Vietnam: A Strategic Partner for Peace and Security in Southeast Asia
July 8, 2025 | Chakotay
Executive Summary
Vietnam represents a critical strategic opportunity for the Trump Administration to strengthen U.S. military and diplomatic engagement in Southeast Asia while securing vital critical minerals. As one of the few Southeast Asian nations that has shifted away from China toward the United States over the past two decades [1], Vietnam offers immediate opportunities to counter Chinese regional ambitions, diversify critical mineral supply chains, and maintain peace through strategic partnership rather than confrontation.
Background
China’s growing assertiveness in the South China Sea and dominance over critical mineral processing creates significant vulnerabilities for U.S. national security and regional stability. Vietnam’s strategic location, substantial untapped natural resources, and alignment with U.S. interests make it an ideal partner for establishing alternative supply chains and strengthening regional deterrence against Chinese military expansion [2].
Rationale
Vietnam has become an important hub of global manufacturing. The country holds an estimated 3.5 million metric tons of rare earth reserves, ranking among the world’s largest [3]. Vietnam shares direct concerns over China’s aggressive military activities in the South China Sea. The U.S. should move forward with the following three-prong policy approach:
• Regional Security Enhancement. Vietnam’s concerns about China’s military assertiveness in the South China Sea aligns with U.S. strategic interests in maintaining free navigation and regional stability [4]. Strengthening this partnership creates a reliable ally positioned at the heart of contested waters, providing both diplomatic leverage and potential military cooperation opportunities.
• Critical Minerals Security. Vietnam’s mineral reserves remain dramatically underutilized, creating immediate opportunities for U.S. investment and long-term supply agreements that reduce dependence on Chinese-controlled resources essential for defense technologies and economic competitiveness.
• Economic Leverage. When tariffs were introduced in April, Vietnam offered to eliminate all tariffs on U.S. goods [5]. Vietnam’s desire for economic development creates natural alignment with U.S. capabilities that can effectively compete with China’s Belt and Road Initiative investments.
Conclusion
A galvanized U.S.–Vietnam partnership will transform regional tension into collaborative opportunities, establishing Vietnam as a cornerstone of U.S. Indo-Pacific strategy that promotes Peace Through Strength economic partnership, security interests, and prosperity rather than through military escalation or confrontation.
References
[1] Yuen Foong Khong and Joseph Chinyong Liow. “Southeast Asia Is Starting to Choose”. In:
Foreign Affairs 104.4 (June 24, 2025). Volume Title: July/August 2025. issn: 0015-7120. url:
https://www.foreignaffairs.com/china/southeast-asia-starting-choose-khong-liow
(visited on 07/06/2025).
[2] Research and Markets. Vietnam’s Rising Rare Earth Market: Untapped Potential in Southeast
Asia. GlobeNewswire News Room. June 24, 2025. url: https://www.globenewswire.com/
news-release/2025/06/24/3103993/28124/en/Vietnam-s-Rising-Rare-Earth-Market-
Untapped-Potential-in-Southeast-Asia.html (visited on 07/06/2025).
[3] Madhumitha Jaganmohan. Rare earths: global reserves by country 2024. Statista. June 27, 2025.
url: https://www.statista.com/statistics/277268/rare-earth-reserves-by-country/
(visited on 07/07/2025).
[4] Khang Vu. How Much Risk Can Vietnam Run in the South China Sea? The Diplomat. Dec. 24,
2024. url: https://thediplomat.com/2024/12/how-much-risk-can-vietnam-run-in-thesouth-
china-sea/ (visited on 07/07/2025).
[5] “Vietnam, squeezed between America and China, looks for new friends”. In: The Economist
(May 22, 2025). issn: 0013-0613. url: https://www.economist.com/briefing/2025/05/
22/vietnam-squeezed-between-america-and-china-looks-for-new-friends (visited on
07/07/2025).
