Chaos in the construction sand market.

Article 1: Home builders face difficulties due to soaring sand prices.

Unfinished construction projects, coupled with the skyrocketing price of construction sand, have put both residents and businesses in a difficult, dilemma.

Mr. Do Tuan Vu's house, located in Tran Phu village, Noong Het commune, Dien Bien district, is under construction with sand priced at 550,000 VND per cubic meter.

"Making a face" because of house construction

Recently, residents in Dien Bien Phu City and Dien Bien District have continuously complained about the price of construction materials, especially the skyrocketing price of sand, making house construction and renovation difficult. Many families who were planning to build houses have had to reconsider their plans. Some families with limited financial resources have even had to change their construction plans, facing the risk of interruption or suspension, due to costs exceeding initial estimates many times over.

Although planning to build a house began in mid-2023, Mr. Tran Van Khu's family in Muong Thanh ward, Dien Bien Phu city, only officially started construction in June 2024. Mr. Khu stated that, according to initial estimates, the completed house would require approximately 150 ^{cubic meters} of sand, with a surveyed price at that time of 200,000 VND per cubic meter. Based on this, he had calculated, balanced, and prepared the necessary funds to ensure the house was ready for construction.

“In June, when construction began, the price of sand delivered to the construction site increased slightly to 250,000 VND/cubic meter. However, by the end of October, the supplier quoted a price of 500,000 VND/cubic meter. At the beginning of November, I bought 4 truckloads (total 28 ^{cubic meters} ) for 520,000 VND/cubic meter. Seeing the price increase so rapidly, I questioned it, and the seller replied that sand bought at the quarry now costs 400,000 VND/cubic meter. Luckily, my house is in the finishing stages, and I estimate I'll need about 20 cubic ^meters more before it's completed, so I'm still trying to manage, otherwise it would be extremely difficult,” Mr. Khu lamented.

The skyrocketing price of sand is causing difficulties for many families who are building houses.

Next to Mr. Khu's house is the house of his sister, Ms. Tran Thi Thuan, whose foundation has also just been completed. Although the family has signed a contract with the construction company, Ms. Thuan remains worried and restless due to the recent "surge" in sand prices. "Every few days we hear about a different sand price. It's doubled compared to the beginning of the year, and we don't know if it will continue to rise because there's no sign of it stopping. At this rate, house builders like us will face great difficulties," Ms. Thuan expressed.

Even more unfortunate is the situation of Mr. Lo Manh Quan's family in Thanh Yen commune (Dien Bien district). Facing economic hardship, after many years of working as laborers, he and his wife finally saved a small amount of money, plus money borrowed from relatives, to decide to build a small house to shelter them from the rain and sun. However, the construction project coincided with a period of constantly fluctuating sand prices, leaving the young couple with nothing but despair.

“When building the house, I calculated the price of sand to be around 200-250 thousand VND per cubic meter, but now it has doubled, resulting in huge unexpected costs that I can't keep up with. Currently, the house is basically finished with the walls, but the roof hasn't been poured yet. However, with this situation, I risk having to temporarily stop construction and wait to see if the price of sand decreases before I can proceed,” said Mr. Quan.

Businesses are also struggling.

Thanks to having signed contracts for most items from the start of construction, many families were fortunate not to be affected by the recent increase in sand prices. However, this has been a "fatal blow" for many contractors and businesses who signed contracts based on the prevailing construction material prices at that time. The increase in sand prices has led to an increase in the prices of related materials, such as ready-mix concrete, pipes, piles, etc. Many businesses operating in the construction sector, especially small businesses, are facing difficulties. Many contractors are in a dilemma: continuing construction means facing losses, while stopping would cause delays.

For lump-sum contracts, unit prices are fixed. When the raw material market fluctuates, especially with increases like the current price of sand, businesses face the risk of losses. Even with contracts that allow price adjustments, it's difficult to guarantee compliance. This is because when making payments, the investor only relies on the price announcements from relevant authorities at the same time, and adjustments are also based on surveys and decisions made by these agencies.

Not only the people, but also some businesses are currently facing difficulties and are only operating at a reduced capacity as sand prices continue to rise.

Sharing about these difficulties, Ms. Ta Thi Nga, accountant at Muong Thanh Investment and Construction Joint Stock Company, said: Basically, the construction projects the company undertakes are supposed to apply a sand material price of 200,000 - 300,000 VND/cubic meter. However, in reality, the company is currently having to buy sand at the lowest price of 400,000 VND/cubic meter; even plastering sand costs nearly 700,000 VND/cubic meter. This sudden increase has affected and disrupted some projects, forcing the company to operate at a reduced capacity.

"This means we're under pressure regarding deadlines and face the risk of not being able to complete the project as planned. But if we continue importing materials and working on it, we'll definitely incur losses because we can't settle the expenses incurred due to this price increase. Some units might be able to hold on, but only on small projects, with limited quantities and for a short period, because it's not sustainable in the long run," Ms. Nga said.

This situation has led many to question the reasons behind the recent surge in sand prices. And what solutions are needed to avoid long-term negative consequences for both individuals and businesses?

Lesson 2: Discrepancies between Published Prices and Market Prices

Source: https://baodienbienphu.com.vn/tin-uc/kinh-te/219284/roi-ren-thi-truong-cat-xay-dung