Vietnam's Quang Nam province faces soaring sand prices amid auction frenzy

Vietnam's Quang Nam province is facing a sharp rise in construction sand prices driven by supply shortages and sky-high auction bids for mineral exploitation rights.

In a June 25 auction, a sand mine in Duy Xuyen district holding nearly 197,000 cubic meters of reserves was sold for over Dong 138 billion, despite a starting price of just Dong 1.8 billion. This is an approximately 76-fold increase, translating to more than Dong 700,000/cu m in mineral rights costs alone, excluding taxes and fees.

Similar trends were seen in Dai Loc district, where other sand and gravel mines fetched 64 to 105 times their starting prices. While these auctions were intended to improve transparency and stabilize the market, they appear to be adding further pressure. Current market prices for sand have surged to Dong 600,000–800,000/cu m, straining local contractors and infrastructure projects.

Despite the steep price hikes, some market players believe the impact will remain domestic.

A trader in the cement and clinker market said, "I don't think this will affect international markets—most sand exports are to Singapore, and pricing isn't particularly attractive." A China-based trader added, "This situation shouldn't have any significant impact on the concrete."

Quang Nam is a major supplier to both the local market and Da Nang City, yet many licensed mines are still awaiting re-approval. In response, the government is reviewing all reserves, urging faster licensing, proposing exemptions for small-scale use, and considering AI monitoring to speed up operations and improve oversight.