Vietnam’s Trade Ministry Requests PM’s Approval  on Cambodian Sand Imports to Address 2.3m Cubic Metres Demand

• Sommana Yan
• 25 June 2024
• Local News
• 2816 Views

The Vietnamese Ministry of Industry and Trade has proposed to Prime Minister Phạm Minh Chính to import construction sand from Cambodia to address the country’s annual demand of 2.3 million cubic metres. This recommendation follows a feasibility study indicating Cambodia’s ability to supply sand for Vietnam’s long-term construction needs, as reported by Vietnamnews.vn on 24 June 2024.

The feasibility survey, conducted by two Vietnamese ministries, confirmed that Cambodia’s sand resources are sufficient to meet the future demands of Vietnam’s southern provinces. Currently, Cambodia exports approximately 50,000 to 60,000 cubic metres of sand per day to Vietnam. The Cambodian government supports free-market economic conditions for sand mining, offering certificates of origin for sand resources and ensuring compliance with relevant regulations on sand dredging, transportation, and export.

In its proposal, the Vietnamese Ministry of Industry and Trade recommended that the Ministry of Transport collaborate with other relevant ministries to assess the total demand for sand required by Vietnamese enterprises and contractors. This evaluation will facilitate negotiations with Cambodian companies for sand supply contracts under the regulations of both countries. Currently, Cambodia has granted sand extraction and export licenses to three local companies, with Chaktomuk Cambodia exporting 40,000 to 60,000 cubic metres of sand daily to about 15 to 20 Vietnamese companies. Sok Theara, with over 200 million cubic metres of sand reserves, has not yet exported sand to Vietnam. Global Green Energy supplies around 10,000 cubic metres per day to two to three Vietnamese companies.

In early April, Vietnamese Deputy Prime Minister Trần Hồng Hà chaired a meeting in Ho Chi Minh City to discuss sand supply for the Ho Chi Minh City Ring Road No. 3 project. The Ministry of Transport confirmed that from 2021-2025, 21 major expressway projects are being implemented in the Mekong Delta and southeastern regions, requiring nearly 77 million cubic metres of construction materials, including about 70 million cubic metres of sand. The Ministry of Natural Resources and Environment estimated that the third ring road of Ho Chi Minh City alone will need about 9.3 million cubic metres of sand in 2024, while local sources and existing contracts only cover about 7 million cubic metres, indicating a shortfall of 2.3 million cubic metres.

The Ho Chi Minh City Real Estate Association reported that Cambodia plans to export about 100 million cubic metres of sand annually to Vietnam, which would significantly aid in meeting the construction sector’s demands.

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