The European Union is seeking closer ties with Vietnam to secure critical minerals and reduce its dependence on China, according to internal documents reviewed by Reuters.
The documents identify Vietnam as a potential supplier of materials essential to European industries and defence production, as competition for critical minerals intensifies and threatens existing supply chains.
Vietnam has substantial reserves of tungsten, rare earth elements, antimony, bismuth and bauxite, which can be processed to extract gallium. However, its mineral exports to the EU have mainly consisted of tungsten and antimony, both of which are used in defence applications, including ammunition and explosives.
A report prepared by the EU delegation in Hanoi said Europe could not afford to overlook Vietnam as it seeks to strengthen its defence capabilities and reduce strategic dependencies, particularly because of the country’s reserves of tungsten and rare earth elements.
The report and an accompanying document, both dated June 2026, recommend financial support for Vietnam’s mining and processing industries to maintain and expand European access to tungsten, bismuth, antimony and titanium. They also warn that competition from other countries could disrupt supplies to the bloc.
The documents, which have not previously been reported, emphasise the need for alternatives to China, the world’s leading producer of critical minerals. They cite Chinese export restrictions introduced last year as a factor that disrupted European supply chains.
One document urged EU institutions to prepare concrete proposals for cooperation ahead of Vietnamese leader To Lam’s expected visit to Brussels. Four European and Vietnamese officials said the visit was planned for the following week, with meetings involving EU leaders scheduled for October 22. The visit has not been officially announced.
The planned engagement comes as EU leaders prepare to discuss ways to reduce the bloc’s reliance on Chinese goods and raw materials while securing alternative sources of strategically important resources.
A spokesperson for the European Commission said the bloc was assessing opportunities for practical cooperation with Vietnam in the critical raw materials sector.
Although Vietnam is not currently among the EU’s 16 strategic partners on raw minerals, two officials said critical minerals were expected to feature prominently in the upcoming discussions.
The two sides have also made progress on other issues. Brussels removed Vietnam from its tax-haven blacklist last week, while Hanoi has urged EU member states to ratify a 2019 investment protection agreement that remains blocked by several countries, including France. Vietnam has also called on the bloc to lift a warning concerning its fisheries.
Vietnam’s foreign ministry did not respond to a request for comment, while the EU delegation declined to comment.
Beyond diplomatic cooperation, the EU documents warn that growing international competition for Vietnam’s mineral resources could threaten Europe’s access to essential supplies.
One document refers to an unsuccessful attempt last year by interests from Australia, the United States and Canada to acquire a controlling stake in Vietnam’s largest tungsten operation, owned by Masan High-Tech Materials.
The operation, which includes a mine and refinery, is an important tungsten supplier to Europe, particularly Germany. However, exports fell significantly last year amid administrative bottlenecks and rising tungsten prices.
Two people familiar with the matter said Australian mining company EQ Resources led the proposed acquisition. The document warned that the deal could have put existing supplies to the EU at risk. Both sources declined to be identified because the discussions were private.
EQ Resources did not respond to a request for comment, while Masan High-Tech Materials declined to comment.
Last month, Masan High-Tech Materials sold a 4.99 per cent stake to Elmet Group, a tungsten supplier to the US defence stockpile.
The Vietnamese company is also discussing the sale of an additional five per cent stake to an investor outside Europe, according to two people familiar with the negotiations. They declined to be named because the talks were confidential.
Meanwhile, Australia’s Lynas Rare Earths and South Korea’s LS Eco Energy are involved in a project to produce rare earth metals in Vietnam using imported raw materials. The EU document identifies the initiative as another development that could put the bloc at a disadvantage in securing critical minerals.
To strengthen Europe’s position, the documents recommend supporting Vietnam’s mineral-processing industry, which they describe as less politically sensitive than mining operations.
Proposed measures include loans, grants, technical assistance and export-credit insurance for critical-mineral projects. The EU could also help improve geological surveys and identify Vietnam’s mineral resources more accurately.
However, the documents caution that investments in Vietnam’s critical-minerals sector carry several risks, including limited transparency over China’s involvement, regulatory and political obstacles, and what they describe as Vietnam’s economic nationalism, particularly requirements for technology transfers.
Goodness Anunobi
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