In an effort to stimulate Vietnam’s aluminium industry and meet future demand, Vinacomin has announced strategic investments to expand its aluminium production capacity. 

Globally, Vietnam is a significant producer of bauxite, however, the country has not been able to leverage its large-scale bauxite ore reserves position to meet its full bauxite mining capacity potential. This has mostly been related to the governments controversial 2009 decision to allow foreign investment into the bauxite mining industry, specifically China.

The announcement was followed by strong public resistance against foreign investment, with concerns highlighting social and environmental risks along with potential loss of indigenous land rights, resulting in a slowing of investment. In recent years, efforts from the Vietnamese government have focused on expanding its domestic aluminium industry, and in 2023, the government authorised several bauxite projects, whilst taking a strong stance on environmental protection and sustainable development.

The latest investment will see Vinacomin increase alumina capacity at its Nhan Co Alumina Complex from 650ktpy to 2Mtpy, while its Dak Nong Complex will expand capacity to 2Mtpy of alumina and 0.5-1Mtpy of aluminium. Additionally, the government aims to bring up to 8 new bauxite mines online by 2030 to meet the growing global demand. 

Continued global industrialisation will see aluminium demand grow from 108Mt in 2023 to over 130Mt by 2034, representing a growth of 27% over the next decade. Given that Vietnam hosts significant bauxite ore reserve, government interventions and investments will allow Vietnam to play an important role in the future supply of aluminium.