Three Cambodian enterprises tapped to sell sand to Vietnam

Three Cambodian enterprises — Chaktomuk Campuchia, Sok Theara, and Global Green Energy — have been permitted to supply sand to highway projects in southern Vietnam.

The three companies received licenses from Cambodia’s Ministry of Mines and Energy to extract 1.39 billion tonnes of sand from the Mekong and Bassac Rivers.

Amid a scarcity of resources for highway projects in Vietnam’s southern region, Deputy Prime Minister Tran Hong Ha recently tasked the Ministry of Transport with identifying a solution for addressing backfill material requests.

Ha also instructed the Ministry of Transport to work with the Ministry of Natural Resources and Environment to efficiently oversee the sourcing of backfill materials for each project, ensuring continuous progress on local highways.

He also directed the Ho Chi Minh City People’s Committee, investors, and project owners to study the feasibility of importing sand.

According to the Ministry of Industry and Trade, Cambodia boasts sand reserves in the billions of tonnes, much of which is sourced from the Mekong and Bassac Rivers.

Chaktomuk Campuchia, Sok Theara, and Global Green Energy are currently the three companies permitted by the Cambodian government to mine sand from these two rivers. 

Chaktomuk Campuchia’s permit allows the company to exploit three sand mines in the Mekong River at distances of 18km, 22km, and 45km from the Vinh Xuong Border Gate in Vietnam’s An Giang Province. 

Approximately 680 million cubic meters of sand are stored in these three mines.

Chaktomuk Campuchia currently exports between 40,000 and 60,000 cubic meters of sand per day to a customer base of 15-20 Vietnamese enterprises.

Similarly, Global Green Energy, which was granted licenses to exploit mines with potential reserves of over 500 million cubic meters of sand, sells about 10,000 cubic meters per day to 2-3 Vietnamese businesses.

Although Sok Theara has been authorized to extract from a mine with over 200 million cubic meters of reserves, the company has not yet exported to Vietnam.

Buoy No. 0 at the Vinh Xuong International River Border Gate is the primary hub for the sand trade between Vietnam and Cambodia.

Cambodian enterprises have exported approximately 23.6 million tonnes of sand to Vietnam since 2021.

According to the Vietnamese Ministry of Industry and Trade, Cambodia’s sand reserves are sufficient to supply the short- and long-term demands of Vietnam’s southern region.

Sand scarcity

The Ministry of Natural Resources and Environment reports that the Ring Road 3 project will require approximately 9.3 million cubic meters of sand, with around six million cubic meters needed for work packages scheduled for completion in 2024.

Domestic companies have already been committed to providing seven million cubic meters of the needed sand.

The eastern North-South Expressway project, linking Can Tho City and Ca Mau Province in the Mekong Delta, will need approximately 19 million cubic meters of sand for fill materials.

According to the Ministry of Natural Resources and Environment, the provinces of An Giang, Dong Thap, and Vinh Long have been committed to supplying around 16 million cubic meters, leaving a shortfall of three million cubic meters.

The first segment of the highway, stretching from Chau Doc to Can Tho to Soc Trang, is expected to require 9.3 million cubic meters of sand.

Currently, 5.9 million cubic meters have been pledged, resulting in a deficit of 3.4 million cubic meters.

Similarly, for component two, which passes through Can Tho, 5.3 million cubic meters of sand are still needed.

Component three, traversing Hau Giang, will require six million cubic meters, with 3.4 million cubic meters yet to be sourced.

In contrast, component four has met its demand of approximately 7.5 million cubic meters of sand.

The Cao Lanh-An Huu expressway project will need around 3.5 million cubic meters of sand, with three million cubic meters already committed, leaving a shortfall of 0.5 million cubic meters.

For the My An-Cao Lanh expressway project in Dong Thap Province, the provincial administration has pledged to provide sufficient sand for it.

By Kim Thoa & Bao Ngoc – Tuoi Tre News – June 24, 2024