Vietnam is cementing its place in the global supply chain for rare earth magnets, thanks to abundant natural resources and favorable policies supporting the electronics and renewable energy sectors.
As the energy and electronics industries continue to flourish, permanent rare earth magnets are proving indispensable. With diverse applications spanning electronics, automotive, wind energy, healthcare, and household appliances, these magnets optimize performance while significantly conserving energy. Leveraging its rich resources and strategic policies, Vietnam is emerging as a key supplier of rare earth permanent magnets in the global market.
Experts note that the rare earth magnet supply chain encompasses upstream (mining and refining rare earth metals such as neodymium, samarium, and cobalt) and downstream (application industries). In electric vehicle production and wind power generation, rare earth magnets are essential for enhancing motor efficiency and reducing energy consumption. Electronic products such as smartphones and laptops rely on these magnets to achieve compact and lightweight designs.
Research Report on Vietnam’s Permanent Magnet and Rare Earth Exports 2024–2033
In heavy industry, rare earth magnets are extensively used in electric motors and generators, particularly in critical sectors like electric vehicles, wind turbines, and automation. High-tech applications such as maglev trains, robotics, and aerospace also rely on these magnets for their high performance and versatility.
While Vietnam’s rare earth magnet industry is not as developed as that of China or Japan, it is steadily becoming a global supplier due to its abundant resources and competitive labor costs. Estimates suggest that Vietnam holds approximately 22 million tons of rare earth resources, accounting for 19% of the world’s reserves—a substantial raw material base for industrial sectors.
The government is actively attracting foreign investment and promoting high-tech industries, creating favorable conditions for the rare earth permanent magnet sector. As a result, Vietnam’s rare earth magnet exports are experiencing robust growth, opening avenues for exceptional development in the global energy and electronics supply chains.
According to analysts, Vietnam’s rare earth magnet exports were valued at around 370 million USD in 2023, with continued positive growth. From January to July 2024, export revenues surpassed 200 million USD, with key markets including Japan, the Philippines, and Malaysia. Major companies like Shin-Etsu Chemical Co., Ltd., and Union Materials are among Vietnam's significant clients.
A large portion of Vietnam’s rare earth magnet exports comes from foreign-invested enterprises, particularly subsidiaries of international electronics and chemical conglomerates.
With rising global demand for electric vehicles and renewable energy, the rare earth magnet industry is poised for strong growth in the coming years. Benefiting from the free trade agreements Vietnam has signed, domestic exporters enjoy tariff advantages and enhanced competitiveness in international markets.
Experts predict that with its growing production capacity and government support, Vietnam’s rare earth permanent magnet industry will continue to expand, becoming an integral part of the global energy and electronics supply chain in the near future.
