Vietnam not to export raw rare earths: Deputy Prime Minister

Vietnam will not export raw rare earth elements as this is a very complicated market which is mainly controlled by big countries, said Deputy Prime Minister Tran Hong Ha on Tuesday.

Addressing National Assembly members at a Q&A session, the official cited the U.S. Geological Survey's statistics as showing that Vietnam’s rare earth reserves account for 18% of the global total.

The global market demand for rare earth elements has increased about 4% per year since 2014 due to their use in manufacturing batteries, magnets, and electric vehicles, as well as in space applications, he said.

The exploitation of rare earths has been closely directed by the government, he noted, elaborating that the government has directed the Ministry of Natural Resources and Environment and relevant ministries and agencies to conduct surveys to evaluate rare earth reserves and determine principles based on market supply and demand for exploitation.

“We are determined not to export raw rare earths, instead we need to promote the development of industrial sectors with demand for rare earths, thereby ensuring more sustainable supply and demand. This is also an opportunity to attract investment,” he affirmed.

Earlier, answering legislators’ questions, Minister of Natural Resources and Environment Dang Quoc Khanh revealed that Vietnam has large reserves of rare earth elements, at about 20.7 million tons, but exploitation and processing have yet to be comprehensively researched and examined.

“It is necessary to take into account deep and fine processing of essential minerals such as rare earths in order to support industrial production and development,” he stressed.

According to the minister, as Vietnam is focusing on developing the chip and semiconductor industry, it needs to attract investment and technology in deep processing of rare earths in order serve this mission.

The Ministry of Natural Resources and Environment has requested localities, especially those with rare earth reserves such as the northern mountainous provinces of Lai Chau, Yen Bai, and Lao Cai, to strengthen rare earth management, he added.

Rare earths are minerals consisting of 17 elements with special magnetic and electrochemical properties. Rare earth elements are valuable, strategic minerals that play an important role in fields ranging from electronics, atomic engineering, machine manufacturing, chemical industry, to metallurgy and even livestock and crop farming.