The Australian Trade and Investment Commission (Austrade) is encouraging mining services companies to capitalise on Vietnam’s heightened focus on resources, particularly rare earths.
While hosting one of the world’s largest rare earth deposits, Austrade says Vietnam is in a strong position to benefit from the growing global demand for these minerals.
Yet rare earth extraction in Vietnam has remained relatively low at 300 million tonnes.
“However, new projects focusing on increasing extraction are promising for the nascent sector,” Austrade says.
“The discovery of greater critical mineral deposits, alongside newly supportive government policy, presents an emerging opportunity for Australian mining equipment, technology and services (METS) companies to capitalise on the growing Vietnamese market.
“With Vietnam’s heightened focus on resource discovery, data collection and mining industry development, this is an ideal time for Australian METS companies to enter the market and strategically position themselves for long-term growth.”
A new centralisation for economic planning and investment attraction was legislated in the 2024 Mineral Geology Law, which was passed by the Vietnamese National Assembly in Q4 2024. The law is due to take effect from 1 July 2025.
The new law aims to promote the sustainable extraction of mineral resources to enhance Vietnam’s overall national defence and security. It is designed to centralise the management of geological resources by providing a consistent framework across the whole of Vietnam in a bid to enhance state efficiency and sustainability.
Export markets across Asia
Rising geopolitical risks in trade are presenting significant challenges for the mining sector. The US Geological Survey’s recent downgrading of Vietnam’s rare earths deposit size from 22 million tonnes to 3.5 million tonnes is also noteworthy, highlighting uncertainty in the market’s scale.
Nonetheless, Austrade says Vietnam is looking to diversify mining partners and exports, positioning Australian METS companies to be trusted partners.
Vietnam’s rare earths are typically exported, with the majority going to Asian markets including China, Hong Kong, Japan, and Thailand.
In addition to continuing to export Vietnam’s rare earths across Asia, the government is looking to support more domestic demand for the minerals, particularly in high-end industries.
“Within this context, the close Vietnamese-Australian trade relations are important to highlight. The ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP) reduce trade barriers for Australian METS companies to take advantage of the emerging opportunity in the Vietnamese market,” Austrade says.
Recently, the Deputy Minister of Agriculture and Environment Tran Quy Kien highlighted the abundance of resources in Vietnam’s northwest region and the vital role of the region in the Vietnamese economy.
The Minister touched on the underutilisation of resource extraction in the region. He encouraged local authorities to continue integrating their projects into geological and mineral-related data for economic planning and investment attraction.
Write to Adam Orlando at Mining.com.au
Images: Unsplash & Austrade
