Why does the Law amending the Law on Geology and Minerals supplement regulations on rare earth management?

Strategic resources of the technological age

Entering the 21st century, rare earths are considered the “blood vessels” of modern industry. This is an indispensable material in the manufacture of semiconductor chips, permanent magnets, electric vehicle batteries, wind turbines, solar panels or military robots, key products of the high-tech and renewable energy era.

According to international reports, global demand for rare earths is increasing sharply due to the wave of energy transition and the 4.0 industrial revolution. The US, Japan, South Korea and the European Union have all issued their own laws on rare earth management, demonstrating the strategic importance of this resource.

Vietnam is currently considered to have the second largest rare earth potential in the world, after China. According to the US Geological Survey, Vietnam's rare earth reserves and resources are about 22 million tons, accounting for nearly 20% of the total global reserves. The mines are mainly concentrated in Lai Chau, Lao Cai, Yen Bai , and also appear in Ha Giang, Cao Bang, Nghe An, Kon Tum, Lam Dong... In particular, the rare earth mine in Lai Chau is considered to have an industrial scale, can be exploited long-term and effectively.

*Vietnam ranks second in the world in rare earths - strategic raw materials for semiconductor production. Illustrative photo.*

According to the "Plan for exploration, exploitation, processing and use of minerals in the 2021-2030 period, with a vision to 2050", it is expected that by 2030, Vietnam will exploit about 2 million tons of raw rare earth ore per year.

The Party and State have soon recognized the importance of rare earths for national resource security and industrial development. Resolution No. 10-NQ/TW dated February 10, 2022 of the Politburo identifies rare earths as strategic minerals that need to be developed synchronously, effectively and sustainably.

Next, Decision No. 334/QD-TTg dated April 1, 2023 of the Prime Minister sets the goal of building a rare earth mining and processing industry associated with economic, social and environmental efficiency.

On November 4, when presenting to the National Assembly the draft Law amending and supplementing a number of articles of the Law on Geology and Minerals, Minister of Agriculture and Environment Tran Duc Thang said: This bill devotes a separate chapter to rare earth management, demonstrating a new and more comprehensive approach.

*Minister of Agriculture and Environment Tran Duc Thang. Photo: QH.*

The Minister emphasized that rare earths are special commodities, playing a strategic role in high-tech, renewable energy and defense industries. Therefore, it is necessary to have a separate, strict and unified management mechanism to improve the effectiveness of state management, promote the development of the rare earth mining and processing industry in a synchronous, sustainable and effective manner.

Steps to affirm national vision

The addition of regulations on rare earth management in the Law on Geology and Minerals marks an important shift from the mindset of exhaustive exploitation to sustainable resource management and development, ensuring that all activities from investigation, exploration to exploitation and processing are linked to the National Strategy on rare earth, under the centralized and unified management of the State.

Only qualified enterprises, designated or licensed by the State, are allowed to participate in this chain of activities. This approach not only helps to tightly control strategic resources, but also encourages investment in deep processing, instead of exporting raw ore - a direction that has caused many countries to lose their resource advantage.

In addition, the draft law sets strict environmental standards, because rare earth is a mineral with a complex mining and processing process, easily causing soil, water and air pollution. Legalizing the management mechanism means clearly defining the responsibility of enterprises in environmental restoration, closely monitoring the production process, ensuring economic development goes hand in hand with ecosystem protection.

One of the important goals of legalizing rare earth management is to develop a domestic deep processing industry. Vietnam aims to build a closed production chain: from mining, selection to manufacturing input materials for new energy, electronics, and precision engineering industries. This is not only an economic "problem", but also a strategy to help rare earth become the "key" to opening a new position for Vietnam in the global supply chain.

However, for this policy to be put into practice, Vietnam needs to prepare technology, human resources and business support policies. Mining and processing rare earths requires large investment capital, high technology and a long time, so the State needs to strengthen scientific research, technology transfer and international cooperation. Localities with rare earth potential also need support in planning, environmental protection and economic development associated with community interests.

Adding regulations on rare earth management to the Law on Geology and Minerals is not only a technical adjustment in the law, but also an affirmation of the State's role in protecting national interests, preserving resources for future generations, and at the same time creating a solid foundation for a modern, green and self-reliant industry.

The completion of the legal framework on rare earth management is expected to create a foundation for Vietnam to proactively develop a modern rare earth industry, take advantage of domestic resource potential, and participate more deeply in the global supply chain in the context of constantly increasing demand for this strategic resource.
According to the draft Law, the Ministry of Industry and Trade will preside over and coordinate with relevant ministries and branches to develop a national strategy on rare earths and submit it to the Prime Minister for approval.

Source: https://congthuong.vn/vi-sao-luat-sua-doi-luat-dia-chat-va-khoang-san-bo-sung-quy-dinh-quan-ly-dat-hiem-428943.html