Supply is congested, costs skyrocket
In early June, reporters of Lao Dong Newspaper recorded that the sand gathering areas along the Da River (Hoa Binh City), which used to be bustling with vehicles entering and leaving, have now become unusually quiet.
Ms. Nguyen Thi Hoa - representative of a construction materials business - said: "In more than 20 years in the profession, I have never seen the sand market face difficulties like today. Previously, the highest sand price was only around 150,000 VND/m3, now it has skyrocketed to 270,000 VND, in some places it reached 300,000 VND but there is still no goods".
According to Ms. Hoa, the main reason is that many sand mines in Hoa Binh and Thanh Hoa have expired or are waiting for an extension or new license. The prolonged procedures caused serious supply disruptions, while the cost of gasoline, labor and transportation all increased simultaneously, pushing up prices.
A similar situation occurred at the sand beach in Trung Minh ward (Hoa Binh city). Mr. Dung - the owner of the property - shared: "The price has increased to 300,000 VND/m3 but there is no product to sell. Many days have to temporarily suspend operations because there is nothing left to import".
"The construction season is peak and there is a shortage of goods, causing prices to increase every day. If this continues, it is not known how much more prices will increase" - he worried.
The project is at risk of stopping construction due to lack of sand
According to Mr. Nguyen Van Thai - representative of a construction enterprise in Hoa Binh province, the mountainous terrain makes transporting materials very difficult. Materials have increased in price, and dozens of kilometers of mountain passes have declined, and people have postponed their house construction plans, while businesses are stuck in the middle: Can't increase prices, and can't make losses.
In Son La, the situation is even more difficult due to lack of on-site supply. Mr. Tung - representative of a construction enterprise - informed that because there is no separate mining mine, the units are forced to buy sand through intermediaries and bear additional transportation costs.
"Each cubic meter of sand adds 80,000 - 100,000 VND, just including gasoline and road clearance fees" - he said.
Not only sand, many essential materials such as stone, cement, iron and steel... also increased in price. Although the increase is not too large, it accumulates, causing the total cost to increase significantly.
Mr. Nguyen Van Ha - representative of a unit constructing a house and school in Thach Thanh district (Thanh Hoa) - said that sand prices have increased by more than 300% compared to the beginning of the year, causing costs to exceed the framework.
Not only are local gathering places struggling, but the transportation sector is also heavily affected by the "sand fever".
According to Mr. Nguyen Van Dai - a driver transporting sand from Hoa Binh to Thach Thanh district (Thanh Hoa): "For more than a month now, I have had to go to Hoa Binh to get goods because there are no more operating yards in Thanh Hoa. Some days I wait from morning to afternoon until my turn, some days I return empty-handed".
The price of imported sand in Hoa Binh is currently 270,000 VND/m3, but when it arrived in Thanh Hoa, it reached 450 - 500,000 VND/m3.
Mr. Nguyen Thanh Tung - Deputy Director of Van Tai and Northwest Tourism Company - said that one of the key factors to cool down the market is that sand mines in Thanh Hoa need to be restored to operation soon. This is the main source of supply for many northern and north central provinces.
According to Mr. Tung, if Thanh Hoa mines continue to "freeze", pressure will be on localities such as Hoa Binh, making the supply unable to meet demand. To lower prices, it is necessary to soon let legal mines resume operations.
"People and construction enterprises should gradually switch to using artificial sand (sand grinding from stone). This is a type of material that can control quality, the cost is more stable and does not depend on the riverbed exploitation license - which is increasingly tightened" - Mr. Tung commented.
Regarding this issue, in an interview with Lao Dong, the leader of the Department of Agriculture and Environment of Hoa Binh province confirmed that the price of construction sand has increased. The reason is that many sand mines have run out of reserves or lead to a shortage of sand resources.
