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With China tightening its grip on critical mineral supplies, the European Union is looking to Vietnam as an alternative source of raw materials essential for its defence and technology industries
With China tightening its grip on critical mineral supplies, the European Union is looking to Vietnam as an alternative source of raw materials essential for its defence and technology industries.
Brussels wants to deepen cooperation with Hanoi to reduce its dependence on China and protect European supply chains from future disruptions.
Vietnam has substantial reserves of rare earths, tungsten, antimony, bismuth and bauxite, making it a potential supplier of minerals used in everything from ammunition and explosives to advanced technology.
However, the country’s mineral exports to the EU have so far largely been limited to tungsten and antimony.
According to internal EU documents reviewed by Reuters, European officials are pushing for greater engagement with Vietnam, including financial assistance for its mining and mineral-processing industries.
The documents, dated June 2026, warn that competition from other countries could threaten Europe’s access to Vietnamese supplies.
EU looks to diversify mineral supplies beyond China
The EU documents argue that Europe cannot afford to overlook Vietnam as it seeks to strengthen its defence capabilities and reduce dependence on Chinese raw materials.
China, the world’s leading producer of several critical minerals, imposed export restrictions last year that disrupted European supply chains. Brussels is now looking to diversify its sources and establish more reliable access to materials needed by strategic industries.
More from BusinessThe documents recommend support for Vietnam’s mining and processing sectors, particularly for tungsten, bismuth, antimony and titanium. Proposed measures include loans, grants, technical assistance and export-credit insurance, as well as help to improve the mapping of Vietnam’s mineral resources.
A European Commission spokesperson told Reuters that the EU executive was assessing the potential for concrete cooperation with Vietnam in the critical raw materials sector.
Vietnam is not currently among the EU’s 16 strategic partners for raw materials, but critical minerals are expected to feature prominently in upcoming discussions between the two sides.
Competition from US, Australia raises concerns
The EU is also concerned that European access to Vietnamese minerals could be affected by growing competition from other countries.
One of the documents refers to a failed proposal last year involving entities from Australia, the United States and Canada to acquire a majority stake in Vietnam’s largest tungsten operation, owned by Masan High-Tech Materials.
The mining and refining complex is an important tungsten supplier to Europe, particularly Germany. However, exports declined significantly last year amid administrative bottlenecks and rising tungsten prices.
Last month, Masan High-Tech sold a 4.99 per cent stake to Elmet Group, a tungsten supplier to the US defence stockpile. The Vietnamese company is also in talks with a foreign investor outside Europe over the sale of another 5 per cent stake, according to people familiar with the discussions cited by Reuters.
The EU documents also flag a rare earths project involving Australia’s Lynas Rare Earths and South Korea’s LS Eco Energy in Vietnam, warning that Europe risks falling behind in the competition for supplies.
Closer ties come with risks
Vietnam offers Brussels an opportunity to diversify supplies, but investments could face regulatory and political hurdles.
The documents also flag concerns about transparency over China’s involvement and Vietnam’s requirements for technology transfers.
The proposed closer engagement comes as Hanoi seeks stronger economic ties with Europe. Vietnam has urged EU countries to ratify an investment protection agreement signed in 2019, which remains blocked by several countries, including France.
Vietnamese leader To Lam is expected to visit Brussels next week, with meetings with EU leaders scheduled for October 22, according to officials cited by Reuters. The visit has not been officially announced.
The discussions could provide an opportunity for both sides to advance cooperation as Europe seeks alternatives to Chinese mineral supplies.
