EU Targets Vietnam Mineral Reserves to Break Dependence on China
The European Union is pursuing a strategic partnership with Vietnam to secure critical minerals like tungsten and rare earths, aiming to bypass China.
POLICY WIRE — Hanoi, Vietnam — The European Union is actively pursuing a strategy to secure critical mineral supplies from Vietnam, aiming to diminish its heavy reliance on China. Internal documents reviewed by Policy Wire indicate that Brussels views Vietnam as a vital alternative source to mitigate risks to its existing supply chains.
Vietnam possesses significant deposits of essential materials, including tungsten, rare earths, antimony, bismuth, and bauxite. While current exports to the EU are primarily focused on tungsten and antimony—both critical for defense applications like ammunition—the bloc is eager to expand this relationship.
A document drafted by the EU delegation in Hanoi emphasizes the urgency of the situation, stating: Considering Europe’s need to rearm and de-risk as fast as possible, the EU cannot afford ignoring Vietnam as a potential supplier of critical raw materials considering its abundant reserves in rare earth and tungsten in particular.
Dated June 2026, the internal reports recommend providing financial assistance to bolster Vietnam’s mining and processing sectors. This initiative is designed to maintain and expand access to key resources while guarding against competition from other nations that could threaten European supply stability.
The push for deeper engagement follows Beijing’s implementation of export restrictions last year, which caused significant disruptions to European supply chains. EU institutions are now preparing for potential agreements during the upcoming visit of Vietnamese leader To Lam to Brussels, with meetings expected on October 22.
A spokesperson for the European Commission confirmed that the executive arm is currently evaluating the potential for concrete cooperation with Vietnam regarding critical raw materials. This diplomatic effort coincides with broader discussions at the European Council focused on securing alternative resources and reducing dependence on Chinese goods.
Despite the strategic interest, challenges remain. Vietnam is not currently among the EU’s 16 strategic partners for raw minerals, and the nation faces hurdles such as regulatory complexity and economic nationalism. Furthermore, the EU is wary of competition, noting a failed attempt by entities from Australia, the U.S., and Canada to acquire a majority stake in Masan High-Tech Materials, Vietnam’s largest tungsten operator.
Proposed support instruments include loans, grants, technical assistance, and export-credit insurance. The EU aims to prioritize the processing industry, which is considered less politically sensitive than direct mining operations, while navigating concerns regarding transparency and technology transfer requirements.
Reporting by Policy-Wire (PW)
