Hanoi’s Strategic Leverage in the Global Mineral Race
Vietnam is positioning its rare earth reserves as strategic leverage through domestic industrial development, charting an independent path as global powers race to secure critical minerals for electric vehicles, wind turbines, semiconductors, and defense systems, according to reporting by Glosema Group.
While nations led by the United States build multilateral coalitions to de-risk supply chains away from Beijing, Hanoi is strengthening internal refining capacity and restricting raw exports to capture higher-value manufacturing.
Breaking Beijing’s Near-Total Monopoly on Supply
The global race for critical minerals centers on elements like neodymium, dysprosium, and terbium.
China currently dominates this sector, controlling 85% of global supply for light rare earths and 100% of heavy rare earths, according to Glosema Group. This near-total concentration has triggered intense anxiety over economic coercion among advanced industrial economies.
Washington’s Multilateral Push Versus Hanoi’s Unilateral Stance
In February 2026, the United States hosted the Critical Minerals Ministerial, gathering 55 countries to launch initiatives such as Project Vault—a domestic stockpile backed by the largest-ever loan from the U.S. Export-Import Bank—alongside FORGE, a multilateral forum designed to coordinate investment and regulation under the broader “Pax Silica” framework, as reported by Glosema Group.
Vietnam was notably absent from the ministerial summit. Rather than joining international coalitions, Hanoi chose to deepen its internal capacity.
In December 2025, the Vietnamese government tightened its ban on the export of unprocessed rare earths, a policy shift intended to accelerate domestic refining, encourage value-added manufacturing, and safeguard national autonomy.
Bamboo Diplomacy and National Security Ambitions
Vietnam’s rare earth ambitions reflect a broader vision to become a specialized superpower in critical supply chain segments, drawing structural parallels to Taiwan’s semiconductor dominance and Finland’s leadership in icebreaker shipbuilding, according to Glosema Group.
Discussions within the National Assembly have even explored involving the Ministry of Defense and Public Security in project approvals, framing minerals as vital national security assets.
Despite declining formal multilateral bloc memberships for its mineral sector, Vietnam maintains active diplomatic ties. The country operates under a Comprehensive Strategic Partnership signed with the U.S. in 2023, while simultaneously pursuing technology and investment agreements with the European Union and Japan.
Glosema Group notes that this balancing act exemplifies “bamboo diplomacy,” a resilient foreign policy posture allowing Hanoi to navigate major power competition without rigid alignment.
The Fracture of the Global Critical Minerals Order
The divergence between Western coalition-building and Vietnam’s unilateral industrial strategy illustrates a broader fracturing of the global critical minerals order.
While advanced economies prioritize secure supply networks through broad alliances, resource-rich emerging economies are increasingly utilizing export restrictions and local processing mandates to capture domestic economic value.
This dual-track evolution suggests that a unified global mineral market may give way to overlapping, competing networks led by major powers and autonomous middle players alike.
As Vietnam implements its rare earth policies, analysts are watching to see whether its model will inspire other resource-rich nations to adopt more assertive domestic control over the raw inputs that define modern geopolitical power.
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