Vietnam Tightens Grip on Rare Earths Exports to Boost Domestic Industry

Vietnam's parliament approves a revised law to restrict refined rare earths exports and reaffirm a ban on ore exports. The move aims to support the domestic industry by fostering a modern industrial ecosystem and improving the domestic value chain amid global reliance on China's supply.

In a move to bolster its struggling domestic rare earth industry, Vietnam's parliament has greenlighted a revised law that limits the export of refined rare earth materials and reaffirms a ban on ore exports. This legislative adjustment is seen as crucial for developing a modern industrial ecosystem within the country.

Vietnam, home to one of the world's largest rare earth deposits, faces a significant recalibration of its reserve estimates, now pegged at 3.5 million tonnes, down from a previous 22 million tonnes. The amended law mandates that deep processing of rare earths should contribute to building a self-reliant industrial framework.

While the Western world seeks alternatives to China's dominant rare earth supply, Vietnam's current refining limitations mean these changes will not have an immediate impact. The ban on ore exports and stringent control measures are in place to overcome longstanding regulatory challenges that have stymied exploitation efforts.

(With inputs from agencies.)