will determine licensed extraction volumes to align with project construction needs, and introduces amendments to procedures governing mining license appraisal, technical advisory councils, reporting forms, reserve classification, exploration methods, and mine closure documentation. The directive comes amid heightened scrutiny of local mineral exploitation, including concerns over unregulated sand and gravel extraction causing environmental damage and public complaints.

The Bottom Line

Vietnam is not yet a refining powerhouse. But it is signaling that it will no longer serve merely as a source of feedstock for others’ supply chains. By banning raw ore exports and conditioning access on domestic value addition, Hanoi is attempting to replicate a familiar playbook: use resource leverage to build industrial capacity at home.

For the Rare Earth Exchanges™ community, the implications are clear. Watch for:

• New joint ventures in separation and refining.
• Western financing tied to processing infrastructure.
• Increased regulatory scrutiny and state involvement.
• Tensions between near-term supply goals and long-term industrial strategy.

Vietnam’s reserves give it geological weight. Its new policy gives it strategic leverage. Whether it can translate both into durable industrial power will depend not on legislation alone—but on execution.