http://english.vietnamnet.vn/reports/2009/08/865153/
VietNamNet
Bridge, 24 Aug 2009
Singapore demand and phony contracts
sustain booming Mekong sand exports[
VietNamNet Bridge –
The volume of sand exported to Singapore from Vietnam’s Mekong
Delta in the first half of 2009 was equivalent to the total exports
of the last ten years. Ironically, most of it is shipped under
falsely backdated contracts.
The many channels of the Mekong river are filled with sand dredging
barges. Though the area has long supplied building sand to the Ho
Chi Minh City region, its sand export business has not been
considerable until now.
The Customs Office of Can Tho City reported that the volume of sand
exported in the January-June period of 2009 rose dramatically to
nearly 7 million tones, as much as was exported during the previous
ten years.
The surge in exports was stimulated by Cambodia’s decision to ban
further exports of its own river sand in order to reserve it for
domestic use and limit further erosion of river banks.
Prior to May, while Cambodia still allowed sand exports, sand from
Vietnam’s Mekong Delta was not favoured because it is of lower
quality than Cambodian river sand.
Now,
with the demand for sand by Singapore and some other countries in
the region still on the rise, Vietnamese companies have lept at the
opportunity to export this natural resource to
Singapore, reports Tuoi Tre newspaper.
Nguyen The Hung, manager of a sand exploitation enterprise in Can
Tho city, said that before Cambodia closed down sand exports, the
prices for sand in the Mekong Delta were quite stable, from 15,000
to 17,000 per a cubic meter. Now, the prices are 25,000 to 30,000
per a cubic meter.
Cambodia
exported its high grade sand to Singapore at the price of 90,000
dong per cubic meter. Currently, Vietnamese firms ship sand to
Singapore for 40,000 dong per cubic meter. However, the profit from
sand is still big because exporters can purchase sand at only
15,000-17,000 dong per cubic meter.
Vu Duc Hung of the River Police Bureau in Can Tho City said that
since Cambodia banned sand exports, hundreds of sand barges travel
on local rivers while sand ships of 10,000 tons or more anchor at
Tra Noc and Cai Cui every day to take aboard sand from the barges.
Each day around ten ships leave Vietnam, each carrying hundreds of
thousands of cubic meters of sand.
Ironically, the booming
sand export business is in patent violation of the intent of
Vietnamese law. Prime Ministerial Instruction
No. 29, issued in October 2008, established a temporary ban on
Vietnam’s own exports of sand and gravel exploited from rivers and
seas.
There was a huge loophole, however, exports could continue
indefinitely under contracts signed before November 30, 2008. Based
on this clause, sand is still exported to Singapore.
The deputy head of the Can Tho Customs Office, Nguyen Minh Thong,
said that the the total volume of sand for export committed in
contracts signed before November 30 2008 reaches tens of millions
of cubic meters.
“Lured by virtually
unlimited profits,” Thong said, “sand exporters change the date of
signing contracts to before November 30 2008 to continue exporting
sand.” The customs official added that his
office is not responsible for controlling these contracts.”
Thong said that because sand is a limited natural resource, the
government should study the matter and establish a sand
exploitation plan. He said the Can Tho authorities have proposed
the Prime Minister to reconsider the instruction on sand
export.
VietNamNet/Tuoi Tre
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