The high price of construction materials has become one of the obstacles in accelerating public investment in the province. When comparing, it is clear that project costs have increased too much compared to the time of bidding.
Out of stock, price increase
Perhaps it has been the past 4 years, including the Covid-19 pandemic, that this year's construction season has been as bustling as it should be. At this time, when the April sun is golden, also the peak of the construction season, wherever you go, you can see large and small projects under construction. In a place in the central area of the city like the coastal city of Phan Thiet, many projects have been opened and even though they have not yet been formed, people can still imagine the grandeur of a villa or hotel, restaurant or cafe... In residential areas in the city, in rural areas and even in ethnic minority areas like Ham Can (Ham Thuan Nam)... houses are being rebuilt and repaired here and there as if they are being deployed together. State projects are also at the peak of construction.
In this way, each place contributed a small number of large and small construction projects, causing construction materials to be in high demand, especially soil and sand for foundation filling. The most used construction materials all account for a high proportion in the 2025 plan and are even higher compared to the same period last year. For example, sand and gravel of all kinds, in the first quarter, 236 m³ was used compared to the annual plan of 800 m³; quarried stone was similar with more than 828 m³/3,800 m³ of the annual plan, while in the same period last year it was more than 795 m³. Bricks of all kinds were used 172,118 compared to 170,442 in the same period last year. All of these contributed to bringing the mining industry production index in the first quarter of 2025 to 100.2%, while the annual plan was set at 107.70%, also an increase over the same period last year, when the rate at that time reached 87.30%.
The more we use, the more the price of construction materials tends to increase, even increase dramatically. Because it is currently the peak season and the construction season usually lasts until it rains. This is also the time when the province's key projects are under construction more, so they are facing difficulties due to the high demand and price increase of construction materials. This has also become one of the obstacles in accelerating public investment in the province, when comparing, it is clear that the project cost has increased too much compared to the time of bidding.
Find ways to increase supply
At the meeting to hear the report on the socio-economic situation in the first quarter and deploy tasks for the second quarter of 2025, Director of the Department of Construction Le Ngoc Tien informed that the shortage of construction materials in the province may be due to the fact that some mineral mines have fully exploited their reserves but have not yet closed their mines. Therefore, the department will soon coordinate with relevant departments and district levels to inspect mineral mines in the area. At the same time, it will also inspect construction material businesses that sell products at unusually high prices for handling.
After a period of silence in the construction market, the current hot prices of construction materials, because demand is greater than supply, have shown many positive things in the province. That is the strong recovery of the construction sector after the pandemic, partly reflecting the "health" of the provincial economy as well as that of each family. On the other hand, it also shows that the order in mineral exploitation in general, specifically sand exploitation, has more or less complied with legal regulations.
According to information from the Department of Agriculture and Environment, there are currently 47 construction sand and fill material mines in the province. Specifically, 12 mines are being exploited, including 8 construction sand mines with a total reserve of about 1.9 million m³ with a total exploitation capacity of about 250,000 million m³ per year and 4 fill material mines with a total reserve of about 1.5 million m³, a total exploitation capacity of about 150,000 m³/year; 35 mines are stopped/not exploited, including 11 construction sand mines with a total reserve of about 6.7 million m³ with a total exploitation capacity of about 600,000 m³/year and 24 fill material mines with a total reserve of about 7.7 million m³, a total exploitation capacity of about 960,000 m³/year.
The leaders of the Department of Agriculture and Environment further informed that the mines that are currently suspended and not yet exploited are mainly due to difficulties in the process of implementing land procedures such as having to negotiate compensation and site clearance for land users. In addition, it is also due to having to adjust the investment policy according to the agreed area to carry out land procedures in each phase and some mines have to overcome existing problems before resuming operations. The Department of Agriculture and Environment is coordinating with the Department of Finance and localities to urge and guide units to promptly complete procedures to be eligible to start exploitation operations.
To meet the demand for construction materials, based on the Plan for protection, exploration, exploitation, processing and use of minerals in Binh Thuan province according to the Provincial Planning for the period 2021 - 2030, the Department of Agriculture and Environment has coordinated with localities and relevant agencies to submit to the Provincial People's Committee for approval of the plan to auction mineral exploitation rights for 21 mining areas with a total area of 187 hectares. At the same time, based on the proposals of localities and the approved Planning, the Department of Agriculture and Environment is coordinating with relevant sectors to conduct field surveys and continue to synthesize and submit to the Provincial People's Committee for approval of the plan to auction mineral exploitation rights in 2025 for about 20 areas.
21 mining areas with a total area of 187 hectares will be auctioned in May 2025
Specifically, construction sand in 12 areas with an area of 116.79 hectares; filling materials in 4 areas with an area of 27.83 hectares; construction stone in 4 areas with an area of 32.38 hectares and brick and tile clay in 1 area with an area of 10 hectares. The Department of Agriculture and Environment is synthesizing and submitting to the Provincial People's Committee for approval of the starting price, price step and deposit to organize the auction in May 2025.
HAO CHI - PHOTOGRAPHY BY N. LAN
Source: https://baobinhthuan.com.vn/de-tang-nguon-cung-vat-lieu-xay-dung-thang-may-2025-binh-thuan-to-chuc-dau-gia-21-mo-129370.html
Comment (0)