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Sand price hike: Business pressure, people's burden

No construction project can be completed without sand. Therefore, when sand prices increase too much and supply is interrupted, a series of public investment projects and civil works in Hanoi fall into a difficult situation, and the disbursement of public investment capital is severely affected.

Hà Nội MớiHà Nội Mới22/07/2025

Therefore, untangling the sand market is not simply a matter of stabilizing supply but is an important task in the sustainable development strategy. A number of effective solutions are being vigorously implemented by the Government, Hanoi City and other relevant agencies...

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Thanh Thuy 2 Industrial Cluster (Tam Hung Commune) had to stop construction due to lack of construction sand. Photo: Do Phong

Government and city take action soon

Faced with the complicated developments of the construction materials market, notably the unusual increase in sand prices, the Government has promptly issued drastic instructions and management.

Specifically, on June 10, 2025, the Prime Minister signed Official Dispatch No. 85/CD-TTg on strengthening solutions to manage and stabilize construction material prices. The dispatch clearly stated: Ministries, branches and localities urgently review and assess the demand for construction materials and develop appropriate supply plans. The Government encourages the development of alternative materials such as crushed sand and ash from thermal power plants; closely monitor prices, strictly handle acts of speculation, hoarding and price manipulation; speed up mining licensing procedures, especially for mines that have completed legal procedures but are waiting for approval.

In parallel, Hanoi City also quickly took action. Regarding the case of 3 sand mines winning auctions at 70 times higher than the starting price, the Hanoi People's Committee issued a document directing the Department of Natural Resources and Environment (now the Department of Agriculture and Environment) to urgently handle the matter. In Document No. 10061/VP-TNMT dated August 22, 2024, the city requested a review of the entire auction process, ensuring transparency and publicity, and coordinating with ministries and branches to report to the Prime Minister. In addition, the city requested departments and branches to speed up the licensing process of new sand mines, review the planning of construction materials, ensure balanced supply and demand, legality, and safety, etc.

Towards transparency in the construction materials market

To thoroughly solve the problem of sand prices, towards a transparent and sustainable construction materials market, it is necessary to have synchronous and drastic coordination from many sides. Regarding this, Vice President of the Vietnam Association of Construction Materials Pham Van Bac said that localities need to quickly switch to using crushed sand from rocks, industrial ash, construction waste, etc. to replace natural sand. These materials are not only sustainable but also help treat waste, save resources, protect the environment, etc.

Many businesses and experts have recommended that Hanoi city study the possibility of recycling construction waste and some urban solid waste for use in landfill projects, reducing pressure on landfills and natural sand sources...

One of the important steps forward is the 2024 Law on Geology and Minerals, which officially took effect from July 1, 2025, which has classified sand as a common construction material (except for white silica sand). The law also simplifies some mining licensing procedures - a major institutional step forward, contributing to removing legal "bottlenecks" for localities, including Hanoi city...

Another possible direction is that the city can take advantage of the material resources at river banks, floating beaches... This issue has just been approved by the 16th Hanoi People's Council in the Resolution regulating the form of use and exploitation of agricultural land funds at river banks, floating beaches on diked rivers in Hanoi (implementing Point a, Clause 3, Article 32 of the Capital Law)... Accordingly, agricultural land funds at floating beaches can be exploited legally and strictly controlled. After exploitation, the materials (soil, sand, gravel...) can be used to fill infrastructure works; the remaining area can be renovated to develop ecological agriculture.

Many economic experts also recommend that ministries and branches build a national information portal on material prices that should be updated weekly; publicize all mine auction data, mining output, remaining reserves; connect management systems from the central to local levels for close monitoring... Because when the market is transparent and information is complete, businesses can accurately estimate costs. On the other hand, when the material market in general and sand in particular are cleared, public investment will be favorable, project progress will be guaranteed, creating more jobs, stimulating consumption, and promoting GDP growth.

It can be seen that to fundamentally solve the problem of sand prices, it is necessary to converge the following factors: Strong institutions with clear laws, fast licensing process, strict supervision; transparent and public market, legal supply, fair mine auctions; sustainable thinking in investing in alternative materials, taking advantage of local resources, reducing pressure on natural sand exploitation... Only when these factors are operated synchronously, scientifically, strictly, then the construction materials market in general, and sand in particular, will return to stability...

Source: https://hanoimoi.vn/gia-cat-leo-thang-ap-luc-doanh-nghiep-ganh-nang-dan-sinh-bai-3-go-nut-that-kien-tao-phat-trien-ben-vung-710074.html


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