Internal EU documents seen by Reuters urge Brussels to secure more tungsten, rare earths and other critical minerals from Vietnam, including financial support for its mining and processing industry, to reduce reliance on China.
At a glance
- Vietnam's critical mineral exports to the EU have mostly been tungsten and antimony, both used in defence.
- Vietnamese leader To Lam is expected in Brussels next week, with meetings set for October 22, officials said.
- The documents propose loans, grants, technical help and export-credit insurance for Vietnamese projects.
Background
Tungsten and antimony are critical minerals used in defence, including ammunition and explosives. China is the world's top producer of critical minerals, and its export restrictions last year disrupted European supply chains. Vietnam holds large deposits of tungsten, rare earths, antimony, bismuth and bauxite, from which gallium can be recovered.
What happened
The European Union is seeking more critical minerals from Vietnam to reduce its reliance on China, according to internal EU documents seen by Reuters. A report by the EU delegation in Hanoi and an annex dated June 2026 recommend financial support to maintain and expand access to tungsten, bismuth, antimony and titanium.
"The EU cannot afford ignoring Vietnam as a potential supplier of critical raw materials," the delegation wrote, citing Europe's need to rearm. A European Commission spokesperson said it is assessing the potential for concrete cooperation with Vietnam.
Why Brussels is worried
The documents warn that competition from partner countries could disrupt EU supplies. They cite a failed plan last year, which two sources said was organised by Australia's EQ Resources, to buy a majority stake in Vietnam's largest tungsten operation, owned by Masan High-Tech Materials. The mine and refinery complex is a key tungsten supplier to Europe, particularly Germany.
A project by Australia's Lynas Rare Earths and South Korea's LS Eco Energy to produce rare earth metals in Vietnam is described as another initiative that risks leaving the EU behind. Last month, Masan High-Tech sold a 4.99% stake to Elmet Group, a tungsten supplier to the US defence stockpile.
What comes next
Officials told Reuters that To Lam will visit Brussels next week, with meetings with EU leaders slated for October 22, and that critical minerals are expected to feature. Vietnam is not yet among the EU's 16 strategic partners on raw materials.
The documents also flag risks, including limited transparency about China's involvement in Vietnam's sector, regulatory and political hurdles, and technology transfer demands.
Our read
Outlook: neutral. A possible EU-Vietnam partnership would diversify tungsten supply over time but does not change near-term supply.
What to watch
- Any critical minerals agreement during To Lam's visit to Brussels on October 22.
- Further stake sales in Masan High-Tech Materials.
- EU funding offers for Vietnamese mining and processing projects.
For information only, not investment advice.
Detailed analysis
Timeline
- 2026-10-14: Reuters reports internal EU documents urging closer critical minerals ties with Vietnam.
- 2026-10-22: EU leaders are slated to meet Vietnamese leader To Lam in Brussels, officials say.
Government Policies
The documents propose loans, grants and export-credit insurance for Vietnamese projects.
Geopolitical Risks
The EU wants alternatives to China after export restrictions disrupted its supply chains.
What could lift prices
- Europe's rearmament push raises demand for tungsten and antimony.
- Competition between partner countries for Vietnamese supply is intensifying.
What could weigh on prices
- Vietnam's tungsten exports fell last year due to administrative bottlenecks.
- Regulatory hurdles could slow new projects.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Vietnam | High | It could become a major critical minerals partner for the EU. |
| China | Medium | The EU is trying to reduce its reliance on Chinese critical minerals. |
| Germany | Medium | It is a key buyer of Vietnamese tungsten. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Aerospace & Defence | Positive | More secure tungsten and antimony supply supports European defence production. |
Who gains, who loses
- Vietnam's mining sector: EU funding and partnerships could support new projects.
- European buyers if talks stall: Other partner countries could secure Vietnamese supply first.
Other ways this could play out
- If the October 22 meeting produces a deal, Vietnam could join the EU's strategic raw materials partners.
- If regulatory hurdles persist, EU access to Vietnamese tungsten could remain limited.
Price risks
- China's involvement in Vietnam's sector is not fully transparent, the documents warn.
- Technology transfer demands could deter European investors.
China
Germany