As of early June 2025, Thanh Hoa province in Vietnam faces a critical shortage of construction sand, with only one active sand mine remaining operational. Located in Yen Dinh district, this lone mine has a modest capacity of 15,000 cubic meters per year, representing a mere 1.78% of the total licensed extraction capacity of the province. This alarming scarcity is causing serious delays in the construction of infrastructure and residential projects across the region.
The Department of Agriculture and Environment in Thanh Hoa reports that the province holds 30 sand mining licenses. Out of these, 28 are still valid for extracting ordinary construction materials, with a combined authorized capacity of approximately 842,000 cubic meters annually. However, two mines recently had their licenses expire in April 2025, further reducing active operations.
Despite this substantial licensed capacity, only the Yen Dinh mine remains active. The other mines have ceased operations for a variety of reasons. Some are halted because their vessels have not passed the mandatory inspections required by law, while others have yet to complete necessary land lease agreements, rendering them ineligible to mine. Additionally, several mines are temporarily suspended as authorities conduct measurements to verify mineral reserves and assess risks of riverbank erosion, which could pose environmental hazards.
Compounding these operational challenges, some mine owners are currently under police investigation for legal violations related to mineral exploitation. These investigations have led to the suspension of their mining activities, contributing to the overall scarcity.
The scarcity of construction sand has sent shockwaves through the local economy. Since the start of 2025, prices for construction materials such as soil, stone, and especially sand have surged continuously. Following the arrests of several mine operators by law enforcement agencies, the price of sand skyrocketed. Currently, the cost for one cubic meter of sand used in concrete mixing hovers around 800,000 Vietnamese dong, a sharp increase compared to previous rates.
Previously, when sand prices in Thanh Hoa climbed, residents and construction businesses turned to neighboring Nghe An province to source sand at roughly 500,000 dong per cubic meter. However, this alternative was short-lived, as sand prices in Nghe An eventually rose as well, eliminating the option of importing cheaper sand from nearby provinces.
The shortage has become so severe that some construction companies warn that even with sufficient funds, obtaining sand will soon be impossible. This bottleneck threatens to stall vital infrastructure projects and residential developments, impacting the province’s growth and economic stability.
In response to this crisis, Thanh Hoa's Provincial People's Committee convened a meeting to address the difficulties and obstacles faced by the mineral extraction sector. Representatives from local authorities and mining businesses voiced their concerns and proposed solutions to mitigate the crisis.
One key proposal from businesses is to allow the continued use of older mining vessels temporarily. Many enterprises are currently in the process of modifying or commissioning new vessels to comply with registration and inspection regulations. However, this process can take anywhere from four months to a year. Permitting the use of existing equipment within licensed boundaries during this transition period would help maintain some level of mining activity.
Phó Chủ tịch (Vice Chairman) of the Provincial People's Committee, Lê Đức Giang, has taken a proactive stance on the issue. He tasked the Provincial People's Committee Office with compiling a comprehensive report on the current state of construction sand mining in the province. This report will be submitted to the Standing Committee of the Provincial People's Committee as a basis for further action.
Furthermore, the Department of Agriculture and Environment has been instructed to collaborate with the Department of Construction to organize a delegation to visit neighboring provinces. The goal is to study their experiences and best practices in managing and exploiting mineral resources effectively and sustainably. This knowledge exchange aims to inform better policies and operational strategies in Thanh Hoa.
In addition, the relevant departments have been directed to prepare detailed reports to support upcoming meetings of the Provincial People's Committee Standing Committee. These sessions will focus on continuing to resolve challenges faced by businesses in mineral extraction, including speeding up administrative procedures.
Specifically, for enterprises requesting an increase in mine capacity or those that have yet to finalize land lease agreements, the Department of Agriculture and Environment is coordinating with other governmental bodies to expedite these processes. The objective is to provide legal and procedural support to mining businesses, ensuring compliance while facilitating their operations.
This multi-pronged approach reflects the province’s urgent need to address the construction sand shortage. The combination of regulatory enforcement, environmental safeguards, and efforts to streamline business operations demonstrates Thanh Hoa’s commitment to resolving this critical issue.
However, the situation remains precarious. With only a fraction of licensed capacity currently active and prices soaring, the province faces significant hurdles ahead. The outcome of these initiatives and the ability to restore a stable supply of construction sand will be crucial for maintaining the momentum of Thanh Hoa’s infrastructure development and economic growth.
