The price of sand transported to the construction site is only about 100,000 VND/ m3.
After the news that Hanoi City auctioned 3 sand mines and earned nearly 1,700 billion VND, according to Thanh Nien 's survey, the price of black sand used as construction material along the Red River in Hanoi and neighboring provinces for many years and now is only about 100,000 VND/ m3 , including transportation costs to the construction site.
Sand carrier on the Red River near Thang Long Bridge
However, the auction results of 3 sand mines in Hanoi reached nearly 1,700 billion VND, making many people "fall backwards". Specifically, the auction started at 9:00 a.m. on November 5, lasted until the morning of November 6, through many rounds, pushing the winning price up dozens, even hundreds of times higher than the starting price.
Lien Mac sand mine located in Thuong Cat and Lien Mac wards (Bac Tu Liem District) has a sand reserve licensed for exploitation of nearly 510,000 m3 , starting price of more than 2 billion VND, the auction price is 103 million VND. After 53 rounds of auction, the winning bid was up to nearly 410 billion VND, nearly 200 times higher than the starting price. The winning bidder is KSP Investment Trading Service Company Limited, headquartered at 94 Tran Dang Ninh, Phu La Ward, Ha Dong District, Hanoi.
According to calculations, the average price of each cubic meter of sand remaining at this mine is about 800,000 VND, nearly 8 times higher than the price of the same type of sand transported to the foot of the construction site.
Chau Son sand mine in Chau Son commune (Ba Vi district) has a reserve of sand with mining rights of more than 700,000 m3 , starting price of nearly 2.9 billion VND, the auction price is 144 million VND. After 89 rounds of auction, the winning unit won the auction with a result of nearly 400 billion VND, more than 137 times the starting price.
The enterprise that won the auction for the right to exploit Chau Son sand mine is Viet Son Investment and Trade Joint Stock Company. According to the business registration, this company is headquartered at Lot BT 5 - OBT07, Nam Vo Cuong urban area, Ly Thanh Tong street, Vo Cuong ward, Bac Ninh city, Bac Ninh province.
Thus, the price of each cubic meter of sand remaining at the mine is over 570,000 VND, about 5 times higher than the current price of sand at the foot of the construction site.
A sand gathering place after being dredged from the Red River in Bac Tu Liem District.
The winner of the auction for the right to exploit the Tay Dang - Minh Chau sand mine is Phuc Loc Thinh Trading Company Limited, headquartered in Van Nghe village, Mai Dong commune, Kim Dong district, Hung Yen province. The Tay Dang - Minh Chau sand mine is located in Minh Chau, Chu Minh communes and Tay Dang town with a reserve of nearly 5 million m3 , the starting price is over 19.2 billion VND, the auction step is 965 million VND. After 21 rounds, by the early morning of November 6, the winning bidder was determined with a result of up to nearly 884 billion VND, nearly 46 times higher than the starting price.
The price of each cubic meter of sand at this mine is over 170,000 VND, nearly twice as high as the current price of sand at the foot of the construction site. Notably, if all costs are calculated correctly and fully: exploitation, transportation... the price of commercial sand from the 3 sand mines mentioned above will certainly be even higher.
Need to clarify unusual signs
Mr. Tong Van Nga, Chairman of the Vietnam Association of Building Materials (VAMB), said he was very surprised with the auction results of the three sand mines mentioned above.
Mr. Nga said that in the past and present, the real estate market and construction market have frozen, the demand for construction materials has also decreased sharply, but the auction of 3 sand mines has pushed the price up so high, which is unusual.
"In the short and medium term, the demand for sand is not too great. In the entire Red River Delta, the area near the three sand mines above has only Ring Road 4 as a major project, with a high demand for embankment materials that is being vigorously implemented. However, according to the standards, norms, and unit prices applied to projects using state budget capital, it is impossible to buy sand at such a high price. Not to mention, the current price of sand in the area is only around 100,000 VND/ m3 , so no one would be foolish enough to spend money to buy sand at the mine at such an exorbitant price," said Mr. Nga.
It is necessary to review the reserves of sand mines put up for auction and closely monitor the exploitation of this resource.
According to Mr. Nga, the relevant authorities need to review the entire process of surveying, preparing documents, organizing auctions... Pay special attention to the survey and assessment of sand mine reserves to see if the volume offered for auction is correct or more. Another issue that needs attention is whether the location and boundary coordinates of the sand mine are in the correct area?
"The flow of the Red River is very strong. If the sand mine boundary coordinates are accidentally or intentionally marked differently, the volume of sand sucked from the riverbed will change a lot. The layer of sand sucked from the riverbed will be quickly deposited by the flow and businesses can return to exploit at that exact point in a short time. Not to mention, if the monitoring mechanism is not strict, it will create loopholes for businesses to falsify the volume of exploitation. Businesses that have decided to participate in the auction of sand mining rights must be very knowledgeable about this type of resource and the construction materials market. There is no way they would foolishly pay such a high price," said Mr. Nga.
Some other experts commented that the police should investigate why the auction results of the three sand mines were unusually high, which is beyond the rules of the construction materials market. It is not necessarily good that the resources put up for auction had high results, and the State earned a lot of money.
Mr. Nguyen Van Trong (40 years old), director of a civil and traffic construction company in Hanoi, said that the results of the auction of 3 sand mines will soon have an impact on the construction materials market in the direction of pushing up prices. People will be the direct subjects to bear this increased cost. Thus, it will be more difficult for poor households to access housing.
According to Mr. Trong, we need to be vigilant against businesses that try at all costs to win the auction for the right to exploit sand mines, taking advantage of mining licenses to do other shady things. Therefore, it is necessary to closely monitor the process of exploiting the above-mentioned sand mines, from the stage of pumping sand from the river, transporting it for distribution, paying resource tax, invoices, documents, etc.
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