State-owned China Rare Earth Group Co. (CREG), one of the world's largest rare-earths companies, has again expressed a desire to partner with Vietnamese companies to develop the industry in the Southeast Asian country.
At a meeting with chairman of Vietnam’s National Assembly Vuong Dinh Hue in Beijing Tuesday, CREG general director Liu Leiyun said the group is interested in strengthening ties with Vietnam's mining giant Vinacomin and other companies to build a strategic community and advance cooperation in the field of critical minerals as per agreements reached by the two countries’ highest leaders.
According to a joint statement issued at the end of Chinese President Xi Jinping’s two-day visit to Hanoi last December, Vietnam and China will study ways to strengthen bilateral and multilateral cooperation in the field of critical minerals, ensuring security of energy production and supply chains.
For his part, Hue highly regarded CREG’s capacity and experience in this field.
He stressed that the rare earth industry is a strategic industry and the foundation for developing many other important industries like semiconductors, electric vehicles, chips, and electronic parts. Vietnam holds great potential in this industry.
The top legislator affirmed that Vietnam’s parliament and government welcome businesses to engage in research and exploitation of Vietnam’s rare earth reserves to promote science-technology and socio-economic development.
Last November, at a meeting with Nguyen Hoang Anh, chairman of the Commission for Management of State Capital at Enterprises (CMSC), who is joining Hue’s entourage, CREG deputy general manager Hu Guhua said the firm was exploring cooperation opportunities with Vinacomin.
CREG was established in December 2021 by merging three of the “Big Six” state-owned enterprises that dominate the rare earth industry. It now holds 37.6% of the rare earth mining industry in China, Hu said.
Vietnam is estimated to have the world’s second largest rare earth deposits with 22 million tons, only behind China, according to U.S. Geological Survey (USGS) data.
A number of other countries like the U.S., Japan, South Korea, and Australia have advanced interest in cooperating with Vietnam in this industry.
Prof. Nguyen Mai, chairman of the Vietnam's Association of Foreign Invested Enterprises (VAFIE), said in November that dozens of foreign firms were keen on mining rare earth minerals in Vietnam. Rare earths and semiconductors may contribute 5-10% to the country’s economy if its critical mineral reserves can be effectively tapped.