Reason why businesses in Quang Ngai ask to return sand mines

Quang Ngai is one of the localities with the largest reserves of construction sand in the country. However, the current price of sand is high, ranging from 350,000 - 400,000 VND/m³. Particularly in Ly Son island district, the price of sand is much higher than on the mainland due to high transportation costs. With this price, many individuals and organizations in need of buying construction sand are "distorted" because the projects are all over budget.

Speaking to reporters, Mr. Nguyen Thanh Quy, in Tinh An Tay commune, Quang Ngai city, said: “I am building a house and need to buy about 80 cubic meters of sand. Currently, the price of sand transported to the house is about 350,000 VND/m3, plus many other costs, so it costs about 30 million VND. Not only sand, but the price of gravel has also increased like sand. 4 years ago, the price of sand was only 90,000 VND/m3. Almost all prices have increased, but Quang Ngai province has a very large reserve of construction sand, but the price is still increasing rapidly, causing a lot of damage to people who need to buy sand.”

Large sand reserves in Quang Ngai province are concentrated in the Tra Khuc River. Photo: Vien Nguyen

Sand prices are high, but many businesses in Quang Ngai are asking to return sand mines, cancel bid results, and make recommendations on the price for calculating resource tax in 2024 in Quang Ngai province.

According to Mr. Nguyen Van Hien - Director of Dong Khanh Construction Company Limited, the company has submitted a request to the People's Committee of Quang Ngai province and the Department of Natural Resources and Environment of Quang Ngai province to return the Truong Xuan and Tho Loc sand mines in Tinh Ha commune, Son Tinh district, Quang Ngai province. According to Mr. Hien, the company was recognized as the winner of the auction for sand exploitation rights at the sand mines in Truong Xuan and Tho Loc villages. Up to now, the company has completed the related work to complete the application for a mining license. According to the decision dated December 20, 2023 of the People's Committee of Quang Ngai province on promulgating the price list for calculating resource tax in 2023 in the province, the price of sand for calculating resource tax is calculated at 150,000 VND/m³ and the auction winning price for mineral exploitation rights is over 26.1 billion VND.

However, after completing the procedures to submit the mining license application, on December 22, 2023, the People's Committee of Quang Ngai province issued Decision No. 53/2023/QD-UBND on promulgating the price list for calculating resource tax in 2024, accordingly, the price of sand for calculating resource tax increased to 230,000 VND/m³. According to Mr. Hien, with the price for calculating sand resource tax at 150,000 VND/m³, it was difficult to make a profit. When the price of sand for calculating resource tax increased to 230,000 VND/m³, the total investment of the project increased to over 40 billion VND, affecting the investment capital of the enterprise, the business plan and the economic efficiency of the project. Therefore, Dong Khanh Construction Company Limited would like to return the sand mines in Truong Xuan and Tho Loc villages.

Regarding enterprises requesting to cancel the bidding results and requesting to implement according to the 2023 resource tax calculation price, Mr. Tran Hoang Tuan - Standing Vice Chairman of Quang Ngai Provincial People's Committee has directed the units to resolve the issue. Accordingly, Quang Ngai Provincial People's Committee does not accept the request of enterprises requesting to implement according to the 2023 resource tax calculation price, but must strictly fulfill financial obligations as announced by the Quang Ngai Provincial Tax Department. At the same time, assign the Department of Natural Resources and Environment of Quang Ngai province to study effective solutions to overcome the situation where enterprises request to cancel the auction results after completing the auction, causing the risk of imbalance in supply and demand of construction materials in the area.

Source: https://laodong.vn/kinh-doanh/ly-do-doanh-nghiep-o-quang-ngai-xin-tra-lai-mo-cat-1383332.ldo