Why Having Money Doesn’t Guarantee You Can Buy Sand in the Central Highlands?

Soaring Prices and Scarcity: The Impact on Construction

The construction industry in Đắk Nông Province is facing significant challenges due to surging prices and scarcity of building materials, particularly sand. The Provincial Department of Construction has announced a significant increase in sand prices, now ranging from VND 780,000 to VND 1.2 million per cubic meter. The highest prices are in Đắk G’long district, ranging from VND 1.1 to 1.2 million per cubic meter.

In other areas, such as Gia Nghĩa City and Đắk R’lấp, Tuy Đức, Đắk Mil, and Đắk Song districts, sand prices fluctuate between VND 1 and 1.1 million per cubic meter. Krông Nô district, a sand mining area, has slightly lower prices, ranging from VND 780,000 to VND 800,000 per cubic meter.

Just two months ago, in April, the Provincial Department of Construction had reported sand prices ranging from VND 330,000 to VND 560,000 per cubic meter, with production site prices as low as VND 295,000 to VND 327,000. This drastic increase has caught construction companies off guard, making it challenging to manage their projects’ budgets and timelines.

Mr. Nguyễn Văn Khanh, director of a construction company in Đắk Nông, shared his concerns about the situation. His company is currently working on three public investment projects in the province. The sudden spike in sand prices has created financial difficulties for them. Sand prices have now reached VND 1.2 million per cubic meter, double what they were just a few months ago. Moreover, sand has become scarce, and even with money, procurement is uncertain.

The increase in sand prices has also led to a rise in the cost of fresh concrete. Mr. Khanh added that his company is currently working on a provincial road project in Đắk Lắk, where the price of fresh concrete has increased by approximately VND 300,000 per cubic meter. The doubling of input costs is significantly impacting the project’s progress and budget.

Challenges for the Temporary Housing Construction Program

In Đắk Lắk, several construction projects have been delayed due to the surge in sand prices. Mr. Trần Thanh Thiện, Acting Chairman of the People’s Committee of Ea Pốk town, Cư M’gar district, shared that nine houses had been completed under the program to eradicate temporary and dilapidated houses. However, the contractor has not signed contracts for the remaining four houses due to concerns about potential losses from the high and unstable sand prices.

In Krông Bông district, Đắk Lắk, a contractor is preparing to hand over more than 100 houses built under the same program. However, the construction of several dozen remaining houses has been temporarily halted, awaiting a decrease in sand prices.

Mr. Nguyễn Ngọc Pháp, Vice Chairman of the People’s Committee of Krông Bông district, explained that out of the five licensed sand mines in the area, only two are operational. These mines have also temporarily stopped operations as the boats have exceeded their inspection validity period, further exacerbating the sand supply issues.

Regarding the steep rise in construction sand prices, Vice Chairman of the Provincial People’s Committee of Đắk Nông, Lê Trọng Yên, concluded that there are both objective and subjective reasons for this situation, including hoarding, price manipulation, and speculation. He also acknowledged shortcomings in the state management of mineral resources, particularly regarding production capacity, selling prices, extraction means, and extraction times and locations.

Some businesses have also been found to be in violation, evading state control by creating new access roads to avoid surveillance cameras and removing mining vessel signage.

The Provincial People’s Committee of Đắk Nông has directed specialized agencies to take strict action, enforce discipline, and severely punish violations. They aim to restore order and protect natural resources, preventing hoarding and illegal profiteering.