Da Nang removes the "bottleneck" regarding construction materials.

Rising construction material prices and numerous shortcomings in the mineral exploitation rights auction process are causing difficulties for many businesses. Da Nang City is resolutely working to resolve these issues.

Construction material prices in Da Nang are soaring, putting considerable pressure on construction businesses.

According to Mr. Tran Xuan Dinh, Vice Chairman of the Vietnam Association of Building Materials, construction material businesses and investors in Da Nang City are facing many difficulties due to soaring material prices. The price of sand has now reached nearly 1 million VND/m³, while the price of fill soil is also around 280,000 VND/m³.

According to Mr. Dinh, this situation, if prolonged, will lead to the risk of cost overruns and construction delays. The leaders of Da Nang City need a mechanism to manage construction material quarries and determine input prices according to local price frameworks. “Input prices should be fixed according to local price frameworks. Currently, many units are pushing bidding prices too high, making it difficult for businesses to operate,” Mr. Dinh suggested.

Meanwhile, Mr. Phan Ngoc Minh, Vice Chairman of the Da Nang City Business Association, stated that the auctioning of mineral exploitation rights still has many shortcomings. Accordingly, the winning bidder must pay 50% of the winning bid value within 6 months to demonstrate financial capacity; after 12 months, they must complete all related procedures. However, many cases are delayed due to procedural obstacles.

According to Mr. Minh, if businesses fail to complete the procedures within the stipulated timeframe, the auction results should be revoked; at the same time, a condition should be added requiring participating bidders to have a production facility or project that uses the raw material to ensure supply for production, preventing speculation or auctions that are not implemented.

Mr. Pham Nam Son, Director of the Department of Agriculture and Environment of Da Nang City, said that the city is reviewing and replanning all mineral mines. Previously, the city had organized auctions for mining rights in many mineral areas, and currently more than 8 areas are under consideration.

"According to the new regulations, the city can apply an auction mechanism for each group of mines to serve key projects. However, in reality, many problems have arisen, especially the issue of excessively high bids in mineral auctions," Mr. Son said.

According to representatives from the Department of Agriculture and Environment, there have been cases where the starting price was only about 20%, but during the auction it increased hundreds of times, while the initial financial capacity demonstrated was not commensurate. This is considered a major shortcoming of the current auction regulations. The Department of Agriculture and Environment has reported this to the Da Nang City People's Committee and is working with relevant agencies to resolve the issue and propose amendments to the legal regulations on mineral auctions.

The Department of Agriculture and Environment stated that it is accelerating procedures for granting permits for mineral exploration and exploitation, strengthening inter-agency coordination, and applying information technology to shorten processing times. However, the granting of permits must still strictly adhere to requirements regarding reserve assessment, environmental protection, exploitation design, and the financial capacity of enterprises, as stipulated by law.

"The view is that we will not relax management for the sake of speed, but we will maximize support and guidance for businesses to complete their applications so that they can be licensed as soon as possible," a representative from the Department of Agriculture and Environment said.

In addition, some businesses have reported that the published prices of construction materials are often delayed and do not accurately reflect market realities (especially steel, cement, sand, stone, etc.), leading to inaccurate project estimates and final accounts, causing difficulties for investors and contractors.

Regarding this matter, the Da Nang City Department of Construction stated that for many years, the agency has consistently complied with the regulations on publishing construction material prices within the prescribed timeframe. At certain times, following the merger of administrative units, the publication was delayed due to the need to review and synchronize data, but it has since been carried out consistently and on schedule.

Source: https://baodautu.vn/da-nang-go-nut-that-ve-vat-lieu-xay-dung-d601173.html