Lao Cai Provincial People's Committee has just issued a document directing the implementation of Official Dispatch No. 25/CD-TTg of the Prime Minister on strengthening management solutions, stabilizing prices of fuel, raw materials, and construction materials; and at the same time removing difficulties and obstacles, accelerating the progress of site clearance and construction of works and projects.
In the document, the Chairman of Lao Cai Provincial People's Committee requested departments, branches, localities and investors to seriously implement solutions to manage and control construction material prices in accordance with legal regulations; focus on removing obstacles, accelerating site clearance progress, ensuring the construction progress of key projects, especially important transport projects.
Regarding the management of construction material prices, the Lao Cai Provincial People's Committee assigned the Department of Construction to preside over and coordinate with relevant units to announce materials prices, labor unit prices, machine shift prices and construction price indexes in a timely manner, close to the market; overcome the situation of slow announcement or lack of information.
The Department of Finance closely monitors market developments, proactively advises on appropriate price management solutions; coordinates to strengthen inspection and examination and strictly handle violations such as hoarding goods, speculation, unreasonable price increases or providing false information causing market disruption.
The Department of Agriculture and Environment reviews the supply and reserves of minerals for construction materials, advises on solutions to improve exploitation efficiency; accelerates the auction of exploitation rights, considers extending and increasing the capacity of eligible mines to ensure supply for projects.
Lao Cai Provincial People's Committee also requested to strengthen inspection and control of the construction material market; promptly detect and handle acts of speculation and price manipulation.
Previously, according to reporters' records, many key transport projects of Lao Cai province are at risk of delay due to the scarcity of construction materials and high prices.
Many types of construction materials such as sand, stone, asphalt, cement, and steel increased in price from 20 - 30%. For example, the price of asphalt increased from 140,000 VND to 200,000 VND/m3; the price of construction sand increased from 250,000 VND to 300,000 VND/m3; the price of crushed stone increased from 60,000 - 80,000 VND/m3.
According to construction businesses, one of the biggest difficulties currently is that most construction packages are signed at fixed unit prices. When material prices increase, contractors are forced to construct in conditions of increased costs but are not allowed to adjust contract prices, leading to the risk of losses.
The actual labor price has also increased by about 50% compared to the state-announced unit price, causing businesses to fall into a "difficulty on difficulty" situation. To maintain construction, many units have to use contingency capital, even borrow from banks to ensure cash flow and avoid interruption of projects.
The increase in material prices not only affects construction businesses but also directly affects the progress of a series of essential infrastructure projects in the locality, from transportation projects, schools to resettlement areas.
