The EU seeks stronger critical-mineral ties with Vietnam to diversify supplies and reduce dependence on China, with proposed support for mining and processing projects facing investment and regulatory risks.
The European Union (EU) is seeking closer cooperation with Vietnam to secure critical minerals and reduce its dependence on China, according to internal EU documents. The move comes amid concerns that China’s export restrictions and growing global competition could disrupt supplies essential to European industries and defence manufacturing.
Vietnam holds substantial reserves of tungsten, rare earths, antimony, bismuth and bauxite, with gallium also recoverable as a byproduct. However, EU imports from Vietnam have largely been limited to tungsten and antimony, minerals used in defence applications, including ammunition and explosives.
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Documents prepared by the EU delegation in Hanoi in June recommend financial and technical assistance for Vietnam’s mining and mineral-processing sectors. Proposed measures include loans, grants, technical support and export-credit insurance to help maintain and expand access to tungsten, bismuth, antimony and titanium. The documents also call for stronger engagement with Vietnam to establish an alternative source of supply to China, the world’s leading producer of several critical minerals.
The EU is also seeking to prepare for potential agreements during Vietnamese leader To Lam’s expected visit to Brussels, where critical minerals are likely to feature in discussions with European leaders. The visit has not been officially announced. The European Commission says it is assessing opportunities for concrete cooperation with Vietnam in the critical raw materials sector.
However, the proposed partnership faces challenges. EU documents warn of regulatory uncertainty, political hurdles, limited transparency surrounding China’s involvement and Vietnam’s technology-transfer requirements. Competition from non-European investors could also affect European access to Vietnamese resources.
The documents cite concerns over a failed attempt involving Australian, US and Canadian entities to acquire a majority stake in Masan High-Tech Materials’ tungsten operations. The mine and refinery are important suppliers to Europe, particularly Germany. The EU is also concerned that other rare-earth projects in Vietnam could leave European companies with limited access to future supplies.
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Stronger EU-Vietnam cooperation could help diversify critical-mineral supply chains, although securing reliable access will depend on investment, regulatory conditions and competition from other countries.